8th Nov 2019 12:09
(Alliance News) - Healthcare-focused property investment firm Target Healthcare REIT PLC said Friday its asset have grown over the last three months, whilst it has deployed funds from a recent capital raise to invest in a string of new assets.
At the end of September, net asset value per share rose 0.4% to 107.9 pence on the 107.5p reported three months earlier. Including dividends, total return during the quarter was 2.0%.
"The successful capital raise in September has allowed us to continue the disciplined growth of the portfolio, which is increasingly well-positioned in terms of both scale and diversity and thereby enables our delivery of sustainable, long-term income returns to shareholders," Target Fund Managers Chief Executive Officer Kenneth MacKenzie said.
In September, Target Healthcare raised GBP80 million from an oversubscribed share placing at 110.5 pence per share. The firm had initially targeted a GBP50 million fundraise.
Shares in Target Healthcare were 0.3% higher at 115.12 pence in London on Friday.
"The support and participation of both new and existing shareholders is a strong endorsement of our growth strategy, which continues to be underpinned by the chronic shortage of high quality UK care home rooms, with full en suite wetroom facilities, coupled with an increasingly discerning resident profile and an ageing population," MacKenzie added.
In a separate announcement on Friday, Target Healthcare said it bought eight care homes and 31 retirement apartments across four transactions for a total of GBP81.3 million. The deal will be funded by the recent share fundraise.
Target Fund Managers Investment Head John Flannelly said: "Having completed the successful September fundraising, it is very pleasing to have deployed the proceeds so soon after, in a group of assets that meet our strict investment criteria and at yields that are consistent with previous similar acquisitions."
"At the same time, we are further strengthening the group's relationship with existing tenants whilst delivering continued portfolio diversification, a key focus for the group," Flannelly added.
By Ahren Lester; [email protected]
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