5th Mar 2019 12:36
LONDON (Alliance News) - Target Healthcare REIT Ltd said Tuesday its assets increased in the six months to the end of December as it rasied its interim payout.
Target Healthcare's EPRA NAV per share at December 31 stood at 106.9 pence compared to 105.7p at June 30, a rise of 1.1%.
The UK care home investor's net assets increased 15% in the same six-month period to GBP411.4 million from GBP358.6 million. During the period, Target Healthcare issued 45.9 million shares in an equity placing, raising GBP50 million.
Target Healthcare's EPRA NAV total return in the period was 4.2%, with the real estate investment trust recording a 5.7% total return in the same period in 2017.
The company declared an interim dividend of 3.2895 pence, up 2.0% from the 3.225p distributed in the first half of 2017.
Target Healthcare's loan-to-value, based on gross debt, decreased to 15.3% from 17.1% at June 30. Based on net debt, the company's loan-to-value increased to 9.1% from 6.4%.
"Consistent with our belief in the medium to long-term future undersupply of the type of home we invest in, we agreed during the period to acquire four new development assets, two operating assets and signed an agreement to acquire a home at construction completion. These further complement our existing diversification by tenant, geography and end-user payment profile. The long-term, stable nature of the returns anticipated from our portfolio, when allied with the group's revised fee arrangements and flexible capital structure, should enhance earnings and allow the group to fully cover the progressive dividend it anticipates delivering to shareholders," said Chair Malcolm Naish.
Target Healthcare's total portfolio value increased 20% to GBP464 million on December 31 from GBP386 million at June 30. Like-for-like, the company's portfolio value increased 2.8%. The investor's portfolio includes 61 assets.
Contractual rent increased 7.9% to GBP28.0 million with a like-for-like increase of 1.3% in portfolio passing rent.
Target Healthcare's weighted average unexpired lease term remained steady at 28.5 years.
Shares in Target Healthcare were up 0.2% Tuesday at 115.70 pence each.
Related Shares:
Target Healthc.