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Target Healthcare REIT says demand remains "encouraging"

2nd Aug 2023 10:02

(Alliance News) - Target Healthcare REIT PLC on Wednesday said its portfolio value had edged higher quarter-on-quarter and noted that demand for places in its homes remains "encouraging."

Target Healthcare REIT is a real estate investment trust focused on care homes in the UK.

The company reported an EPRA net tangible assets per share of 104.5 pence as at June 30, up from 103.4p as at March 31. Target Healthcare said this increased reflected a like-for-like valuation uplift driven by inflation-linked rent reviews.

Target Healthcare's portfolio was valued at GBP868.7 million at June 30, up from GBP855.7 million at March 31. This represented a like-for-like valuation increase of 0.9%.

Target Healthcare's total net asset value return for the quarter ended June 30 was 2.4%.

Rent collection in the quarter was 99%, improved from 97% in the quarter ended March 31.

"The return to near-full rent collection and the stability of our portfolio valuation is consistent with our investment thesis - that modern, purpose-built care homes will provide compelling long-term returns. Demand for places in our homes remains encouraging, as reported by our tenants, and is demonstrated by growing weekly fee rates and improving rent covers/profitability. Resident occupancy across our portfolio continues to recover towards pre-pandemic levels," said Target Fund Managers Chief Executive Kenneth MacKenzie.

Target Healthcare declared a fourth interim dividend of 1.40p, unchanged from the company's its third interim payout.

Shares in the firm were down 1.9% at 72.00p on Wednesday morning in London.

By Heather Rydings, Alliance News senior economics reporter

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