5th Feb 2025 11:31
(Alliance News) - Target Healthcare REIT PLC on Wednesday said it saw consistent growth during the second quarter of its current financial year, and declared its second quarterly dividend.
The real estate investment trust that specialises in care homes said its asset portfolio was valued at GBP924.7 million at December 31, rising 0.9% from GBP916.4 million at September 30.
Contracted rent grew 2.3% during the quarter, the firm said, primarily driven by inflation-linked upwards-only annual rent reviews.
Target Healthcare REIT declared a second interim dividend of 1.47 pence per share, which remained flat on-quarter.
"We are seeing consistent rental growth and continued positive total accounting return performance, supported by tenant profitability and the twin tailwinds of demographic trends and increasing demand for modern, purpose-built, real estate," said Kenneth MacKenzie, chief executive officer of Target Fund Managers.
"The trading outlook across our portfolio remains positive, with tenants privately-funded fee revenues a distinctive and helpful lever in the rising-cost environment following the recent Budget. Rent covers have remained robust, with the September quarter results of 2.0x consistent with previous quarters."
EPRA net tangible assets at December 31 were 112.7p per share, up 0.9% from 111.7p at September 30. This reflected "a like-for-like valuation uplift driven by the portfolio's inflation-linked rent reviews".
The group delivered a net asset value total return of 2.2% for the three months to December 31, unchanged from the first quarter.
MacKenzie added: "Our long-standing and dedicated management team remain ever focused on our core investment strategy of delivering strong investment returns through active and highly-engaged management of our best-in-class portfolio."
Shares in Target Healthcare REIT were up 0.8% at 85.71p in London on Wednesday morning.
By Emily Parsons, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.