1st Aug 2019 16:17
(Alliance News) - Target Healthcare REIT said Thursday its net asset value rose 0.5% quarter-on-quarter.
In the period ended June 30, net asset value per share rose to 107.80 pence from 107.30p in March.
Net asset value total return for the fourth quarter was 2.1%.
The real estate investment trust's operational portfolio increased 0.6% on a like-for-like basis. The portfolio, comprising of 60 operational homes and three pre-let forward fund developments, has a value of GBP500.9 million.
During the period, Target Healthcare said it completed 16 rent reviews, boosting rental income by 2.8% per year. Contractual rent in its 60 operational homes now stands at GBP32.2 million per year after GBP2.3 million was added during the quarter.
The company gained one new tenant during the quarter, taking its total to 24, and it is on track to add two more, Target said. The two new tenants could add an additional GBP2.3 million in contractual rent.
Since the end of June, Target Healthcare had completed two disposals at a price more than 5% above book value. By value, the properties disposed-of represented less than 3% of its portfolio.
Chief Executive Kenneth Mackenzie said: "We continue to shape our portfolio, and further improve its capability to deliver a highly diversified and sustainable income stream, which is the principal objective of our investment strategy.
"The capital that we currently have available, including the proceeds of the disposals, is fully allocated to pipeline opportunities that are in advanced diligence. The ability to issue new shares, pursuant to the placing programme scheduled to be in place once the corporate restructure completes, will provide us with the flexibility to source capital over the next 12 months to fund a further pipeline of assets that we are currently assessing, should they meet our differentiated, strict investment criteria."
Shares in Target Healthcare were up 0.5% at 112.00 pence each in London on Thursday afternoon.
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Target Healthc.