28th Feb 2014 10:32
LONDON (Alliance News) - Target Healthcare REIT Ltd Friday said it is targeting further acquisitions after a successful year which saw it raise GBP95.7 million from investors since listing in March and become a real estate investment trust in June.
The company, which invests in UK care homes and other healthcare assets, said it had a net asset value per share of 95.9 pence on December 31, 2013, compared to its share price on the same day of 105.0p.
It posted a pretax loss of GBP789,000 for the period January 22 to December 31 on revenue of GBP3.2 million. The loss resulted from a GBP2.4 million capital loss on the purchase cost of ten care homes, which have since generated rental revenue of GBP2.3 million, Target Healthcare said. This capital loss was offset by revenue profit of GBP1.6 million, it said.
The company acquired the care home assets, which are located in Scotland, the North of England and the Midlands, for GBP49.2 million. The properties are let on long-term leases and have three well-established care operators as tenants.
On December 31, the company had cash balances of approximately GBP45.4 million, plus the portfolio of 10 care homes, now valued at GBP46.9 million. The REIT said it acquired a further care home for about GBP4.3 million in January. Its cash balance has decreased to GBP40.1 million as of the end of February.
"With one further care home acquisition completed during January 2014 and a strong investment pipeline of both single and multi-asset acquisitions, the board remains confident of being able to add additional high quality assets to the portfolio," Chairman Malcolm Naish said in a statement.
"In this regard, the company is currently in advanced, non-binding legal negotiations to acquire a further GBP49.0 million of care home assets," he added.
The company declared a total dividend of 4.96 pence for the period.
The stock was trading at 101.61 pence Friday morning, up 0.14 pence or 0.1%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Target Healthc.