2nd Oct 2015 08:07
LONDON (Alliance News) - Target Healthcare REIT Ltd on Friday reported a rise in its net asset value total return in its recently-ended financial year and said that it has a strong investment pipeline which will be accretive to shareholder value.
Target, which invests in UK care homes, said that its total NAV return in the year ended June 30 rose 10.3%, higher than the 3.5% rise it posted the year before.
It said that its portfolio increased in value by 6% as a result of trading performance and rental increases at individual assets, and that its portfolio expanded to 28 quality care home assets in the year.
"Economic uncertainty over interest rates and Chinese growth will continue to impact sentiment and pricing in the investment market. Additionally, the care sector in the UK is facing headwinds from: introduction of the living wage, which will increase the cost of providing care; uncertainty over government funding of care, and; a stronger regulatory regime," Chairman Malcolm Naish said in a statement.
"That said, the underlying fundamentals of population demographics and supply/demand imbalance of quality UK care home stock are compelling," he added.
"I am pleased to confirm that our investment manager has a strong investment pipeline in our core regional mid-market, leaving the group on course to complete acquisitions which are accretive to shareholder value," Naish said.
Shares in Target were trading down 0.7% at 112.25 pence Friday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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