Target Healthcare REIT reports valuation uplift, sees discount narrow

(Alliance News) - Target Healthcare REIT PLC on Friday expressed confidence in the longevity and ...

Alliance News 14 March, 2025 | 9:12AM
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(Alliance News) - Target Healthcare REIT PLC on Friday expressed confidence in the longevity and consistence of its returns as it posted an improvement in EPRA net tangible assets.

The real estate investment trust that specialises in care homes said its EPRA NTA per share rose 1.8% to 112.7 pence for the six months ended December 31, from 110.7p at June 30.

Its portfolio market valuation grew to GBP924.7 million, matching the 1.8% increase as it rose from GBP908.5 million. It credited the uplift in value to a mix of higher capital expenditure and a like-for-like valuation increase.

The trust's portfolio includes 94 properties with 34 tenants, unchanged from 6 months prior.

Target Healthcare's discount to NTA narrowed over the period to 25.5% from 29.1% as its share price increased to 84.0p from 78.5p Its shares were down 0.1% at 90.80 pence on Friday morning in London.

The firm said: "Our share price has been closely correlated with movements in interest rates and our discount to NTA therefore remains persistent as interest rates remain elevated."

Target Healthcare stated that contractual rent improved 3.0% to GBP60.6 million from GBP58.8 million, with like-for-like rental growth up 1.3%.

The firm's dividend per share rose to 2.942p, up 3.0% from 2.456p a year prior.

Looking ahead, Target Healthcare said that the longevity of and consistency of returns is supported by strong underlying trading at the care home level.

Chair Alison Fyfe commented: "Target Healthcare REIT has continued to deliver both consistent property and financial performance, which is a testament to the quality of our business model, portfolio, and management team.

"We have a secure, long-duration income stream which provides compounding growth annually, which is underpinned by a portfolio containing some of the highest quality real estate in the care home sector. The modernity of the portfolio is evidenced by having one of the strongest EPC ratings of any UK listed real estate company."

By Christopher Ward, Alliance News reporter

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Target Healthcare REIT Ord 90.80 GBX -0.11 -

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