Target Healthcare REIT (THRL)

Business description

Target Healthcare REIT invests in modern, purpose-built residential care homes in the UK let on long leases to high-quality care providers. It selects assets according to local demographics and intends to pay increasing dividends underpinned by structural growth in demand for care.

Stock data

Market cap.£366.4m
Last close108.00p
High / Low (52 weeks)122.5p / 101.5p
Stock market listingLN
Forecast net cash (£m)0
Forecast gearing ratio (%)N/A

Price performance

Relative *(1.1)(0.2)(6.4)

* % Relative to local index

Other companies in sector Show

Company news

Target Healthcare third-quarter NAV up 2.1%

Sun, 01 Apr 2018 09:56:15 GMT

Target Healthcare has the REIT stuff

Mon, 07 Nov 2016 11:23:27 GMT

Target Healthcare REIT Acquires Three Properties For GBP31 Million

Wed, 06 Dec 2017 10:07:30 GMT

Target Healthcare's Net Asset Value And Portfolio Value Both Rise

Wed, 25 Apr 2018 12:33:45 GMT

5 REITs with yields up to 7.5%: Land Securities Group plc, Intu Properties plc ...

Mon, 20 Jun 2016 11:48:45 GMT

Investment summary

Target has published its interim results to end-2017, although the key figures were already known, and it has since substantially increased its debt and equity capital resources to fund further growth. A £94m equity capital raise was recently completed and debt facilities were increased by £40m, providing the capital resources to pursue an immediate investment pipeline of more than £100m, some of which has already been completed; agreement to acquire and fund the development of two new care homes at a cost of £15.6m was announced with the results. The equity raising (at 108p) had no material effect on EPRA NAV per share (104.4p at end-2017) despite expected acquisition costs. Full dividend cover is delayed, but at an assumed 6.25% average yield on investment we expect full cover in FY20, as investments made by the end of FY19 make a full contribution to earnings.

Last updated on 06/04/2018

Y/E Jun Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2016A 16.9 N/A 8.1 5.25 20.6 N/A
2017A 23.6 N/A 12.2 5.23 20.7 N/A
2018E 29.1 N/A 15.9 5.92 18.2 N/A
2019E 36.3 N/A 20.8 6.40 16.9 N/A

Last updated on 28/03/2018

Latest research

Funded for growth opportunities

Update | Property | 16/03/2018

Income growth and growing NAV

Update | Property | 09/11/2017

Careful investment paying dividends

Update | Property | 30/10/2017

Nearing full investment

Update | Property | 01/08/2017

Portfolio growth

Update | Property | 28/04/2017

Care home specialist

Initiation | Property | 20/03/2017

Latest video

Executive interview - Target Healthcare REIT

Industry outlook

The UK population over the age of 85 is expected to increase by 140% from 2014 to 2039, which, combined with a current shortage of high-quality care homes, suggests a strong investment demand in years to come.

Last updated on 06/04/2018

Key management

Kenneth MacKenzie, CEO
Gordon Bland, FD

Company address

Ordnance House
31 Pier Road
St Helier
United Kingdom
+44 (0)1786 845 912
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