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.£279.9m
Last close111.00p
High / Low (52 weeks)123.0p / 108.8p
Stock market listingLN
Forecast net debt (£m)80.3
Forecast gearing ratio (%)31
TeamProperty
SectorProperty

Price performance

%1m3m12m
Actual(2.4)(5.5)(0.2)
Relative *(3.5)(7.1)(8.2)

* % Relative to local index

Other companies in sector Show

Company news

Target Healthcare Reit: why old and boring is your Brexit tonic

Fri, 04 Nov 2016 10:18:45 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

Multiple acquisitions leads Target Healthcare REIT to increased profits

Wed, 04 Oct 2017 13:30:00 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

In the full year ended 30 June 2017, assets and rental income grew strongly. Dividend cover increased to 77% and with a full-year contribution from recent acquisitions and continuing investment, the manager expects approximately full cover in the current year. As at 30 September (Q118), the property portfolio reached £296.6m (FY17: £282.0m), including revaluation gains (we estimate c £4.5m gross), reflected in further tightening of the net initial yield to 6.69% from 6.75% in June. Q118 EPRA NAV per share increased by 1.4p to 103.3p per share after the payment of 1.570p per share in dividends during the period. An increased 1.6125p Q118 DPS will be paid on 30 November. Passing rent increased by 3.7% in the quarter: 0.6% from rent reviews and 3.1% from acquisitions, of which more are likely as the manager continues to perform due diligence on a strong pipeline of opportunities. The scale of the opportunities is such that additional equity and debt capital support, not in our forecasts, may be required.

Last updated on 13/12/2017

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 21.1 N/A
2017A 23.6 N/A 12.2 5.23 21.2 N/A
2018E 28.0 N/A 15.8 6.63 16.7 N/A
2019E 30.5 N/A 17.5 7.32 15.2 N/A

Last updated on 04/12/2017

Latest research

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. There is a lack of high-quality care homes of the sort Target invests in, providing ample opportunity to grow the portfolio.

Last updated on 13/12/2017

Key management

Gordon Bland, FD

Company address

Ordnance House
31 Pier Road
St Helier
Jersey
JE4 8PW
United Kingdom
+44 (0)1786 845 912
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