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.£291.3m
Last close115.50p
High / Low (52 weeks)123.0p / 107.2p
Stock market listingLN
Forecast net debt (£m)29.6
Forecast gearing ratio (%)12

Price performance

Relative *(4.26)(4.74)(4.67)

* % Relative to local index

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Company news

Target Healthcare has the REIT stuff

Mon, 07 Nov 2016 11:23:27 GMT

When Should You Buy Target Healthcare REIT Limited (LSE:THRL)?

Thu, 28 Sep 2017 08:26:15 GMT

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

Mon, 20 Jun 2016 11:48:45 GMT

Two property trust launches target yields of 5% plus

Fri, 03 Feb 2017 07:17:15 GMT

James Carthew: a Reit long and winding road

Mon, 14 Aug 2017 06:04:15 GMT

Investment summary

Target will report full-year results for the year to 30 June 2017 later in September. A corporate update in July confirmed a fourth quarterly dividend of 1.57p per share, taking the annual distribution to 6.28p, or a 5.3% yield on the 26 July share price of 118p. As of 30 June 2017, EPRA NAV was £256.9m or 101.9p per share, up from 101.5p at 31 March 2017. The increase over the quarter came mainly from movement in the revenue reserve (1.5p per share) and a revaluation gain on the investment property portfolio of 0.5p per share, partially offset by the payment of the 1.57p third quarterly dividend. The portfolio was valued at £282m at 30 June, with passing rent of £20.3m for a net initial yield of 6.75%. Since then a forward funding agreement on a home in Birkdale, Merseyside (to be completed in March 2019) and the acquisition of a home in Melton Mowbray have been announced, for a total consideration of £16.6m.

Last updated on 03/10/2017

Y/E Jun Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2015A 12.7 N/A 9.6 6.10 18.9 18.3
2016A 16.3 N/A 11.7 5.06 22.8 24.6
2017E 21.3 N/A 15.4 5.10 22.6 16.0
2018E 26.5 N/A 20.2 6.79 17.0 14.0

Last updated on 18/09/2017

Latest research

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 03/10/2017

Key management

Gordon Bland, FD

Company address

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