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.

Y/E Jun Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2015A 13.7 N/A 9.6 6.1 18.4 17.8
2016A 16.9 N/A 11.7 5.1 22.0 23.9
2017E 23.4 N/A 16.6 5.0 22.4 29.2
2018E 27.9 N/A 20.1 6.7 16.7 14.6

Last updated on 20/03/2017

Latest research

Care home specialist

Initiation | Property | 20/03/2017

Investment summary

Target Healthcare REIT is a specialist investor in modern, purpose built residential care homes, the demand for which is rising, driven by structural demographic changes throughout the UK. The manager selects modern, purpose-built assets suited to their local area and population. The assets are acquired at yields of c 7% and let on long leases (c 30 years) to high quality operators, with regular contact to ensure they are well-run. These long and secure income streams underpin a growing dividend yielding c 6% which, on our estimates, will be 100% covered once the group is fully invested, expected by the end of FY18.

Last updated on 20/03/2017

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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