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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.£414m
Last close107.50p
High / Low (52 weeks)116.0p / 101.5p
Stock market listingLN
Forecast net debt (£m)119.6
Forecast gearing ratio (%)33
TeamProperty
SectorProperty

Price performance

%1m3m12m
Actual(0.9)(4.4)1.8
Relative *3.14.513.3

* % Relative to local index

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Company news

Target Healthcare has the REIT stuff

Mon, 07 Nov 2016 11:23:27 GMT

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

Mon, 20 Jun 2016 11:48:45 GMT

Care homes acquired by specialist investor

Tue, 09 Jan 2018 08:37:30 GMT

Who Owns Target Healthcare REIT Limited (LSE:THRL)?

Mon, 27 Nov 2017 10:00:02 GMT

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

Thu, 28 Sep 2017 08:34:32 GMT

Investment summary

As a result of investor demand and the strong pipeline of investment opportunities, £50m was raised from the share placing at 109p, exceeding the £40m initially targeted. Target acquired two development homes for £37m ahead of the placing close, fully deploying its previous capital resources. It has since acquired an operational home for £13.8m, completing the £51m of “imminent” acquisitions targeted by end-November. All of these assets are high quality, purpose-built homes, equipped with en-suite wet-room facilities and generous communal space, of the type that differentiate Target’s investment policy. They are let on long RPI-linked leases and have further diversified the tenant base. Due diligence is continuing on a further near-term pipeline of c £28m, as well as a number of other opportunities. Our revised forecasts continue look for the dividend to be fully covered in FY20, as the investments we anticipate by end-FY19 make a full contribution to earnings.

Last updated on 29/11/2018

Y/E Jun Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2017A 23.6 N/A 12.2 5.23 20.6 83.8
2018A 28.4 N/A 14.8 5.54 19.4 N/A
2019E 34.4 N/A 19.1 6.01 17.9 16.5
2020E 39.3 N/A 22.9 6.80 15.8 20.4

Last updated on 27/11/2018

Latest research

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 29/11/2018

Key management

Kenneth MacKenzie, CEO
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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