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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.£390.1m
Last close115.00p
High / Low (52 weeks)117.8p / 101.5p
Stock market listingLN
Forecast net cash (£m)0
Forecast gearing ratio (%)N/A
TeamProperty
SectorProperty

Price performance

%1m3m12m
Actual2.21.8(1.7)
Relative *6.410.24.5

* % Relative to local index

Other companies in sector Show

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

With the recent acquisition of two high quality, purpose built homes (one a forward funding development and one a pre-let forward acquisition), Target has effectively now committed all of the (£94m gross) equity proceeds from the February capital raise. Undrawn debt capital facilities remain, and with a continuing strong acquisition pipeline remains, management expects to make further announcement shortly. Q418 EPRA NAV total return was 2.2%, including 1.6125p of DPS and a further increase in EPRA NAV per share to 105.7p, benefiting from revaluation gains. With investor interest in care home assets remaining strong, Target is taking a disciplined approach to acquisitions. It is assembling a diversified portfolio which is differentiated by its focus on modern, high quality, purpose-built assets, nearly all with wet-room facilities, an essential ingredient in delivering attractive and sustainable long-term returns. Our forecasts 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 28/09/2018

Y/E Jun Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2016A 16.9 N/A 8.1 4.7 24.5 24.5
2017A 23.6 N/A 12.2 4.8 24.0 89.6
2018E 29.3 N/A 14.8 5.2 22.1 17.5
2019E 35.5 N/A 20.2 6.0 19.2 19.6

Last updated on 24/09/2018

Latest research

Portfolio performing well and growing

Update | Property | 09/08/2018

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 28/09/2018

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
View website