Target Healthcare REIT Ltd (LON:THRLT) on Tuesday reported a solid 9.3% total accounting return for the year ended June 30, 2025, as the UK care home investor continues to benefit from its portfolio of modern, purpose-built facilities despite challenging market conditions.
The company’s EPRA net tangible assets (NTA) per share increased by 3.7% to 114.8 pence, while adjusted EPRA earnings per share reached 6.08 pence, enabling a fully covered annual dividend of 5.884 pence, up 3.0% from the previous year.
In a significant post-year-end transaction, Target Healthcare sold nine care homes for £85.9 million, representing an 11.6% premium to their carrying value. The disposal reduces the company’s exposure to its largest tenant from 16% to approximately 9% of contracted rent.
"The Group has delivered solid portfolio and financial performance against what has remained a challenging backdrop. This shows the resilience of our business model," said Alison Fyfe, Chair of Target Healthcare REIT.
The company plans to reinvest the disposal proceeds into earnings-enhancing acquisitions at a net initial yield of around 6%, compared to the 5.2% yield on the properties sold. The company also completed a £130 million debt refinancing, extending its weighted average debt maturity to 5.9 years.
Target Healthcare’s portfolio of 93 properties generated like-for-like rental growth of 3.3%, with mature homes rent cover reaching 1.9x, the highest level since the company’s IPO. The portfolio is 100% occupied with 100% of properties rated A or B for energy efficiency.
For fiscal year 2026, the company announced a dividend target of 6.032 pence per share, representing a 2.5% increase.
Source :
https://www.investing.com/news/earnings/target-healthcare-reit-posts-93-return-plans-to-reinvest-disposal-proceeds-4284822
