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To provide ordinary shareholders with an attractive level of income with the potential for capital and income growth from investing in best-in-class care home assets with attractive financial characteristics.
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The fund manager fees are paid out of the fund reducing the NAV, you don't pay these directly.
If its in a share isa you dont have to declare anything and when receiving dividends again you dont pay tax on it
Hello,
Could someone please explain how the charges work for REITs? If I purchased these in my ISA, are there any ongoing charges i have to pay to hold the REIT and how is it taken?
From the KiD I can see the ongoing costs for THRL amount to 3.67% annually, but I'm unsure as to how this is paid.
Any insight greatly appreciated.
Many thanks
Like i say this is my biggest losing investment but i think its a great company and well run too. I think it will slowly rise pluss the dividend is still good, in fact i might buy more.
About 14 minutes after posting about lack of directors buying,one pops up and buys.
Usually a good sign the business is in good shape going forward.
GLA.
Obviously very little buying action from directors but also no selling which has to be good.
The market does seem to have oversold here in my opinion.
When inflation and interest rates eventually come down,the attractive share price and 8.5% dividend should look a lot better.
AIMO and not advice.
Almost an 8.5% yield so tempting to open a position. But why no directors buying if this is such a steal?
As the SP slowly erodes the dividend yield rises.
The return looks particularly good for new buyers.
AIMO and GLA holders.
So that's down from 1p69 to 1p40, right? Still 8+% at SP 67p ?
"a 17% reduction in dividend".
Thank heavens it is limited.
Mostly good news with just a limited drop in dividend.
For me a hold and maybe buy when funds allow.
AIMO and GLA holders.
@Garry - I wouldn't buy this as a recovery play. Too many unknowns & 2 years isn't likely.
It's an income buy. One to buy in a SIPP & forget about.
If you spoke to a financial advisor in the past decade they would prob have told you to allocate some capital to REITs via an etf. Simple income, diversity and largely uncorrelated to other market moves in stocks. If you have spoken to one in the past year they will have prob told you to sell the lot and park it in a money market fund yielding similar amount but with next to no risk. Everyone is dumping REITs and for good reasons. They've all nose dived as a pack since most people will buy as a basket via an etf.
I'm happy to park some money here to get this totally boring and stable yield. But wouldn't want to even begin to guess on the recovery of sp timeframe.
It won't rise back to where it was until interest rates have peaked and inflation is back under control. Any indication that rates have peaked and inflation under control is however likely to lead to a re-rating upwards in my view. It should be noted that we are now below where we were at the height of pandemic fear - where it was assumed care homes were all doomed for failure and our income streams would dry up. So for me, no return to 120p, but could easily see a re-rate once rates have peaked etc. Likely fell back today on UK inflation concerns. Sure NAV will go down at higher rates, but there is already a 30% discount to NAV broadly and you invest in this for income above all else.
I'm entirely new to this company, and Im considering putting it into my portfolio. Appreciate it has an excellent dividend yield, but I usually buy recovery stocks in solid FTSE companies as I'm not interested in high-dividend yield. I'm looking for share growth. Could someone enlighten me on why the SP has fallen to current levels when finances and debt appear managed, and management seems very capable? It was trading around a median level of £1.13 in August 2022 and has dived ever since. What was the reason for the fall, and does anyone think a rise to those levels is on the card? I usually look for a 40% - 50% upturn in two years. Appreciate all help. GG.
Dividend if maintained is currently near 10% which is great.
I think a bounce must come soon.
AIMO.
This is one of my biggest losses, I only put it down to things that are out of there hands it should rise eventually, I hope!!!!!! It is a very well run company
Just bought here for the first time today.
The sell off seems rather overdone for a reliable well run business.
Let's hope things improve from now, especially the SP !!
GLA holders.
Totally agree, I've been watching this REIT for a few months and was going to trigger the buy button at 75p, if it keeps hovering around low 70's I'm going in next week or am I missing something!!???
I think this is oversold and have bought in twice in past days. Not usually one for trying to catch a falling knife.
This is my logic:
Looking at the data - vast majority of people invest in REITs via ETF's or a fund. So they buy and sell a basket.
For good reasons there's a lot of selling in these REIT baskets right now meaning a lot of selling on this.
I can get 4.5% yield or whatever on a usd money market fund so why would i hold a REIT etf or fund yielding that or less?
You would be silly not to have sold a generic REIT etf or fund given the interest rate situation.
This one is tiny by market cap and get's little interest.
But divi on today's price is 8% (5.75 p/s) with a forecast of 9% (6.62 p/s).
On care homes for the elderly - with inflation linked contracts.
Debt is in order & hedged.
Earnings history solid.
Can't see divi being cut much here. Seems pretty solid long term to me & oversold.
From Peckers56 over on Advfn BB.
At today's AGM. As usual, for a REIT, only ordinary shareholder there and no presentation. In a Q/A, Manager/Board confirmed the following [a] gearing at 20% (which they think is low), [b] nearly every property has an EPC rating in the A-C range so little "money" needed to bring the rest up-to-standard), [c] the current bank loan lasts until 2025, [d[ although rents are inflation linked nearly all have a cap of between 1 and 4 percent, [e] since financial year end there have been no buys and one sale in August (but nobody could remember where it was located), [f] do not do buy-backs. When asked to compare themselves with Impact Healthcare (their only competitor in the PDUHC sector), they agreed IH's SP performance was slightly better and it had a better dividend yield, but put this down to IH having "older/used" properties (which Target had looked at but rejected), which still needed improving to obtain an A-C EPC.
smells like panic selling to me...many Reits affected even the supposed inflation proof ones.
The answer is to start feeding money into these as no one can call the bottom, but getting future earnings of 11% now is ridiculous and this might climb to 15% or more. Having seen more than my fair share of stock market busts I can only say the market will recover in time and Reits are starting to look very cheap.
I'm getting more and more worried by these daily slides. We are now below 90p and at all time lows. I'm down 15% and the SP is down 25% in a few weeks. Hopefully the selling will stop soon as this is getting stupidly cheap.
I wonder if the valuation of THRL’s specialist property portfolio tracks general house prices? Perhaps there is also a relationship with the income yield, which could support valuations. But the fact that the share price now trades at a discount to NAV suggests that the market may agree with you. THRL seems to be suffering less than other REITs, so the drop does not seem specific to concerns about what the budget may contain about healthcare costs.
I can't see a higher NAV coming any time soon. House prices are forecast to fall 4.5% next year. Inflation will be passed on to operators through rent agreements which should cover off the non-fixed rate debt. But this was I thought all prices in, or so I thought until further falls today. I wonder if we are going to see a negative announcement from the government tomorrow regarding care costs.