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(Alliance News) - Target Healthcare REIT PLC on Wednesday said its net asset value increased in the first half of its financial year as a result of revaluation gains.
The care home investor said its EPRA NAV was 0.6% higher on December 31 at 108.1 pence compared to 107.5p at the end of June and stated that the increase was "driven primarily by revaluation gains".
Target Healthcare's total profit for the six months ended December 31 was GBP16.6 million, up 11% from GBP14.9 million, as total income rose 16% to GBP22.6 million from GBP19.5 million.
The real estate investment trust lifted its interim dividend by 1.5% to 3.34 pence from 3.2895p.
Target Healthcare said that while the ongoing viru pandemic is challenging for all, its portfolio performance has been stable and, given its "strong balance sheet and conservative leverage", puts the firm in a position to "weather short-term dips which may arise".
Chair Malcolm Naish said: "Whilst these macro economic events have recently impacted on the group's share price, during the first half of the year we continued to successfully manage our portfolio of care home assets, making strong progress towards our stated objectives, and have enjoyed the support of a growing shareholder register, including through the oversubscribed GBP80 million equity issuance. This capital raise further strengthened our balance sheet, while through the subsequent efficient deployment of capital we continued to enhance the portfolio as a platform to provide continued stable returns for shareholders."
On Wednesday, Target Healthcare's shares closed 11% lower at 73.20p. Its shares have dropped by 38% since March 2.
Naish added: "We continue to focus on sustainable long-term performance and believe that the diversification and quality of the property portfolio, combined with the strength of the group's balance sheet and its long-term debt financing, at both a conservative leverage ratio and attractive long-term interest rate, leave the group positioned to face potentially turbulent market conditions over the near term."
By Anna Farley; annafarley@alliancenews.com
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