Target Healthcare optimistic on "consistent" returns in 2025

(Alliance News) - Target Healthcare REIT PLC on Wednesday said it ended financial 2025 in a strong position, with rental income growing in response to an "acute national undersupply" of property.

The London-based real estate investment trust and care home owner posted EPRA net tangible assets of 114.8 pence per share at June 30, up from 113.0p at March 31.

The trust valued its portfolio at GBP929.9 million as of June 30, reduced slightly from GBP930.0 million at March 31, due to a 0.9% decrease on a disposal. This offset a 0.9% like-for-like increase resulting from "continued rental growth", Target Healthcare said.

During the final quarter that ended June 30, EPRA adjusted earnings per share were 1.48p, down from 1.51p on-year, but marginally ahead of 1.47p on-quarter. Total returns were "consistent", the firm said.

Target Healthcare said it had drawn GBP242 million of GBP320 million in committed loans as of June 30. Most of the debt drawn "is long-term and fixed at low rates", according to the trust.

For short-term loans due in November, the trust is negotiating with lenders. It expects to complete refinancing arrangements before publishing full-year results in September.

Target Healthcare shares were 0.9% higher at 100.30p on Wednesday afternoon in London.

By Holly Munks, Alliance News reporter

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