Target Healthcare REIT reports quarterly asset value gains

(Alliance News) - Target Healthcare REIT PLC on Wednesday declared an increased third-quarter dividend, as it reported an uplift in the value of its 86 operational care homes.

The real estate investment trust focused on care homes said EPRA net tangible assets per share grew 1.0% to 120.6 pence at March 31, from 119.4p at December 31.

The trust reported a 0.8% like-for-like increase from inflation-linked rent reviews, with a 0.1% increase on a like-for-like basis from the retenenting of property.

Target Healthcare noted a 0.1% like-for-like value decline from a marginal softening in the portfolio's net initial yield, as well as a 0.2% uplift owing to capital expenditure.

Target Healthcare said its portfolio was valued at GBP903.2 million, up 1.0% from GBP894.6 million.

Contracted rent rose 0.9% on a like-for-like basis in the quarter, said Target Healthcare, with this primarily owed to inflation-linked upwards only annual rent reviews.

The investment trust declared a fully covered dividend of 1.51 pence for its third quarter, up 5.6% from 1.43p a year prior.

Shares in Target Healthcare REIT were up 2.5% at 107.24 pence on Wednesday afternoon in London.

"We continue to curate a best-in-class portfolio through value-enhancing asset management and capital redeployment activities," said Target Fund Managers Chief Executive Kenneth MacKenzie.

"We remain focused on executing on our pipeline of opportunities as we look to re-deploy the remaining [around] GBP40m of disposal proceeds from the sub portfolio sale late last October. We have agreed terms and are in legals for purchases at a value in excess of those disposal proceeds and expect these disposal proceeds to have been materially committed by the end of the company's financial year."

By Christopher Ward, Alliance News reporter

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