Target Healthc. Company Research (THRL)

Target Healthcare REIT’s H126 results show strong operational, financial and strategic progress, driven by the company’s active management of its assets and borrowings and highly supportive sector fundamentals. Increased earnings, dividend cover and asset values reflected visible inflation-linked rental growth, strong rent collection and arrears recovery. Once sale proceeds are fully deployed, capital recycling will enhance both earnings and portfolio quality. Around half of recent sales proceeds have been deployed, but significant available capital remains, which is more than matched by a strong pipeline of similarly attractive opportunities.