Last checked at 
10 Nov 2014 07:00
To: RNS Company Announcements
Date: 10 November 2014
Company: Target Healthcare REIT Limited
Subject: Net Asset Value
Net Asset Value
Target Healthcare REIT Limited ('The Company') announces that its unaudited net asset value ('NAV') per share as at 30 September 2014 was 94.9 pence. The Company's care home assets held for the three month period increased in value by 0.9%. This valuation growth contributed to an increase of 0.2% from the NAV per share as at 30 June 2014 as analysed in the table below. As at 30 September 2014 the Company owned twenty-three care homes with a market value of £114.0 million and had cash balances of approximately £22.0 million.
The NAV has been calculated under International Financial Reporting Standards ('IFRS'). It is based on the external valuation of the Company's property portfolio prepared by Colliers International.
The NAV includes income and no provision for an accrued dividend has been made.
The next quarterly valuation of the property portfolio will be conducted by Colliers International during December 2014 and the NAV per share as at 31 December 2014 will be announced in January 2015.
Analysis of movement in NAV
The following table provides an analysis of the movement in the unaudited NAV per share for the period from 30 June 2014 to 30 September 2014:
Pence per share | % of opening NAV | |
NAV per share as at 30 June 2014 | 94.7 | 100.0 |
Transaction costs relating to asset acquisitions during period Property revaluation Net impact of share issue |
(1.2) 0.6 0.7 |
(1.3) 0.7 0.7 |
Movement in revenue reserve | 1.4 | 1.5 |
Movement due to sixth interim dividend payment to 30 June 2014 | (1.3) | (1.4) |
NAV per share as at 30 September 2014 | 94.9 | 100.2 |
Highlights
- Dividends
The Company paid its sixth interim dividend for the period to 30 June 2014, in respect of the period from 1 April 2014 to 30 June 2014, of 1.50 pence per share on 29 August 2014.
Subsequent to the period end, the Company announced its first interim dividend for the year to 30 June 2015 of 1.53 pence per ordinary share on 6 November 2014 for payment on 28 November 2014. It is intended that subsequent quarterly dividends for the 2015 year of 1.53 pence per ordinary share will be declared, representing a 2% increase on dividends from the previous period.
- Acquisitions
During the period the Company has acquired the following:
· In July, three purpose-built care homes and four specialist care bungalows in Northern Ireland and Norfolk for approximately £20.4 million including acquisition costs
· a new, purpose-built care home in Hinckley, Leicestershire for a total consideration of approximately £6.0 million including acquisition costs, also in July
· In August, a modern, purpose-built care home in York for a total consideration of approximately £5.1 million including acquisition costs
In September the Company exchanged contracts to acquire a new purpose-built care home in Hastings, East Sussex. The home will be acquired for approximately £8.0 million including acquisition costs in November 2014, when it is due to be completed, registered and opened.
Subsequent to the period end, in October 2014, the Company acquired a portfolio of three purpose-built care homes in Yorkshire and Lancashire, for approximately £13.3 million including acquisition costs. The Company's investment portfolio currently comprises twenty-six care homes.
- Share issue
On 5 September 2014 Target Healthcare REIT Limited published a prospectus in connection with an initial placing and offer and 12 month placing programme of ordinary shares (the "Issue").
17,244,597 Ordinary Shares were admitted to trading on the London Stock Exchange on 25 September, being the first allotment under the Issue. The issue's gross proceeds of approximately £17.4 million will be used to fund the acquisition of certain assets as set out in the prospectus. Under the 12 month placing programme the Board expects to issue further ordinary shares to existing and new investors to fund further acquisition opportunities as they arise.
The Company currently has 112,446,226 ordinary shares in issue.
Kenneth MacKenzie, Managing Partner of Target Advisers LLP, commented on the Company's activity during the period:
"We are pleased with the Company's performance during the quarter. The existing portfolio has delivered strong rental returns allied with further capital growth as the portfolio matures and upwards-only rental reviews are reflected in valuations.
We are also delighted to have invested a significant proportion of the proceeds of the recent share issue. We maintain a robust investment pipeline and have a number of investment opportunities both under negotiation and at advanced non-binding heads of terms stage, which we hope to execute, subject to the availability of capital."
Enquiries:
Kenneth MacKenzie
Target Advisers
01786 406 581
Graeme Caton
Winterflood Securities
020 3100 0268
Fiona Harris/Sam Emery
Quill PR
020 7466 5058 / 020 7466 5056