Target Healthc. Regulatory News (THRL)

1 September 2022

Target Healthcare REIT plc and its subsidiaries

("Target Healthcare" or "the Group")

Portfolio update

Target Healthcare (LSE: THRL), the UK listed specialist investor in modern, purpose-built care homes, is pleased to provide the following update on its portfolio initiatives and rent collection.

The Group's Net Asset Value, Corporate Update & Dividend announcement published on 4 August 2022 detailed re-tenanting initiatives which would, in aggregate, reallocate nine homes providing 8.3% of contractual rent to six alternative operators, and alleviate the impact on recent rent collection, which was 90% for the quarter ended 30 June 2022.

An agreement has since been reached with the incumbent tenant in seven of these homes (6.2% of June 2022 contractual rent) whereby they will remain in place as a tenant and operator. The full settlement of outstanding rental arrears to 30 June 2022 has been received, resulting in the rent collection for the quarter ended 30 June 2022 increasing to 94% from 90%, and for the quarter ended 31 March 2022 increasing to 95% from 92%, reflecting the previous receipt of partial rental payments. Furthermore, all rent due in respect of the current quarter to September 2022 has been received, as has penalty interest in respect of all overdue rent.

The tenant has reaffirmed their long-term commitment to the homes following the challenges presented by the COVID-19 pandemic and has pledged additional security from another company in the tenant's group.

Scott Steven, Head of Asset Management of Target Fund Managers:

"The commitments made by all parties during this process is strong evidence of the trading outlook for these assets, and of the overall demand for modern, ESG-compliant care home real estate from progressive, quality care providers. Underlying resident occupancy across our portfolio continues its steady recovery and reflects the long-term structural demand for care places in our homes. This is long-awaited from our tenants and while mindful of the inflationary and staffing headwinds they face, we are generally optimistic that trading improvements will continue in the coming months."

Enquiries:

Kenneth MacKenzie; Gordon Bland

Target Fund Managers Limited

01786 845 912

Mark Young; Mark Bloomfield

Stifel Nicolaus Europe Limited

020 7710 7600

Dido Laurimore; Richard Gotla

FTI Consulting

020 3727 1000

TargetHealthcare@fticonsulting.com

Important information

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014, as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018, as amended and supplemented ("UK MAR") and is disclosed in accordance with the Company's obligations under UK MAR. Upon the publication of this announcement, this inside information will be considered to be in the public domain.

Notes:

UK listed Target Healthcare REIT plc (THRL) is an externally managed Real Estate Investment Trust which provides shareholders with an attractive level of income, together with the potential for capital and income growth, from investing in a diversified portfolio of modern, purpose-built care homes.

The Group's portfolio at 30 June 2022 comprised 101 assets let to 34 tenants with a total value of £911.6 million.

The Group invests in modern, purpose-built care homes that are let to high quality tenants who demonstrate strong operational capabilities and a strong care ethos. The Group builds collaborative, supportive relationships with each of its tenants as it believes working in this way helps raise standards of care and helps its tenants build sustainable businesses. In turn, that helps the Group deliver stable returns to its investors.

LEI: 213800RXPY9WULUSBC04