Last checked at 
26 Aug 2015 15:40
To: RNS Company Announcements
Date: 26 August 2015
Company: Target Healthcare REIT Limited
Subject: Quarterly Investor Report & Listing Rule 15.5.1 (4)
Quarterly Investor Report
The group today publishes its first quarterly investor report on its website at http://www.targethealthcarereit.co.uk/Financial%20reporting.aspx and summarised below.
- Recent news
Deals to acquire eleven assets have completed during the year, an investment of £57.3 million inclusive of acquisition costs. This brings the portfolio to twenty-eight care homes, valued at £143.7m. This continues the growth demonstrated since launch. The new properties are high quality, modern, and purpose-built, with the majority being less than four years old. The acquisitions have allowed the Group to further diversify its tenant base by adding three new tenants to the portfolio, whilst three of the homes have extended the portfolio's geography to South & East England.
- Pipeline
A pipeline of near-term opportunities worth approximately £60m is currently being evaluated, of which opportunities worth approximately £16m have agreed heads of terms in place.
- Performance
The Group's disciplined investment appraisal and portfolio management activities have contributed to a growth in EPRA NAV per share of 3.5%. Asset valuation growth (6.0% on assets held for the full year) has contributed 4.5 pence per share to this growth of 3.3 pence. The portfolio has generated rental income contributing to group EPRA EPS of 5.6 pence per share.
- Market Commentary
The underlying fundamentals of an ageing population and paucity of quality care home stock continue to support strong levels of investment activity across the UK's elderly care sector resulting in some investment yield compression. The competitive landscape remains particularly congested for transactions offering scale and / or access to specific geographic locations such as the South East of England. In the Group's core regional mid-market, however, we continue to source a variety of single and multi-asset investment opportunities as evidenced by the Company's pipeline. The market is facing a degree of uncertainty as a result of two recent announcements: firstly, the delay, or possible cancellation, of the social care cap which was to be introduced in 2016; and secondly, the introduction of the National Living Wage from April 2016 which will see care costs for operators rise.
- Summary Balance Sheet
2015 | 2014 | |||
Unaudited | £m | £m | ||
Investment properties | 143.7 | 83.2 | ||
Cash | 29.2 | 17.1 | ||
Net current assets / (liabilities) | (1.9) | 2.1 | ||
Bank loan | (31.5) | (12.3) | ||
Net assets | 139.5 | 90.2 | ||
EPRA NAV per share | 98.0 | 94.7 | ||
Ignores the effect of fixed/guaranteed rent reviews | ||||
- Listing Rule 15.5.1 (4)
In accordance with Listing Rule 15.5.1(4), the Company confirms that it is satisfied that all inside information which the Directors and the Company may have in the period leading up to the announcement of its annual results has previously been and will continue to be notified via a RIS and, therefore, the dealings referred to in Listing Rule 15.5.1 (3) are permitted.
The Company and persons discharging managerial responsibilities for the Company are therefore exempt during the close period from the provisions of the Model Code in respect of dealings in the Company's own securities. If, in the period leading up to the announcement of the annual results, the Directors, the Company or any person discharging managerial responsibilities come into possession of any inside information, this will be notified via a RIS before any such transactions are undertaken.
The close period to which this notification relates is in respect of the year ended 30 June 2015.
Enquiries:
Kenneth MacKenzie
Target Advisers
01786 406 581
Stifel Nicolaus Europe Limited
Mark Young, Roger Clarke, Neil Winward
020 7710 7600
Fiona Harris/Sam Emery
Quill PR
020 7466 5058 / 020 7466 5056