Target Healthcare REIT (LSE: THRL)

Currency in GBP

Last close As at 09/06/2023


−1.30 (−1.60%)

Market capitalisation


Target Healthcare REIT invests in modern, purpose-built residential care homes in the UK let on long leases to high-quality care providers. It selects assets according to local demographics and intends to pay increasing dividends underpinned by structural growth in demand for care.

The care home sector is driven by demographics rather than the economy generating a positive demand outlook for new, ESG compliant, purpose-built homes with flexible layouts and high-quality residential facilities. With its unwavering focus on asset and tenant quality, these are the homes in which Target invests. It believes that best in class assets, in areas with strong demand/supply characteristics, and sustainable rent levels will always be attractive to existing or alternative tenants and are key to providing sustainable, long-duration income with capital growth.

Elderly care image


Real Estate

Equity Analyst

Martyn King

Martyn King

Director, Financials

Key Management

  • Alison Fyfe


  • Gordon Bland


  • Kenneth MacKenzie


Balance Sheet

Forecast net debt (£m)


Forecast gearing ratio (%)


Share Price Performance

Price Performance
% 1M 3M 12M
Actual 3.9 7.2 (30.9)
Relative 6.2 11.8 (30.2)
52 week high/low 117.2p/66.7p


Target reported that like-for-like rent growth was 0.8% in the three months to March (Q323) and with property yields stabilising, this supported like-for-like valuation growth of 0.5%. NAV per share edged ahead to 103.4p (Q2: 103.0p) and including payment of the Q2 DPS, NAV total return was 2.1%. Tenants continue to offset inflationary pressures with strong fee growth and rising occupancy and rent cover has increased to 1.5x. Responding to active asset management, rent collection increased to 97% (96% in Q2). The re-based quarterly DPS of 1.4p was fully covered by EPRA EPS of 1.5p while continuing to provide a highly attractive yield.

Y/E Jun Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2021A 50.0 N/A 26.0 5.5 14.5 15.2
2022A 63.9 N/A 30.2 5.0 16.0 16.0
2023E 68.6 N/A 36.2 5.8 13.8 12.4
2024E 72.7 N/A 37.4 6.0 13.3 14.6



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