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Target Healthcare REIT (LSE: THRL)

Last close As at 26/10/2024

GBP0.89

▲ 1.00 (1.13%)

Market capitalisation

GBP554m

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 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.

Latest Insights

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Real Estate | Flash note

Target Healthcare REIT — Q4 rounds off a strong year of performance

Real Estate | Flash note

Target Healthcare REIT — Enhanced portfolio metrics and interest savings

Real Estate | Update

Target Healthcare REIT — Positive momentum continued in Q3

Real Estate | Update

Target Healthcare REIT — Rent cover at a high and fully covered DPS
Elderly care image
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Sector

Real Estate

Equity Analyst

Martyn King

Martyn King

Director, Financials

Key Management

  • Alison Fyfe

    Chairman

  • Gordon Bland

    FD

  • Kenneth MacKenzie

    CEO

Balance Sheet

Forecast net debt (£m)

254

Forecast gearing ratio (%)

37

Share Price Performance

Price Performance
% 1M 3M 12M
Actual (1.3) 10.1 19.1
Relative (1.2) 8.9 5.0
52 week high/low 91.7p/70.8p

Financials

Indexed rent reviews and development completions continue to support both earnings and property values. Target’s rental income growth offset higher interest costs and adjusted earnings increased 2%, covering DPS 1.07x. EPRA NTA increased 6% to 110.7p per share and the NAV total return was 11.7%. Quarterly DPS will increase again from Q125, by 3%. Tenants continue to perform well and rent collection was 99%, with rent cover on mature homes at a high 1.9x.

Y/E Jun Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2022A 63.9 N/A 30.2 5.0 17.9 17.8
2023A 67.7 N/A 37.2 6.0 14.9 18.5
2024E 69.1 N/A 37.8 6.1 14.6 14.6
2025E 73.3 N/A 38.7 6.2 14.4 13.8

Research

Flash note

Real Estate

Target Healthcare REIT — Enhanced portfolio metrics and interest savings

Update

Real Estate

Target Healthcare REIT — Positive momentum continued in Q3
Elderly care image

Real Estate

Flash note

Target Healthcare REIT — Q4 rounds off a strong year of performance

Elderly care image
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Thematics

thematic

Real Estate

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South African retail property funds remain resilient

thematic

Consumer

IPO apocalypse

thematic

TMT

ESG, moving beyond the box tick
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