“Edison’s accessible and high-quality research gives us the opportunity to communicate an independent perspective of Tyman to a wide variety of potential stakeholders.”
Currency in GBP
Last close As at 09/06/2023
GBP0.80
▲ −1.30 (−1.60%)
Market capitalisation
GBP496m
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.
Real Estate
Director, Financials
Alison Fyfe
Chairman
Gordon Bland
FD
Kenneth MacKenzie
CEO
Forecast net debt (£m)
231
Forecast gearing ratio (%)
36
| % | 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 |
Get access to the very latest content matched to your personal investment style.
