Target Healthcare REIT (LSE: THRL)

Currency in GBP

Last close As at 05/12/2023


1.10 (1.33%)

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.

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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 2.2 13.7 6.7
Relative 0.9 13.0 8.4
52 week high/low 87.1p/66.5p


With the continuing improvement in overall tenant profitability, supported by asset management initiatives, Q124 rent collection was above 99%, and the DPS of 1.428p (+2% vs Q423) was fully covered by adjusted EPRA EPS of 1.54p. For the full year, the company targets a fully covered DPS of 5.71p. EPRA NTA per share increased 1.1% to 105.6p, primarily reflecting a like-for-like valuation uplift driven by inflation-linked rent reviews, with stable property yields. The Q1 NAV total return was 2.5%.

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 16.8 16.8
2023A 67.7 N/A 37.2 6.0 14.0 17.4
2024E 69.0 N/A 37.2 6.0 14.0 12.4
2025E 73.8 N/A 39.3 6.3 13.3 12.7



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