Target Healthcare REIT (LSE: THRL)

Currency in GBP

Last close As at 23/03/2023


−2.10 (−3.00%)

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. A growing elderly population and the need to improve the existing estate point to continuing demand 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

  • Gordon Bland


  • Kenneth MacKenzie


Balance Sheet

Forecast net debt (£m)


Forecast gearing ratio (%)


Share Price Performance

Price Performance
% 1M 3M 12M
Actual (13.7) (13.6) (38.4)
Relative (9.6) (14.5) (37.7)
52 week high/low 119.2p/67.8p


For Q223, Target declared a second quarterly DPS of 1.69p, supported by inflation-linked rental growth and improving rent collection. Income is protected by fixed costs on 96% of borrowings. Yield widening across the broad property sector affected the portfolio’s property valuations (-5% like for like vs c 13% for the broad market), while the impact on NAV was softened by moderate gearing (25.1% at the period end). Q223 NAV per share decreased to 103.0p (Q123:112.1p) and the accounting total return was a negative 6.6%, resulting in a negative total return of 5.3% in H123.

Y/E Jun Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2021A 50.0 N/A 26.0 5.46 12.4 12.9
2022A 63.9 N/A 30.2 5.05 13.4 13.4
2023E 68.1 N/A 36.3 5.85 11.6 14.7
2024E 73.1 N/A 37.7 6.08 11.2 11.0



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