Target Healthcare REIT (LSE:THRL), a specialist investor in modern UK care home properties, owns a portfolio of 86 assets valued at £894.6 million. The properties are leased to 32 operators under long-term agreements that are largely linked to inflation. The company focuses on high-quality, purpose-built facilities, typically constructed after 2000, featuring energy-efficient designs, spacious layouts and en-suite wet rooms intended to meet modern care standards.
For the six months ending 31 December 2025, the group delivered a total accounting return of 6.8%, marking its strongest half-year performance since listing. EPRA NTA per share increased 4% to 119.4p, while adjusted earnings per share rose by 8.5%.
During the period, management undertook a programme of capital recycling by disposing of ten properties at an average 11.7% premium to their book value. Proceeds were partly redeployed into around £45 million of higher-performing care homes in Scotland. At the same time, the company strengthened its financial position by reducing net loan-to-value to 15.2%, extending the maturity profile of its debt, and maintaining strong operational metrics, including rent collection of 99% and stable rent cover levels. These factors helped reinforce the balance sheet and highlight the portfolio’s resilience within the care home sector.
Looking ahead, Target Healthcare REIT’s outlook is supported by an attractive valuation profile, including a relatively low price-to-earnings ratio and a strong dividend yield. However, this is tempered by concerns about slowing cash flow growth and weaker technical trading momentum.
More about Target Healthcare REIT
Target Healthcare REIT is a UK-listed real estate investment trust focused on investing in modern, purpose-built care homes across the United Kingdom. The externally managed company partners with established care operators that maintain strong care standards. Its strategy centres on generating long-term, inflation-linked rental income from high-quality properties designed to meet the growing demand created by an ageing population.
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