Target Healthcare REIT Ltd (LSE:THRL) reported a strong 9.3% total accounting return for the year ended June 30, 2025, underscoring the resilience of its modern, purpose-built UK care home portfolio despite a challenging operating environment.
EPRA net tangible assets (NTA) per share rose 3.7% to 114.8 pence, while adjusted EPRA earnings per share reached 6.08 pence. This supported a fully covered dividend of 5.884 pence for the year, up 3.0% from the previous period.
Following the end of the financial year, the company sold nine care homes for £85.9 million — 11.6% above their carrying value. The transaction reduced exposure to its largest tenant from 16% to around 9% of contracted rent.
“The Group has delivered solid portfolio and financial performance against what has remained a challenging backdrop. This shows the resilience of our business model,” said Alison Fyfe, Chair of Target Healthcare REIT.
The company intends to reinvest the proceeds into higher-yielding, earnings-enhancing acquisitions at a net initial yield of roughly 6%, compared with 5.2% on the properties sold. In parallel, it completed a £130 million debt refinancing, extending the weighted average maturity of its borrowings to 5.9 years.
Its 93-property portfolio achieved like-for-like rental growth of 3.3%, with mature homes rent cover rising to 1.9x — the highest level since the company’s IPO. All properties are fully occupied and hold an A or B energy efficiency rating.
For FY 2026, the company set a dividend target of 6.032 pence per share, representing a 2.5% increase year on year.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Some portions of this content may have been generated or assisted by artificial intelligence (AI) tools and been reviewed for accuracy and quality by our editorial team.
Leave a Reply