Target Healthcare REIT is considering disposals to free up capital for a fresh acquisition drive.
The company, which invests in purpose-built care homes, has today published results for the six months to 31 December 2024. It posted revenue of £35.2m, up by 3.5% year-on-year. Profit edged down by 2.5% to £29.9m.
Net tangible assets per share increased by 1.8% to 112.7 pence, and the company posted a total accounting return of +4.5%. The portfolio’s market valuation was up by 1.8% to £924.7m.
Chair Alison Fyfe said: “Target Healthcare REIT has continued to deliver both consistent property and financial performance, which is a testament to the quality of our business model, portfolio and management team.
“We have a secure, long-duration income stream which provides compounding growth annually, which is underpinned by a portfolio containing some of the highest quality real estate in the care home sector.”
Fyfe added: “Whilst we remain cognisant of the [trading] discount and the heightened level of corporate activity in the market and shareholder activism, we believe that the group’s prospects remain positive…
“We know, however, that we need to remain on the front foot. We will continue to consider disposals which will provide capital for us to allocate intelligently to the investment pipeline and other opportunities, carefully balancing the desire to enhance both shareholder returns and the quality of the real estate portfolio to ensure it remains future-proof and significantly differentiated from the sector average and our listed peers.”
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