Target Healthcare has reported a positive start to 2025, thanks to rental income from prime care home real estate.
As at the end of March, the REIT’s EPRA net tangible assets per share increased to 113p from 112.7p recorded at the end of 2024.
The move reflects a like-for-like valuation uplift driven by the portfolio’s inflation-linked rent reviews, with annualised contractual rent totalling £61.3m, up by 1.1% year-on-year. Rent collection stood at 97% for the quarter.
As of the end of Q1, Target Healthcare held a portfolio of 94 assets let to 34 tenants, valued at £930m, reflecting an increase of 0.6% and like-for-like valuation increase of 0.3% from the end of last year.
Kenneth MacKenzie, chief executive of Target Fund Managers, said: “Our management team remains focused on the portfolio, particularly opportunities to enhance revenues, progress potential tenancy changes and tighten-up the overall portfolio quality where appropriate, whilst remaining cognisant of the debt facilities due for renewal.”
As at the end of March, the REIT had £249m of drawn debt facilities, of which £150m is due to expire between 2032 and 2037, with the remainder expiring in November 2025. Target Healthcare is currently evaluating its expected capital requirements and the indicative refinancing terms obtained from multiple lenders for a range of facility types and durations.
The company will pay 1.471p per share third interim dividend at the end of this month.
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