Care home investor Target Healthcare has boosted its portfolio to 98 properties valued at £870m after a “transformative” six months.
The portfolio’s value increased by 27%, or £186m, primarily driven by the REIT’s £171m investment and developments over the six-month period. In its half-year results published this morning, Target added that the period to the end of December had seen its largest ever acquisition of an 18-home portfolio. Like-for-like the portfolio’s value rose by 2.2%.
Underlying profit, measured by adjusted EPRA earnings, increased by 12% to £13.7m from 2020’s £12.2m. The accounting total return for the period was 3.4%, a marginal increase on 2020.
Contractual rent increased by 30% to £53.4m, with like-for-like rental growth of 2.8%.
Chair Malcolm Naish said: “This has been a transformative six months for the company. In testament to the continued appeal of our strategy, we successfully completed an oversubscribed £125m equity raise, the proceeds of which were deployed into our largest acquisition to date, providing robust portfolio growth and driving the 27.1% increase in the market value of our portfolio.”
Target also secured an additional £100m long-term fixed-rate debt facility during the period.
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