Target Healthcare REIT has increased its portfolio by a third as inflation-linked leases hold value.
The REIT’s value increased by £226.8m, or 33%, to £911.6m, including like-for-like valuation growth of 4.2%.
NAV total return was 8.1% for the year to the end of June.
Chair Malcolm Naish said: “Amidst the current market uncertainty and economic headwinds, we continue to focus on the favourable long-term prospects for our portfolio. We have been delighted to grow through the addition of a significant value of assets during the year, with inclusion in the FTSE 250 testament to valued shareholder support and the stable total returns from our well-diversified portfolio.”
Over the year the REIT bought £223m of assets, taking the portfolio to 101 properties, consisting of 97 operational care homes and four prelet sites. Rent collection stood at 95%, with contractual rent increasing by 35% to £55.5m.
Naish acknowledged that the headwinds were strong but insisted “our investment class benefits from tailwinds”, not least the UK’s ageing population and the shortage of residential care places.
To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews
