Healthcare specialist Target Healthcare saw its portfolio grow by 12.9% during the second quarter of the year as it acquired new opportunities in the sector.
It now has a portfolio valued at £385.5m comprising 55 assets, 51 of which are operational. Its operational portfolio yields 6.44% and has an annualised rent roll of £26m.
The growth came largely through new acquisitions, with the company having bought two luxury care homes for a total of £37m. Of this, 10.9% comprised the new asset acquisitions and further investment in the four development sites, with a like-for-like movement in the operational portfolio of 2% predominantly reflecting market yield shift and the impact of annual inflation-linked rental reviews.
The company said that acquisition yields “have continued to tighten as the market remains competitive, reflecting a supply deficit of appropriate quality modern homes and growing demand from the ageing population”.
Chief executive Kenneth MacKenzie said: “The overall portfolio continues to perform strongly, reflecting the expertise of our team in identifying high quality assets and tenants that provide a safe, caring and homely environment for our end-users, as well as the supportive demand/supply dynamics that underpin the wider sector.
“Alongside this, having an engaged and collaborative relationship with our tenants, supporting them through active dialogue and regular monitoring of performance, remains crucial to ensuring the long-term sustainability of the business.”
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