Target Healthcare eyes acquisitions as it posts 'solid' full-year numbers

(Sharecast News) - Target Healthcare Reit confirmed plans to continue expanding its portfolio on Tuesday, despite challenging market conditions, as it posted what it called "solid" full-year numbers. The real estate investment trust, which specialists in purpose-built UK care homes, reported a total accounting return of 9.3% in the year to 30 June, compared to 2024's 11.8%.

Growth per share in net tangible assets was 3.7% at 114.8p, while adjusted earnings per share came in at 6.08, slightly lower than last year's 6.13p. The net loan to value was 21.8%.

Target Healthcare ended the year with 93 properties let to 34 tenants, with a total of value of £930m, up 2.4%.

Since then, however, the firm has sold nine care homes for £85.9m at an 11.6% premium, as it sought to bolster shareholder returns and reduce exposure to its largest tenant.

Alison Fyfe, chair, confirmed the money raised would be spent on the portfolio.

She said: "The intention is to reinvest the proceeds from the disposal into earnings-enhancing acquisitions to further improve the quality of our portfolio and maintain its best in class credentials.

"We remain confidence in the group's investment strategy [of] investing in high-quality care home assets with sustainable rental streams."

Looking to the results, Fyfe added: "The group has deliver solid portfolio and financial performance against what has remained a challenging backdrop. This shows the resilience of our business model."

The share prices of some listed real estate companies have struggled in recent months, hit by macroeconomic and geopolitical uncertainty as well as three interest rate cuts in the UK so far this year.

As at 1015 BST, shares in Target Healthcare were down 2% at 94.2p.