Net Asset Value, Corporate Update & Dividend
Summary by AI BETAClose X
3 November 2026
Target Healthcare REIT plc and its subsidiaries
("Target Healthcare" or "the Company" or,
together with its subsidiaries, "the Group")
Net Asset Value, update on corporate activity and dividend declaration
Target Healthcare (LSE: THRL), the UK listed specialist investor in modern, purpose-built care homes, announces its unaudited quarterly Net Asset Value ('NAV') as at 30 September 2026, an update on corporate activity and its first interim quarterly dividend for the year ending 30 June 2027.
Corporate activity highlights
Fifteenth consecutive quarter of EPRA NTA growth driven by contractual, inflation-linked rental increases underpinned by high-quality, modern care home real estate.
· EPRA Net Tangible Assets ('NTA') per share increased by 0.9% to 123.2 pence (30 June 2026: 122.1 pence), reflecting mainly a like-for-like valuation uplift of 0.6% driven primarily by inflation-linked rent reviews
· Total accounting return of 2.1% for the quarter (based on EPRA NTA and including dividend payment)
· EPRA "topped-up" net initial yield of 6.20% (30 June 2026: 6.21%) based on an annualised contractual rent of £61.5 million (30 June 2026: £61.1 million)
· Adjusted EPRA EPS for the quarter of 1.69 pence per share (30 June 2026: 1.55 pence). The previous quarter included one-off costs of 0.08 pence per share to reorganise the Group's security structure and improve the efficiency of its long-term debt facilities
· Fully covered quarterly dividend of 1.553 pence per share announced in relation to the quarter (30 June 2026: 1.508 pence), an increase of 3.0%
· Net LTV of 16.2% as at 30 September 2026 (30 June 2026: 16.1%)
· Total debt facilities weighted average term of 5.3 years (30 June 2026: 5.1 years) with interest costs on drawn debt fixed at a weighted average cost of 3.88% (inclusive of amortisation of arrangement costs)
Continued strong performance from a modern care home real estate portfolio that is fully let to a diversified tenant base and in a sector that continues to experience an under-supply of fit-for-purpose homes.
· Diversified portfolio of 86 operational care homes and one forward funded development site (let to 31 tenants) valued at £930.2 million (30 June 2026: £924.1 million)
· Subsequent to the quarter end, the Group completed the previously announced forward purchase of a care home in Central Scotland for £13.4 million
· After existing commitments, the Group has remaining capital available of c.£73 million, excluding the uncommitted accordion facility which may provide up to a further £70 million
· WAULT of 25.8 years (30 June 2026: 26.0 years)
· High quality, modern and sustainable real estate portfolio:
o 100% of the portfolio rated EPC A or B, and therefore is compliant with the minimum energy efficiency standards anticipated to apply from 2031
o Positive social impact from sector-leading real estate standards: 100% en suite wet-rooms; generous 49 sqm space per resident; sustainable rent of £216 per sqm
Kenneth MacKenzie, CEO of Target Fund Managers, commented:
"We continue to deliver earnings and NTA growth, following the recent reorganisation of the Group's debt structure, the redeployment of capital and the portfolio's regular inflation-linked rental increases. Compelling sector tailwinds mean that demand for high-quality care homes remains strong. We continue to progress a pipeline of attractive investment opportunities that exceeds the capital we have available to deploy, with further acquisitions expected to be committed during the remainder of the calendar year.
"Securing two notable MSCI Property Investment Awards - highest 10-year risk-adjusted total return and the highest annualised total return over three years in the Listed Funds category - for the second consecutive year is a further endorsement of our strategy, and reflects the quality of our property portfolio, the strength of our asset management platform and our investment approach.
"We will continue to follow our disciplined investment approach, focusing on curating a diversified, modern property portfolio that supports long-term, sustainable returns for our shareholders."
Portfolio performance
The portfolio value increased by 0.7% over the quarter with the movement comprising:
· 0.6% like-for-like increase from inflation-linked rent reviews; and
· 0.1% increase due to capital expenditure.
Contractual rental income increased by 0.6% over the quarter, all on a like-for-like basis, with the movement comprising solely of a like-for-like increase from 17 inflation-linked upwards-only rent reviews with an average uplift of 3.0%.
The average rent cover on mature homes remained high, at 2.0x for the June 2026 quarter (most recent quarter of tenant data) (1.9x for the March 2026 quarter). 100% of rent was collected for the quarter.
Portfolio update
During the quarter, the following investment and asset management initiatives were undertaken:
· The Group has funded a further £0.5 million of renovation works at a care home re-tenanted towards the end of the prior financial year. This takes the total expenditure to date at the home to £0.7 million out of the maximum commitment of £1.6 million. On completion of the works, this expenditure will be rentalised at a yield in excess of the portfolio NIY.
· The capital work to add a four-bedroom extension to one of the Group's existing homes was completed and the tenant's CQC registration has been updated. The remaining costs of this work were rentalised in early October at a yield in excess of the portfolio NIY, and will therefore enhance both the property value and the portfolio's overall contracted rent during Q4 2026.
· Having acquired the land in the previous quarter, construction at the Group's remaining forward funded development site in Suffolk remains on track to reach practical completion in 2028. The remaining £13 million commitment will be advanced over the period of development.
Subsequent to the quarter end, the Group completed the acquisition of a property in Central Scotland subject to the previously disclosed forward commitment for a total cost of £13.4 million, including acquisition costs.
Debt facilities
As at 30 September 2026, the Group had committed debt facilities of £280 million, of which £200 million was drawn, representing a net LTV of 16.2% (30 June 2026: 16.1%).
The Group's debt facilities at 30 September 2026 consisted of:
· £150 million of drawn Fixed Rate Loans with a weighted average term of 7.4 years and a weighted average interest rate of 3.18%;
· £50 million of drawn Term Loan bank facilities with a remaining term of 3.0 years, with the option of a one-year extension thereafter subject to lender consent, and a weighted average interest rate of 5.30% that has been fixed through the use of interest rate swaps until September 2030; and
· £80 million of revolving credit facilities ("RCF") with a remaining term of 3.0 years, with the option of a one-year extension thereafter subject to lender consent, which carry a variable interest rate of SONIA plus a margin of 1.50%. The RCF was undrawn at 30 September 2026.
In addition to the above, the Group has a further £70 million of uncommitted accordion facilities.
All interest rates quoted above are exclusive of the amortisation of arrangement fees.
A balance sheet summary and an analysis of the movement in the EPRA NTA over the quarter is shown in the Appendix of this announcement.
Announcement of first interim dividend
The Company today declares its first interim dividend for the year ending 30 June 2027, in respect of the period from 1 July 2026 to 30 September 2026, of 1.553 pence per share as detailed in the schedule below:
Interim Property Income Distribution (PID): 1.553 pence per share
Interim ordinary dividend: nil
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Ex-Dividend Date: |
12 November 2026 |
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Record Date: |
13 November 2026 |
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Payment Date: |
27 November 2026 |
Shareholders entitled to elect to receive distributions without deduction for withholding tax may complete the declaration form which is available on request from the Company through the contact details provided on its website www.targethealthcarereit.co.uk, or from the Company's registrar. Shareholders who qualify for gross payments are, principally, UK resident companies, certain UK public bodies, UK charities, UK pension schemes and the managers of ISAs, PEPs and Child Trust Funds, in each case subject to certain conditions. Individuals and non-UK residents do not qualify for gross payments of distributions and should not complete the declaration form.
LEI: 213800RXPY9WULUSBC04
ENDS
Enquiries:
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Target Fund Managers Limited |
Tel: 01786 845 912 |
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Kenneth MacKenzie James MacKenzie Calum Bruce |
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Stifel Nicolaus Europe Limited |
Tel: 020 7710 7600 |
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Rajpal Padam |
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Catriona Neville |
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Panmure Liberum Limited |
Tel: 020 3100 2000 |
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Jamie Richards |
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David Watkins |
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FTI Consulting |
Tel: 020 3727 1000 |
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Dido Laurimore |
TargetHealthcare@fticonsulting.com |
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Richard Gotla |
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Notes to editors:
UK listed Target Healthcare REIT plc (THRL) is an externally managed FTSE 250 Real Estate Investment Trust which provides shareholders with an attractive level of income, together with the potential for capital and income growth, from investing in a diversified portfolio of modern, purpose-built care homes.
The Group's portfolio at 30 September 2026 comprised 86 operational care homes and one forward funded development site let to 31 tenants with a total value of £930.2 million.
The Group invests in modern, purpose-built care homes that are let to high quality tenants who demonstrate strong operational capabilities and a strong care ethos. The Group builds collaborative, supportive relationships with each of its tenants as it believes working in this way helps raise standards of care and helps its tenants build sustainable businesses. In turn, that helps the Group deliver stable returns to its investors.
Important information
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the UK version of the Market Abuse Regulations (EU) No. 596/2014, which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended. Upon the publication of this announcement via Regulatory Information Service, this inside information is now considered to be in the public domain.
APPENDIX
1. Analysis of movement in EPRA NTA
The following table provides an analysis of the movement in the unaudited EPRA NTA per share for the period from 1 July 2026 to 30 September 2026:
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Pence per share |
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EPRA NTA per share as at 30 June 2026 |
122.1 |
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Revaluation gains / (losses) on investment properties |
0.9 |
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Net impact of acquisition costs |
- |
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Movement in revenue reserve |
1.7 |
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Fourth interim dividend payment for the year ended 30 June 2026 |
(1.5) |
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EPRA NTA per share as at 30 September 2026 |
123.2 |
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Percentage change in the quarter |
0.9% |
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At 30 September 2026, including the valuation ascribed to the Group's interest rate derivative contracts used to hedge its exposure to variable interest rates, which are excluded from the calculation of the EPRA NTA, the unaudited NAV calculated under International Financial Reporting Standards was 123.5 pence per share.
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2. Summary balance sheet (unaudited)
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|||
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Sept-26 |
June-26 |
Mar-26 |
Dec-25 |
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|
£m |
£m |
£m |
£m |
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Property portfolio* |
930.2 |
924.1 |
903.2 |
894.6 |
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Cash |
49.3 |
50.9 |
66.1 |
67.2 |
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Net current assets / (liabilities)* |
(15.4) |
(17.4) |
(17.7) |
(17.6) |
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Loans |
(200.0) |
(200.0) |
(203.5) |
(203.5) |
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Net assets |
764.1 |
757.6 |
748.1 |
740.7 |
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EPRA NTA per share (pence) |
123.2 |
122.1 |
120.6 |
119.4 |
*Properties within the portfolio are stated at the market value provided by the external valuer and the IFRS effects of fixed/guaranteed minimum rent reviews are not reflected.
3. External Valuer
The valuation of the property portfolio as at 30 September 2026 was conducted by CBRE Limited.
4. EPRA NIY profiles and unwind of rent-free period
The Group currently has one asset with a rent-free period. As this unwinds, assuming no other changes including the portfolio valuation or rental profile, the EPRA yield profiles for the portfolio will be as follows:
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30 September 2026 |
31 December 2026 |
31 March 2027 |
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EPRA "topped-up" NIY |
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6.20% |
6.20% |
6.20% |
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EPRA NIY |
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6.15% |
6.15% |
6.20% |
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Contractual rent (£m) |
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61.5 |
61.5 |
61.5 |
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Passing rent (£m) |
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61.0 |
61.0 |
61.5 |
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