Target Healthcare REIT reports 3.4% growth in its EPRA NAV for the year to the end of June 2015. EPRA earnings per share were 5.7p, 36% higher than the previous year. The dividend for the year is 6.12p – an increase of 2%. This works out at an NAV total return of 10.3% which is little behind the equivalent IPD return of 11.1%. The Board intends to increase the quarterly dividend in respect of the year ending June 2016 by 1% to 1.545 pence per share, in line with inflation and providing an annual total of 6.18p.
The like-for-like growth in the valuation of the portfolio was 6% as rents rose by 2.2%. There are now eight operators running the care homes. The weighted average unexpired lease term is 29.5 years.
They bought 11 assets for £57.6m and raised £47.8m of fresh equity to help fund this. Leaving them with a loan to value ratio of 21.9% – well within their 35% limit.
THRL : Target Healthcare REIT matching dividend growth to inflation