Target Healthcare REIT has published results for the year ended 30 June 2016. The Group’s EPRA NAV per share increased by 2.8 per cent to 100.6 pence. When combined with dividends paid during the year, this has provided a NAV total return of 9.3 per cent. EPRA earnings have increased by 20 per cent to GBP8.1 million delivering EPRA earnings per share of 4.7 pence (2015: 5.7 pence).
Passing rent has increased by 40 per cent to GBP15.5 million, and new shareholder capital of GBP115.1 million has been issued. As the cash has been sitting on their balance sheet awaiting investment, this has held back EPS and so, all things being equal, as they invest the cash the earnings should rise from here. Significant cost savings have been obtained for future periods from a renegotiation of the Group’s debt facilities. A reduction to borrowing margin of 50 basis points has been obtained alongside an extension of the now GBP50 million RBS facility to 1 September 2021. Exposure to interest rate risk has been actively managed, with protection obtained through an interest rate swap arrangement relating to GBP21 million of debt.
They have declared and paid dividends of 6.18 pence per share in respect of the year. This is an increase of 1 per cent on 2015, and meets the objective of a progressive dividend policy. In the absence of unforeseen circumstances, the Board intends to increase the quarterly dividend in respect of the year ending June 2017 by 1.6 per cent to 1.570 pence per share, in-line with inflation and providing an annual total of 6.28 pence.
THRL : Target Healthcare REIT sees rents rise by 40%