Target Healthcare REIT has a good year – Target Healthcare REIT (THRL) has reported final results, covering the period to 30 June 2019. NAV total return for the year came in at 8.1%; on an annualised basis the number is 7.9% since launch. Annualised share price total return for the same period has been 8.2 per cent.
The company manages a care home portfolio which provides places for 4,094 residents, to be cared for by its 24 tenants.
Market Outlook
THRL sees compelling demand supply dynamics supporting both investor and operator activity in the sector, with the number of people aged 85 or over in the UK forecast to double to 3.2m in the next 20 years. The company adds that its full en suite wet-rooms, remains an attractive differentiator. Over 75% of UK care home rooms do not currently offer en suite wet-rooms.
Chairman, Malcolm Naish, added: “Careful investment in the UK care home property market, which can offer attractive returns significantly above prevailing interest rates, and at lower risk levels than some might expect, is therefore in demand. We continue to see our shares trade at a premium, in contrast to many of the traditional property sectors, and the asset class we invest in sees continued yield stability with some modest tightening.
Residential care for the elderly and infirm is needs-based, with demographic trends suggesting demand is only going to increase. The need to adequately fund the nation’s infrastructure for care services to ensure it is fit-for-purpose is well-documented and very much a talking point, however funding of the NHS is still gaining more political attention and policy initiatives – perhaps social care will follow.”
THRL: Target Healthcare REIT has a good year
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