Target Healthcare REIT, the care home investor, has reaffirmed its dividend after collecting 96% of rents.
The group said the 4% of rent currently outstanding for the quarter to September 2020 relates to care homes where active asset management initiatives are in place.
As a result of the high rent collection rate, the company has reaffirmed its intention to pay its fourth-quarter interim dividend, for the period 1 April 2020 to 30 June 2020, in-line with expectations with an announcement due in early August 2020.
It added that, as at 2 July, just five of the portfolio’s 71 care homes were reporting confirmed or suspected covid-19 cases, representing 15 of 4,925 beds (0.3%), down from a peak of 162 (3.2%) during the third week of April. It also added that tenants were reporting an improvement in new resident enquiries in recent weeks.
Investment activity
The company announced today the acquisition of a newly-developed care home in Bicester, Oxfordshire, for £15m.
The 66-bed, purpose-built asset is let to Ideal Carehomes, the group’s largest existing tenant with leases on 12 assets including this one. Ideal has agreed a 35-year, fully repairing and insuring occupational lease which includes annual, upwards-only RPI-linked increases, subject to a cap and collar.
Additionally, the group has reached practical completion on the development of an 80-bed care home in Burscough, Lancashire. The home was completed under a forward-fund arrangement pre-let to Athena Healthcare, an existing tenant of the group, and will open to residents in July 2020.
THRL : Target Healthcare reaffirms dividend after collecting 96% of rent