Care home investor Target Healthcare REIT has posted a net asset value (NAV) total return for the quarter to the end of December 2020 of 1.8%.
The group’s EPRA NAV notched up 0.2% in the period to 108.2p per share, reflecting a 0.8% increase in the value of its portfolio to £647.7m.
It paid an interim dividend of 1.68p per share for the quarter and, when reinvested, gives a NAV total return of 1.8%.
Impact of COVID
The group said all residents of its care homes had now been offered the first dose of a COVID-19 vaccine and there were currently confirmed cases in 2.1% of its total portfolio beds across 11 homes (this is down from the peak of 3.2% across 32 homes in April 2020).
The group has collected 92% of rent for the current quarter, as at 1 February, which is in line with previous quarters.
Portfolio update
The group acquired a development site in Droitwich Spa in Worcestershire, for £14.4m in November 2020, and will forward fund the construction of a 66-bed care home. It is pre-let to the group’s largest tenant, Ideal Carehomes, and is expected to be operational in the second half of this year.
During the quarter it also completed 17 rent reviews at an average uplift of 1.5% per annum, which provide a 0.4% like-for-like growth in contractual rent.
The weighted average unexpired lease term (WAULT) on the portfolio was 28.7 years.
Financings
The group extended the maturities on two existing debt facilities, with HSBC and RBS, to November 2023 and November 2025 respectively. The extended HSBC facility also benefits from two one-year extension options. In addition to the increase in tenor, the combined facilities have added an additional £40m of committed revolving credit facilities.
In total, the group has available cash reserves of £18m (at 31 December 2020) and £58m available in undrawn facilities. Its net loan-to-value (LTV) is 22.2%.
THRL : Target Healthcare post 1.8% NAV total return for quarter