Care home owner Target Healthcare REIT has posted a 3.3% net asset value (NAV) total return for the six months to 31 December 2020.
The group, which raised £60m earlier this month to buy an identified pipeline of investments, said this was driven primarily by the rental and valuation growth of the property portfolio.
The portfolio valuation was up 4.9% in the period (1.3% like-for-like) to £647.7m, while contractual rent increased 4.2% (0.3% like-for-like) to £40.6m per year.
EPRA earnings per share was 3.61p, while dividends paid in the period was 3.36p.
The group has a low loan to value (LTV) ratio of 22.2%, with cash reserves of £18.3m and £58m available in undrawn revolving credit facilities. Its average cost of drawn debt is 2.81% and the average term to maturity is 5.34 years.
Malcolm Naish, chairman, said: “The COVID-19 vaccination programme provides a massive relief to residents, their friends and families, and care staff. While our outlook for our homes and the sector is optimistic, we recognise that trading conditions may remain challenging for a period for some homes as we continue to emerge from the worst of the pandemic. Positive relationships with our tenants are fundamental to our business model and we remain a highly engaged and supportive landlord.
“Our business model provides stable, noncyclical returns from long-term, committed investment in UK care homes. Real estate standards across the sector remain generally poor and this significant undersupply of quality, and the increasing numbers of people over 85 years of age, allows us to invest with confidence for the long-term.“
THRL : Target Healthcare REIT post 3.3% NAV total return in interims