Target Healthcare REIT has posted a 2.5% net asset value (NAV) total return for the first quarter of 2021.
The care home investor said EPRA NAV per share was up 0.8% to 109.1 pence in the quarter to 31 March 2021. Including payment of a dividend of 1.68 pence during the period, the NAV total return was 2.5%.
The NAV increase was on the back of a 1% growth in the value of the portfolio to £650.8m.
Other key performance highlights include:
- 19 rent reviews were completed at an average uplift of 1.8% per annum with a 0.4% like-for-like growth in contractual rent
- Weighted average unexpired lease term (WAULT) across the portfolio of 28.6 years
- 92% of the rent due in respect of the current quarter collected as at 23 April 2021, in line with recent quarters
- COVID-19 cases remain low across the portfolio (<1% of beds). Residents in 100% of homes were offered a first vaccine dose by the end of January, with the substantial majority now also having had access to their second dose.
Oversubscribed placing
The company raised gross proceeds of £60m in a substantially oversubscribed placing in March. It said all proceeds from the equity placing have been allocated to acquisitions under non-binding heads-of-terms and expects to exchange of contracts/complete in the near term.
Kenneth MacKenzie, chief executive of Target Fund Managers, said: “The successful capital raise in March allows us to continue our mission to support the sector through careful investment exclusively in modern, purpose-built care homes. We have heard powerful first-hand accounts from home managers and staff relating how the standards of our real estate have proven essential in their efforts to protect the wellbeing and dignity of residents through the COVID-19 pandemic.
“The non-cyclical nature of returns continue to attract participants to the market. We will not deviate from our disciplined investment approach, focussing on the sustainability of rent levels and the ability of a home to thrive within the dynamics of its local market. We base our assessment on knowledge gained having analysed thousands of homes, the skills of our stable and experienced investment team, and our proprietary research database.
“This is long-term investment with a positive social impact within a complex sector. A diversified portfolio of scale carefully assembled and managed with our specialist knowledge, will deliver sustainable returns whilst also delivering better living environments for those elderly people with care needs.”
THRL : Target Healthcare REIT posts 2.5% NAV total return for quarter