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- Target Healthcare reaffirms dividend after collecting 96% of rent
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.
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