Very good update, NAV increasing, crazy discount to the NAV, due to continued selling by Blackrock. These funds model are a complete waste of time, they only preform in good markets and are forced sellers in weak markets, when really that's the time they should be buying... |
I think what we’re seeing with Target is that the sh1t that shadyfall were throwing towards the company was basically untrue. The company’s dividend is healthy, their customer base is reliable and their assets are best in class.
I like it.
Salty. |
Agreed, looks like an easy buy and hold to me, I'm tempted to increase my position to a full one on continued weakness. Currently just have a starter position, which I've held for a while. |
Thanks for the link. I just watch it. I really liked it.
Humble, down to earth, the business is easy to understand, their strategy as well. They execute what they say.
Low leverage, sells at nav or above. Recycling the portfolio.
Focus on high quality product, they know what elderly population are looking for and do checks on the care companies to ensure they have a business that keeps paying rent. |
Jefferies raises Target Healthcare REIT price target to 110 (104) pence - 'buy' |
Seems very good results to me. |
Cant wait. This is one of the less talked about REITs in forums and news. Whereas people might decide not to go to the office, we will not run out of old people going to care homes! |
Results next Tuesday, 17/09. |
 Target Healthcare REIT plc and its subsidiaries
("Target Healthcare" or "the Group")
Disposal of four care homes for £44.5 million
Target Healthcare (LSE: THRL) announces that it has completed the disposal of four UK care homes for £44.5 million to the incumbent tenant. The sale price reflects a modest premium to the portfolio's carrying value at both 31 December 2023 (the latest date prior to the offer being received) and 31 March 2024, and an implied net initial yield of 5.64%.
Proceeds from the disposal, which represented 326 beds and c.4.6% of the Group's overall portfolio value, will enable a partial repayment of the Group's revolving credit facilities and therefore reduce its unhedged interest cost. Overall, the disposal reduces net LTV by approximately 3.8%.
These assets were originally constructed in 2007/08, and were consequently amongst the oldest assets in the Group's portfolio, and had a c.12% lower gross internal floor space per resident than the portfolio's weighted average. In addition, these assets represented the Group's four shortest lease terms, with an average of 13.6 years remaining. Following the disposal, the portfolio's weighted average unexpired lease term increases to 26.3 years from 25.8 years, and the Group's weighting to Yorkshire and the Humber reduces, an area that was previously its largest geographical exposure.
These properties were originally acquired as part of the significant portfolio acquisition in December 2021. Despite the relatively short holding period for a property investment, this disposal enabled the Company to crystalise significant value from these assets, resulting in an annualised ungeared IRR in excess of 7% over the period of ownership (including both acquisition and sales costs) and is a testament to the Group's asset management expertise.
Scott Steven, Head of Asset Management at Target Fund Managers, commented:
"These care homes have been a successful investment for the Group, delivering a consistent and attractive rental yield over the period of ownership, combined with the realisation of a capital uplift on disposal. We care deeply about the quality of our assets and the services they facilitate; however we are not unduly attached to holding onto the bricks and mortar where we identify opportunities to improve both the overall portfolio and the Group's capital structure. This disposal is a clear illustration of our ability to pro-actively manage the portfolio to provide an attractive and sustainable level of income, together with the potential for growth, from our diversified portfolio of modern, purpose-built care homes." |
Looks to be a general REIT sell off. Perhaps as you say yesterday's inflation data is the key reason. General election concerns a less rational reason - it was coming soon enough and Labour look a dead cert for victory regardless of the precise timing. |
I bought 2500 78p on the drop so of course it went down to 76p.
No news other than high interest for longer and gen election stories. |
Quite a pull back even when you allow for it going ex-div. I was wondering if the markets were taking fright at the prospect of a Labour government but price action in gilts (looking at the 10 year) suggests not. So, the boring explanation is, that we have a seller. Anyone know differently? |
Very happy with this investment.
Salty. |
Quite satisfactory on the face of it :-) |
Nice update this morning. |
Sorry, what have I missed saltaire111? |
Revenues down but strong bottom line growth. |
Nice director buy |
I have strated looking at the property companies in the healthcare sector.
As i understand THRL just own the property and collect rent from a care home operator.
So they get long lease rental income from the operator and i see they get some non rental income. Is this becuase the operators pay THRL to manage repairs and maintenance?
Also does anyone know are there any healthcare property companies that actually are the operators too? |
I liked this share a little too early but I am holding; low LTV, strong demand and credit cost lowering with good yield, in a sector still unloved...more patience required... |
Folks would rather invest in bitcoin, rather than undervalued companies like this... |
The market response is nuts! |
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