Target Healthcare Reit Share Discussion Threads

[ec2] 21/4/2020 08:18

No nasty surprises in today's quarterly update. LTV of only 18%. Government's recent announcement to recruit and pay for training of tens of thousands of additional care workers is also a positive step for the industry. With the shares paying a secure index linked 6.3% these are worth keeping for their long term dependability. We will always need care homes and they are at last receiving the recognition they deserve.

[horndean eagle] 26/3/2020 13:46

very well timed EC2. IHR still not recovered anywhere near the same extent. Been loading up there. Can't think of many safer places to be at present than a sector which isn't likely to get impacted by covid.

[ec2] 18/3/2020 12:24

Today's half year numbers look fine. Coronavirus is not going to stop elderly using care homes so the business should remain intact. Deployment of the recent cash call may be slower but I can't see a major long term impact. Based on latest NAV announced the shares are currently trading at over 35% discount. Div is only 75% covered until the cash call deployed but shares are currently on near 10% yield so even if the div temporarily reduced there will still be a decent yield. Picked up good size position today at 67.5p.

[ec2] 21/10/2019 19:12

I've held these to a varying extent for around 5 years and they've basically done what it says on the tin. The yield is good, they add a further element of diversification to my REIT holdings (away from the normal industrial, office, retail and warehousing) and are a play on the ageing population theme. I may reduce if the share price goes above 118p but at the current level they form a useful element within my portfolio. What would you replace them with?

[vnvd] 21/10/2019 12:27

The number of shares and capital raised in the last few years has been quite significant. Correspondingly, portfolio value has increased 30% vs prior year in each of the last 2 years (see 2019 anual report p3). Yet, NAV and dividends per share have increased "just" 2% (probably more to do with rent revisions than by the external growth). The company might be diversifying, but in light of the results for shareholders, is growing so much necessary? (I know the investment manager likes the increased fees, but at some point we may get a bad deal)

It was already mentioned, but it seems there is still some work to as to the quality of care delivered by tenants? Inadequate service rating (the worst) as per CQC was received by 6% of THC portfolio vs 2% national average (2019 annual report).

I am considering if the share price increase of recent months might be a good time to sell...

[saltaire111] 05/9/2019 14:51

Another placing at 6% discount. PIs don’t get to participate.

Salty

[nerja] 02/8/2019 15:08

Anybody got the divi for this? Tia

[mel53] 01/4/2019 22:15

Great piece of research.

[saltaire111] 04/10/2018 12:20

Excellent set of results. What an under rated company this is.

Salty

[chucko1] 06/4/2018 17:37

Yes, very well researched and informative indeed. I am a holder, but consider switching some or all of my holding into the forthcoming PHP offer.

[renewed1] 05/4/2018 08:54

Thanks for sharing your research Erstwhile. A very interesting post.

[belgraviaboy] 01/3/2018 17:58

A couple of big institutional holders do not appear to have supported the latest raise....

[wirralowl] 11/8/2015 08:22

Not sure why the big upsurge in price here, but I'm not complaining!?

NAV went up 1.7% in last week's RNS, but is still only 98p, so the company sits on a large premium. That said, they are a quality operator, in a niche and growing sector and offer a 5.4% yield even at today's price. And that yield is set to outpace inflation (6.4p forecast for 2017), so offers protection against rising interest rates. Ex-divi later this week for 1.53p.

A long term hold for me.

[shauney2] 26/3/2015 16:40

Big volume of buys this week probably caused by last weeks recomendations in Moneyweek and the IC and the first tick up.I guess there must be a lot of stock available.

[grahamite2] 31/8/2014 09:39

I saw REITs suggested as an alternative to bonds and equities for those concerned about valuations in those areas. This is one of a few I'm looking at.

These REITs don't seem as conservatively managed as I'd expect - one consistently pays out more than earnings, and this one has said:

Following the addition of these properties the Company has now invested all of its existing equity and has drawn down substantially all of a £30 million term loan and revolving credit facility.

That seems surprising to me; perhaps they had to strike while the iron was hot.

The next week or two should be interesting.

[skyship] 27/6/2014 15:30

Yes, many of us have enjoyed ACD...the search is on for a replacement as perhaps we are now into the last 6months of life there, unless one opts for the Continuation of course.

Likewise, have a good weekend - though for me, being retired, life is one long weekend holiday!

[wirralowl] 27/6/2014 15:11

Hi Sky! Blimey another poster LOL!

Yeah, I'm not particularly comfortable with the premium to NAV either and like you suspect they'll raise at around the original launch price. I've a small holding tucked away in my SIPP and will probably add to my holding if we get the chance to participate.

By the way, I should thank you for originally drawing my attention to ACD. I initially bought around 80p and added up to £1, so its been a great investment for me.

Have a good weekend.

[skyship] 27/6/2014 13:30

Hi Wirral - I have been alerted to these by David Stevenson's article in MoneyWeek of 30th May. He suggested an share price of 102p; an NAV of 96p and a yield of 5.8% estimated by Numis.

I now see this, which I suspect presages a large placing at par - 100p. so will hold off for the moment; though I remain interested.

====================================================

Following the Company's successful launch in March 2013 and subsequent capital raises in June and October 2013, the Company has acquired a portfolio of 18care homes across England and Scotland which have a market value of over GBP87 million. Target Advisers LLP, the Company's Investment Adviser, is currently in advanced discussions, or has entered into exclusivity arrangements, in respect of a number of further acquisition opportunities in line with the Company's investment policy. If completed, these opportunities would result in the Company having invested all of its remaining available cash reserves and having drawn down substantially all of a proposed GBP30 million term loan and revolving credit facility.

Your Board announces therefore that it is discussing, with its advisers, a proposal to raise additional equity. The Company has today published a circular to convene a general meeting to seek authority from shareholders of the Company to allot a further 50 million Ordinary Shares on a non pre-emptive basis under a placing and offer for subscription.

Your Board believes that raising additional capital will allow the Investment Adviser to take advantage of the acquisition opportunities it has identified. Your Board also believes that it is in the best interests of the Company's shareholders to increase the size of the Company to spread the fixed costs over a wider asset base and to increase the market capitalisation and liquidity in the shares of the Company.

If the Board and its advisers identify sufficient investor demand, the Company will publish a prospectus. The price at which the shares will be issued by the Company pursuant to these proposals will not be dilutive to the Company's existing shareholders.
================================================

[wirralowl] 06/12/2013 11:37

Have some of these in my SIPP, and as there's no other thread, thought I'd set one up. Any fellow holders out there..?

[wirralowl] 06/12/2013 10:58

Company Website: hxxp://www.targethealthcarereit.co.uk/default.aspx
Twitter:

Looking to pay out 6% p.a. With our Ageing population, would seem they are in a good position to benefit.