Target Healthcare Reit Share Discussion Threads

[grahamite2] 31/8/2014 10:39

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 16:30

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 16:11

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 14:30

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.

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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.
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[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.