Target Healthcare Reit Share Discussion Threads

[cwa1] 11/5/2023 16:03

it's certainly impressive that on XD day, in very tricky markets, the share price has actually gone up

[mister md] 11/5/2023 15:44

Added some more today - seems to be in recovery mode

[spoole5] 11/5/2023 07:27

XD today for 1.4p

[spoole5] 10/5/2023 07:12

Topped up yesterday with CSH cash

[saltaire111] 09/5/2023 16:29

Very surprised not to see the share price respond to what happened in the social housing sector today.

THRL is now desperately under valued in my view, and one need on,y compare the NAV to the current market cap to see how there is a mismatch. Like Civitas, someone will rock up and try and buy this on the cheap, and we shareholders will lose out.

Salty

[cheshire man] 04/5/2023 10:58

Same here :-)

[mister md] 04/5/2023 09:29

Bought a few here for my dividend portfolio, looks good value at 75p

[bdog51] 03/5/2023 06:38

NAV at 103.4p, current share price is indeed massively discounted and I'd expect a decent recovery at some point.

[igoe104] 03/5/2023 06:25

Massive discount to the Nav, markets are very paranoid at the moment...

[creme de menthe] 03/5/2023 06:24

Dividend rebased but fully covered. Some room to improve to 90% occupancy. Property valuations holding up. Should provide a platform for recovery over time.

[spoole5] 03/5/2023 06:17

Decent update with the nav stable.

[chucko1] 11/4/2023 08:26

My recollection is that THRL are in any event limiting their rises, and I think they are targeting that 7% level.

[raptor_fund] 10/4/2023 13:04

TRCML, believe you are referring to specialist social housing providers who have been limited to 7% by the government. Care homes do not come under this limit.

[trcml] 30/3/2023 19:53

there is no statury cap. Such is only by agreement.

[alter ego] 30/3/2023 10:53

Isn't there a cap which limits the rise in rent?

[trcml] 30/3/2023 10:49

Index-linked rent are normally based on the index 2 months prior to the review date.I don't knw wther the indexation for Target's holdings are upwards-only but if so then ok, but if upward or downward then rent level could fluctuate.

[jimbobbaby] 29/3/2023 17:13

I think there is always going to be a lag in the inflation uplift. Rent reviews may be every few years, certain times of the year etc so I doubt you'd ever see an exact match and especially in the early years of rising inflation. I would be more concerned if a larger inflation related effect doesn't start arriving in the next couple of years given the likely lag. But if it doesn't you'd be a bit late finding out at that point. Next years results will probably tell.

[spoole5] 29/3/2023 14:43

Bottom in?

[creme de menthe] 28/3/2023 14:03

Director buy, 30,000 at 67p

[trcml] 27/3/2023 10:27

I am considering buying, Unlikely the lenders would foreclose, too political. Good to see rising yields for property such as this. Yield compression caused by low interest rates has enabled commercial property investment to deviate from funfdamentals. Probably the time has come to value prop cos on rental income, rather than capital value. Demand for long lease investments shows no sign of abating and unlikly as there is a shortage. Normal for buying price to exceed cost of borrowing; the difference would be funded from other sources.

[spectoacc] 27/3/2023 07:47

Edited. No point repeating the same things across multiple threads.

[ghhghh] 27/3/2023 07:31

"...Interest rates have reached 14-year highs, meaning our marginal rate of financing currently exceeds the initial rental yields we can obtain on new investments. This changes our view on what earnings levels are achievable."

I've banged on about the importance of replacement cost and this has never been more germane than here. With SOHO, Civitas and Target trading at such eye watering discounts to NAV, with inflation having whacked up new build costs and interest rate rises the final kick in the gonads, where is the desperately required new build going to come from?

[ghhghh] 27/3/2023 06:55

20% dividend cut was flagged so 17% okay.

Agree I'd like to know more about the 1.8%, I thought 1% minimum annual uplift capped at 4% max. I assume it's bit of a movable feast if some tenants are replaced on new leases.

The fundamentals look good and Target appear to be at the top end in terms of product offering eg wet rooms and EPC ratings.

[spectoacc] 27/3/2023 06:53

Twice in the first page they say "inflation-linked", eg:

"..Offset by a 1.8% increase from inflation-linked rental uplifts".

Again - RPI was 17%.

This line from the Chairman struck me:

"...Interest rates have reached 14-year highs, meaning our marginal rate of financing currently exceeds the initial rental yields we can obtain on new investments. This changes our view on what earnings levels are achievable."

Cutting the divi seems the sensible thing. Selling the NI homes seems sensible to address the increasing LTV. Guess the question is whether things improve, or get worse, from here.