Target Healthcare Reit Share Discussion Threads

[bdog51] 16/8/2023 19:57

NAV according to HL is 110.39p PS. So the discount is indeed 36%. Not sure why ADVFN is showing a lower figure, maybe it excludes Cash.Anyway the discount is rather huge, oversold?

[bdog51] 16/8/2023 19:42

I took the NAV from ADVFN financial summary, which gives a figure of 91.12 as the net asset value per share. Where did I go wrong?

[spoole5] 16/8/2023 19:08

36% by my calculations

[scottishfield] 15/8/2023 15:16

Bit of loading up going on today? Reasonable volume?

[bdog51] 15/8/2023 11:28

Now trading at a huge 24% discount to NAV. Surprised it's gone that far below TBH.

[spoole5] 11/8/2023 09:48

Could this go the same way as CSH

[spooky] 11/8/2023 09:20

Looks like a fairly motivated seller has turned up.

[betman] 11/8/2023 08:35

I am completely new to THRL but the dividend yield, discount to NAV, long term RPI linked rental contracts, quality real estate assets. What's not to like. Well Mr Market has cut the price from 120p to 72p. The collapse started around the disastrous Sept 2022 budget and the steep rise in interest rates. Is the fall all about interest rates or are there other factors lurking that explain fall ?
Eg. Affordability of rents, tenants going bust and bad debts
Would appreciate any long term followers views on why the aren't a screaming buy for the dividend and at least a partial increase in NAV

[jong] 10/8/2023 07:39

XD Today. 1.4p per share payable on Friday 25 August.

[catch007] 04/8/2023 11:24

I bought a few today to average down my holding and pick up the dividend. THRL are holding up well in a difficult trading environment taking appropriate management actions as issues arise. 90% of properties ESG rated A & B should mean decent assets can be sold if needed however operations seem robust at present.

[1knocker] 04/8/2023 00:36

I don't doubt that the demand for residential care will rise, but with costs, especially staffing, likely to rise too, pressure on local authority and care budgets, and the incomes of the [relatively] wealthy aged paying out of their own pockets unlikely to keep pace, what sort of rents are care homes going to command?

The property in the healthcare sector I like the look of is surgeries, and pharmacies.They, especially the former don't go bust and are less vulnerable to cost pressures, and pretty well invulnerable to pressure on the incomes of patients /customers.

When care homes fail, they are likely to go down owing large debts, including rent. lack of profitability results in repair covenants being breached,Falling standards lead to resident exodus (especially the best payers who can afford to move) and complete closure is impossible until the last resident is re-homed. The landlord ends up with a bad debt for rent, and repossession of dilapidated building.

I think a substantial price discount for sector risk is justified here.On the plus side, those landlords who can manage select and their portfolios skilfully in a difficult sector should pay good dividends.

[hugepants] 02/8/2023 12:23

The only real negative I can see is confirmation they had to partially write off one of the tenants outstanding debts. They say this was already accounted for but its things like this that may partially explain why the shares look so cheap.

I really like the fact that 90% of the properties are ESG rated A or B. That's a big positive imo.

I notice from the interims the occupancy is only 84%. Is there a reason why its quite low? There is easy upside to rental income if they can increase this.

[igoe104] 02/8/2023 07:31

With an ageing population, there is a big need for care homes, these should do well over the longterm, once these silly markets have disappeared..

[spoole5] 02/8/2023 07:18

99% rent collection and a fully covered divi. 33% discount.

[spoole5] 28/7/2023 14:31

Gotta be vulnerable to a bid at these levels

[spectoacc] 19/7/2023 08:32

Inflation very mildly beat expectations and it's like Rates Vaccine Day - every beaten up income-payer has had an hour going to the moon.

[bdog51] 19/7/2023 08:27

Any particular reason for the 5% rise this morning? Nice to see anyway.

[spoole5] 21/6/2023 07:53

Gotta be pretty vulnerable to a bid at these levels

[wskill] 29/5/2023 19:38

Yes Spec if refinance was required it could be trouble but luckily not needed ,the upwards only rent reviews covering 99% of properties will be helpful.

[spectoacc] 28/5/2023 15:47

Falls in interest rates? Market now has +0.25% in June (I'm not so sure) & future peak at possibly 5.5% (also not sure, but could easily see eg 5% and still be there a year from now).

Borrowing costs in the Gilt market also been rising sharply.

[wskill] 28/5/2023 09:28

See a small mention in trustnet magazine today writer believes falls have been overdone and stability beckons with the expected falls in interest rates.THRL has fixed rates at 3.3% a while back but I see what is meant with falls in interest rates new building of homes could again become profitable.

[saltaire111] 22/5/2023 09:16

Sold out of Civitas and bought THRL with the proceeds.

Salty

[mister md] 19/5/2023 07:43

Looking at yesterday's trades seems there were 2x 1,000,000 share buy trades at just under 84p ?

[wskill] 11/5/2023 17:10

With the rise in building costs for new homes this should remove competition and increase occupancy/room rates in the long term ,THRL is in a very good position I think for the years ahead.

[spoole5] 11/5/2023 16:05

Divi now fully covered and should increase year on year, a comfortable ltv of 23%, in a growing sector. Expect to see the discount erode away over the next 12 months.