Target confident it can weather the pandemic storm
Care homes investor Target Healthcare REIT is confident that it can weather the storm created by the coronavirus pandemic with a “strong balance sheet and conservative leverage”.
The REIT, which owns 71 care homes across the UK, reported stable results for the six months ended 31 December 2019, with EPRA NAV per share increasing by 0.6% to 108.1p, an increase driven primarily by revaluation gains. The like-for-like value of its portfolio increased by 1.5%.
Rental income across its portfolio increased by 16.8% to £37.6m. Its weighted average unexpired lease term remained relatively stable at 29.2 years.
Care homes investor Target Healthcare REIT is confident that it can weather the storm created by the coronavirus pandemic with a “strong balance sheet and conservative leverage”.
The REIT, which owns 71 care homes across the UK, reported stable results for the six months ended 31 December 2019, with EPRA NAV per share increasing by 0.6% to 108.1p, an increase driven primarily by revaluation gains. The like-for-like value of its portfolio increased by 1.5%.
Rental income across its portfolio increased by 16.8% to £37.6m. Its weighted average unexpired lease term remained relatively stable at 29.2 years.
Target increased its debt facilities with a new £50m, 12-year loan and extended its existing £80m facility with HSBC, increasing its weighted average term to expiry to 4.5 years, up from just 1.6 years.
Looking ahead chairman Malcolm Naish said: “The current coronavirus pandemic is clearly a concern and the safety and wellbeing of the residents in our homes, and the healthcare professionals who provide their care is paramount… While these macroeconomic events have recently impacted the group’s share price, during the first half of the year we continued to successfully manage our portfolio of care home assets, making strong progress towards our stated objectives.”
He added: “We continue to focus on sustainable long-term performance and believe that the diversification and quality of the property portfolio, combined with the strength of the group’s balance sheet and its long-term debt financing, at both a conservative leverage ratio and attractive long-term interest rate, leave the group positioned to face potentially turbulent market conditions over the near term.”
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