Target Healthcare boosts portfolio value

Target Healthcare has increased the value of its portfolio to £362.9m and seen like-for-like asset growth of 6.6%, according to its results for the year ended 30 June 2018. The care home investor said rents grew to £26m from 20.3m in 2017, with an unexpired lease term of 28.5 years. Like-for-like rental growth was 3.2%. The care home provider said it was targeting five assets valued at £79.1m in total. Total return to the end of 2017 was 11.9%, against the IPD benchmark average of 11.7%. Since launching in March 2013 it has provided an annualised NAV total return of 7.8% and annualised share price total return of 7.7%. Chairman Malcolm Nash said: “The care home investment market remains competitive, with several buyers and a shortage of high-quality homes resulting in tightening investment yields. “The manager continues to see acquisition opportunities that are attractive based on long-term sustainability of rental income and their ability to contribute to the diversification of the portfolio. “Given activity levels in the market and the underlying demand/supply imbalance of modern beds with full wetroom provision for residents, the manager remains confident and optimistic about our portfolio and the wider care home investment market.” To send feedback, e-mail alex.peace@egi.co.uk or tweet @EGAlexPeace or @estatesgazette