Functional Brands closes $8 million private placement and completes Nasdaq listing
Investing.com -- Target Healthcare REIT (LON:THRL) reported a 2.5% increase in EPRA NTA to 117.7p in its latest trading update.
The company exchanged on the previously announced £85.9 million disposal of nine care homes at an 11.6% premium and 5.2% implied net initial yield (NIY). The EPRA "topped-up" NIY for the portfolio stands at 6.24%.
Adjusted EPRA earnings per share rose to 1.71p, supporting a dividend of 1.508p, which represents a 2.5% increase.
The portfolio value increased by 2% in the quarter to £948.3 million, comprising 93 homes with 98% rent collection and a weighted average unexpired lease term of 25.7 years. Contractual rent grew 1.8% from inflation-linked reviews and a completed development.
Net loan-to-value ratio fell to 21.4%, with £138 million capital available for reinvestment. The company’s debt refinancing extended the average term to 5.9 years, with £200 million fixed at 3.89% until 2030.
Re-tenanting efforts improved both rent recovery and valuation for the real estate investment trust.
Kenneth MacKenzie, CEO of Target Fund Managers, said: "The Group’s strong results in the quarter demonstrate the attractiveness of our modern, purpose-built care home portfolio and the value delivered through the active management model."
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