Target Healthcare REIT (THRL) investor relations material

Executive summary

• FY26 total accounting return was 12%, the highest since launch in 2013; annualised return since launch was 7.8%.

• Modern portfolio of 87 care homes generated £61.1m of annualised contracted rent, with 100% inflation-linked rental uplifts and a 26-year WAULT.

• Strategic priorities include accretive growth, deploying capital and continuing to grow earnings and the progressive dividend.

Financial highlights

• Adjusted EPRA earnings rose 7% to £40.6m; adjusted EPRA EPS increased 7.6% to 6.54p from 6.08p.

• Dividend per share increased 3% to 6.03p; cover rose to 109% from 103%.

• Annualised contracted rent rose 3.7% like-for-like; EPRA NTA per share increased to 122.1p, up 6.5%.

• Rental income excluding guaranteed uplifts declined 1% to £60.2m, mainly following disposals; EPS growth was 3% excluding the non-recurring arrears recovery.

• Portfolio value was £924.1m, down 0.6% year-on-year, with a positive 4.9% like-for-like valuation movement.

Outlook and guidance

• FY27 dividend is expected to increase 3%; strategic aims include accretive growth and deploying capital while growing earnings.

• High-quality pipeline of standing assets, forward funds, commitments and developments exceeds available capital; blended NIY is over 6%.

• £75m of committed capital, alongside debt, equity and capital recycling, supports investment plans; alternative financing may be considered if earnings enhancing.