Target Healthcare REIT (THRL) H2 2026 earnings summary

Executive summary

• Delivered a total accounting return of 12% for the year ended 30 June 2026, with annualized returns since IPO at 7.8%.

• Portfolio consists of 87 modern care homes, fully let, with 100% en suite wet rooms and high EPC ratings.

• Maintained a robust, defensive portfolio with long-term inflation-linked rental income and strong sector tailwinds.

Financial highlights

• Adjusted EPRA earnings per share rose 7.6% year-over-year to GBP 0.0654.

• Dividend per share increased 2.5% to GBP 0.0603, with dividend cover at 109% (up from 103%).

• EPRA NTA per share up 6.5% to GBP 1.221; portfolio valued at GBP 924.1 million, a 4.9% like-for-like increase.

• Net loan-to-value reduced to 16.1% from 21.8% year-over-year.

• Operating costs and net financing costs both decreased, supporting improved profitability.

Outlook and guidance

• Board aims to scale the portfolio accretively, targeting LTV of 25%-30% as new assets are acquired.

• Announced a 3% increase in dividend for the coming year.

• Strong pipeline of high-quality, purpose-built care homes, with committed capital of GBP 75 million for further investment.

• Demographic tailwinds and supply shortages in fit-for-purpose beds support long-term growth.