Target Healthcare REIT (THRL) Q1 2025 TU earnings summary

Executive summary

• Portfolio comprises 94 modern UK care homes with 6,457 beds and 34 tenants, diversified by geography and tenant profile.

• Focus remains on delivering attractive quarterly dividends through responsible investment in high-quality care home assets.

Financial highlights

• Contracted rent rose to £61.3m, up 1.1% from the previous quarter, driven by inflation-linked rent reviews and capital expenditure.

• Property portfolio valued at £930.0m as of 31 March 2025, up 0.6% from December 2024.

• EPRA NTA per share increased to 113.0 pence from 112.7 pence sequentially.

• Quarterly NAV total return (including dividend) was 1.6%.

• Quarterly Group specific adjusted EPRA earnings per share was 1.472 pence; dividend per share was 1.471 pence, yielding 5.8%.

Outlook and guidance

• Focus on enhancing portfolio quality and managing shorter-dated debt facilities due for renewal later in 2025.

• Resolution of a non-paying tenant is expected to restore rental income and EPRA earnings in future quarters.