Target Healthcare REIT (THRL) Q2 2025 TU earnings summary

Executive summary

• Portfolio consists of 93 modern, purpose-built UK care homes with 6,369 beds and 34 tenants, aiming to provide stable quarterly dividends through diversified investments.

• Portfolio continues to generate consistent underlying rental growth and positive total accounting return, supported by active management and sector tailwinds.

Financial highlights

• Property portfolio valued at £929.9 million as of 30 June 2025, with a like-for-like increase of 0.9% over the quarter, offset by a 0.9% reduction from a property disposal.

• Contracted rent stands at £61.2 million, with a 0.1% decrease due to a 1.1% like-for-like increase from inflation-linked rent reviews and a 1.2% reduction from a property disposal.

• EPRA NTA is £711.9 million, or 114.8 pence per share; quarterly total accounting return (including dividend) is 2.9%.

• Quarterly Group specific adjusted EPRA earnings per share is 1.48 pence; dividend yield is 5.9%.

• Share price at 99.4 pence, market capitalisation at £616.5 million, and share price discount to EPRA NTA at 13.4%.

Outlook and guidance

• Recent asset management initiatives are expected to deliver strong investment total returns over the long term, with active landlord engagement and high-quality real estate as key drivers.