Quarterly Investor Report:

April 2021

Quarter ended 31 March 2021

Target Healthcare REIT plc and its subsidiaries ('the Group') is a leading investor in modern purpose-built UK care homes with ensuite wet rooms. The Group aims to provide investors with an attractive quarterly dividend generated from a portfolio diversified by tenant, geography and end-user payment profile.

Group at a glance

Properties

Beds

Tenants

Contracted rent

Property Value

75

5,211

27

£40.3m

£650.8m

Overview

Key ratios & financials

Launch date

March 2013*

Investment properties

£650.8 million

ISIN

GB00BJGTLF51

Drawn debt

£114.0 million

SEDOL

BJGTLF5

EPRA NAV

£558.3 million

Company name

Target Healthcare REIT plc

EPRA NAV per share

109.1 pence

Registered number

11990238

Quarterly NAV total return

2.5%

(including dividend)

Expected quarterly dividend

Feb/May/Aug/Nov

Quarterly Group specific

1.38 pence

Financial year end

30 June

adjusted EPRA earnings per

share

Currency

Sterling

Quarterly dividend per share

1.68 pence

Website

www.targethealthcarereit.co.uk

Dividend yield (26/04/2021)

5.7%

Ordinary share class as at

26/04/2021

Loan-to-Value ('LTV')**

17.5% (gross); 13.4% (net)

Shares in issue

511,541,694

Management fee rate

1.05% up to £500m NAV

Share price

117.6 pence

0.95% of £500m - £750m NAV

0.85% of £750m - £1,000m NAV

Market cap

£601.6 million

0.75% of £1,000m - £1,500m NAV

0.65% of £1,500m + NAV

Share price premium to EPRA

7.8%

WAULT

28.6 years

NAV

**Gross LTV calculated as total gross debt as a proportion of gross

property value. Net LTV calculated as total gross debt less cash, as a

* originally launched as Target Healthcare REIT Limited (Jersey

proportion of gross property value

registered: 112287)

Recent news

The Group's oversubscribed placing in March raised gross proceeds of £60 million, allowing us to continue our mission to support the sector through investment in modern, purpose- built care homes. We have heard powerful first-hand accounts from care home staff relating how the standards of our real estate were essential in their efforts to protect the wellbeing and dignity of residents through the COVID-19 pandemic. COVID-19 cases remain low in the portfolio (<1% of beds), with all homes offered the first vaccine dose and the vast majority having had access to the second dose. Occupancy across the mature portfolio has stabilised in recent weeks, with recovery anticipated during 2021 based on demand as evidenced from the enquiry levels reported by our tenants.

Performance

The portfolio value increased by 0.5% over the quarter. This comprised a 0.7% increase from further investment into the development portfolio, a 1.2% decrease due to asset disposals, and a like-for-like uplift in the operational portfolio value of 1.0%. The latter movement reflects a combination of yield tightening, the portfolio's inflation-linked rental reviews and the results of asset management initiatives.

Asset Management and Acquisitions

Substantially all capital available for investment, inclusive of March's equity proceeds, has been allocated to acquisitions, with these transactions advanced to formal due diligence ahead of expected completion in the near term. In the quarter, the disposal of one asset (c.1% of portfolio value) realised sale proceeds ahead of both carrying value and cost. An asset was re-tenanted from a national operator to a family-owned operator on a lengthened lease term, providing a net valuation uplift and better positioning the home for the future.

Pipeline

The investment market for high quality, modern, fit-for- purpose assets which meet the Group's investment criteria remains very competitive. Strong investor appetite continues, with the best properties transacting at pre-COVID-19 pandemic pricing. The Investment Manager, as well as working through the diligence process on transactions which will see the equity proceeds invested, is also assessing several earlier stage opportunities as the anticipated uptick in the development of fit-for-purpose care homes following COVID- 19 becomes more apparent.

Summary balance sheet

£m

Mar-21

Dec-20

Property Portfolio***

650.8

647.7

Cash

26.6

18.3

Net current assets/(liabilities)

(5.1)

(9.2)

Bank Loans

(114.0)

(162.0)

Net assets

558.3

494.8

EPRA NAV per share (pence)

109.1

108.2

***Ignores the effect of fixed/guaranteed rent reviews. See note 9 to the Annual Report 2020 for full details.

Performance - NAV and share price total return

185

175

NAV total return

165

155

Share price total return

145

135

125

115

105

95

Jun-13

Sep-13Dec-13Mar-14Jun-14Sep-14

Dec-14

Jun-15

Sep-15

Dec-15

Jun-16

Sep-16

Dec-16

Jun-17

Sep-17

Dec-17

Jun-18

Sep-18

Dec-18

Jun-19

Sep-19

Dec-19

Jun-20

Sep-20

Dec-20

Mar-13

Mar-15

Mar-16

Mar-17

Mar-18

Mar-19

Mar-20

Mar-21

Portfolio summary at 31 March 2021

Number of properties by geographic region

Scotland

North East

Northern Ireland

Yorkshire & The Humber

North West

East Midlands

Wales

East of England

West Midlands

South East

South West

Contracted rent by geographic region

2%1%

5

4%

5%

22%

6%

6%

2

9%

19%

4

13

11%

15%

19

10

Valuation by geographic region (including developments)

Wales

North East

Northern Ireland

East of England

5

1

3

Scotland

West Midlands

South West

East Midlands

North West

South East

Yorkshire & The Humber

0%

5%

10%

15%

20%

25%

9

4

Directors

Investment Manager

Advisers

Malcolm Naish (Chairman)

Target Fund Managers Ltd.

Administrator

Target Fund Managers Ltd.

Professor June Andrews OBE

Kenneth MacKenzie,

Depositary

IQ EQ Depositary Company (UK) Ltd.

Gordon Coull

Gordon Bland

Broker

Stifel Nicolaus Europe Ltd.

Thomas Hutchison III

+44 (0) 1786 845 912

Legal

Dickson Minto W.S.

Alison Fyfe

targetfundmanagers.com

Auditors

Ernst & Young LLP

This Report is intended solely for the information of the person to whom it is provided by the Group, the Investment Manager or the Administrator. This Report is not intended as an offer or solicitation for the purchase of shares in the Group and should not be relied on by any person for the purpose of accounting, legal or tax advice or for making an investment decision. The payment of dividends and the repayment of capital are not guaranteed by the Group. Any forecast, projection or target is indicative only and is not guaranteed in any way, and any opinions expressed in this Report are not statements of fact and are subject to change, and neither the Group nor the Investment Manager is under any obligation to update such opinions. Past performance is not a reliable indicator of future performance, and investors may not get back the original amount invested. Unless otherwise stated, the sources for all information contained in this report are the Investment Manager and the Administrator. Information contained in this Report is believed to be accurate at the date of publication, but none of the Group, the Investment Manager and the Administrator gives any representation or warranty as to the Report's accuracy or completeness. This Report does not contain and is not to be taken as containing any financial product advice or financial product recommendation. None of the Group, the Investment Manager and the Administrator accepts any liability whatsoever for any loss (whether direct or indirect) arising from any use of this Report or its contents. Target Healthcare REIT plc, registered in the UK (Registered Number: 11990238). Registered Office: Level 13, Broadgate Tower, 20 Primrose Street, London, EC2A 2EW.

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Target Healthcare REIT plc published this content on 29 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 April 2021 16:29:06 UTC.