Quarterly Investor Report:

November 2022

Quarter ended 30 September 2022

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

Group at a glance

Properties

Beds

Tenants

Contracted rent

Property Value

100

6,898*

33

£55.6m

£913.7m

Overview

Key ratios & financials

Launch date

March 2013**

Investment properties

£913.7 million

ISIN

GB00BJGTLF51

Drawn debt

£223.0 million

SEDOL

BJGTLF5

EPRA NTA

£695.1 million

Company name

Target Healthcare REIT plc

EPRA NTA per share

112.1 pence

Registered number

Quarterly NAV total return

11990238

1.3%

(including dividend)

Expected quarterly dividend

Feb/May/Aug/Nov

Quarterly Group specific

1.59 pence

Financial year end

30 June

adjusted EPRA earnings per

share

Currency

Sterling

Quarterly dividend per share

1.69 pence

Website

www.targethealthcarereit.co.uk

Dividend yield (01/11/2022)

7.6%

Ordinary share class as at

01/11/2022

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

24.4% (gross); 22.3% (net)

Shares in issue

620,237,346

Management fee rate

1.05% up to £500m NAV

Share price

89.4 pence

0.95% of £500m - £750m NAV

0.85% of £750m - £1,000m NAV

Market capitalisation

£554.5 million

0.75% of £1,000m - £1,500m NAV

0.65% of £1,500m + NAV

Share price discount to EPRA

20.2%

WAULT

26.9 years

NTA

  • Including planned beds in development sites
  • Originally launched as Target Healthcare REIT Limited (Jersey registered: 112287)
  • 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 proportion of gross property value

Recent news

The recent focus has been to enhance debt arrangements, following an increase in market interest rates, and manage theportfolio to improve rent collection. The Group secured certainty on the remaining unhedged debt through entry into an interest rate cap in October and extended the term of the shortest facility resulting in no debt maturity until 2025. Rent collection improved following arrears collected from a seven- home tenant and initiatives are progressing to re-tenant two homes following covid related challenges.

Performance

The portfolio value increased by 0.2% over the quarter as a result of a like-for-like uplift in the operational portfolio value (+0.1%), further investment into the development portfolio and capital expenditure on existing assets (+0.6%) and the disposal of a non-coreasset (-0.5%).Contractual rent increased by 0.3%due to inflation-linked rent reviews in the quarter and rentalised performance linked payments and capex, again partlyoffset by the asset disposal. The portfolio's weighted average unexpired lease term was 26.9 years (30 June 2022: 27.2 years).

Asset Management and Investment Activity

In the quarter, the Group disposed of a non-core asset which was part of the 18-homeportfolio acquired in December 2021,with real estate standards below the average of that portfolio. It has been sold to the operator for proceeds consistent with the carrying value. Payments totalling £2.8 million were madein respect of contractual commitments on two homes, following strong trading performance. Rent cover thresholds on these homes, agreed at acquisition, have been consistently metover the relevant time period, triggering the payments which are rentalised at a level consistent with the acquisition NIY.

Outlook

The portfolio is modern, ESG compliant and provides long-term, sustainable inflation-linked income. Given these attributes andthe demographic tailwinds within the care home sector, we would expect to see downward valuation movements which are more muted than those anticipated across the wider real estate market. We will remain responsive to economic conditions and will assess the impact of any significant changes on our businessmodel and earnings.

Summary balance sheet

£m

Sep-22

Jun-22

Property portfolio*

913.7

911.6

Cash

19.6

34.5

Net current assets/(liabilities)

(15.2)

(14.8)

Bank loans

(223.0)

(234.8)

Net assets

695.1

696.5

EPRA NTA per share (pence)

112.1

112.3

* Ignores the effect of fixed/guaranteed rent reviews. See note 9 to the Annual Report 2022 for full details.

Performance - NAV and share price total return

205

195

NAV total return

185

175

Share price total return

165

155

145

135

125

115

105

95

Jun-13

Sep-13

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

Jun-21

Sep-21

Dec-21

Jun-22

Sep-22

Mar-13

Mar-15

Mar-16

Mar-17

Mar-18

Mar-19

Mar-20

Mar-21

Mar-22

Portfolio summary at 30 September 2022

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

3% 2%1%

8

5%

7%

24%

7%

2

7%

4

17%

18

12%

15%

26

13

Valuation by geographic region (including developments)

6

Wales

5

North East

1

Northern Ireland

East of England

South West

13

West Midlands

4

Scotland

East Midlands

North West

South East

Yorkshire & The Humber

0%

5%

10%

15%

20%

25%

30%

Directors

Investment Manager

Advisers

Malcolm Naish (Chairman)

Target Fund Managers Ltd.

Administrator

Target Fund Managers Ltd.

Richard Cotton

Kenneth MacKenzie,

Depositary

IQ EQ Depositary Company (UK) Ltd.

Gordon Coull

Gordon Bland

Broker

Stifel Nicolaus Europe Ltd.

Alison Fyfe

+44 (0) 1786 845 912

Legal

Dickson Minto W.S.

Vince Niblett

targetfundmanagers.com

Auditors

Ernst & Young LLP

Dr Amanda Thompsell

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 04 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 November 2022 17:21:02 UTC.