Target Healthcare posts strong FY results, NTA growth

22nd Sep 2026 08:47

(Sharecast News) - Real estate investment trust Target Healthcare posted a strong set of annual results on Tuesday, with a 12% total accounting return, solid net tangible asset growth and premium asset disposals helping underpin confidence in its portfolio and dividend outlook.

Target Healthcare said EPRA net tangible assets per share rose 6.4% to 122.1p, while adjusted EPRA earnings per share increased 7.6% to 6.54p and its fully covered annual dividend was lifted 2.5% to 6.032p, with a FY27 target of 6.212p. Net loan‑to‑value, on the other hand, fell sharply to 16.1% from 21.8%.

The FTSE 100-listed firm also said its 87‑asset portfolio continued to outperform, ranking in the top quartile of the MSCI UK Annual Healthcare Property Index and maintaining its record of beating the benchmark every year since IPO.

Like‑for‑like valuations rose 4.9%, while contractual rent was broadly stable at £61.1m, with underlying rent growth of 3.7% driven by reviews. Mature homes delivered high rent cover of 1.9x and occupancy held at around 85%, while rent collection improved to 99% for the year and returned to 100% by year‑end, with £1.9m of arrears recovered after re‑tenanting three homes.

Target also noted it had completed £97m of disposals at an 11% premium to book value and an implied 5.5% yield, redeploying most of the proceeds into £73m of new investments at yields above 6%. Debt refinancing left £200m drawn at an average cost of 3.89%, fully hedged until at least 2030, with total facilities of £280m and a 5.6‑year average maturity.

It also said demographic tailwinds, modern purpose‑built assets and strong ESG alignment continued to support long‑term demand, with 100% of its portfolio rated EPC A or B and average resident space rising to 49m².

As of 1000 BST, Target Healthcare shares were up 0.71% at 113.60p.

Reporting by Iain Gilbert at Sharecast.com

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