REG - Target Healthcare - Half Yearly Report <Origin Href="QuoteRef">THRLT.L</Origin> - Part 2

Target Healthcare ReitAnnouncement

23/02/2016 07:15

- Part 2: For the preceding part double click  ID:nRSW8129Pa 

asset, being a premium, purpose-built care home in the
south east of England, with a 30-year lease. The rent payable under the lease
comprises a base rent subject to RPI-linked uplifts and incorporating a cap
and collar, as well as a share in the profits of the care home. The rental
income to the Group will therefore be variable but is forecast to represent a
net initial yield approaching 7% based upon current run rate trading. 
 
On 10 February, the Group exchanged contracts to acquire a 12-bed specialist
care home in Bricket Wood, St Albans for approximately £2.3 million including
acquisition costs. Upon expiry of the planning judicial review period in
March, the Group will acquire the care home which will be leased for a period
of 50 years. The transaction represents a net initial yield in excess of 7%
and the rent payable under the lease is subject to upwards-only annual uplifts
in line with the retail prices index, subject to a cap and collar. As part of
the agreed terms, the Group is to provide a short-term loan facility, at an
accrued coupon of 8.85% per annum and repayable on completion, to the operator
in order to fund the land acquisition and refurbishment of the property. 
 
16.  Accounts 
 
The interim report and accounts for the six months ended 31 December 2015 will
be posted to shareholders and made available on the website:
www.targethealthcare.co.uk. Copies may also be obtained from the Company
Secretary, R&H Fund Services (Jersey) Limited, Ordnance House, 31 Pier Road,
Jersey JE4 8PW. 
 
Directors' Statement of Principal Risks and Uncertainties 
 
The risks, and the way in which they are managed, are described in more detail
in the Strategic Report within the Annual Report and Financial Statements for
the year to 30 June 2015. The Group's principal risks and uncertainties have
not changed materially since the date of the report and are not expected to
change materially for the remainder of the Group's financial year. 
 
Statement of Directors' Responsibilities in Respect of the Interim Report 
 
We confirm that to the best of our knowledge: 
 
• the condensed set of financial statements has been prepared in accordance
with IAS 34 'Interim Financial Reporting' and gives a true and fair view of
the assets, liabilities, financial position and profit of the Group; 
 
• the Chairman's Statement and Investment Manager's Review (together
constituting the Interim Management Report) include a fair review of the
information required by the Disclosure and Transparency Rules ('DTR') 4.2.7R,
being an indication of important events that have occurred during the period
and their impact on the financial statements; 
 
• the Statement of Principal Risks and Uncertainties referred to above is a
fair review of the information required by DTR 4.2.7R; and 
 
• the condensed set of financial statements includes a fair review of the
information required by DTR  4.2.8R, being related party transactions that
have taken place in the period and that have materially affected the financial
position or performance of the Group during the period. 
 
On behalf of the Board 
 
M Naish 
 
Chairman 
 
22 February 2016 
 
Independent Review Report to Target Healthcare REIT Limited 
 
Introduction 
 
We have been engaged by the Company to review the condensed set of
consolidated financial statements in the Interim Report and Accounts for the
six months ended 31 December 2015 which comprises the Condensed Consolidated
Statement of Comprehensive Income, the Condensed Consolidated Statement of
Financial Position, the Condensed Consolidated Statement of Changes in Equity,
the Condensed Consolidated Cash Flow Statement and the related explanatory
notes to the Condensed Consolidated Financial Statements. We have read the
other information contained in the Interim Report and Accounts and considered
whether it contains any apparent misstatements or material inconsistencies
with the information in the condensed set of consolidated financial
statements. 
 
This report is made solely to the Company in accordance with guidance
contained in International Standard on Review Engagements  (UK and Ireland)
2410 'Review of Interim Financial Information Performed by the Independent
Auditor of the Entity' issued by the Auditing Practices Board. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone
other than the Company, for our work, for this report, or for the conclusions
we have formed. 
 
Directors' Responsibilities 
 
The Interim Report and Accounts are the responsibility of, and have been
approved by, the Directors. The Directors are responsible for preparing
Interim Report and Accounts in accordance with the Disclosure and Transparency
Rules of the United Kingdom's Financial Conduct Authority. 
 
As disclosed in note 1, the annual consolidated financial statements of the
Company are prepared in accordance with IFRSs as adopted by the European
Union. The condensed set of consolidated financial statements included in this
Interim Report and Accounts has been prepared in accordance with International
Accounting Standard 34, 'Interim Financial Reporting', as adopted by the
European Union. 
 
Our Responsibility 
 
Our responsibility is to express to the Company a conclusion on the condensed
set of consolidated financial statements in the Interim Report and Accounts
based on our review. 
 
Scope of Review 
 
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information
Performed by the Independent Auditor of the Entity' issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly,
we do not express an audit opinion. 
 
Conclusion 
 
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of consolidated financial statements in the
Interim Report and Accounts for the six months ended 31 December 2015 is not
prepared, in all material respects, in accordance with International
Accounting Standard 34 as adopted by the European Union and the Disclosure and
Transparency Rules of the United Kingdom's Financial Conduct Authority. 
 
Ernst & Young LLP, Edinburgh 
 
22 February 2016 
 
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