REG - Target Healthcare - Notice of Results <Origin Href="QuoteRef">THRLT.L</Origin> - Part 2

Target Healthcare ReitAnnouncement

29/10/2014 10:16

- Part 2: For the preceding part double click  ID:nRSH7049Ta 

property-related
assets are inherently difficult to value due to the individual nature of each
property. As a result, valuations are subject to substantial uncertainty.
There is no assurance that the estimates resulting from the valuation process
will reflect the actual sales price even where such sales occur shortly after
the valuation date. Such risk is minimised through the appointment of external
property valuers. 
 
Any changes in market conditions will directly affect the profit and loss
reported through the Statement of Comprehensive Income. A 10 per cent increase
in the value of the investment properties held as at 30 June 2014 would have
increased net assets available to shareholders and increased the net income
for the year by £8.1 million; an equal and opposite movement would have
decreased net assets and decreased the net income by an equivalent amount. 
 
The calculations are based on the investment property valuations at the
respective balance sheet date and are not representative of the period as a
whole, nor reflective of future market conditions. 
 
9. Related Party Transactions and fees paid to Target Advisers LLP 
 
The Board of Directors is considered to be a related party. No Director has an
interest in any transactions which are, or were, unusual in their nature or
significant to the nature of the Company. 
 
Mr G Ross is a director of the Company Secretary and the Administrator, R&H
Fund Services (Jersey) Limited and R&H Fund Services Limited, which receive
fees from the Company. Mrs H Jones is a director of the Company Secretary, R&H
Fund Services (Jersey) Limited. 
 
The Directors of the Company received fees for their services. Total fees for
the period were £82,000 of which £9,550 remained payable at the period end. 
 
Target Advisers LLP received £1,124,000 during the period of which £49,000
related to the expenses of issue and £394,000 (inclusive of VAT) remained
payable at the period end. 
 
10. Operating segments 
 
The Board has considered the requirements of IFRS 8 'Operating Segments'. The
Board is of the view that the Group is engaged in a single segment of
business, being property investment, and in one geographical area, the United
Kingdom, and that therefore the Group has only a single operating segment. The
Board of Directors, as a whole, has been identified as constituting the chief
operating decision maker of the Group. The key measure of performance used by
the Board to assess the Group's performance is the total return on the Group's
net asset value. As the total return on the Group's net asset value is
calculated based on the net asset value per share calculated under IFRS as
shown at the foot of the Balance Sheet, assuming dividends are re-invested,
the key performance measure is that prepared under IFRS. Therefore no
reconciliation is required between the measure of profit or loss used by the
Board and that contained in the financial statements. 
 
The view that the Group is engaged in a single segment of business is based on
the following considerations: 
 
-- one of the key financial indicators received and reviewed by the Board is
the total return from the property portfolio taken as a whole. 
 
-- there is no active allocation of resources to particular types or groups of
properties in order to try to match the asset allocation of the benchmark. 
 
-- the management of the portfolio is ultimately delegated to a single
property manager, Target. 
 
11. Post balance sheet events 
 
In July 2014, the Group acquired three purpose-built care homes and four
specialist care bungalows in Norfolk and Northern Ireland for approximately
£20.4 million including acquisition costs, and has acquired another care home
in Leicestershire for approximately £6.0 million including acquisition costs. 
 
In April 2014, the Group announced it had exchanged contracts to acquire a
modern, purpose-built care home in York. The care home was under construction
and was due to be completed in summer 2014. In August 2014, having now reached
practical completion, the Group confirmed it had acquired the property for a
total consideration of approximately £5.1 million including acquisition costs.
As part of the transaction, the Group had provided a short-term loan facility
to Ideal Carehomes Group to fund the completion of the property and this was
repaid from the consideration proceeds of the sale. 
 
In September 2014 the Group also announced that it had exchanged contracts to
acquire a new purpose-built care home in Hastings, East Sussex, for
approximately £8.0 million (including acquisition costs). 
 
In September 2014, the Company raised gross proceeds of £17.4 million
following the issue of a further 17.2 million ordinary shares. 
 
12. Financial Statements 
 
The report and financial statements for the period from incorporation on 22
January 2013 to 30 June 2014 will posted to shareholders and made available on
the website: www.targethealthcare.co.uk. Copies may also be obtained from the
Administrator, R&H Fund Services Limited, 15-19 York Place, Edinburgh, EH1
3EB. 
 
This information is provided by RNS
The company news service from the London Stock Exchange