UK's Target Healthcare REIT half-year rental income rises

Target Healthcare Reit

18/03/2026 07:14

Corrects Rental Income to GBP 35.51 mln from GBP 30.29 mln and Pretax Profit to GBP 47.05 mln from GBP 20.96 mln in Key Details table

Overview

UK care home REIT's half-year rental income rose, with EPRA NTA per share up 4%

Adjusted EPRA earnings per share rose 8.5%, helped by recovery of rent arrears

Company disposed of 10 properties at an 11.7% premium, redeploying proceeds into new assets

Outlook

Company expects near full rent collection on a fully let portfolio, benefiting from inflation-linked annual rental increases

Result Drivers

PORTFOLIO MANAGEMENT - Disposals of ten assets at a premium and redeployment into modern, higher-yielding care homes drove returns and improved tenant diversification

RENTAL GROWTH & ASSET MANAGEMENT - Like-for-like rental growth, re-tenanting of underperforming assets, and recovery of historical rent arrears contributed to higher adjusted EPRA earnings

PORTFOLIO QUALITY & PRIVATE PAY FOCUS - Modern portfolio and focus on private-pay residents supported strong rent collection and stable rent covers, helping absorb cost pressures

Company press release: ID:nRSR0382Xa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
H1 Rental Income
GBP 35.51 mln
H1 Pretax Profit
GBP 47.05 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the residential reits peer group is "buy"

Wall Street's median 12-month price target for Target Healthcare REIT PLC is GBp110.00, about 7.6% above its March 17 closing price of GBp102.20

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 15 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)