Target Healthcare REIT has reported a 2.3% rise in portfolio value in a quarterly trading update, which also revealed chief financial officer Alastair Murrey is set to step down.
The group revealed that its diversified portfolio was valued at £924.1m at the end of June, up from £903.2m at the end of March. It comprises 86 care homes and one forward-funded development site let to a total of 31 tenants.
The rise in value was down to a 1.1% rent rise on a like for like basis, plus an additional one-off rent review at a single home linked to earnings before interest, taxes, depreciation, amortisation, rent and management fees, the acquisition of a new asset, and other capital expenditure.
It also redeployed around £73m into its existing portfolio, representing 85% of the proceeds received from the group’s disposal in October 2025 of nine assets for a total of £85.9m.
The update added that Murray has decided to step away from the business due to personal reasons. “Alastair remains a strong advocate for the investment manager and the company and he leaves with our support and best wishes,” said chief executive Kenneth MacKenzie.
“The investment manager, in consultation with the chair of the audit committee, has commenced a full market search to identify a suitable successor and a further announcement will be made in due course.”
The group’s net tangible assets (NTA) per share rose 1.2% to 122.1p per share, up from 120.6p at the end of March, which is likely to be a reflection of the rise in portfolio value.
Adjusted earnings per share for the quarter stood at 1.55p, down from 1.6p at the end of March, and including one-off costs of 0.08p per share from the reorganisation of the group’s security structure and improvements to its its long-term debt facilities.
The REIT’s topped-up net initial yield stood at 6.21%, compared to 6.23% at the end of March, based on an annual contractual rent of £61.1m, up slightly from £60.1m at the end of March.
MacKenzie said: “Our strong, consistent performance, as evidenced by our continued NTA growth is fully supported by the attractive sectoral demographics and an undersupply of modern, purpose-built care homes.
“The acquisition of one new home and the commitment to fund a development site has resulted in 85% of the proceeds from the October 2025 portfolio disposal being re‑invested in modern, purpose-built care homes. Our current attractive pipeline leaves us confident that the group will be announcing further value-accretive acquisitions in the near future.”
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