Disposal of two care homes in Surrey and Essex

22 July 2019

Target Healthcare REIT Limited and its subsidiaries

("Target Healthcare" or "the Group")

Disposal of two care homes in Surrey and Essex

Target Healthcare (LSE: THRL), the UK's listed specialist investor in modern, purpose-built care homes, announces that it has completed the disposal of two care homes in Surrey and Essex for an undisclosed price. These disposals form part of the Group's wider asset management activity and follows offers received which combined are greater than 5% above the 31 March 2019 book value.  These disposals represent less than 3% of the portfolio's value.

Whilst both properties were originally acquired as long-term investments, the Group continually monitors the performance of its assets at a tenant and individual property level, updating its strategy as circumstances develop and being mindful of possible asset management or divestment strategies where opportunities arise or the initial investment case has changed. 

The Group will continue to pursue strategies consistent with its objective of providing an attractive and sustainable level of income, together with the potential for growth, from a diversified portfolio of modern, purpose built care homes.

The Group has a strong pipeline of acquisition opportunities and anticipates that the sale proceeds will be reinvested in the near future.

Scott Steven, Head of Asset Management at Target Fund Managers, commented:

 "These disposals are the result of our commitment to pro-actively manage the portfolio and progress strategies relevant for each home. We remain focused on maintaining an attractive and highly diversified sustainable income stream for our investors, as well as exploring initiatives for income and capital growth.

"We will continue to progress both investment and asset management opportunities in order to optimise the performance of the portfolio."

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Notes to editors:

UK listed Target Healthcare REIT Limited (THRL) is an externally managed Real Estate Investment Trust which aims to provide shareholders with an attractive level of income, together with the potential for capital and income growth, through the assembly and management of a portfolio of modern, purpose-built care homes.

The Group's current portfolio at 31 March 2019 comprised 61 assets including five under development with a total portfolio value of £477.1m, with two further acquisitions having completed in Q2 2019.  On completion of the developments, the Group will have 25 different tenants.  

The Group only invests in modern, purpose-built homes that provide the best environments for residents and their care providers and ensure they are let at a sustainable rent. The Group aims to build collaborative, supportive relationships with each of its tenants as it believes working in this way helps raise standards of care and helps its tenants build sustainable businesses. In turn, that helps the Group deliver stable returns to its investors.