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Target Healthcare REIT posts record half-year return as it recycles capital and strengthens balance sheet

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Meet Samuel – Your Personal Investing Prophet

Target Healthcare REIT ( (GB:THRL) ) has shared an update.

Target Healthcare REIT, a specialist investor in modern UK care homes, owns 86 properties valued at £894.6 million and leases them to 32 tenants on long, inflation-linked contracts. Its portfolio is positioned at the premium end of the care home market, with energy-efficient, post-2000 buildings designed to offer en suite wet rooms and generous space for residents.

For the six months to 31 December 2025, the Group delivered a total accounting return of 6.8%, its strongest half-year since launch, as EPRA NTA per share rose 4% to 119.4p and adjusted earnings per share increased 8.5%. Management recycled capital by selling ten assets at an average 11.7% premium to book value and reinvesting about £45 million into high-performing Scottish homes, while reducing net LTV to 15.2%, extending debt maturities, and maintaining 99% rent collection and stable rent cover, reinforcing balance-sheet strength and sector outperformance.

The most recent analyst rating on (GB:THRL) stock is a Hold with a £111.00 price target. To see the full list of analyst forecasts on Target Healthcare REIT stock, see the GB:THRL Stock Forecast page.

Spark’s Take on THRL Stock

According to Spark, TipRanks’ AI Analyst, THRL is a Outperform.

The overall stock score is driven by a solid valuation with a low P/E ratio and high dividend yield, despite concerns over declining cash flow growth and weak technical momentum.

To see Spark’s full report on THRL stock, click here.

More about Target Healthcare REIT

Target Healthcare REIT is a UK-listed real estate investment trust that invests in a diversified portfolio of modern, purpose-built UK care homes. Externally managed, the Group focuses on high-quality operators with strong care standards, targeting long-duration, inflation-linked rental income from assets that cater to the needs of an ageing population.

Average Trading Volume: 1,212,800

Technical Sentiment Signal: Buy

For an in-depth examination of THRL stock, go to TipRanks’ Overview page.

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