Target Healthcare REIT (THRL) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 6.15%
• Average Volume (3M): 1.12M
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.79
• Revenue Growth: 4.86%
• EPS Growth: -16.65%
• Country: UK
• Employees: N/A
• Sector: General
• Sector Strength: N/A
• Industry: REIT - Healthcare Facilities
• EPS (TTM): 0.02
• Shares Outstanding: 620,237,370
• 10 Day Avg. Volume: 1,213,923
• 30 Day Avg. Volume: 1,116,333
• PEG Ratio: -0.58
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 8.86
• P/FCF Ratio: 15.72
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.06
• Revenue Forecast (FY): £67.28M

• Rating: 71 Outperform
• Price Target: 118.00p ▲(20.53% Upside)
• Action: Reiterated Date: 12/11/25
• Date: Action: Reiterated 12/11/25

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.

Positive Factors

Stable rental-based business model

THRL’s core model of long-term leases to experienced operators creates predictable, contractually backed rental income. That durable cash flow base supports consistent distributions, reduces revenue volatility and underpins capital planning and portfolio reinvestment over the medium term.

Structural demand for healthcare properties

Secular demand for healthcare and specialist facilities drives long-term occupier need and lowers vacancy risk for care homes. This structural tailwind supports sustained rental demand, pricing power for in-demand assets and resilience to typical economic cycles over coming quarters.

Moderate leverage and healthy equity ratio

A moderate debt-to-equity position and healthy equity ratio provide financial flexibility for refinancing, acquisitions and support for distributions. This balanced leverage profile reduces refinancing risk and preserves capacity to invest as opportunities arise in the medium term.

Negative Factors

Declining free cash flow growth

Falling free cash flow growth constrains the REIT’s ability to fund acquisitions, capex and dividends from internal resources. Over time weaker FCF limits strategic flexibility, potentially forcing more external financing or dividend adjustments if the trend persists beyond several quarters.

Pressure on operating margins

Declining EBIT and EBITDA margins indicate rising operating costs or weaker rent economics and reduce cash available for distributions and reinvestment. If margin compression continues, it could erode profitability and the REIT’s ability to maintain yield and pursue growth.

Slowing EPS despite revenue growth

Modest revenue growth alongside a sizeable negative EPS trend suggests cost pressures, non-operating impacts or financing costs are weighing on earnings. Persistent EPS decline relative to revenue undermines retained earnings and may constrain capital allocation over the medium term.

Target Healthcare REIT Business Overview & Revenue Model

Company Description

Target Healthcare REIT provide a range of tailored funding solutions to support operators to increase the provision of modern, purpose-built care homes across the UK.

How the Company Makes Money

Target Healthcare REIT generates revenue primarily through rental income from its portfolio of healthcare properties. The company leases these properties to experienced operators under long-term agreements, ensuring a stable and predictable income stream. Additionally, THRL benefits from property appreciation over time, which can enhance its overall asset value. The REIT may also engage in strategic partnerships with healthcare operators to optimize the performance of its properties, contributing to its financial performance. The demand for healthcare services and the growing need for specialized facilities further support the company's revenue potential.

Target Healthcare REIT Financial Statement Overview

Summary

Target Healthcare REIT shows stable revenue growth and profitability with a balanced financial structure. However, declining cash flow growth and operational efficiency are concerns.

Income Statement

The income statement shows a stable revenue growth rate of 3.07% in the latest year, with strong gross and net profit margins. However, there is a noticeable decline in EBIT and EBITDA margins compared to previous years, indicating potential pressure on operational efficiency.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio, indicating a balanced leverage position. The return on equity has been positive, although it has shown some fluctuations. The equity ratio remains healthy, suggesting a stable financial structure.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, which could be a concern. However, the operating cash flow to net income ratio remains strong, indicating efficient cash generation relative to earnings.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	72.93M	78.48M	67.75M	63.86M	49.98M
Gross Profit	64.84M	78.48M	60.14M	56.55M	44.18M
EBITDA	59.59M	58.00M	0.00	0.00	0.00
Net Income	60.84M	73.02M	-6.57M	49.10M	43.88M
Balance Sheet
Total Assets	986.19M	967.37M	908.26M	963.66M	718.39M
Cash, Cash Equivalents and Short-Term Investments	39.64M	38.88M	15.37M	34.48M	21.11M
Total Debt	240.29M	240.67M	227.05M	231.38M	127.90M
Total Liabilities	273.73M	278.08M	253.45M	264.89M	153.21M
Stockholders Equity	712.46M	689.29M	654.81M	698.77M	565.18M
Cash Flow
Free Cash Flow	41.10M	42.34M	29.66M	30.39M	24.96M
Operating Cash Flow	41.10M	42.34M	29.66M	30.39M	24.96M
Investing Cash Flow	-3.23M	3.42M	-3.55M	-202.63M	-43.58M
Financing Cash Flow	-37.11M	-22.24M	-45.23M	185.62M	3.29M

Target Healthcare REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 97.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:THRL, the sentiment is Positive. The current price of 97.9 is below the 20-day moving average (MA) of 105.60, below the 50-day MA of 101.66, and above the 200-day MA of 96.14, indicating a bullish trend. The MACD of 1.51 indicates Positive momentum. The RSI at 61.44 is Neutral, neither overbought nor oversold. The STOCH value of 72.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:THRL.

Target Healthcare REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
THRL	71 Outperform	―	10.89	8.68%	6.15%	4.86%	-16.65%
PHP	71 Outperform	£2.81B	14.90	7.01%	7.30%	0.96%	―
SOHO	61 Neutral	£303.36M	-6.81	-10.89%	8.16%	-4.24%	-273.62%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
RESI	48 Neutral	£107.62M	-11.81	―	6.96%	―	―
LABS	48 Neutral	£148.75M	-4.85	-12.26%	―	4.55%	23.43%

Target Healthcare REIT Corporate Events

Target Healthcare REIT Boosts NAV and Prunes Portfolio as It Recycles Capital into Higher-Yield Care Homes

Target Healthcare REIT reported a 1.4% rise in EPRA Net Tangible Assets per share to 119.4p as at 31 December 2025, with a twelfth consecutive quarter of positive total returns driven by active portfolio recycling and inflation-linked rent reviews. The company completed the sale of nine care homes for £85.9m at an 11.6% premium to June 2025 carrying value and disposed of an additional asset at a similar premium, while redeploying more than half the proceeds into three modern, operational care homes in central Scotland and a forward-funded fourth asset, all at blended net initial yields above 6%. The portfolio now comprises 86 operational homes valued at £894.6m, with 99% rent collection, average rent cover of 2.0x on mature assets, a WAULT of 26.3 years, and 100% of properties rated EPC A or B, underscoring resilient cash flows and strong ESG credentials. Adjusted EPRA EPS was 1.69p for the quarter, fully covering the 1.508p dividend, and net LTV fell to 15.2% as proceeds are progressively redeployed, with around £100m of capital available and a growing pipeline of higher-yielding, purpose-built care home investments that are expected to lift leverage towards the 25% area.

The most recent analyst rating on (GB:THRL) stock is a Hold with a £115.00 price target. To see the full list of analyst forecasts on Target Healthcare REIT stock, see the GB:THRL Stock Forecast page.

Target Healthcare REIT Secures Shareholder Approval at AGM

Target Healthcare REIT PLC announced that all resolutions proposed at its Annual General Meeting on December 4, 2025, were passed. This outcome reflects strong shareholder support and could positively impact the company’s strategic initiatives and market positioning, reinforcing its commitment to delivering value in the healthcare real estate sector.

The most recent analyst rating on (GB:THRL) stock is a Buy with a £1.05 price target. To see the full list of analyst forecasts on Target Healthcare REIT stock, see the GB:THRL Stock Forecast page.

Target Healthcare REIT Expands Portfolio with £45 Million Acquisition

Target Healthcare REIT has acquired three operational care homes and committed to a fourth in Central Scotland for £45 million, reinvesting proceeds from a recent disposal. This strategic move is expected to be earnings accretive and reflects a net initial yield over 6%, enhancing the company’s portfolio with long-term rental income security and ESG standards. The transaction highlights Target Healthcare’s ability to efficiently redeploy capital and strengthen its market position in the care home sector.

The most recent analyst rating on (GB:THRL) stock is a Buy with a £1.05 price target. To see the full list of analyst forecasts on Target Healthcare REIT stock, see the GB:THRL Stock Forecast page.