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): 10.5
• Beta (1Y): 0.83
• 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): 0.03
• Shares Outstanding: 620,237,370
• 10 Day Avg. Volume: 1,213,923
• 30 Day Avg. Volume: 1,116,333
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: 114.00p ▲(16.45% Upside)

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 income model

THRL’s core revenue derives from long-term leases to experienced healthcare operators, producing predictable cash inflows and high lease visibility. This durable income model supports stable distributions and lowers revenue volatility versus operating healthcare businesses.

Structural demand for healthcare assets

The company targets care homes and specialist facilities, benefiting from aging demographics and steady demand for long-term care. This structural trend underpins long-term occupancy and rental demand, supporting asset values and revenue resilience over multiple economic cycles.

Moderate leverage and healthy equity ratio

A balanced leverage profile and healthy equity ratio give THRL financial flexibility to acquire accretive assets, refinance on acceptable terms, and absorb sector shocks. Moderate debt limits refinancing risk and preserves capacity for disciplined growth.

Negative Factors

Declining free cash flow growth

Falling free cash flow growth reduces the firm’s ability to fund dividends, capital expenditure and acquisitions from internal resources. Sustained cash flow contraction would increase reliance on external financing, raising costs and potentially pressuring distributions.

Margin deterioration

Declining operating margins indicate rising costs or weaker rent leverage, eroding profitability and reducing the cushion against tenant stress or interest rate rises. Persistent margin pressure undermines cash available for reinvestment and shareholder distributions.

Negative EPS growth

A sharp drop in EPS signals earnings pressure that could reflect margin compression, higher finance costs or asset performance issues. Continued negative EPS trends impair retained earnings and limit internal funding for portfolio enhancement or dividend support.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	72.93M	72.93M	78.48M	67.75M	63.86M	49.98M
Gross Profit	64.84M	64.84M	78.48M	60.14M	56.55M	44.18M
EBITDA	59.59M	59.59M	58.00M	0.00	0.00	0.00
Net Income	60.84M	60.84M	73.02M	-6.57M	49.10M	43.88M
Balance Sheet
Total Assets	986.19M	986.19M	967.37M	908.26M	963.66M	718.39M
Cash, Cash Equivalents and Short-Term Investments	39.64M	39.64M	38.88M	15.37M	34.48M	21.11M
Total Debt	240.29M	240.29M	240.67M	227.05M	231.38M	127.90M
Total Liabilities	273.73M	273.73M	278.08M	253.45M	264.89M	153.21M
Stockholders Equity	712.46M	712.46M	689.29M	654.81M	698.77M	565.18M
Cash Flow
Free Cash Flow	41.10M	41.10M	42.34M	29.66M	30.39M	24.96M
Operating Cash Flow	41.10M	41.10M	42.34M	29.66M	30.39M	24.96M
Investing Cash Flow	-3.23M	-3.23M	3.42M	-3.55M	-202.63M	-43.58M
Financing Cash Flow	-37.11M	-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: Negative
• 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 99.53, above the 50-day MA of 96.96, and above the 200-day MA of 95.62, indicating a bullish trend. The MACD of 1.98 indicates Negative momentum. The RSI at 66.51 is Neutral, neither overbought nor oversold. The STOCH value of 79.00 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	―	10.54	8.68%	6.15%	4.86%	-16.65%
PHP	71 Outperform	£2.71B	14.37	7.01%	7.30%	0.96%	―
SOHO	61 Neutral	£284.87M	-6.36	-10.89%	8.16%	-4.24%	-273.62%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
RESI	53 Neutral	£108.36M	―	―	6.96%	―	―
LABS	48 Neutral	£130.20M	-4.25	-12.26%	―	4.55%	23.43%

Target Healthcare REIT Corporate Events

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.

Target Healthcare REIT Boosts Portfolio with Strategic Property Disposal

Target Healthcare REIT reported a strong quarterly performance with a significant property disposal of nine care homes for £85.9 million, resulting in a 2.5% increase in EPRA Net Tangible Assets per share. The company announced a fully covered quarterly dividend and highlighted a robust pipeline of care home investment opportunities, supported by successful asset management initiatives and a strategic reduction in tenant exposure. The disposal proceeds will be used to enhance their portfolio further, while maintaining a low net loan-to-value ratio and extending debt terms, positioning the company for continued growth 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.

Target Healthcare REIT Releases 2025 Annual Report

Target Healthcare REIT plc has released its Annual Report and Financial Statements for the year ending 30 June 2025. The report is available for public inspection and download, indicating transparency and compliance with regulatory requirements, which could impact investor confidence and the company’s market positioning.

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.