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Target Healthcare REIT
(LSE:THRL)
Select Model
Select Model
Rating:71Outperform
Price Target:
122.00 p
▲(24.62% Upside)
Action:Reiterated
Date: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
Predictable rental income
THRL’s business model centers on long-term leases that generate recurring rental income, supporting stable cash flows and dividend capacity. This lease structure reduces short-term revenue volatility and underpins multi‑quarter visibility into earnings and capital planning.
Negative Factors
Declining free cash flow growth
A slowdown in free cash flow growth constrains excess capital for acquisitions, reinvestment, and dividend support. Even with solid operating cash conversion, declining FCF trends can limit strategic flexibility and increase reliance on external funding over several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Predictable rental income
THRL’s business model centers on long-term leases that generate recurring rental income, supporting stable cash flows and dividend capacity. This lease structure reduces short-term revenue volatility and underpins multi‑quarter visibility into earnings and capital planning.
Read all positive factors
Target Healthcare REIT (THRL) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£685.98M
Dividend Yield6.15%
Average Volume (3M)1.12M
Price to Earnings (P/E)8.8
Beta (1Y)0.82
Revenue Growth5.45%
EPS Growth7.90%
CountryUK
EmployeesN/A
SectorGeneral
Sector StrengthN/A
IndustryREIT - Healthcare Facilities
Share Statistics
EPS (TTM)0.13
Shares Outstanding620,237,370
10 Day Avg. Volume1,213,923
30 Day Avg. Volume1,116,333
Financial Highlights & Ratios
PEG Ratio-0.58
Price to Book (P/B)0.91
Price to Sales (P/S)8.86
P/FCF Ratio15.72
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£101.00Price Target Upside3.17% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.07
Revenue Forecast (FY)£68.11M
Target Healthcare REIT Business Overview & Revenue Model
Company Description
Target Healthcare REIT offers specialized financial solutions, custom-designed to assist operators in expanding the availability of modern, purpose-built residential care facilities throughout the United Kingdom....
How the Company Makes Money
THRL makes money primarily by owning care home real estate and leasing those properties to care home operators under contractual lease agreements. Its core revenue stream is rental income received from tenants, typically structured as long-term le...
Target Healthcare REIT Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
70
Positive
Cash Flow
65
Positive
| Breakdown | TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 74.61M | 72.93M | 78.48M | 67.75M | 63.86M | 49.98M |
| Gross Profit | 66.40M | 64.84M | 78.48M | 60.14M | 56.55M | 44.18M |
| EBITDA | 82.27M | 59.59M | 58.00M | 57.01M | 50.16M | 38.85M |
| Net Income | 77.93M | 60.84M | 73.02M | -6.57M | 49.10M | 43.88M |
Balance Sheet | ||||||
| Total Assets | 976.51M | 986.19M | 967.37M | 908.26M | 963.66M | 718.39M |
| Cash, Cash Equivalents and Short-Term Investments | 67.17M | 39.64M | 38.88M | 15.37M | 34.48M | 21.11M |
| Total Debt | 200.94M | 240.29M | 240.67M | 227.05M | 231.38M | 127.90M |
| Total Liabilities | 236.22M | 273.73M | 278.08M | 253.45M | 264.89M | 153.21M |
| Stockholders Equity | 740.28M | 712.46M | 689.29M | 654.81M | 698.77M | 565.18M |
Cash Flow | ||||||
| Free Cash Flow | 43.49M | 41.10M | 42.34M | 29.66M | 30.39M | 24.96M |
| Operating Cash Flow | 43.49M | 41.10M | 42.34M | 29.66M | 30.39M | 24.96M |
| Investing Cash Flow | 68.08M | -3.23M | 3.42M | -3.55M | -202.63M | -43.58M |
| Financing Cash Flow | -82.31M | -37.11M | -22.24M | -45.23M | 185.62M | 3.29M |
Target Healthcare REIT Technical Analysis
Positive
97.90
Price Trends
106.95
Positive
104.50
Positive
99.67
Positive
Market Momentum
1.32
Negative
59.31
Neutral
69.89
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 108.19, below the 50-day MA of 106.95, and below the 200-day MA of 99.67, indicating a bullish trend. The MACD of 1.32 indicates Negative momentum. The RSI at 59.31 is Neutral, neither overbought nor oversold. The STOCH value of 69.89 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | £685.98M | 8.81 | 10.73% | 6.15% | 5.45% | 7.90% | |
63 Neutral | £2.42B | 13.81 | 6.03% | 7.30% | 42.54% | 117.42% | |
60 Neutral | £295.10M | 98.68 | 0.80% | 8.16% | 5.75% | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
53 Neutral | £101.84M | -11.16 | -6.64% | 6.96% | -2.03% | 9.21% |
* General Sector Average
GB:THRL
Target Healthcare REIT
110.60
17.01
18.17%
GB:PHP
Primary Health Properties plc R.E.I.T
93.10
4.13
4.64%
GB:RESI
Residential Secure Income
55.00
-2.38
-4.15%
GB:HOME
Home REIT PLC
9.30
0.30
3.33%
GB:SOHO
Triple Point Social Housing REIT PLC
75.20
10.56
16.33%
Target Healthcare REIT Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Target Healthcare REIT lifts NAV, reinforces balance sheet and ESG-led care home strategy
Positive
May 6, 2026
Target Healthcare REIT reported a 1.0% rise in EPRA Net Tangible Assets per share to 120.6p at 31 March 2026, driven by inflation-linked rent reviews and active asset management, delivering a 2.3% total accounting return for the quarter. The portf...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.