- The pandemic has put care operators under increased strain, heightening risk for senior living landlords
- Target Healthcare’s rent collection has remained resilient throughout the crisis
- The target dividend for 2021 has been increased to 6.72p a share, resulting in the shares offering a healthy yield
Inflation-linked rental income
Rising asset values
Generous dividend payments
Undemanding valuation
Financial strain on care operators
Dividend uncovered by earnings
The Covid-19 pandemic has arguably tested the mettle of the care sector like never before. In addition to the human tragedy that developed in homes, care operators have been placed under heightened financial strain as lockdown restrictions reduced occupancy levels. That has presented increased challenges for the specialist real estate investment trusts (Reits) that lease facilities to these operators. However, with staff and residents at every eligible care home across England – and most of those in Wales and Scotland – having now been offered the coronavirus vaccine, there is hope that the worst is behind the sector.