Target Healthcare REIT (THRL) has a portfolio of high-quality care homes that it leases to carefully selected tenants, and in the five years since it was launched the annualised net asset value (NAV) total return has been 7.8 per cent. Portfolio rent in the year to June 2018 jumped from £20.3m to £26m.
IC TIP:
Buy
at
112.5p
Tip style
Income
Risk rating
Medium
Timescale
Long Term
Bull points
Attractive dividend
Short supply of quality care homes
Long leases and upward-only rent reviews
Modest levels of debt
Bear points
Dividend remains uncovered
Local authority funding squeeze