Target Healthcare REIT (THRL) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 6.28%
• Average Volume (3M): 2.44M
• Price to Earnings (P/E): 7.9
• Beta (1Y): 1.21
• Revenue Growth: 4.41%
• EPS Growth: 23.70%
• Country: UK
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 63
• Industry: REIT - Healthcare Facilities
• EPS (TTM): 0.12
• Shares Outstanding: 620,237,370
• 10 Day Avg. Volume: 5,124,058
• 30 Day Avg. Volume: 2,439,858
• PEG Ratio: 0.33
• Price to Book (P/B): N/A
• Price to Sales (P/S): 6.81
• Price to Cash Flow (P/CF): 14.80
• 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: 95.00p
• Price Target Upside: 2.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Target Healthcare REIT demonstrates strong financial performance and valuation metrics, with a stable dividend yield and attractive P/E ratio. The technical analysis suggests positive momentum, though caution is advised due to overbought indicators. Recent corporate activities further support a positive sentiment, positioning the company well for future growth.

Positive Factors

Dividend Yield

The fully covered dividend yield of approximately 6.5% remains attractive.

Financial Performance

The company's adjusted EPRA earnings per share increased by 2.6%, and the dividend grew by 3.0%, comfortably covered by earnings at 107%.

Portfolio Management

Target Healthcare REIT has assembled a future-proofed, best-in-class portfolio of modern, well-managed assets.

Negative Factors

Market Competition

Target continues to deliver high quality care into a market that generates £20bn annually in fees where 67% of beds are unfit for purpose.

Share Performance

Despite recent share outperformance, the 6.5% dividend yield remains attractive, leading to a retained Buy rating by analysts.

Target Healthcare REIT Business Overview & Revenue Model

Company Description

Target Healthcare REIT (THRL) is a real estate investment trust based in the United Kingdom, specializing in the healthcare sector. The company primarily focuses on investing in modern, purpose-built care homes and other healthcare-related real estate assets. With an emphasis on high-quality facilities, Target Healthcare REIT aims to provide its investors with regular, sustainable income and the potential for capital growth through a diversified portfolio of properties across the UK.

How the Company Makes Money

Target Healthcare REIT generates revenue primarily through leasing its healthcare properties to operators under long-term lease agreements. These leases are typically inflation-linked, providing a stable and predictable income stream. The company benefits from the growing demand for elderly care facilities, driven by demographic trends such as an aging population. Additionally, Target Healthcare REIT may also engage in property acquisitions, developments, and asset management to enhance the value of its portfolio and drive future income growth. Key partnerships with established care home operators further support its revenue model by ensuring high occupancy rates and strong operational performance.

Target Healthcare REIT Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
69.55M	67.75M	63.86M	49.98M	44.27M
	Gross Profit
61.83M	60.14M	56.55M	44.18M	39.00M
	EBIT
58.00M	57.01M	50.16M	38.85M	34.74M
	EBITDA
58.00M	0.00	0.00	0.00	0.00
	Net Income Common Stockholders
73.02M	-6.57M	49.10M	43.88M	31.62M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
38.88M	19.66M	34.48M	21.11M	36.44M
	Total Assets
967.37M	908.26M	963.66M	718.39M	663.77M
	Total Debt
240.67M	227.05M	231.38M	127.90M	150.13M
	Net Debt
-38.88M	210.01M	197.36M	108.57M	133.59M
	Total Liabilities
278.08M	253.45M	264.89M	153.21M	169.66M
	Stockholders Equity
689.29M	654.81M	698.77M	565.18M	494.11M
Cash Flow		Free Cash Flow
42.34M	29.66M	30.39M	24.96M	21.47M
	Operating Cash Flow
42.34M	29.66M	30.39M	24.96M	21.47M
	Investing Cash Flow
3.42M	-3.55M	-202.63M	-43.58M	-103.42M
	Financing Cash Flow
-22.24M	-45.23M	185.62M	3.29M	91.44M

Target Healthcare REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 92.40
• 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 92.4 is above the 20-day moving average (MA) of 89.67, above the 50-day MA of 85.89, and above the 200-day MA of 82.73, indicating a bullish trend. The MACD of 2.32 indicates Negative momentum. The RSI at 64.80 is Neutral, neither overbought nor oversold. The STOCH value of 46.29 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	79 Outperform		7.93	10.58%	6.28%	4.41%	23.70%
PHP	73 Outperform	£1.27B	30.73	2.96%	7.24%	7.01%	51.96%
AEWU	69 Neutral	£163.18M	18.18	5.56%	7.71%	17.97%	―
Sector *	61 Neutral	$4.74B	18.45	-3.52%	10.74%	5.97%	-21.87%
MERC	58 Neutral	£113.39M	―	-3.67%	3.50%	35.36%	-153.97%
GRIO	48 Neutral		―		1.71%	―	―

Target Healthcare REIT Corporate Events

Target Healthcare REIT to Present Interim Results Live

Target Healthcare REIT PLC announced a live presentation of its Interim Results by Kenneth MacKenzie and James MacKenzie from Target Fund Managers. The presentation, scheduled for 1 April 2025, is accessible to all existing and potential shareholders, allowing them to engage and submit questions. This initiative aims to enhance transparency and engagement with stakeholders, potentially impacting investor relations positively.

Target Healthcare REIT Reports Strong Half-Year Results with Growth in Earnings and Portfolio Valuation

Target Healthcare REIT plc reported a strong performance for the six months ending December 2024, with a 1.8% increase in EPRA NTA per share and a 4.5% total accounting return. The company has maintained a robust balance sheet with long-term fixed-rate debt and a fully covered growing dividend. The portfolio’s market valuation rose by 1.8%, driven by rental uplifts and capital expenditure, while maintaining a high occupancy rate and strong rent collection. The company benefits from sectoral tailwinds such as an aging population and a trend towards quality care homes, positioning it well for future growth.

Target Healthcare REIT to Announce Half-Year Results

Target Healthcare REIT announced it will release its half-year results for the period ending 31 December 2024 on 14 March 2025. The company emphasizes its strategy of building supportive relationships with tenants to enhance care standards and ensure stable returns, reflecting its commitment to sustainable business practices.

Target Healthcare REIT Appoints Panmure Liberum as Joint Broker

Target Healthcare REIT has appointed Panmure Liberum Limited as a joint broker alongside its existing corporate broker, Stifel Nicolaus Europe Limited. This strategic move is expected to enhance the company’s market operations and potentially strengthen its industry positioning by leveraging the expertise of both brokers.

BlackRock Increases Stake in Target Healthcare REIT

Target Healthcare REIT PLC has announced that BlackRock, Inc. has increased its holdings in the company, crossing the 5% threshold of voting rights. This acquisition by a major global investment firm like BlackRock could signal confidence in Target Healthcare’s market position and potential for growth, potentially impacting investor sentiment positively.

BlackRock Adjusts Stake in Target Healthcare REIT Below 5%

The notification indicates that BlackRock, Inc. has adjusted its holdings in Target Healthcare REIT PLC, with its voting rights now falling below 5%. This change reflects BlackRock’s ongoing portfolio management strategy and may influence the market perception of Target Healthcare REIT’s stock, potentially affecting investor sentiment and trading activity.

Target Healthcare REIT Reports NAV Growth and Declares Dividend

Target Healthcare REIT announced a 0.9% increase in its EPRA Net Tangible Assets per share, driven by inflation-linked rent reviews, and declared a second interim dividend. The company maintains a positive outlook due to demographic trends and demand for modern care homes, with a stable rent cover and strong tenant base supporting its long-term returns.