Scottish care home investor Target Healthcare REIT has reported a rise in annual profits of 5.8 per cent in the year to 30 June as portfolio rents increased by a fifth.
The listed specialist investor in purpose-built UK care homes saw pre-tax profit increase to £31.6m, up from £29.9m a year earlier.
Target Healthcare notched a 21 per cent rise in portfolio rent to £39m, including like-for-like rental growth of 1.5 per cent.
The increase in profits allowed the Stirling-based outfit to raise its full-year dividend by 1.5 per cent of 6.68p per share and forecast a 0.6 per cent rise in the current year's payout to 6.72p.
Target Healthcare chairman Malcolm Naish (pictured) said the proposed dividend increase reflects both the board’s confidence in the group’s prospects and caution with regard to the ongoing Covid-19 situation.
“Our portfolio has performed well during the year, and has thus far demonstrated a satisfying resilience during Covid-19. We have seen rental and valuation growth. Falls in occupancy levels as a result of lockdown are being substantially matched by new enquiry levels,” he added.
Naish said Target Healthcare’s strong relationships with tenants meant it could manage the operational “stresses and strains” of the Covid-19 pandemic.
“The manager has given help and support with sourcing of PPE, sharing of best practice and collation of sector news and guidance, as well as acting as a sounding board,” he added.
“Where appropriate, we have relaxed contractual obligations to ease cashflow pressures. All of this is in order to allow our tenants to focus on what they do best – providing care."
