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Target Healthcare REIT
(LSE:THRL)
Select Model
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Rating:72Outperform
Price Target:
127.00 p
▲(12.79% Upside)
Action:Reiterated
Date:09/23/26
The score is driven primarily by mixed financial performance—moderate leverage and positive operating cash flow are offset by volatile earnings quality and a sharp deterioration in free cash flow in 2026. Technicals are supportive with the stock trading above key moving averages and moderate positive momentum, while valuation is a clear strength due to the low P/E and high dividend yield.
Positive Factors
Moderate leverage and balance-sheet resilience
Moderate leverage and a sizable equity base provide Target Healthcare REIT with financial resilience relative to a highly indebted property model. This supports continued ownership of care facilities, offers capacity to manage obligations, and reduces the balance-sheet strain that can restrict long-term portfolio investment.
Negative Factors
Recent revenue softness
Revenue declines in two consecutive reported periods weaken confidence in near-term portfolio growth and indicate that recent performance has not maintained the strength of 2024. Persistent softness could limit resources available for distributions, reinvestment, and expansion of the care-home property base.
Read all positive and negative factors
Positive Factors
Negative Factors
Moderate leverage and balance-sheet resilience
Moderate leverage and a sizable equity base provide Target Healthcare REIT with financial resilience relative to a highly indebted property model. This supports continued ownership of care facilities, offers capacity to manage obligations, and reduces the balance-sheet strain that can restrict long-term portfolio investment.
Read all positive factors
Target Healthcare REIT (THRL) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£702.11M
Dividend Yield5.33%
Average Volume (3M)1.01M
Price to Earnings (P/E)8.5
Beta (1Y)0.87
Revenue Growth-1.18%
EPS Growth35.78%
CountryUK
EmployeesN/A
SectorGeneral
Sector StrengthN/A
IndustryREIT - Healthcare Facilities
Share Statistics
EPS (TTM)0.13
Shares Outstanding620,237,370
10 Day Avg. Volume1,188,561
30 Day Avg. Volume1,010,232
Financial Highlights & Ratios
PEG Ratio0.26
Price to Book (P/B)0.89
Price to Sales (P/S)9.33
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£124.00Price Target Upside10.12% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.07
Revenue Forecast (FY)£68.32M
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
71
Positive
Balance Sheet
74
Positive
Cash Flow
57
Neutral
| Breakdown | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 72.07M | 72.93M | 78.48M | 67.75M | 63.86M |
| Gross Profit | 63.45M | 64.84M | 78.48M | 60.14M | 56.55M |
| EBITDA | 92.20M | 59.59M | 58.00M | 57.01M | 50.16M |
| Net Income | 82.59M | 60.84M | 73.02M | -6.57M | 49.10M |
Balance Sheet | |||||
| Total Assets | 989.50M | 986.19M | 967.37M | 908.26M | 963.66M |
| Cash, Cash Equivalents and Short-Term Investments | 50.88M | 39.64M | 38.88M | 15.37M | 34.48M |
| Total Debt | 197.74M | 240.29M | 240.67M | 227.05M | 231.38M |
| Total Liabilities | 231.58M | 273.73M | 278.08M | 253.45M | 264.89M |
| Stockholders Equity | 757.92M | 712.46M | 689.29M | 654.81M | 698.77M |
Cash Flow | |||||
| Free Cash Flow | 0.00 | 41.10M | 42.34M | 29.66M | 30.39M |
| Operating Cash Flow | 44.77M | 41.10M | 42.34M | 29.66M | 30.39M |
| Investing Cash Flow | 46.82M | -3.23M | 3.42M | -3.55M | -202.63M |
| Financing Cash Flow | -80.35M | -37.11M | -22.24M | -45.23M | 185.62M |
Target Healthcare REIT Technical Analysis
Positive
112.60
Price Trends
111.72
Positive
109.98
Positive
105.36
Positive
Market Momentum
0.40
Positive
53.99
Neutral
33.33
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 112.6 is below the 20-day moving average (MA) of 112.83, above the 50-day MA of 111.72, and above the 200-day MA of 105.36, indicating a bullish trend. The MACD of 0.40 indicates Positive momentum. The RSI at 53.99 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 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)
GB:THRL
Target Healthcare REIT
113.20
24.18
27.17%
GB:PHP
Primary Health Properties plc R.E.I.T
91.30
5.36
6.23%
GB:RESI
Residential Secure Income
6.72
-0.04
-0.56%
GB:HOME
Home REIT PLC
8.20
-0.80
-8.89%
Target Healthcare REIT Corporate Events
Business Operations and StrategyFinancial Disclosures
Target Healthcare REIT schedules live online full-year results presentation
Positive
Sep 23, 2026
Target Healthcare REIT will host a live online presentation of its full-year results via the Investor Meet Company platform on 28 September 2026, led by Kenneth and James MacKenzie of Target Fund Managers. The session is open to existing and prosp...
Regulatory Filings and Compliance
Insider-Linked Share Purchase Disclosed at Target Healthcare REIT
Positive
Sep 23, 2026
Target Healthcare REIT has disclosed a transaction involving a person closely associated with Kenneth MacKenzie, chief executive of the company’s investment manager, who acquired 275,000 ordinary shares at £1.136 per share via Carlton E...
Business Operations and StrategyDividendsFinancial Disclosures
Target Healthcare REIT posts record returns and strengthens care home portfolio
Positive
Sep 22, 2026
Target Healthcare REIT reported its best annual performance since its 2013 IPO for the year to 30 June 2026, driven by inflation-linked rental uplifts and stable valuation yields across its fully let, modern UK care home portfolio. The trust deliv...
Business Operations and StrategyFinancial Disclosures
Target Healthcare REIT sets date for full-year results amid growing care home portfolio
Positive
Sep 16, 2026
Target Healthcare REIT plc will report its full year results for the twelve months ended 30 June 2026 on 22 September 2026, accompanied by a live audio webcast for analysts and investors. The announcement underscores the company’s commitment...
Business Operations and StrategyExecutive/Board ChangesDividendsFinancial Disclosures
Target Healthcare REIT extends NAV growth as it reinvests into high-yield care home assets
Positive
Aug 5, 2026
Target Healthcare REIT reported its fourteenth consecutive quarter of EPRA Net Tangible Asset growth, with NTA per share rising 1.2% to 122.1 pence and a total accounting return of 2.5% for the quarter. Quarterly rent collection returned to 100%, ...
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.