Sector increasingly attractive to investors, says Target Healthcare

Care home owner Target Healthcare yesterday said generalist investors were increasingly attracted to the sector thanks to its “attractive” yields.

The Stirling-based company said specialist healthcare backers also continued their interest in the elderly care sector, leading to competition for acquisitions and a hardening in rental conditions.

“Nevertheless, the investment adviser believes that the company is well-placed to capitalise on its established relationships with regional and national operators and agents, and it continues to build an attractive pipeline of single and multi-asset care home investment opportunities,” Target said in a trading update for the three months to the end of March.

It came less than 24 hours after the real estate investment trust announced a £13.9 million acquisition of three care homes across the Midlands and north of England, taking its portfolio to a total of 16 homes.

It is also in advanced negotiations over around £35.5m in new buys.

Net asset value per share reached 96p at the period end, while third and fourth dividends totalling 1.5p per share were paid on February 28.