Target Healthcare REIT
Market Cap
UK£423.6m
Last Updated
2019/08/07 21:43 UTC
Data Sources
Company Financials +
Executive Summary
Target Healthcare REIT provide a range of tailored funding solutions to support operators to increase the provision of modern, purpose-built care homes across the UK.
Rewards
Risk Analysis
Snowflake Analysis
Good value with acceptable track record.
Similar Companies
Share Price & News
How has Target Healthcare REIT's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: THRL has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-1.3%
THRL
11.6%
GB REITs
8.6%
GB Market
1 Year Return
-3.9%
THRL
-14.6%
GB REITs
-19.4%
GB Market
Return vs Industry: THRL underperformed the UK REITs industry which returned 10.7% over the past year.
Return vs Market: THRL underperformed the UK Market which returned 12.7% over the past year.
Shareholder returns
| THRL | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.3% | 11.6% | 8.6% |
| 30 Day | -4.3% | -9.5% | -3.5% |
| 90 Day | -6.0% | -20.9% | -23.0% |
| 1 Year | 2.2%-3.9% | -11.4%-14.6% | -15.5%-19.4% |
| 3 Year | 18.8%-0.2% | -7.1%-14.2% | -8.8%-19.9% |
| 5 Year | 38.3%5.0% | 0.7%-18.1% | 4.2%-19.0% |
Price Volatility Vs. Market
How volatile is Target Healthcare REIT's share price compared to the market and industry in the last 5 years?
Simply Wall St News
8 months ago | Simply Wall St
A Note On Target Healthcare REIT Limited's (LON:THRL) ROE and Debt To Equity10 months ago | Simply Wall St
Do Investors Have Good Reason To Be Wary Of Target Healthcare REIT Limited's (LON:THRL) 5.6% Dividend Yield?10 months ago | Simply Wall St
What Kind Of Shareholders Own Target Healthcare REIT Limited (LON:THRL)?Valuation
Is Target Healthcare REIT undervalued compared to its fair value and its price relative to the market?
40.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: THRL (£1.1) is trading below our estimate of fair value (£1.85)
Significantly Below Fair Value: THRL is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: THRL is good value based on its PE Ratio (13x) compared to the REITs industry average (15.2x).
PE vs Market: THRL is good value based on its PE Ratio (13x) compared to the UK market (18.5x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate THRL's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: THRL is overvalued based on its PB Ratio (1x) compared to the GB REITs industry average (1x).
Next Steps
Future Growth
How is Target Healthcare REIT forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
1.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: THRL's forecast earnings growth (1.4% per year) is above the savings rate (1.2%).
Earnings vs Market: THRL's earnings (1.4% per year) are forecast to grow slower than the UK market (11.7% per year).
High Growth Earnings: THRL's earnings are forecast to grow, but not significantly.
Revenue vs Market: THRL's revenue (15.1% per year) is forecast to grow faster than the UK market (3.6% per year).
High Growth Revenue: THRL's revenue (15.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if THRL's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Target Healthcare REIT performed over the past 5 years?
40.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: THRL has a large one-off gain of £6.0M impacting its December 31 2018 financial results.
Growing Profit Margin: THRL's current net profit margins (91.8%) are higher than last year (85.7%).
Past Earnings Growth Analysis
Earnings Trend: THRL has become profitable over the past 5 years, growing earnings by 40.2% per year.
Accelerating Growth: THRL's earnings growth over the past year (25.7%) is below its 5-year average (40.2% per year).
Earnings vs Industry: THRL earnings growth over the past year (25.7%) exceeded the REITs industry -21.1%.
Return on Equity
High ROE: THRL's Return on Equity (6.8%) is considered low.
Next Steps
Financial Health
How is Target Healthcare REIT's financial position?
Financial Position Analysis
Short Term Liabilities: THRL's short term assets (£34.9M) exceed its short term liabilities (£17.8M).
Long Term Liabilities: THRL's short term assets (£34.9M) do not cover its long term liabilities (£74.6M).
Debt to Equity History and Analysis
Debt Level: THRL's debt to equity ratio (16.9%) is considered satisfactory.
Reducing Debt: THRL's debt to equity ratio has increased from 0.07% to 16.9% over the past 5 years.
Debt Coverage: THRL's debt is not well covered by operating cash flow (17.2%).
Interest Coverage: THRL's interest payments on its debt are well covered by EBIT (9.3x coverage).
Balance Sheet
Next Steps
Dividend
What is Target Healthcare REIT's current dividend yield, its reliability and sustainability?
5.98%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: THRL's dividend (5.98%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).
High Dividend: THRL's dividend (5.98%) is in the top 25% of dividend payers in the UK market (4.95%)
Stability and Growth of Payments
Stable Dividend: THRL has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: THRL's dividend payments have increased, but the company has only paid a dividend for 6 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (171.6%), THRL's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: THRL's dividends in 3 years are forecast to be covered by earnings (98.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.3yrs
Average management tenure
CEO
Kenneth MacKenzie
no data
Tenure
Mr. Kenneth Macangus MacKenzie, MA CA serves as Chief Executive of Target Advisers LLP. Mr. MacKenzie founded the Target Advisers LLP in 2010. He is a Chartered Accountant with 40 years of business leaders ...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Executive Officer | no data | no data | no data | |
| Finance Director | no data | no data | no data | |
| Head of Investment - Target Advisers LLP | 9.58yrs | no data | no data | |
| Head of Healthcare - Target Advisers LLP | 9.58yrs | no data | no data | |
| Head of Tax | 2.92yrs | no data | no data | |
| Head of Asset Management | 1.58yrs | no data | no data |
6.3yrs
Average Tenure
Experienced Management: THRL's management team is seasoned and experienced (6.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Senior Independent Director | 6.58yrs | UK£30.00k | 0.018% £77.0k | |
| Independent Non-Executive Director | 1.58yrs | UK£7.00k | no data | |
| Independent Non-Executive Chairman | 6.58yrs | UK£40.00k | 0.012% £49.5k | |
| Independent Non-Executive Director | 6.58yrs | UK£35.00k | 0.0092% £39.0k | |
| Independent Non-Executive Director | 5.08yrs | UK£15.00k | no data | |
| Independent Non-Executive Director | 6.58yrs | UK£30.00k | no data |
6.6yrs
Average Tenure
66yo
Average Age
Experienced Board: THRL's board of directors are considered experienced (6.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Insufficient data to determine if shareholders have been diluted in the past year.
Top Shareholders
Company Information
Target Healthcare REIT PLC's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Target Healthcare REIT PLC
- Ticker: THRL
- Exchange: LSE
- Founded: 2013
- Industry: Health Care REITs
- Sector: Real Estate
- Market Cap: UK£423.598m
- Shares outstanding: 385.09m
- Website: https://www.targethealthcarereit.co.uk
Location
- Target Healthcare REIT PLC
- Ordnance House
- 31 Pier Road
- Saint Helier
- JE4 8PW
- Jersey
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| THRL | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Mar 2013 |
| THRLL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Mar 2013 |
Biography
Target Healthcare REIT provide a range of tailored funding solutions to support operators to increase the provision of modern, purpose-built care homes across the UK.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/08/07 21:43 |
| End of Day Share Price | 2019/08/07 00:00 |
| Earnings | 2018/12/31 |
| Annual Earnings | 2018/06/30 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.