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Target Healthcare REIT

LSE:THRL
Snowflake Description

Reasonable growth potential and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
THRL
LSE
£443M
Market Cap
  1. Home
  2. GB
  3. Real Estate
Company description

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. The last earnings update was 77 days ago. More info.


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THRL Share Price and Events
7 Day Returns
-1.2%
LSE:THRL
0.3%
GB REITs
1.5%
GB Market
1 Year Returns
6.5%
LSE:THRL
-7.2%
GB REITs
-6.3%
GB Market
THRL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Target Healthcare REIT (THRL) -1.2% -1.4% -1.7% 6.5% 6.9% 11.1%
GB REITs 0.3% -0.1% 1.3% -7.2% -6.8% 5.7%
GB Market 1.5% -2.1% 1.8% -6.3% 15.4% 2%
1 Year Return vs Industry and Market
  • THRL outperformed the REITs industry which returned -7.2% over the past year.
  • THRL outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -6.3% over the past year.
Price Volatility
THRL
Industry
5yr Volatility vs Market

Value

 Is Target Healthcare REIT undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Target Healthcare REIT to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Target Healthcare REIT.

LSE:THRL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations
Levered Adjusted Funds From Operations Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:THRL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6%
REITs Unlevered Beta Simply Wall St/ S&P Global 0.52
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.523 (1 + (1- 20%) (15.71%))
0.724
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.8 * 5.96%)
6%

Discounted Cash Flow Calculation for LSE:THRL using 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations Model

The calculations below outline how an intrinsic value for Target Healthcare REIT is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Target Healthcare REIT is a Real Estate Investment Trust (REIT), we use funds from operations (FFO) or adjusted funds from operations (AFFO) instead of levered free cash flow for REITs. This excludes depreciation and borrowing. Ideally analysts estimates of AFFO are used, where these aren't available we use FFO.

LSE:THRL DCF 1st Stage: Next 10 year cash flow forecast
Adjusted Funds From Operations (AFFO) (GBP, Millions) Source Present Value
Discounted (@ 6%)
2019 20.00 Analyst x1 18.87
2020 26.10 Analyst x1 23.23
2021 27.10 Analyst x1 22.76
2022 29.96 Est @ 10.55% 23.73
2023 32.28 Est @ 7.75% 24.13
2024 34.15 Est @ 5.79% 24.08
2025 35.66 Est @ 4.42% 23.73
2026 36.90 Est @ 3.47% 23.16
2027 37.93 Est @ 2.79% 22.46
2028 38.81 Est @ 2.32% 21.68
Present value of next 10 years cash flows £227.83
LSE:THRL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £38.81 × (1 + 1.23%) ÷ (6% – 1.23%)
£823.97
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £823.97 ÷ (1 + 6%)10
£460.32
LSE:THRL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £227.83 + £460.32
£688.15
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £688.15 / 385.09
£1.79
LSE:THRL Discount to Share Price
Calculation Result
Value per share (GBP) From above. £1.79
Current discount Discount to share price of £1.15
= -1 x (£1.15 - £1.79) / £1.79
35.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Target Healthcare REIT is available for.
Intrinsic value
36%
Share price is £1.15 vs Future cash flow value of £1.79
Current Discount Checks
For Target Healthcare REIT to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Target Healthcare REIT's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Target Healthcare REIT's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Target Healthcare REIT's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Target Healthcare REIT's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:THRL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £0.08
LSE:THRL Share Price ** LSE (2019-05-21) in GBP £1.15
United Kingdom of Great Britain and Northern Ireland REITs Industry PE Ratio Median Figure of 44 Publicly-Listed REITs Companies 12.15x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 789 Publicly-Listed Companies 16.22x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Target Healthcare REIT.

LSE:THRL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:THRL Share Price ÷ EPS (both in GBP)

= 1.15 ÷ 0.08

13.59x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Target Healthcare REIT is overvalued based on earnings compared to the GB REITs industry average.
  • Target Healthcare REIT is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Target Healthcare REIT's expected growth come at a high price?
Raw Data
LSE:THRL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.59x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
21.3%per year
United Kingdom of Great Britain and Northern Ireland REITs Industry PEG Ratio Median Figure of 25 Publicly-Listed REITs Companies -0.28x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 575 Publicly-Listed Companies 1.5x

*Line of best fit is calculated by linear regression .

LSE:THRL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.59x ÷ 21.3%

0.64x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Target Healthcare REIT is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Target Healthcare REIT's assets?
Raw Data
LSE:THRL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £1.07
LSE:THRL Share Price * LSE (2019-05-21) in GBP £1.15
United Kingdom of Great Britain and Northern Ireland REITs Industry PB Ratio Median Figure of 54 Publicly-Listed REITs Companies 0.93x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,368 Publicly-Listed Companies 1.5x
LSE:THRL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:THRL Share Price ÷ Book Value per Share (both in GBP)

= 1.15 ÷ 1.07

1.08x

* Primary Listing of Target Healthcare REIT.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Target Healthcare REIT is overvalued based on assets compared to the GB REITs industry average.
X
Value checks
We assess Target Healthcare REIT's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the REITs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the REITs industry average (and greater than 0)? (1 check)
  5. Target Healthcare REIT has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Target Healthcare REIT expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
21.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Target Healthcare REIT expected to grow at an attractive rate?
  • Target Healthcare REIT's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Target Healthcare REIT's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Target Healthcare REIT's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:THRL Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:THRL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 21.3%
LSE:THRL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 15.1%
United Kingdom of Great Britain and Northern Ireland REITs Industry Earnings Growth Rate Market Cap Weighted Average 17.6%
United Kingdom of Great Britain and Northern Ireland REITs Industry Revenue Growth Rate Market Cap Weighted Average 2.2%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:THRL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:THRL Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-06-30 44 32 44 1
2020-06-30 43 31 41 1
2019-06-30 34 24 26 1
LSE:THRL Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 31 12 28
2018-09-30 30 17 28
2018-06-30 28 22 28
2018-03-31 27 19 25
2017-12-31 26 16 22
2017-09-30 25 9 21
2017-06-30 23 3 19
2017-03-31 21 6 17
2016-12-31 20 9 14
2016-09-30 18 9 13
2016-06-30 17 9 12
2016-03-31 16 8 13

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Target Healthcare REIT's earnings are expected to grow significantly at over 20% yearly.
  • Target Healthcare REIT's revenue is expected to grow by 15.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:THRL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Target Healthcare REIT Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:THRL Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-06-30 0.11 0.11 0.11 1.00
2020-06-30 0.11 0.11 0.11 1.00
2019-06-30 0.07 0.07 0.07 1.00
LSE:THRL Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 0.08
2018-09-30 0.09
2018-06-30 0.10
2018-03-31 0.09
2017-12-31 0.09
2017-09-30 0.08
2017-06-30 0.08
2017-03-31 0.07
2016-12-31 0.06
2016-09-30 0.07
2016-06-30 0.07
2016-03-31 0.09

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Target Healthcare REIT will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Target Healthcare REIT's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Target Healthcare REIT has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Target Healthcare REIT performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Target Healthcare REIT's growth in the last year to its industry (REITs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Target Healthcare REIT has delivered over 20% year on year earnings growth in the past 5 years.
  • Target Healthcare REIT's 1-year earnings growth is less than its 5-year average (25.7% vs 40.2%)
  • Target Healthcare REIT's earnings growth has exceeded the GB REITs industry average in the past year (25.7% vs 9.5%).
Earnings and Revenue History
Target Healthcare REIT's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Target Healthcare REIT Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:THRL Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 30.66 28.16
2018-09-30 29.52 27.89
2018-06-30 28.37 27.61
2018-03-31 27.26 25.01
2017-12-31 26.14 22.41
2017-09-30 24.63 20.77
2017-06-30 23.11 19.12
2017-03-31 21.46 16.74
2016-12-31 19.82 14.36
2016-09-30 18.35 13.03
2016-06-30 16.87 11.70
2016-03-31 16.06 13.34
2015-12-31 15.24 14.97
2015-09-30 14.48 12.26
2015-06-30 13.72 9.55
2014-12-31 8.68 3.28
2014-09-30 6.58 1.92
2014-06-30 4.48 0.55
2013-12-31 3.44 -0.88

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Target Healthcare REIT has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Target Healthcare REIT used its assets less efficiently than the GB REITs industry average last year based on Return on Assets.
  • Target Healthcare REIT's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Target Healthcare REIT's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the REITs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Target Healthcare REIT has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Target Healthcare REIT's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Target Healthcare REIT's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Target Healthcare REIT is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Target Healthcare REIT's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Target Healthcare REIT's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Target Healthcare REIT Company Filings, last reported 4 months ago.

LSE:THRL Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 411.42 69.58 28.81
2018-09-30 411.42 69.58 28.81
2018-06-30 358.61 64.30 41.40
2018-03-31 358.61 64.30 41.40
2017-12-31 263.38 79.66 14.85
2017-09-30 263.38 79.66 14.85
2017-06-30 256.94 39.34 10.41
2017-03-31 256.94 39.34 10.41
2016-12-31 256.75 20.35 26.68
2016-09-30 256.75 20.35 26.68
2016-06-30 253.28 20.77 65.11
2016-03-31 253.28 20.77 65.11
2015-12-31 173.61 31.01 41.15
2015-09-30 173.61 31.01 41.15
2015-06-30 139.29 30.87 29.16
2014-12-31 111.97 26.43 5.90
2014-09-30 111.97 26.43 5.90
2014-06-30 90.22 11.76 17.13
2013-12-31 91.30 0.00 45.35
  • Target Healthcare REIT's level of debt (16.9%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0.1% vs 16.9% today).
  • Debt is not well covered by operating cash flow (17.2%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 9.3x coverage).
X
Financial health checks
We assess Target Healthcare REIT's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Target Healthcare REIT has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Target Healthcare REIT's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.72%
Current annual income from Target Healthcare REIT dividends. Estimated to be 5.83% next year.
If you bought £2,000 of Target Healthcare REIT shares you are expected to receive £114 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Target Healthcare REIT's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2%).
  • Target Healthcare REIT's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.27%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:THRL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland REITs Industry Average Dividend Yield Market Cap Weighted Average of 49 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:THRL Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2021-06-30 0.07 2.00
2020-06-30 0.07 2.00
2019-06-30 0.07 2.00
LSE:THRL Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-04-25 0.066 5.662
2019-01-31 0.066 5.678
2018-10-15 0.066 6.038
2018-07-27 0.065 5.690
2018-01-19 0.065 5.880
2017-11-09 0.065 5.757
2017-07-27 0.063 5.324
2017-04-26 0.063 5.325
2017-01-26 0.063 5.567
2016-09-30 0.062 5.568
2016-09-29 0.062 5.574
2015-10-02 0.062 5.630
2014-10-07 0.080 7.616
2014-02-28 0.046 4.422
2013-09-20 0.060 5.752
2013-08-01 0.065 6.136

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Target Healthcare REIT has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Target Healthcare REIT only paid a dividend in the past 6 years.
Current Payout to shareholders
What portion of Target Healthcare REIT's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1x coverage).
X
Income/ dividend checks
We assess Target Healthcare REIT's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Target Healthcare REIT afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Target Healthcare REIT has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Target Healthcare REIT's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Kenneth MacKenzie
CEO Bio

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 leadership experience, last 9 in healthcare. Prior to healthcare sector, Mr. MacKenzie has businesses in the publishing, IT, shipping and accountancy sectors and he holds a number of pro-bono charitable roles. Significant work was done researching the UK healthcare market and he led the due diligence on the business. His experience from this exercise and contacts with the Chief Executive Officer of a REIT in the US was a key reason why he went on to found the Kames Target Healthcare Property Unit Trust.  Preceding his involvement in the healthcare sector, he has owned businesses in the publishing, IT, shipping and accountancy sectors and he holds a number of pro-bono charitable roles.

CEO Compensation
  • Insufficient data for Kenneth to compare compensation growth.
  • Insufficient data for Kenneth to establish whether their remuneration is reasonable compared to companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure of the Target Healthcare REIT management team in years:

6
Average Tenure
  • The average tenure for the Target Healthcare REIT management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Kenneth MacKenzie

TITLE
Chief Executive Officer

Gordon Bland

TITLE
Finance Director

John Flannelly

TITLE
Head of Investment - Target Advisers LLP
TENURE
9.3 yrs

Andrew Brown

TITLE
Head of Healthcare - Target Advisers LLP
TENURE
9.3 yrs

Donald Campbell

TITLE
Head of Tax
TENURE
2.7 yrs

Scott Steven

TITLE
Head of Asset Management
TENURE
1.3 yrs
Board of Directors Tenure

Average tenure and age of the Target Healthcare REIT board of directors in years:

6.3
Average Tenure
65
Average Age
  • The tenure for the Target Healthcare REIT board of directors is about average.
Board of Directors

Robert Naish

TITLE
Independent Non-Executive Chairman
COMPENSATION
£40K
AGE
65
TENURE
6.3 yrs

Gordon Coull

TITLE
Independent Non-Executive Director
COMPENSATION
£35K
TENURE
6.3 yrs

Hilary Jones

TITLE
Independent Non-Executive Director
COMPENSATION
£15K
TENURE
4.8 yrs

June Andrews

TITLE
Independent Non-Executive Director
COMPENSATION
£30K
TENURE
6.3 yrs

Tom Hutchison

TITLE
Senior Independent Director
COMPENSATION
£30K
AGE
76
TENURE
6.3 yrs

Craig Stewart

TITLE
Independent Non-Executive Director
COMPENSATION
£7K
AGE
53
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
X
Management checks
We assess Target Healthcare REIT's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Target Healthcare REIT has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

What Kind Of Shareholders Own Target Healthcare REIT Limited (LON:THRL)?

View our latest analysis for Target Healthcare REIT LSE:THRL Ownership Summary, May 17th 2019 What Does The Institutional Ownership Tell Us About Target Healthcare REIT? … We can see that Target Healthcare REIT does have institutional investors; and they hold 47% of the stock. … Insider Ownership Of Target Healthcare REIT While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders.

Simply Wall St -

Is Target Healthcare REIT Limited's (LON:THRL) 6.8% ROE Better Than Average?

By way of learning-by-doing, we'll look at ROE to gain a better understanding of Target Healthcare REIT Limited (LON:THRL). … Our data shows Target Healthcare REIT has a return on equity of 6.8% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

If You Had Bought Target Healthcare REIT (LON:THRL) Stock Five Years Ago, You Could Pocket A 14% Gain Today

For example, the Target Healthcare REIT Limited (LON:THRL) share price is up 14% in the last 5 years, clearly besting than the market return of around 6.1% (ignoring dividends). … During the five years of share price growth, Target Healthcare REIT moved from a loss to profitability. … It might be well worthwhile taking a look at our free report on Target Healthcare REIT's earnings, revenue and cash flow.

Simply Wall St -

Should Investors Be Happy About Target Healthcare REIT Limited’s (LON:THRL) Cash Levels?

I will take you through Target Healthcare REIT’s cash flow health and the risk-return concept based on the stock’s cash flow yield, using the most recent financial data. … Target Healthcare REIT’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure. … I will be analysing Target Healthcare REIT’s FCF by looking at its FCF yield and its operating cash flow growth.

Simply Wall St -

What Can We Expect From Target Healthcare REIT Limited's (LON:THRL) Earnings In The Year Ahead?

Want to participate in a short research study? … Help shape the future of investing tools and you could win a $250 gift card! … In June 2018, Target Healthcare REIT Limited (LON:THRL) released its earnings update.

Simply Wall St -

Should You Invest In Target Healthcare REIT Limited (LON:THRL)?

Target Healthcare REIT Limited is a UK£414m. … View our latest analysis for Target Healthcare REIT … This term is very common in the REIT investing world as it provides a cleaner look at its cash flow from daily operations by excluding impact of one-off activities or non-cash items such as depreciation

Simply Wall St -

Have You Considered This Before Investing In Target Healthcare REIT Limited (LON:THRL)?

Target Healthcare REIT Limited (LON:THRL) shareholders, and potential investors, need to understand how much cash the business makes from its core operational activities, as well as how much is invested back into the business. … I will take you through Target Healthcare REIT’s cash flow health and the risk-return concept based on the stock’s cash flow yield, using the most recent financial data. … Free cash flow (FCF) is the amount of cash Target Healthcare REIT has left after it pays off its expenses, including its net capital expenditures, which is what the company needs to spend each year to maintain or grow its business operations.

Simply Wall St -

Is Target Healthcare REIT Limited's (LON:THRL) ROE Of 7.7% Impressive?

This article is for those who would like to learn about Return On Equity (ROE). … Our data shows Target Healthcare REIT has a return on equity of 7.7% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Investing In Property Through Target Healthcare REIT Limited (LON:THRL)

Target Healthcare REIT Limited is a UK£388.4m. … real estate investment trust (REIT) based in Saint Helier, Jersey. … Check out our latest analysis for Target Healthcare REIT

Simply Wall St -

Is It Time To Buy Target Healthcare REIT Limited (LON:THRL)?

Target Healthcare REIT Limited (LON:THRL), a reits company based in Jersey,. … Today I will analyse the most recent data on Target Healthcare REIT’s outlook and valuation to see if the opportunity still exists? … See our latest analysis for Target Healthcare REIT?

Simply Wall St -

Company Info

Description

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.

Details
Name: Target Healthcare REIT Limited
THRL
Exchange: LSE
Founded: 2013
£442,852,865
385,089,448
Website: http://www.targethealthcarereit.co.uk
Address: Target Healthcare REIT Limited
Ordnance House,
31 Pier Road,
Saint Helier,
JE4 8PW,
Jersey
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE THRL Ordinary Shares London Stock Exchange GB GBP 07. Mar 2013
BATS-CHIXE THRLL Ordinary Shares BATS 'Chi-X Europe' GB GBP 07. Mar 2013
Number of employees
Current staff
Staff numbers
0
Target Healthcare REIT employees.
Industry
Health Care REITs
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/21 22:02
End of day share price update: 2019/05/21 00:00
Last estimates confirmation: 2019/04/30
Last earnings filing: 2019/03/05
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.