Target Healthcare REIT PLC on Wednesday reported a slight rise in portfolio value in the penultimate quarter of the year, while its EPRA net tangible assets per share stayed flat.

At September 30, the London-based care home investor said its EPRA net tangible assets per share was 112.1 pence, broadly flat against 112.3p at June 30. The total NAV return for the third quarter of the year, based on EPRA NTA and the firm’s dividend, was 1.3%.

Target Healthcare’s portfolio was valued at £913.7 million at September 30, and comprised of 100 properties. Over the third quarter, the portfolio’s value increased by 0.2%, though on a like-for-like basis the value rose by 0.1%.

The investor said the increase in value reflected inflation-linked annual rental uplifts and the completion of portfolio management initiatives.

‘Our focus this quarter has been securing certainty on debt costs and availability on our shorter-term facilities and managing our underperforming assets to improve rent collection,’ said Chief Executive Kenneth MacKenzie.

Rent collection improved to 96% at September 30, from 94% at June 30. Mature home resident occupancy increased to 84%, maintaining a consistent upward trend since February.

The portfoilo’s weighted average unexpired lease term was 26.9 years at September 30, down from 27.2 years at June 30. It also had an EPRA topped-up net initial yield of 5.84% based on annualised contractual rent of £55.6 million.

Target Healthcare declared its first interim dividend for the year ending June 30 of 1.69p.

Shares in Target Healthcare were down 1.3% at 88.22 pence on Wednesday morning in London.

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