Quarterly Investor Report - November 2021

Quarterly Investor Report:	November 2021
Quarter ended 30 September 2021

Target Healthcare REIT plc and its subsidiaries ('the Group') is a leading investor in modern purpose-built UK care homes with en suite wet rooms. The Group's objective is to provide investors with an attractive quarterly dividend, generated from a portfolio diversified by tenant, geography and end-user payment profile, through responsible investment.

Group at a glance

Properties	Beds	Tenants	Contracted rent	Property Value
79	5,474	28	£43.2m	£702.7m

	Overview					Key ratios & financials
	Launch date		March 2013*			Investment properties		£702.7 million
	ISIN		GB00BJGTLF51			Drawn debt		£80.0 million
	SEDOL		BJGTLF5			EPRA NTA		£690.6 million
	Company name		Target Healthcare REIT plc			EPRA NTA per share		111.3 pence
	Registered number		11990238			Quarterly NAV total return		2.4%
						(including dividend)
	Expected quarterly dividend		Feb/May/Aug/Nov			Quarterly Group specific		1.30 pence
	Financial year end		30 June			adjusted EPRA earnings per
				share
	Currency		Sterling			Quarterly dividend per share		1.69 pence
	Website		www.targethealthcarereit.co.uk			Dividend yield (02/11/2021)
					5.7%
	Ordinary share class as at		02/11/2021			Loan-to-Value ('LTV')**		11.4% (gross); 1.0% (net)
	Shares in issue		620,237,346			Management fee rate		1.05% up to £500m NAV
	Share price		118.0 pence					0.95% of £500m - £750m NAV
						0.85% of £750m - £1,000m NAV
	Market cap		£731.9 million					0.75% of £1,000m - £1,500m NAV
								0.65% of £1,500m + NAV
	Share price premium to EPRA		6.0%			WAULT		28.8 years
	NTA

			**Gross LTV calculated as total gross debt as a proportion of gross
			property value. Net LTV calculated as total gross debt less cash, as a
	* Originally launched as Target Healthcare REIT Limited (Jersey
		proportion of gross property value
	registered: 112287)

Recent news

The Group completed a substantially oversubscribed and upsized equity raise in September, raising gross proceeds of £125 million, with strong support from existing and new shareholders. The targeted size of the placing was increased from £100 million due to significant investor demand and strong acquisition pipeline visibility.

As the vaccination booster programme is rolled out across the portfolio, the Group continues to see encouraging increases in occupancy. The pandemic reinforced the need for high-quality homes in key locations, and the Group remains well placed to acquire and develop assets that it is confident will perform and contribute positively to stable returns over the long-term.

Performance

The portfolio value increased by 2.6% over the quarter, as a result of acquisitions (1.5%), further investment into the development portfolio (0.4%), and a like-for-like uplift in the operational portfolio value (0.7%). Contractual rent increased by 4.9%, due to the practical completion of two development sites, acquisitions, and a number of inflation-linked rent reviews in the quarter.

Asset Management and Acquisitions

During the quarter, the Group acquired a 56-bed care home in Liverpool, let to an existing tenant of the Group, which is being refurbished with an expectation it will open in the coming weeks. In addition, a pre-let development site subject to a forward funding agreement was acquired in Holt. Construction of the 66-bed home will commence in early 2022 and is expected to complete in the second half of 2023. Practical completion was reached on the Group's development sites in Rudheath and Droitwich Spa, delivering a total of 134 beds. Post quarter-end, a pre-let development site subject to a forward funding agreement to construct a 66-bed care home in Weymouth was acquired.

Pipeline

The Investment Manager's due diligence on the major portfolio acquisition under exclusivity (which was detailed in an equity issue announcement on 26 August 2021) is progressing well and is expected to complete shortly. The Investment Manager is working through the due diligence process on a number of transactions, which if progressed to completion will see all available equity and debt capital invested.

Summary balance sheet

	£m		Sept-21		Jun-21
	Property Portfolio***		702.7		684.8
	Cash		72.8		21.1
	Net current assets/(liabilities)		(4.9)		(11.0)
	Bank Loans		(80.0)		(130.0)
	Net assets		690.6		564.9
	EPRA NTA per share (pence)		111.3		110.4

***Ignores the effect of fixed/guaranteed rent reviews. See note 9 to the Annual Report 2021 for full details.

195

185

NAV total return

175

165

Share price total return

155

145

135

125

115

105

95

Jun-13

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Portfolio summary at 30 September 2021

		Number of properties by geographic region
Scotland		North East
Northern Ireland		Yorkshire & The Humber
North West		East Midlands
Wales		East of England
West Midlands		South East
South West
Contracted rent by geographic region
2%1%		6

4%

	5%		20%
7%
8%				2
			18%	4
8%
			14
	11%	16%		19

10

Valuation by geographic region (including developments)

Wales

North East

Northern Ireland

East of England

5

1

4

West Midlands

Scotland

South West

East Midlands

North West

South East

Yorkshire & The Humber

0%	5%	10%	15%	20%	25%

10

4

Directors	Investment Manager	Advisers
Malcolm Naish (Chairman)	Target Fund Managers Ltd.	Administrator	Target Fund Managers Ltd.
Professor June Andrews OBE	Kenneth MacKenzie,	Depositary	IQ EQ Depositary Company (UK) Ltd.
Gordon Coull	Gordon Bland	Broker	Stifel Nicolaus Europe Ltd.
Thomas Hutchison III	[phone]	Legal	Dickson Minto W.S.
Alison Fyfe	targetfundmanagers.com	Auditors	Ernst & Young LLP
Vince Niblett

This Report is intended solely for the information of the person to whom it is provided by the Group, the Investment Manager or the Administrator. This Report is not intended as an offer or solicitation for the purchase of shares in the Group and should not be relied on by any person for the purpose of accounting, legal or tax advice or for making an investment decision. The payment of dividends and the repayment of capital are not guaranteed by the Group. Any forecast, projection or target is indicative only and is not guaranteed in any way, and any opinions expressed in this Report are not statements of fact and are subject to change, and neither the Group nor the Investment Manager is under any obligation to update such opinions. Past performance is not a reliable indicator of future performance, and investors may not get back the original amount invested. Unless otherwise stated, the sources for all information contained in this report are the Investment Manager and the Administrator. Information contained in this Report is believed to be accurate at the date of publication, but none of the Group, the Investment Manager and the Administrator gives any representation or warranty as to the Report's accuracy or completeness. This Report does not contain and is not to be taken as containing any financial product advice or financial product recommendation. None of the Group, the Investment Manager and the Administrator accepts any liability whatsoever for any loss (whether direct or indirect) arising from any use of this Report or its contents. Target Healthcare REIT plc, registered in the UK (Registered Number: 11990238). Registered Office: Level 13, Broadgate Tower, 20 Primrose Street, London, EC2A 2EW.