StockMarketWire.com - Care home investor Target Healthcare REIT upped its annual dividend by 1.5% after increased rental income helped it post a 5.8% rise in annual profit.

Pre-tax profit for the year through June increased to £31.6 million, up from £29.9 million year-on-year.

Contracted portfolio rent increased 21% to £39.0 million, including like-for-like rental growth of 1.5%.

The company's EPRA net asset value per share rose 0.6% to 108.1p.

Target Healthcare REIT declared a full-year dividend of 6.68p per share, up 1.5% year-on-year, and forecast a 0.6% rise in the current year's payout to 6.72p.

'Our business model is designed to allow us to pay a regular, stable and attractive dividend in what may well be an entrenched 'lower-for-longer' interest rate environment,' chairman Malcolm Naish said.

'Our portfolio has performed well during the year, and has thus far demonstrated a satisfying resilience during Covid-19.'

'We have seen rental and valuation growth. Falls in occupancy levels as a result of lockdown are being substantially matched by new enquiry levels.'

'The proposed dividend increase reflects both the board's confidence in the group's prospects and caution with regard to the ongoing Covid-19 situation.'


At 9:37am: [LON:THRL] Target Healthcare Reit Ltd share price was +0.2p at 106.2p



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