Final Results

RNS Number : 1441L

Target Healthcare REIT Limited

29 September 2016

 

To: RNS

From: Target Healthcare REIT Limited

Date: 29 September 2016

Report and Results Announcement

Target Healthcare REIT Limited (the "Company" or the "Group"), a specialist investor in UK care homes, is pleased to announce its results for the year ended 30 June 2016.

Financial Highlights

·      EPRA* NAV per share of 100.6p (2015: 97.9p)

·      EPRA NAV total return of 9.3% (2015:10.3%)

·      Dividends declared of 6.18p (2015: 6.12p)

·      IFRS profit for the year £11.7m (2015: £9.6m)

·      Dividend cover of 72% (2015: 84%)

·      EPRA Earnings Per Share of 4.7p (2015: 5.7p)

Portfolio Highlights

·      Portfolio valuation of £210.7m (2015: £143.7m)

·      Portfolio passing rent of £15.5m (2015: £11.0m)

·      Number of tenant operator groups: 13 (2015: 8)

·      Weighted average unexpired lease term ('WAULT'): 28.6 years (2015: 29.5 years)

·      Number of acquisitions in the year: 9 (2015: 11)

·      Value of acquisitions in the year (including costs): £64.4m (2015: £57.6m)

* European Public Real Estate Association

Malcolm Naish, Chairman of the Company, said:

I am pleased to present the Group's annual report for 2016, a year in which we have continued to deliver on our key goal of growing the Group in a disciplined and sustainable manner. Accretive acquisitions have further diversified the Group's portfolio, both by tenant and geography of asset, whilst maintaining rental income and lease length at levels we believe provide a solid basis for the Group to continue to deliver its strategy.

Performance Highlights

The Group's EPRA NAV per share increased by 2.8 per cent to 100.6 pence. When combined with dividends paid during the year, this has provided a NAV total return of 9.3 per cent. EPRA earnings have increased by 20 per cent to £8.1 million delivering EPRA earnings per share of 4.7 pence (2015: 5.7 pence). 

These figures reflect another year of growth. Passing rent has increased by 40 per cent to £15.5 million, and new shareholder capital of £115.1 million has been issued. Whilst having significant capital awaiting investment does temporarily detract from revenue returns, shown by reductions in EPS and dividend cover, we believe the longer-term benefits to shareholders from growing the Group outweigh this short-term drag. When the Group is fully invested, net rental income is expected to fully cover intended dividend levels as a result of careful asset selection process and control of the Group's costs.

Significant cost savings have been obtained for future periods from a renegotiation of the Group's debt facilities. A reduction to borrowing margin of 50 basis points has been obtained alongside an extension of the now £50 million RBS facility to 1 September 2021. Exposure to interest rate risk has been actively managed, with protection obtained through an interest rate swap arrangement relating to £21 million of debt.

Dividends
The Company has declared and paid dividends of 6.18 pence per share in respect of the year. This is an increase of 1 per cent on 2015, and meets our objective of a progressive dividend policy. In the absence of unforeseen circumstances, I am delighted to announce that the Board intends to increase the quarterly dividend in respect of the year ending June 2017 by 1.6 per cent to 1.570 pence per share, in-line with inflation and providing an annual total of 6.28 pence.

Outlook
We are operating in an environment of political and economic uncertainty, both worldwide and more locally as demonstrated by the EU referendum result. Dividends payable by property companies with long lease terms and annual rental uplifts provide an attractive investment case, reflected in robust share price responses by the healthcare investment market. We believe the underlying fundamentals of population demographics and supply/demand imbalance of quality UK care home stock remain compelling.

As in previous years, the care sector in the UK is facing various headwinds, including: introduction of the living wage; nursing shortages; mediocre fee increases from government; and, the ongoing challenges of a more engaged regulatory regime. Our Investment Manager expands on these within 'UK Healthcare Investment' below. We believe specialist investment management is key for this sector, the performance of an informed 'bottom-up' investment appraisal process enables long-term investment, providing a stable yield for our shareholders and a platform for our tenants to provide a quality care service to their residents.

Our primary challenge is in continuing to craft a portfolio which meets our investment objectives and is balanced by region, tenant and size. I am pleased that we are investing our capital well, with over £57 million of the £84 million raised in May 2016 having been committed to assets which meet our quality requirements at pricing which is accretive to portfolio returns. The Investment Manager is working diligently on a pipeline of opportunities in which to place our remaining capital.

Finally, Graeme Ross has indicated his intention to retire from the Board following the AGM and I would like to take this opportunity to thank him for his valuable contribution to the Company during a period of considerable growth. Recognising the skills and experience that Graeme provided, the Board intends to appoint another Jersey-resident Director shortly.

Mr Malcolm Naish

Chairman

28 September 2016

Enquiries:

Target Advisers Kenneth MacKenzie	01786 845 912
Stifel Nicolaus Europe Limited Mark Young, Neil Winward, Roger Clarke, Tom Yeadon	020 7710 7600
Quill PR Fiona Harris, Sam Emery	020 7466 5058, 020 7466 5056

 

UK Healthcare Investment

Market/transactions overview

The investment case for high quality recently built care homes in the UK remains compelling. Good levels of investment activity in the elderly care sector have continued during the year although the volume of transactions has dipped slightly recently and there has been somewhat of a post-Brexit, summer lull in new opportunities coming to market. However, we expect to see an uptick in transaction activity in the Autumn.

We had seen a reduction in investment appetite from US REITs who had been very active investors in the UK market for the past couple of years, however, the recent favourable exchange rate on the back of the pound falling in value against the dollar has made the UK market more attractive again for US buyers.

Traditional real estate investors have been active recently making direct investment in UK care homes for pension and annuity funds attracted by income producing assets in a low interest rate economy.

We continue to see some very keen yields paid for the most highly desirable assets particularly in the South East of England. The Company has a selective interest in such opportunities although we continue to follow our strategy of seeking out value in the mid-market, single asset/smaller portfolio categories with regional operators. We retain our conviction that they can best apply their local knowledge and market presence to deliver high quality care within their communities which in turn we believe allows them to achieve excellent financial performance.

We continue to identify and assess a wider pipeline of potential opportunities.

Brexit
So far, we have not seen any significant movement in yields following voters' decision of 23 June to leave the European Union, one of the most significant political decisions in decades. Whilst the initial reaction has been well documented, and the UK real estate market now faces a period of significant uncertainty, the fundamentals of the Health & Social Care market have not changed. The demographics will continue to shift towards a greater proportion of elderly people creating the supply-demand imbalance that will require greater investment into care home development.

 
In the four weeks following the vote, Healthcare REITs outperformed core real estate by a significant margin due to their long lease terms and annual rent uplifts providing good visibility of future revenues and cash flows. Care home leases with terms of approximately 30 years compare very favourably with shorter term office leases. Also, the movement in gilt pricing making long income real estate more attractive.

The effects of the Brexit vote cannot be predicted with any certainty or accuracy. The UK will experience a period of uncertainty, however, due to the demographic imperative, businesses in the UK healthcare sector are more likely to be insulated from the worst effects of any such market uncertainty.

Continued headwinds: National living wage; funding; staffing; regulatory pressures; home closures

As reported in 2015 the new living wage came into effect in April 2016. Care homes, while welcoming the sentiment of staff being better rewarded, were initially concerned about individual local authorities having the resources and/or inclination to match the uplift in fees paid to reflect this additional cost of caring for state-funded residents. The government went some way in easing the situation by introducing the 'Adult Social Care Precept' allowing Local Authorities to raise council tax bills by a further 2%, with these funds allocated toward social care, albeit not exclusively for care homes. Laing & Buisson subsequently announced in July 2016 that the average rise in state funded fees across the UK equated to 4%, (3.4% in England) and this has essentially balanced the 3.5% rise in costs experienced by homes. Operators however continue to have longer term concerns as the Living Wage is pushed toward its 2020 target of £9.00 per hour from the initial £7.20. Operators have noted that wages at all levels have often had to be adjusted, as staff at higher levels expected a realignment of their own pay grade.

From a wider funding perspective research by Prestige Nursing released in Aug 2016, showed that despite the base need for a 3.5% rise in fees to cover costs, the average annual rise had been 5.2% over the last year, showing that care homes had been using the time honoured route of using private fee payers to subsidise local authority residents. This reinforces the sophisticated operator's viewpoint that there is a requirement for a good percentage of a home's residents to be self-funders, both as a safety net against austerity in the public sector and as a route to create a more attractive environment via suitable buildings and services offered to meet the expectations of a more discerning public. This private fee payer requirement also sees operators continuing to favour the more southerly and wealthy regions when it comes to new development, potentially creating a bed crisis in future years for areas with poorer demographics.

As far as individuals requiring care are concerned, those reliant on state funded care will continue to see less choice available to them, with 'top-ups' more likely to become the norm, rather than the exception. Private fee payers also continue to be exposed to losing significant elements of their net worth as the 'Dilnot' protection against 'catastrophic care costs', while still said to be on the government's agenda, is now regarded by most as unlikely to be implemented, not least as a close aide to the May government has recently indicated that people should use their housing wealth to pay for care.

Despite the introduction of the living wage, operators continue to experience staffing difficulties, with many believing that Brexit will further compound the problem. Some operators are noted to be choosing to move away from nursing care, and a number of high profile closures have cited staffing pressure as the 'final nail in the coffin' for their decision.

As reported in 2015, Care Commissions, particularly the English CQC remain challenging. Most homes have now experienced their first check under the new CQC standards, and many have found it a frustrating and challenging experience. The CQC themselves have noted some improvements in those found wanting in the first round of inspections, with the majority making the required improvements deemed necessary by the inspectorate. It is noted anecdotally by Target that there is a significant 'casualty' rate amongst managers in connection with these inspections, and also a growing reluctance by deputies to step up to the manager role with the extra scrutiny and responsibility that the role entails.

Home closures continue to be a theme in the sector, with closures noted on virtually a daily basis. Many of these closures are of homes in the 'mom and pop' operator category, which dominates this sector. These homes are typically sub 30 residents, housed in older, dated conversions. Some operators have little scope to market their homes due to poor or impractical building environments, and trade past their preferred retirement date due to the dilemma of disposing of the business. For some, the final straw is a poor CQC inspection which seals the decision to close. The raft of closures is seen as useful to most continuing operators, with subsequent pressure put upon the authorities for beds and ultimately less opportunity for local authorities to dictate low fee scenarios.

Target Advisers LLP

28 September 2016

Strategic Objectives

	KPIs and Performance	Progress made and current focus	Key risks
Objective 1: Dividend To pay a progressive dividend fully covered when the Group is fully invested.	-    Dividend rates Progressive annual dividend of 6.18 pence, 1 per cent increase on 2015 -    Dividend cover of 72 per cent (2015: 84 per cent) -    Control of operating costs on-going charges ratio 1.42 per cent (2015: 1.58 per cent) -    Growth in earnings see objective 4	-    Maximise rental income from efficient deployment of capital. -    Control costs to provide a fully covered dividend when the Group is fully invested. The Group's investment objective, when fully invested, is to provide a progressive dividend to shareholders which is fully covered by EPRA earnings. When not fully invested, as has been the case during the year as the Group has grown through significant equity issuance, there can be a drag on earnings whilst transaction diligence and comprehensive appraisal of investment opportunities takes place. Pace of deployment of capital will continue to be a focus in 2017 and whilst the Group is in growth phase, however the quality of assets and sustainability of their long-term returns will not be compromised. Efficiencies of operations and value for money will continue to be sought from service providers.	-    Reliance on third party service providers -    Market opportunities, or performance of Investment Manager, limit efficient deployment of capital -    Breach of REIT regulations
Objective 2: Total returns To maximise total returns to shareholders through a combination of dividends and capital appreciation.	-    Annual EPRA NAV total return of 9.3 per cent (2015: 10.3 per cent) -    Portfolio performance relative to benchmark Annualised portfolio total return (excluding acquisition costs) per IPD of 13.6 per cent vs. Index return of 9.5 per cent (to 31 December 2015) -    Asset valuations Like-for-like  revaluation gains of 5.3 per cent (2015: 6.0 per cent)	-    Continue to invest in attractively-priced assets which meet the Group's investment criteria. The Board is pleased with assets acquired in the year (and subsequent to) which meet the investment objectives and collectively have been acquired at a NIY broadly consistent with the Group's existing portfolio. This will continue to be a focus in 2017. -    Active management of portfolio. The Investment Manager will continue to manage the portfolio to ensure returns are optimised with capital values maintained and enhanced where possible.	-    Property valuations could adversely affect returns
Objective 3: Funding To fund the business through shareholder equity enhanced by modest leverage within predetermined risk thresholds.	-    Gross equity of £115.1 million raised during year -    Group loan-to-value (LTV) of 10.0 per cent (total gross debt as a proportion of gross property value, excluding cash), within 35 per cent limit	-    Continue to monitor debt terms available to the Group. The Group has entered into an amended agreement with RBS to improve its interest costs and extend the duration of its debt. The Group will actively consider the most appropriate composition of debt facilities and instruments to manage its interest rate exposure.	-    Lack of equity and debt capital -    Interest rate risk
Objective 4: Long-term secure rental income To have high quality care providers as tenants with secure, sustainable rental income giving long-term growth.	-    Like-for-like growth of 2.0 per cent (2015: 2.2 per cent) -    Rent roll increase of 40 per cent -    Addition of 5 new tenants, to 13 -    WAULT of 28.6 years (2015: 29.5 years)	-    Continued diversification of tenants as the portfolio grows. The Group has added 5 new tenants in the year, and 1 subsequent to the year-end. The Group's largest tenant accounted for 22 per cent of passing rent at 30 June 2016, with new acquisitions since 30 June 2016 adding tenants who further diversify the Group's portfolio.	-    Government policies/ funding of elderly care -    Concentration risk
Objective 5: Grow portfolio To acquire a diversified portfolio of high quality modern care homes providing excellent accommodation standards for residents.	-    9 assets with total commitment value of £64.4 million (inc. costs) completed during the year -    All acquired assets are modern, the majority being less than 4 years old -    Substantially all rooms are single occupancy with en-suite facilities including wet room showers	-    To convert the current pipeline, and continue to source new opportunities, through the Investment Manager. Over £64 million has been committed during the year, with an additional £21 million having been invested subsequent to 30 June 2016. As at the date of this report the Group has uncommitted capital to deploy of approximately £40 million (including undrawn debt) with near-term opportunities, inclusive of development funded acquisitions, of £44 million. The Investment Manager is also assessing a wider pipeline of potential opportunities.	-    Lack of available properties -    Inability to invest on acceptable terms

Principal Risks and Uncertainties

The principal risks faced by the Group together with the procedures employed to manage them are described in the table below:

Risk and Impact	Factors affecting risk rating	Ongoing mitigation
1.   Dividend -    The group has no employees and relies on third parties such as the Investment Manager to effectively manage operations. Poor performance by providers may result in reduced return to shareholders. -    A breach of REIT regulations in relation to payment of dividends may result in loss of tax advantages derived from the Group's REIT status	-    The pace of deployment of capital has dragged on investment returns in the period as the Investment Manager has encountered a number of transactions which have taken longer than average to progress through the diligence process to completion. There is no change to the risk rating as the associated complexities are assessed to be deal specific. The Investment Manager retains a robust and comprehensive investment appraisal and diligence process, and has a pipeline of identified assets in excess of available capital in which to place shareholder funds. -    The Group's costs have been managed effectively, demonstrated by a decrease in the Ongoing Charges Figure to 1.42 per cent for the year. -    The Group remains fully compliant with the REIT regulations.	-    All key service providers, including the Investment Manager, are subject to performance assessment at least annually. -    The Board monitors the Group's pace of deployment of capital via regular reporting by the Investment Manager of: status of diligence on agreed deals; progress on conversion on pipeline assets to agreed deals; and, details of pipeline assets. -    The Group's activities are monitored to ensure all conditions are adhered to. The REIT rules are considered during investment appraisal and transactions structured to ensure conditions are met.
2. Total returns -    Property valuations are inherently subjective and can fluctuate dependent on market conditions and assumptions. Falls in property valuations could adversely affect the Group's borrowing capacity which is linked to the value of its properties.	-    The Group's portfolio has increased on a like-for-like basis by 5.3 per cent. -    LTV has decreased to 10 per cent while the Group has capital awaiting investment. -    Debt facility covenants have been complied with during the year, with adequate headroom at year-end.	-    Loan covenants are closely monitored for compliance, with headroom projected. -    All investments are subject to a detailed investment appraisal and approval process prior to acquisition. -    The finished portfolio is 100 per cent let with sustainable rental levels and upwards-only annual rental reviews which support asset values.

3. Funding -    Without access to equity capital (or further debt) the Group may be unable to grow through acquisition of attractive investment opportunities, and may be unable to meet future financial commitments. This is likely to be driven by investor demand which will reflect Group performance, competitor performance and the relative attractiveness of investment in UK healthcare property. -    Interest rate fluctuations could increase the Group's costs and increase the likelihood of non-compliance with lender covenants.	-    The Group has successfully increased its levels of equity, by £115.1 million, and its debt availability, by £15 million, during the year. -    Political and economic uncertainty exists in relation to the UK's decision late in the year to leave the EU. Whilst initial market volatility has eased, the Group's ability to access the capital markets to meet its strategic objectives could be impacted in the longer-term. -    The Group has reduced its borrowing margin, extended access to its facilities until 1 September 2021, and fixed interest costs on £21 million of its debt until September 2021.	-    The Group maintains regular communication with investors, and, with the assistance of its broker and sponsor, regularly monitors the Group's capital requirements and investment pipeline alongside opportunities to raise equity. -    Liquidity available from income, equity and debt is kept under constant review to ensure the Group can meet any forward commitments as they fall due.
4. Long-term secure rental income -    Changes in government policies, including specific policies affecting local-authority funding of elderly care, may render the Group's strategy inappropriate. Secure income will be at risk if tenant finances suffer from policy changes, and property valuations would be impacted in the case of a demand downturn -    Concentration risk. Significant exposure to a single tenant group or geographic area could adversely affect Group performance in certain circumstances.	-    The care sector continues to face challenges: The National Living Wage has increased costs, these not universally matched by fee increases from Local Authorities; nursing shortages; and, the ongoing difficulty of more engaged regulators. -    Tenant concentration has reduced as portfolio diversification increases. Single largest tenant exposure is 22 per cent.	-    Government policy is monitored by the Group so as to increase ability to anticipate changes. -    Tenants typically have a multiplicity of income sources, thereby not being totally dependent on government pay. -    The Group's properties are let on long-term leases at sustainable rent levels, providing security of income.
5. Grow portfolio -    Lack of attractive investment opportunities and/or an inability to invest on acceptable terms in suitable timeframes will hamper the Group's growth prospects.	-    Activity levels in the market remain competitive, particularly for the most desirable assets in the South East of England. The Group continues to see opportunities which meet its criteria, as identified by the Investment Manager, and is actively pursuing these.	-    The Investment Manager develops and maintains a network of relationships with property owners and developers which it is expected will provide the Group with the best possible opportunity to acquire suitable properties. -    Demographics are such that many new homes require to be built to satisfy demand. The Group is well-positioned to participate in acquiring a share of these.
6. General -    People. Recruitment and retention of Board members and key personnel at the Investment Manager with relevant and appropriate skills and experience is vital to the Group's ability to meet its objectives. Failure to do so could result in the Group failing to meet its objectives.	-    The Investment Manager has bolstered its team, with additions of investment and healthcare professionals as well as a dedicated portfolio management team.	-    Directors are subject to annual performance assessment, and are subject to re-election by shareholders. -    The Investment Manager is subject to regular performance appraisal; has its remuneration aligned with group performance; and, there is a key man provision within the investment management agreement between the manager and the Group.

Mr Malcolm Naish

Chairman

28 September 2016

 

Consolidated Statement of Comprehensive Income (audited)

For the year ended 30 June 2016                                                                                                        

		Year ended 30 June 2016			Year ended 30 June 2015
		Revenue	Capital	Total	Revenue	Capital	Total
	Notes	£'000	£'000	£'000	£'000	£'000	£'000
Revenue
Rental income		12,677	4,136	16,813	9,898	3,760	13,658
Other income		61	-	61	66	-	66
Total revenue		12,738	4,136	16,874	9,964	3,760	13,724
Gains/(Losses) on revaluation of investment properties	4	-	425	425	-	(839)	(839)
Cost of corporate acquisitions		-	(998)	(998)	-	(174)	(174)
Total income		12,738	3,563	16,301	9,964	2,747	12,711
Expenditure
Investment management fee
- base fee	2	(1,783)	-	(1,783)	(1,140)	-	(1,140)
- performance fee	2	(871)	-	(871)	(466)	-	(466)
VAT refund on management fees		-	-	-	82	-	82
Other expenses		(992)	-	(992)	(880)	-	(880)
Total expenditure		(3,646)	-	(3,646)	(2,404)	-	(2,404)
Profit before finance costs and taxation		9,092	3,563	12,655	7,560	2,747	10,307
Net finance costs
Interest receivable		173	-	173	99	-	99
Interest payable and similar charges		(1,102)	-	(1,102)	(815)	-	(815)
Profit before taxation		8,163	3,563	11,726	6,844	2,747	9,591
Taxation		(24)	-	(24)	(39)	-	(39)
Profit for the year		8,139	3,563	11,702	6,805	2,747	9,552
Other comprehensive income:
Items that are or may be reclassified subsequently to profit or loss
Movement in valuation of interest rate swap		-	(316)	(316)	-	-	-
Total comprehensive income for the year		8,139	3,247	11,386	6,805	2,747	9,552
Earnings per share (pence)	3	4.74	2.07	6.81	5.71	2.31	8.02

The total column of this statement represents the Group's Consolidated Statement of Comprehensive Income, prepared in accordance with IFRS. The supplementary revenue return and capital return columns are both prepared under guidance published by the Association of Investment Companies.

All revenue and capital items in the above statement are derived from continuing operations.

No operations were discontinued in the year.

 

Consolidated Statement of Financial Position (audited)

As at 30 June 2016

		As at 30 June 2016	As at 30 June 2015
	Notes	£'000	£'000
Non-current assets
Investment properties	4	200,720	138,164
Trade and other receivables		3,742	2,530
		204,462	140,694
Current assets
Trade and other receivables		13,222	6,457
Cash and cash equivalents		65,107	29,159
Total assets		282,791	176,310
Non-current liabilities
Bank loan	6	(20,449)	(30,865)
Interest rate swap		(316)	-
Trade and other payables		(3,742)	(2,530)
		(24,507)	(33,395)
Current liabilities
Trade and other payables		(5,002)	(3,623)
Total liabilities		(29,509)	(37,018)
Net assets		253,282	139,292
Stated capital and reserves
Stated capital account	7	246,533	136,846
Hedging reserve		(316)	-
Capital reserve		4,698	495
Revenue reserve		2,367	1,951
Equity shareholders' funds		253,282	139,292
Net asset value per ordinary share (pence)	3	100.4	97.9

 

Consolidated Statement of Changes in Equity (audited)

For the year ended 30 June 2016                                                                                            

		Stated capital account	Hedging reserve	Capital reserve	Revenue reserve	Total
	Notes	£'000	£'000	£'000	£'000	£'000
At 30 June 2015		136,846	-	495	1,951	139,292
Total comprehensive income  for the year:		-	(316)	3,563	8,139	11,386
Transactions with owners recognised in equity:
Dividends paid	1	(1,973)	-	-	(7,723)	(9,696)
Issue of ordinary shares	7	114,438	-	-	-	114,438
Buyback of ordinary shares into treasury	7	-	-	(14,159)	-	(14,159)
Resale of ordinary shares from treasury	7	-	-	14,799	-	14,799
Expenses of issue	7	(2,778)	-	-	-	(2,778)
At 30 June 2016		246,533	(316)	4,698	2,367	253,282

For the year ended 30 June 2015

		Stated capital account	Capital reserve	Revenue reserve	Total
	Notes	£'000	£'000	£'000	£'000
At 30 June 2014		91,516	(2,252)	954	90,218
Total comprehensive income  for the year:		-	2,747	6,805	9,552
Transactions with owners recognised in equity:
Dividends paid	1	(1,313)	-	(5,808)	(7,121)
Issue of ordinary shares		47,802	-	-	47,802
Expenses of issue		(1,159)	-	-	(1,159)
At 30 June 2015		136,846	495	1,951	139,292

 

Consolidated Statement of Cash Flows (audited)

For the year ended 30 June 2016

		Year ended 30 June 2016	Year ended 30 June 2015
	Notes	£'000	£'000
Cash flows from operating activities
Profit before tax		11,726	9,591
Adjustments for:
Interest receivable		(173)	(99)
Interest payable		1,102	815
Revaluation gains on property portfolio		(4,787)	(2,921)
Increase in trade and other receivables		(233)	(308)
Increase in trade and other payables		1,271	1,003
		8,906	8,081
Interest paid		(854)	(613)
Interest received		173	99
Tax paid		(164)	(47)
		(845)	(561)
Net cash inflow from operating activities		8,061	7,520
Cash flows from investing activities
Purchase of investment properties	4	(34,833)	(51,736)
Acquisition of subsidiaries		(27,091)	(5,845)
Net cash outflow  from investing activities		(61,924)	(57,581)
Cash flows from financing activities
Issue of ordinary share capital		100,279	47,802
Expenses of issue paid		(2,778)	(1,158)
Resale of ordinary shares from treasury		14,799	-
(Repayment)/drawdown of bank loan facility		(10,638)	19,225
(Grant)/repayment of development loan		(2,170)	3,300
Dividends paid		(9,681)	(7,074)
Net cash inflow from financing activities		89,811	62,095
Net increase in cash and cash equivalents		35,948	12,034
Opening cash and cash equivalents		29,159	17,125
Closing cash and cash equivalents		65,107	29,159

Transactions which do not require the use of cash
Movement in fixed or guaranteed rent reviews and lease incentives	4,362	3,760
Issue of ordinary share capital	14,159	-
Buyback of ordinary shares into treasury	(14,159)	-

 

Statement of Directors' Responsibilities in Respect of the Annual Financial Report

In accordance with Chapter 4 of the Disclosure Guidelines and Transparency Rules, we confirm that to the best of our knowledge:

·      The financial statements contained within the Annual Report for the year ended 30 June 2016, of which this statement of results is an extract, have been prepared in accordance with applicable International Financial Reporting Standards, on a going concern basis, and give a true and fair view of the assets, liabilities, financial position and return of the Company;

·      The Chairman's Statement, UK Healthcare Investment and Strategic Objectives include a fair review of the important events that have occurred during the financial year and their impact on the financial statements;

·      'Principal Risks and Uncertainties' includes a description of the Company's principal risks and uncertainties; and

·      The Annual Report includes details of related party transactions that have taken place during the financial year.

On behalf of the Board

Mr Malcolm Naish

Chairman

28 September 2016

 

Extract from Notes to the Audited Consolidated Financial Statements

1.  Dividends

Amounts paid as distributions to equity holders during the year to 30 June 2016.

	Dividend rate (pence per share)	Year ended 30 June 2016 £'000
Fourth interim dividend for the year ended 30 June 2015	1.530	2,177
First interim dividend for the year ended 30 June 2016	1.545	2,199
Second interim dividend for the year ended 30 June 2016	1.545	2,660
Third interim dividend for the year ended 30 June 2016	1.545	2,660
Total	6.165	9,696

Amounts paid as distributions to equity holders during the year to 30 June 2015.

	Dividend rate (pence per share)	Year ended 30 June 2015 £'000
Sixth interim dividend for the period ended 30 June 2014	1.50	1,428
First interim dividend for the year ended 30 June 2015	1.53	1,721
Second interim dividend for the year ended 30 June 2015	1.53	1,795
Third interim dividend for the year ended 30 June 2015	1.53	2,177
Total	6.09	7,121

It is the policy of the Directors to declare and pay dividends as interim dividends. The Directors do not therefore recommend a final dividend. The fourth interim dividend in respect of the year ended 30 June 2016, of 1.545 pence per share, was paid on 26 August 2016 to shareholders on the register on 12 August 2016 amounting to £3,896,000. It is the intention of the Directors that the Group will continue to pay dividends quarterly.

2. Fees paid to Target Advisers LLP

	Year ended 30 June 2016	Year ended 30 June 2015
	£'000	£'000
Base management fee	1,783	1,140
Performance fee	871	466
Total	2,654	1,606

The Company's Investment Manager is Target Advisers LLP (the 'Investment Manager' or 'Target') and is responsible for the day-to-day management of the Company. Target has also been appointed as the Company's Alternative Investment Fund Manager (the "AIFM"). The Investment Manager is entitled to an annual base management fee of 0.90 per cent of the net assets of the Group and an annual performance fee calculated by reference to 10 per cent of the outperformance of the Group's portfolio total return relative to the MSCI UK Annual Healthcare Index ('the Index'). The maximum amount of total fees payable by the Group to the Investment Manager is limited to 1.25 per cent of the average net assets of the Group over a financial year.

The first performance fee period was 8 March 2013 to 31 December 2014. Subsequent performance fee periods will be annually to 31 December, in line with the Index. Portfolio performance is measured over three cumulative rolling performance periods whereby any performance fees paid to the Investment Manager are subject to clawback if cumulative performance underperforms the Index.

A performance fee in respect of the year to 31 December 2015 totalling £636,000 (period to 31 December 2014: £506,000) has been paid of which £110,000 (2015: £150,000) was accrued in the prior period accounts. At the year-end an accrual of £345,000 (inclusive of estimated irrecoverable VAT) has been made based on the Group's historical portfolio performance relative to the Index.

With effect from 30 September 2016, the Investment Management Agreement can be terminated by either party on 12 months' written notice provided that such notice shall not expire earlier than 30 September 2019. Should the Company terminate the Investment Management Agreement earlier than 30 September 2019 then compensation in lieu of notice will be payable to the Investment Manager. The Investment Management Agreement may be terminated immediately without compensation if the Investment Manager: is in material breach of the agreement; is guilty of negligence, wilful default or fraud; is the subject of insolvency proceedings; or there occurs a change of Key Managers to which the Board has not given its prior consent.

3. Earnings per share and Net Asset Value per share

EPRA is an industry body which issues best practice reporting guidelines and the Group report an EPRA NAV quarterly. EPRA has issued best practice recommendations for the calculation of certain figures which are included below.

Earnings per share

	Year ended 30 June 2016		Year ended 30 June 2015
	£'000	Pence per share	£'000	Pence per share
Revenue earnings	8,139	4.74	6,805	5.71
Capital earnings	3,563	2.07	2,747	2.31
Total earnings	11,702	6.81	9,552	8.02
Average number of shares in issue		171,734,587		119,160,560

The EPRA earnings are arrived at by adjusting for the revaluation movements on investment properties and other items of a capital nature and represents the revenue earned by the Group.

The Group's specific adjusted EPRA earnings adjusts the EPRA earnings for the performance fee.

The reconciliations are provided in the table below:

	Year ended 30 June 2016	Year ended 30 June 2015
Earnings per IFRS Consolidated Statement of Comprehensive Income	11,702	9,552
Adjusted for rental income arising from recognising guaranteed rent review uplifts and lease incentives	(4,136)	(3,760)
Adjusted for revaluations of investment properties	(425)	839
Adjusted for cost of corporate acquisitions	998	174
EPRA earnings	8,139	6,805
Adjusted for performance fee	871	466
Group specific adjusted EPRA earnings	9,010	7,271
Earnings per share ('EPS') (pence per share)
EPS per IFRS Consolidated Statement of Comprehensive Income	6.81	8.02
EPRA EPS	4.74	5.71
Group specific adjusted EPRA EPS	5.25	6.10

Net Asset Value per share

The Group's Net Asset Value per ordinary share of 100.4 pence (2015: 97.9 pence) is based on equity shareholders' funds of £253,282,000 (2015: £139,292,000) and on 252,180,851 (2015: 142,298,226) ordinary shares, being the number of shares in issue at the year-end.

The EPRA Net Asset Value ('EPRA NAV') per share is arrived at by adjusting the net asset value ('NAV') calculated under International Financial Reporting Standards ('IFRS'). The EPRA NAV provides a measure of the fair value of a company on a long-term basis. The only adjustment required to the NAV is that the EPRA NAV excludes the fair value of the Group's interest rate swap, which was recognised as a liability of £316,000 under IFRS as at 30 June 2016 (2015: nil).

EPRA believes that, under normal circumstances, the financial derivatives which property investment companies use to provide an economic hedge are held until maturity and so the theoretical gain or loss at the balance sheet date will not crystallise.

	As at 30 June 2016	As at  30 June 2015
NAV per financial statements (pence per share)	100.4	97.9
Valuation of interest rate swap	0.2	-
EPRA NAV (pence per share)	100.6	97.9

4. Investments

Freehold and leasehold properties

	As at 30 June 2016	As at 30 June 2015
	£'000	£'000
Opening market value	143,748	83,246
Opening fixed or guaranteed rent reviews and lease incentives	(5,584)	(1,824)
Opening carrying value	138,164	81,422
Purchases	32,912	49,424
Purchase of property through a business combination	27,298	5,845
Acquisition costs capitalised	1,921	2,312
Acquisition costs written off	(1,921)	(2,312)
Revaluation movement	6,708	5,233
Movement in market value	66,918	60,502
Movement in fixed or guaranteed rent reviews and lease incentives	(4,362)	(3,760)
Movement in carrying value	62,556	56,742
Closing market value	210,666	143,748
Closing fixed or guaranteed rent reviews and lease incentives	(9,946)	(5,584)
Closing carrying value	200,720	138,164

Changes in the valuation of investment properties

	Year ended 30 June 2016 £'000	Year ended 30 June 2015 £'000
Revaluation movement	6,708	5,233
Acquisition costs written off	(1,921)	(2,312)
Movement in fixed or guaranteed rent reviews and lease incentives	(4,362)	(3,760)
Gains/(losses) on revaluation of investment properties	425	(839)

The properties were valued at £210,666,000 (2015: £143,748,000) by Colliers International Property Consultants Limited ('Colliers'), in their capacity as external valuers. The valuation was undertaken in accordance with the RICS Valuation - Professional Standards, incorporating the International Valuation Standards January 2014 ('the Red Book') issued by the Royal Institution of Chartered Surveyors ('RICS') on the basis of Market Value, supported by reference to market evidence of transaction prices for similar properties. Market Value represents the estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm's length transaction, after proper marketing where the parties had each acted knowledgeably, prudently and without compulsion. The quarterly property valuations are reviewed by the Board at each Board meeting. The fair value of the properties after adjusting for the movement in the fixed or guaranteed rent reviews and lease incentives was £200,720,000 (2015: £138,164,000). The adjustment consisted of £9,719,000 relating to fixed or guaranteed rent reviews and £227,000 of accrued income relating to the recognition of rental income over rent free periods subsequently amortised over the life of the lease, which are both separately recorded in the accounts as current assets within 'trade and other receivables'.

5. Investment in subsidiary undertakings

The Company owns 100 per cent of the issued ordinary share capital of Target Healthcare REIT (Mossvale) Limited ('THRM'), a company registered in Scotland. The principal activity of Target Healthcare REIT (Mossvale) Limited is that of an investment and property company.

The Company owns 100 per cent of the issued ordinary share capital of THR Number One PLC ('THR1'), a company registered in England & Wales. The principal activity of THR1 is that of an investment and property company.

THR1 owns 100 per cent of the share capital of THR Number Two Limited ('THR2'), a company registered in England & Wales. The principal activity of THR2 is that of an investment and property company. THR1 also owns 100 per cent of the share capital of THR Number 3 Limited ('THR3'), a company registered in England & Wales. The principal activity of THR3 is that of an investment and property company.

Acquisition of THR Number 4 Limited ('THR4')

On 6 October 2015, the Company acquired 100 per cent of the voting shares of THR Number 4 Limited, a company registered in England and Wales. Prior to acquisition, the company owned and operated a care home. As part of the transaction, the operation of the care home was sold to a third party specialist elderly care home operator, who entered into an agreement with the company to lease the care home property. Therefore from the date of acquisition onwards, the company has been an investment and property company.

Acquisition of THR Number 5 Limited ('THR5')

On 3 February 2016, the Company acquired 100 per cent of the voting shares of THR Number 5 Limited, a company registered in England and Wales. Prior to acquisition, the company owned and operated a care home. As part of the transaction, the care home continued to be operated by the incumbent operator, who entered into an agreement with the company to lease the property. Therefore from the date of acquisition onwards, the company has been an investment and property company.

Acquisition of THR Number 6 Limited ('THR6')

On 23 June 2016, the Company acquired 100 per cent of the voting shares of Hi-Hand Limited, a company registered in England and Wales. Prior to acquisition, the company owned and operated a care home. As part of the transaction, the operation of the care home was sold by the company to a UK-wide care home operator, who entered into an agreement with the company to lease the property. Therefore from the date of acquisition onwards, the company has been an investment and property company. Subsequent to the year end, the name of the company was changed from Hi-Hand Limited to THR Number 6 Limited.

6. Bank Loan

	As at 30 June 2016 £'000	As at 30 June 2015 £'000
Principal amount outstanding	21,000	31,510
Set-up costs	(836)	(708)
Amortisation of set-up costs	285	63
Total	20,449	30,865

At 30 June 2015, the Group had a £35.0 million committed term loan and revolving credit facility with the Royal Bank of Scotland plc ('RBS') which was repayable on 23 June 2019. With effect from 1 April 2016, the quantum of the facility was increased to £50.0 million, with other significant terms of the loan remaining unchanged. Interest accrues on the bank loan at a variable rate, based on 3 month LIBOR plus margin and mandatory lending costs, and is payable quarterly. At 30 June 2016, the margin was 2 per cent per annum for the duration of the loan. A non-utilisation fee of 1 per cent per annum was payable on any undrawn element of the facility.

 

This bank loan is secured by way of a fixed and floating charge over the whole of the assets of the THR Number One PLC Group ('THR1 Group') which consists of THR1 and its two directly held subsidiaries, THR2 and THR3. Under the bank covenants related to this loan, the Group is to ensure that for THR1 Group:

- The loan to value percentage does not exceed 50 per cent; and

- The interest cover is greater than 300 per cent on any calculation date.

THR1 Group has complied with all the bank loan covenants during the year.

On 22 June 2016, the Group entered into an interest rate swap for a notional value of £21.0 million, with a starting date of 7 July 2016 and a termination date of 23 June 2019. Under the terms of the interest rate swap, the Group will pay quarterly a fixed rate of interest of 0.85 per cent per annum and will receive 3-month LIBOR. The fair value of the interest rate swap at 30 June 2016 was a liability of £316,000 (2015: nil).

On 1 September 2016, the Group extended its loan facility to 1 September 2021, with an option of two further one year extensions thereafter, subject to the consent of RBS. The margin on the extended facility was reduced from 2.0 per cent to 1.5 per cent per annum for the duration of the loan. On 21 September 2016, the Group entered into a second interest rate swap under which, for the period from 24 June 2019 to 1 September 2021, the Group will pay quarterly a fixed rate of interest of 0.70 per cent per annum and will receive 3-month LIBOR. Inclusive of both the interest rate swaps, the interest rate on the Group's £21.0 million of drawn down borrowings was therefore fixed at an all-in rate of 2.35 per cent per annum until 23 June 2019 and 2.20 per cent per annum from 24 June 2019 to 1 September 2021. There were no other material amendments to the loan facility.

7. Stated Capital Movements 

	As at 30 June 2016
	Number of shares	£'000
Allotted, called-up and fully paid ordinary shares of no par value
Opening balance	142,298,226	136,846
Issued on 27 August 2015	14,229,822	14,159
Issued on 20 November 2015	15,652,803	16,279
Issued on 12 May 2016	80,000,000	84,000
		251,284
Expenses of issue		(2,778)
		248,506
Dividends allocated to capital		(1,973)
Balance as at 30 June 2016	252,180,851	246,533

Under the Company's Articles of Incorporation, the Company may issue an unlimited number of ordinary shares.

During the year to 30 June 2016, the Company repurchased 14,229,822 ordinary shares (2015: nil) into treasury at a total cost of £14,159,000. During the year to 30 June 2016, the Company resold 14,229,822 ordinary shares (2015: nil) from treasury raising gross proceeds of £14,799,000. At 30 June 2016, the Company did not hold any ordinary shares in treasury (2015: nil). Transactions through treasury are recorded through the capital reserve and are not included in the stated capital movements above.

During the year, the Company issued 109,882,625 ordinary shares raising gross proceeds of £114,438,000. The total expenses of issuing these shares were £2,778,000.

Capital management

The Company's capital is represented by the stated capital account, hedging reserve, capital reserve and revenue reserve. The Company is not subject to any externally-imposed capital requirements.

The capital of the Company is managed in accordance with its investment policy, in pursuit of its investment objective. The Company is able to pay a dividend out of the Stated Capital Account as permitted by the Companies (Jersey) Law 1991 (as amended).

Capital risk management

The objective of the Group is to provide ordinary shareholders with an attractive level of income together with the potential for income and capital growth from investing in a diversified portfolio of freehold and long leasehold care homes, that are let to care home operators, and other healthcare assets in the UK.

The Board has responsibility for ensuring the Group's ability to continue as a going concern. This involves the ability to borrow monies in the short and long term; and pay dividends out of reserves, all of which are considered and approved by the Board on a regular basis.

To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders, issue new shares or buyback shares for cancellation or for holding in treasury.

Where ordinary shares are held in treasury these are available to be sold to meet on-going market demand. The ordinary shares will be sold only at a premium to the prevailing NAV per share. The net proceeds of any subsequent sales of shares out of treasury will provide the Company with additional capital to enable it to take advantage of investment opportunities in the market and make further investments in accordance with the Company's investment policy and within its appraisal criteria. Holding shares in treasury for this purpose assists the Company in matching its on-going capital requirements to its investment opportunities and therefore reduces the negative effect of holding excess cash on its balance sheet over the longer term.

No changes were made in the objectives, policies or processes during the year.

8. Financial instruments

Consistent with its objective, the Group holds UK care home property investments. In addition, the Group's financial instruments comprise cash and receivables and payables that arise directly from its operations. The Group's exposure to derivative instruments consists of an interest rate swap used to fix the interest rate on the Group's variable rate borrowings.

The Group is exposed to various types of risk that are associated with financial instruments. The most important types are credit risk, liquidity risk, interest rate risk and market price risk. There is no foreign currency risk as all assets and liabilities of the Group are maintained in pounds sterling.

The Board reviews and agrees policies for managing the Group's risk exposure. These policies are summarised below and have remained unchanged for the year under review. These disclosures include, where appropriate, consideration of the Group's investment properties which, whilst not constituting financial instruments as defined by IFRS, are considered by the Board to be integral to the Group's overall risk exposure.

Credit risk

Credit risk is the risk that an issuer or counterparty will be unable or unwilling to meet a commitment that it has entered into with the Group. At the reporting date, the Group's financial assets exposed to credit risk amounted to £68.4 million (2015: £29.8 million).

In the event of default by a tenant if it is in financial difficulty or otherwise unable to meet its obligations under the lease, the Group will suffer a rental shortfall and incur additional expenses until the property is relet. These expenses could include legal and surveyor's costs in reletting, maintenance costs, insurances, rates and marketing costs and may have a material adverse impact on the financial condition and performance of the Group and/or the level of dividend cover. The Board receives regular reports on concentrations of risk and any tenants in arrears. The Investment Manager monitors such reports in order to anticipate, and minimise the impact of, defaults by occupational tenants.

There were no financial assets which were either past due or considered impaired at 30 June 2016 (2015: nil).

All of the Group's cash is placed with financial institutions with a long-term credit rating of BBB or better. Bankruptcy or insolvency of such financial institutions may cause the Group's ability to access cash placed on deposit to be delayed, limited or lost. Should the credit quality or the financial position of the banks currently employed significantly deteriorate, cash holdings would be moved to another bank.

During the year, due to the quantum of cash balances held, counterparty risk was spread by placing cash across two different financial institutions and at the year-end the Group held £26.0 million (2015: £14.1 million) with The Royal Bank of Scotland plc and £39.1 million (2015: £15.0 million) with Lloyds Bank plc.

Liquidity risk

Liquidity risk is the risk that the Group will encounter difficulties in realising assets or otherwise raising funds to meet financial commitments. The Group's investments comprise UK care homes. Property and property-related assets in which the Group invests are not traded in an organised public market and may be illiquid. As a result, the Group may not be able to liquidate quickly its investments in these properties at an amount close to their fair value in order to meet its liquidity requirements.

The Group's liquidity risk is managed on an ongoing basis by the Investment Manager and monitored on a quarterly basis by the Board. In order to mitigate liquidity risk the Group aims to have sufficient cash balances (including the expected proceeds of any property sales) to meet its obligations for a period of at least twelve months.

Interest rate risk

Some of the Company's financial instruments are interest-bearing. Interest rate risk is the risk that future cash flows will change adversely as a result of changes in market interest rates.

The Group's policy is to hold cash in variable rate or short term fixed rate bank accounts. Interest is received on cash at fixed rates of 0.50 per cent and 0.55 per cent and earns interest at these fixed rates for six months. Exposure varies throughout the period as a consequence of changes in the composition of the net assets of the Group arising out of the investment and risk management policies. These balances expose the Group to cash flow interest rate risk as the Group's income and operating cash flows will be affected by movements in the market rate of interest.

The Group has a £50 million (2015: £35 million) committed term loan and revolving capital facility which at 30 June 2016 was charged interest at a rate of 3 month LIBOR plus a margin of 2 per cent per annum and at the year-end £21 million was drawn-down (2015: £31.5 million). The bank borrowings are carried at amortised cost and the Group considers this to be a close approximation to fair value. The fair value of the bank borrowings is affected by changes in the market interest rate.

The Group has hedged its exposure on the £21.0 million loan drawn down at 30 June 2016 through entering into a fixed rate Interest Rate Swap. Fixing the interest rate exposes the Group to fair value interest rate risk.

Market price risk

The management of market price risk is part of the investment management process and is typical of a property investment company. The portfolio is managed with an awareness of the effects of adverse valuation movements through detailed and continuing analysis, with an objective of maximising overall returns to shareholders. Investments in property and property-related assets are inherently difficult to value due to the individual nature of each property. As a result, valuations are subject to substantial uncertainty. There is no assurance that the estimates resulting from the valuation process will reflect the actual sales price even where such sales occur shortly after the valuation date. Such risk is minimised through the appointment of external property valuers.

9. Related Party Transactions

The Board of Directors is considered to be a related party. No Director has an interest in any transactions which are, or were, unusual in their nature or significant to the nature of the Company.

Mr Ross is a director of the Company Secretary and the Administrator, R&H Fund Services (Jersey) Limited and R&H Fund Services Limited respectively, which each receive fees from the Company. Mrs Jones is a director of the Company Secretary, R&H Fund Services (Jersey) Limited.

The Directors of the Company received fees for their services. Total fees for the year were £115,000 (2015: £113,000) of which £16,000 (2015: £16,000) remained payable at the year-end.

Target Advisers LLP is considered to be a related party. Target Advisers LLP received £2,654,000 (2015: £1,606,000) in relation to the year of which £871,000 (2015: £466,000) related to performance fee. Of this amount £885,000 (2015: £450,000) (inclusive of VAT) remained payable at the year-end.

10. Operating segments

The Board has considered the requirements of IFRS 8 'Operating Segments'. The Board is of the view that the Group is engaged in a single segment of business, being property investment, and in one geographical area, the United Kingdom, and that therefore the Group has only a single operating segment. The Board of Directors, as a whole, has been identified as constituting the chief operating decision maker of the Group. The key measure of performance used by the Board to assess the Group's performance is the EPRA NAV. The reconciliation between the NAV, as calculated under IFRS, and the EPRA NAV is detailed in note 3.

The view that the Group is engaged in a single segment of business is based on the following considerations:

-     One of the key financial indicators received and reviewed by the Board is the total return from the property portfolio taken as a whole;

-     There is no active allocation of resources to particular types or groups of properties in order to try to match the asset allocation of the benchmark; and

-     The management of the portfolio is ultimately delegated to a single property manager, Target.

11. Post balance sheet events

On 26 August 2016, the Group completed the acquisition of two modern, purpose built care homes located in Dundee, Scotland and Sandiacre, Derbyshire for approximately £14.0 million including acquisition costs. The Group acquired the properties through the Company's corporate acquisition of two existing property-holding companies incorporated in Gibraltar.

The properties comprise a total of 151 bedrooms with full en-suite bathrooms including wetrooms and opened in 2007 and 2015. A refurbishment programme on the older property will be completed imminently with both properties due to reach operational maturity by the year end. The homes will continue to be operated by the incumbent operator, Hudson Healthcare. The homes are subject to 35-year leases with RPI-linked cap and collar. The net initial yield on the transaction is broadly consistent with the overall average of the Group's portfolio.

On 1 September 2016, the Group completed the acquisition of a modern, purpose built care home in Mytchett near Camberley, Surrey, for approximately £6.5 million including acquisition costs. Kingsmead House was completed in 2015 and has 40 bedrooms over three floors. Upon acquisition, the home was leased back to the existing tenant, Care Concern Group, who has operated the home since its opening. The lease is for a term of 35-years and is subject to an RPI-linked cap and collar. The net initial yield on the transaction is broadly consistent with the overall average of the Group's portfolio.

12. Financial Statements

These are not full statutory accounts.  The report and financial statements for the year to 30 June 2016 will posted to shareholders and made available on the website: www.targethealthcarereit.co.uk. Copies may also be obtained from the Administrator, R&H Fund Services Limited, 20 Forth Street, Edinburgh, EH1 3LH.

 

END

 

 

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