Target Healthcare REIT PLC · LSE:THRL
Target Healthcare REIT — FY2026 Earnings Presentation
35 slides from Target Healthcare REIT's earnings presentation, Sep 22, 2026
Slide 1: Investing in care, delivering returns
Investing in care Delivering returns Results for the year ended 30 June 2026 22 September 2026 | ResultsPresentation: Investor for the year August ended 30 June 2026 2021 Roden Hall, Telford <#>
Slide 2: Presentation Team Agenda
Presentation Team Agenda Section Page 1 Introduction & Compelling 1 investment case 2 Results highlights 5 3 Financial performance: year to 30 8 June 2026 4 Portfolio performance: year to 30 15 June 2026 5 Opportunity, ambition, pipeline & 22 Kenneth James Calum platform MacKenzie MacKenzie Bruce 6
Slide 3: Compelling investment case
Compelling investment case Robust, defensive Effective, proven Sector tailwinds Market leading portfolio asset management long-term returns Modern, fit-for-purpose Specialist, experienced team, Growing needs-based Since launch in 2013, highest care homes, with annual leveraging successful demand tot
Slide 4: Financial highlights: Year to June 2026
Financial highlights: Year to 30 June 2026 Annualised Total contractual Adjusted EPRA Dividend per EPRA NTA accounting rent EPS share per share return +3.7% 6.54p 6.03p 122.1p 12% Like-for-like growth +7.6% +2.5% +6.4% | ResultsPresentation: Investor for the year August ended 30 June 2026 2021 3
Slide 5: Consistent, long-term outperformance
Consistent, long-term outperformance MSCI UK Annual Healthcare Property Index 1st out of 33 over 3 years Top quartile > 10 years 2nd out of 12 over 10 years Annualised return on standing assets of 10.4% vs 7.6% from the index Rank of portfolio total returns performance in MSCI UK Annual Healthcare |
Slide 6: Results highlights
Results highlights | ResultsPresentation: Investor for the year August ended 30 June 2026 2021 5
Slide 7: Target Healthcare REIT – as at June 2026
Target Healthcare REIT – as at 30 June 2026 Portfolio of scale with robust rental income stream, differentiated by quality, modernity and sustainability Care homes Contracted rent Portfolio value Tenants 6.21% 87 5,870 £61.1m £924m 31 Diversified 1 EPRA income Beds Topped- 1 A further 66 beds will b
Slide 8: A strong year
A strong year … … both in terms of corporate activity… 11 4 1 1 1 disposals acquisitions forward commit 1 forward fund 2 development …realising £97m, at a …of modern fit for …to buy a brand-new …to commence building …reached practical premium of 11.0% purpose care homes care home in 2026 a brand-new
Slide 9: Financial performance
Financial performance | ResultsPresentation: Investor for the year August ended 30 June 2026 2021 8
Slide 10: Profit and Loss – strong results
Profit and Loss – strong results Several disposals took place 30-Jun-26 30-Jun-25 Change £ million primarily in the first half of the year, resulting in a fall in rental Rental income (excluding guaranteed uplifts) 60.2 60.6 -1% income for the year. Interest from development funding 0.1 0.6 -83% Rec
Slide 11: Movement in annualised contracted rent
Movement in annualised contracted rent Annualised contracted rent (£ millions) +3.7% on a like-for-like basis Like-for-like | ResultsPresentation: Investor for the year August ended 30 June 2026 2021 10
Slide 12: Balance sheet – robust financial position
Balance sheet – robust financial position Change £m Jun 2026 Jun 2025 (%) Portfolio market value (per independent valuers) 924.1 929.9 -0.6% Like-for-like movement 4.9% Cash 50.9 39.7 28.5% Net current assets/ (liabilities) (17.4) (15.7) 10.8% Debt (200.0) (242.0) -17.4% EPRA Net Tangible Assets (NT
Slide 13: Portfolio valuation bridge
Portfolio valuation bridge Portfolio valuation analysis (£ millions) +4.9% on a like-for-like basis Like-for-like | ResultsPresentation: Investor for the year August ended 30 June 2026 2021 12
Slide 14: Debt summary – June 2026
Debt summary – 30 June 2026 Debt Facility Facility Drawn at Interes Hedging Maturity Net Loan to Valuation provider type Size 30 June t Rate at June 2026 2026 16.1% Term Loan £150m £150m 3.2% Fixed to Jan 2032 - £87m maturity Jan 2037 - £63m Term Loan £20m £20m 5.3% Fixed for Sept 2029* Weighted ave
Slide 15: Growing NTA per share
Growing NTA per share EPRA NTA per share (pence) +6.4% | ResultsPresentation: Investor for the year August ended 30 June 2026 2021 14
Slide 16: Portfolio performance
Portfolio performance | ResultsPresentation: Investor for the year August ended 30 June 2026 2021 15
Slide 17: Portfolio insights
Portfolio insights 2026 2025 2024 2023 2022 2021 2020 Rent cover (LTM) 1.9x 1.9x 1.9x 1.6x 1.4x 1.5x 1.6x Average weekly fee increase (LTM) +8% +9% +10% +11% +7% +4% +8% Inflation Rate (RPI) 3% 4% 3% 11% 12% 4% 1% Private pay proportion 78% 79% 74% 73% 67% 62% 66% Staff costs as a % of total fees 56
Slide 18: Rent Cover – remains at an all-time high
Rent Cover – remains at an all-time high Mature portfolio quarterly rent cover – spot and last 12 months rolling 1.9x | ResultsPresentation: Investor for the year August ended 30 June 2026 2021 For mature homes, being those which have traded for greater than three years 17
Slide 19: Portfolio insights
Portfolio insights 2026 2025 2024 2023 2022 2021 2020 Rent cover (LTM) 1.9x 1.9x 1.9x 1.6x 1.4x 1.5x 1.6x Average weekly fee increase (LTM) +8% +9% +10% +11% +7% +4% +8% Inflation Rate (RPI) 3% 4% 3% 11% 12% 4% 1% Private pay proportion 78% 79% 74% 73% 67% 62% 66% Staff costs as a % of total fees 56
Slide 20: Average weekly fee increases and RPI
Average weekly fee increases and RPI Weekly Fee vs RPI - Annual and Cumulative (2021-2026) 15% 70% 60% 60% 12% Cumulative Increase (%) 50% Annual Increase (%) 9% 42% 40% 30% 6% 20% 3% 10% 0% 0% 2021 2022 2023 2024 2025 2026 Average weekly fee increase RPI Cumulative average weekly fee increase Cumul
Slide 21: Resident occupancy
Resident occupancy Mature* portfolio and total portfolio spot occupancy 86.6% 18 September 2026 | ResultsPresentation: Investor for the year August ended 30 June 2026 2021 *Mature homes are those which have traded for greater than three years 19
Slide 22: Quality of the Group's portfolio: as at June 2026
Quality of the Group’s portfolio: as at 30 June 2026 Space per resident En suite wet-rooms EPC ratings: B or better Carehome.co.uk average rating Market is for England and Scotland | ResultsPresentation: Investor for the year August ended 30 June 2026 2021 m2 for market is based on EPC m2, and for t
Slide 23: Portfolio diversification
Portfolio diversification Portfolio diversification by rent at 30 June 2026 (Top 10 tenants) | ResultsPresentation: Investor for the year August ended 30 June 2026 2021 21
Slide 24: Opportunity, ambition, pipeline and platform
Opportunity, ambition, pipeline and platform | ResultsPresentation: Investor for the year August ended 30 June 2026 2021 22
Slide 25: The opportunity – supply shortage of fit-for-purpose beds
The opportunity – supply shortage of fit-for-purpose beds 100% Many existing 6,000 beds per 87% beds and homes annum lost for affected by this reason obsolescence 469k 408k 239k 300k shortage and cannot be beds1 residents1 upgraded 169k beds2 6k beds Only 36% 2 THR owns 3.5% (169,000) of UK of the m
Slide 26: The opportunity - underpinned by demographic tailwinds
The opportunity - underpinned by demographic tailwinds 2050 Double the number of over 85s Over 85s forecast to * increase from 1.8m in 2x { Number of people (m) 2025 to 3.6m by 20501 Today { 1469k in 8 of over 85s beds1 require long-term residential407k care residents1 Multiple needs necessitate res
Slide 27: Our growth ambition
Our growth ambition Specialist platform Strong and growing pipeline Capital sources • Sole UK-listed specialist in care • Sourced from sector networks and • £75m of committed capital homes established relationships • A variety of other capital sources: • Supported by a specialist • Strong relationsh
Slide 28: Strong and growing pipeline
Strong and growing pipeline … of high quality purpose-built care homes Significantly in At a blended Across Balanced mix excess of NIY in excess diverse UK of both available of 6% geographies existing and capital new operators All with en Standing Forward funds Developments suite wet- assets and for
Slide 29: Target platform: depth of experience and specialist expertise
Target platform: depth of experience and specialist expertise A multi-disciplinary team combining operator, clinical, property and finance experience 16+ years’ track record 16 years of care home Sector specialists Extensive networks data collection Directors Regional / Care Nurses of Care 4 Home 3
Slide 30: Target platform: highly engaged Manager
Target platform: highly engaged Manager c250 home visits Rent collection back to 100% Tenant satisfaction – 100% of respondents to the annual tenant survey would recommend the Manager Active portfolio management: 4-bedroom extension at one home, PV panels at 4 homes Strong and growing pipeline of as
Slide 31: Closing observations
Closing observations | ResultsPresentation: Investor for the year August ended 30 June 2026 2021 29
Slide 32: Well-positioned to grow
Well-positioned to grow Strategic outlook Unwavering commitment to the mission of investing in care and delivering returns Desire to scale accretively Ability to deploy capital Delivering growing earnings and a progressive dividend – 3% increase FY26/27 Robust, defensive Effective, proven Sector tai
Slide 33: Q&A
| ResultsPresentation: Investor for the year August ended 30 June 2026 2021 31
Slide 34: Appendix - operational issues within the sector
Appendix - operational issues within the sector Issue Challenge Actions Sector Social care reform and Casey Manager monitors developments Commission – brought forward to 2027 Responsible private operators and long-term Continuing challenges at CQC investors have a key role to play in elderly care Te
Slide 35: Important Information
Important Information For the purpose of this disclaimer, the “Presentation” shall mean and include these slides, all comments made by the presenter(s) of the slides and any question and answer session or discussion related to it. The Presentation has been prepared solely for information purposes an
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