Listed specialist investor in modern, purpose-built UK care homes, Target Healthcare REIT, has reported a 33% rise in portfolio value to £911.6 million for the year ended 30 June 2022.

Contractual rent increased by 35% to £55.5 million per annum (2021: £41.2 million), including a like-for-like increase of 4.6% from rent reviews and asset management initiatives.

Acquisition commitments for the REIT totalled £223 million, taking the portfolio to 101 properties, consisting of 97 operational care homes and four pre-let sites.

Modern, purpose-built care homes with full en-suite wet-rooms account for 96% of the REIT’s portfolio compared to just 29% for all UK care homes.

Target Healthcare reported resident occupancy levels had continued to recover from their Q1 2021 low point, with mature homes spot occupancy currently at 83%.

Malcolm Naish, chairman of the company, said: “Amidst the current market uncertainty and economic headwinds, we continue to focus on the favourable long-term prospects for our portfolio. We have been delighted to grow through the addition of a significant value of assets during the year, with inclusion in the FTSE 250 testament to valued shareholder support and the stable total returns from our well-diversified portfolio.

“Our portfolio remains well-placed, resident occupancies are improving, and home environments are returning to ‘normal’ trading and activity conditions. Our rent collection for the year was 95%, inclusive of successful arrears recovery post year-end, and our immediate focus is on moving as quickly as possible towards full rent collection, for which initiatives are in progress and remain under our control. We expect our ESG-compliant modern assets to provide sustainable long-term returns, and in volatile times such as these we are thankful to have remained prudent in the rents we have set, capital prices paid and in our borrowing levels and terms.

“The Board remains confident in the group’s prospects and I would personally like to thank shareholders for their support. We collectively are making a positive social impact through our committed backing of the care sector.”