Target Healthcare REIT increased its portfolio value by £30m, or 4.9%, to £647.7m in the six months ended 31 December 2020.
The specialist investor in modern, purpose-built homes announced portfolio returns of 4.1%, down from 4.7% in 2019, with contractual rent up by 4.2% to £40.6m.
Malcolm Naish, Chairman of the Company, (pictured) said: “The extensive feedback we have received throughout the period from care home managers and their teams has confirmed that the standards of our modern, purpose-built real estate have been vital to their efforts to provide dignified care for residents during the challenging circumstances of the pandemic.
“The COVID-19 vaccination programme provides a massive relief to residents, their friends and families, and care staff. While our outlook for our homes and the sector is optimistic, we recognise that trading conditions may remain challenging for a period for some homes as we continue to emerge from the worst of the pandemic. Positive relationships with our tenants are fundamental to our business model and we remain a highly engaged and supportive landlord.
“Our business model provides stable, noncyclical returns from long-term, committed investment in UK care homes. Real estate standards across the sector remain generally poor and this significant undersupply of quality, and the increasing numbers of people over 85 years of age, allows us to invest with confidence for the long-term.”
The REIT said vaccinations had been made available to residents and staff in all its homes by 1 February 2021, with substantial uptake across both groups.
While acknowledging trading conditions may remain challenging for some tenants, the REIT said it expected tenant occupancy to recover with the safe resumption of new admissions and regular visits.