# Target Healthcare REIT (THRL.LSE)

Canonical: https://gigainvestors.com/s/THRL.LSE

Analysis as of: 2026-10-16T07:44:14.556Z. Financial observations: FY2014–FY2026.

Listing currency: GBX. Reporting currency: GBP.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 114.60 per share; close as of 2026-10-15.

## Checklist

### understandable: pass

- 3 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 1

- Operating margin variation: 0.07×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.78×

- FY2018: 0.82×

- FY2019: 1.01×

- FY2020: 0.88×

- FY2021: 0.89×

- FY2022: 0.88×

- FY2024: 0.93×

- FY2025: 0.82×

- FY2026: 0.85×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 5.8%

- ROIC, second-lowest year: 5.2%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.6%

- ROIC including acquisitions, ten-year median: 5.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 6.3%

- FY2018: 6.1%

- FY2019: 6.0%

- FY2020: 5.2%

- FY2021: 6.5%

- FY2022: 5.5%

- FY2023: -0.6%

- FY2024: 8.2%

- FY2025: 5.2%

- FY2026: 5.3%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.48×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: GBP 125M

- Net income, five-year total: GBP 259M

- Return on incremental invested capital: 5.0%

- Working capital / revenue, annual change: -7.9 pp

- Working capital / revenue, change between three-year averages: -31.5 pp

- Working capital / revenue, final three-year average: 131.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.00×

- FY2023: 1.09×

- FY2024: 0.58×

- FY2025: 0.68×

- FY2026: 0.00×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 6.1% vs 5.3%

- Per-share earnings: 0.08 to 0.12 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 9.4%

- Ordinary dilution, 5-year annual growth: 1.4%

- Market cap gain: GBP 375M

- Cumulative retained earnings: GBP 300M

- Diluted shares, 10-year annual growth: 9.4%

- Diluted shares, 5-year annual growth: 1.4%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 5.7%

- Per-share value change: GBP 0.04

- Per-share value, starting three-year median: GBP 0.08

- Per-share value, ending three-year median: GBP 0.12

- Buybacks concentrated in cheaper years (correlation): -0.50

- Average buyback yield: 11.4%

- Buyback history: 3 years

- Debt-funded buybacks: Yes

- Acquisition spending: GBP 905K

- Cumulative net income, 10 years: GBP 411M

- ROIC, first three-year median: 6.1%

- ROIC, last three-year median: 5.3%

Chart: Earnings per share; fiscal year observations.

- FY2017: GBP 0.08

- FY2018: GBP 0.08

- FY2019: GBP 0.07

- FY2020: GBP 0.07

- FY2021: GBP 0.08

- FY2022: GBP 0.08

- FY2023: GBP -0.01

- FY2024: GBP 0.12

- FY2025: GBP 0.10

- FY2026: GBP 0.13

### accounting: pass

- Sloan accruals: 3.8%

- Receivables to sales index (DSRI): 0.01×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.54×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.00×

Chart: Sloan accruals; fiscal year observations.

- FY2017: 5.2%

- FY2018: 1.3%

- FY2019: 2.2%

- FY2020: 1.5%

- FY2021: 2.6%

- FY2022: 1.9%

- FY2023: -4.0%

- FY2024: 3.2%

- FY2025: 2.0%

- FY2026: 3.8%

## Holders

## Price story

Up 59% since Oct 2023 · sales -1.2%

Story as of 2026-10-16T10:00:12.968Z; price observation 2026-10-15.

### Sales · FY2025–2026

sales -1.2%; source https://filings.xbrl.org/213800RXPY9WULUSBC04/2025-06-30/ESEF/GB/0/213800RXPY9WULUSBC04-2025-06-30/reports/213800RXPY9WULUSBC04-2025-06-30-T01.xhtml; observed 2025-11-18.

- FY2017: GBP 23M 

- FY2018: GBP 28M 

- FY2019: GBP 33M 

- FY2020: GBP 36M 

- FY2021: GBP 49M 

- FY2022: GBP 55M 

- FY2023: GBP -3.3M 

- FY2024: GBP 78M 

- FY2025: GBP 73M 

- FY2026: GBP 72M 

### Gross margin · FY2026

gross margin 88%; source https://filings.xbrl.org/213800RXPY9WULUSBC04/2025-06-30/ESEF/GB/0/213800RXPY9WULUSBC04-2025-06-30/reports/213800RXPY9WULUSBC04-2025-06-30-T01.xhtml; observed 2025-11-18.

- FY2017: 83.6% 

- FY2018: 86.8% 

- FY2025: 88.9% 

- FY2026: 88.0% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in property rentals; annual sales are GBP 72.1 million.

- Source: https://eodhd.com/api/fundamentals/THRL.LSE.json#2026-06-30 (filed 2025-11-18); FY2026: revenue 72066000; grossProfit 63450000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); THRL.LSE: Target Healthcare REIT PLC is an externally managed FTSE 250 Real Estate Investment Trust. The firm provides shareholders with an attractive level of income, together with the potential for capital and income growth, from investing in a diversified portfolio of modern, purpose-built care homes. The Group portfolio at 31 December 2025 comprised 86 assets let to 32 tenants with a total value of 894.6 million pounds. The Group invests in modern, purpose-built care homes that are let to high quality tenants who demonstrate strong operational capabilities and a strong care ethos. The Group builds collaborative, supportive relationships with each of its tenants as it believes working in this way helps raise standards of care and helps its tenants build sustainable businesses. In turn, that helps the Group deliver stable returns to its investors. Target Healthcare REIT PLC was incorporated in 2013 in United Kingdom.

### Why customers stay

Margins ranged from 88% to 100% during 2024–26; it earns 5.8% on its capital.

- Source: https://eodhd.com/api/fundamentals/THRL.LSE.json#2024-06-30 (filed 2025-11-18); FY2024: grossProfit / revenue = 100%.

- Source: https://eodhd.com/api/fundamentals/THRL.LSE.json#2025-06-30 (filed 2025-11-18); FY2025: grossProfit / revenue = 88.9%.

- Source: https://eodhd.com/api/fundamentals/THRL.LSE.json#2026-06-30 (filed 2025-11-18); FY2026: grossProfit / revenue = 88%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-18); 10-year return on capital observations [[2017,0.06264961427984785],[2018,0.06076210902779052],[2019,0.0602458367036266],[2020,0.05203123354743603],[2021,0.06531712855831175],[2022,0.05481613144170769],[2023,-0.005991831440069337],[2024,0.08194990129965739],[2025,0.05155826448453202],[2026,0.05319753311560205]]; median 0.05753098407266714. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/api/fundamentals/THRL.LSE.json#2017-06-30 (filed 2025-11-18); FY2017: growth capex 79194000; upkeep -18114000; owner earnings 19122000. Growth capex / owner earnings = 4.141512394101036.

- Source: https://eodhd.com/api/fundamentals/THRL.LSE.json#2018-06-30 (filed 2025-11-18); FY2018: growth capex 23871000; upkeep -23174000; owner earnings 27609000. Growth capex / owner earnings = 0.8646093665109204.

- Source: https://eodhd.com/api/fundamentals/THRL.LSE.json#2019-06-30 (filed 2025-11-18); FY2019: growth capex 27709000; upkeep -26833000; owner earnings 29884000. Growth capex / owner earnings = 0.927218578503547.

- Source: https://eodhd.com/api/fundamentals/THRL.LSE.json#2020-06-30 (filed 2025-11-18); FY2020: growth capex 35265000; upkeep -34695000; owner earnings 31622000. Growth capex / owner earnings = 1.115204604389349.

- Source: https://eodhd.com/api/fundamentals/THRL.LSE.json#2021-06-30 (filed 2025-11-18); FY2021: growth capex 39564000; upkeep -38850000; owner earnings 43884000. Growth capex / owner earnings = 0.9015586546349467.

- Source: https://eodhd.com/api/fundamentals/THRL.LSE.json#2022-06-30 (filed 2025-11-18); FY2022: growth capex 568000; upkeep -568000; owner earnings 49097000. Growth capex / owner earnings = 0.011568934965476506.

- Source: https://eodhd.com/api/fundamentals/THRL.LSE.json#2024-06-30 (filed 2025-11-18); FY2024: growth capex 0; upkeep 0; owner earnings 42345000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/THRL.LSE.json#2025-06-30 (filed 2025-11-18); FY2025: growth capex 0; upkeep 0; owner earnings 41101000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-18); Dividend observations: [[2017,15589000],[2018,17353000],[2019,23628000],[2020,29151000],[2021,31493000],[2022,39785000],[2023,40274000],[2024,35244000],[2025,36114000],[2026,37142000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own <0.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); THRL.LSE SharesStats.PercentInsiders = 0.013999999999999999 percentage points; cache date 2026-10-16.

### What the price says

The price is 9.9 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-18); Closing price 114.6 GBX; reporting-to-trading FX 100; FY2026 annual sales per share 0.11617664602120861; price multiple 9.864288901839979. FY2026 cash earnings/share 0. Closing-price date 2026-10-15.

## Monthly share-price history (GBX per share)

- 2016-10: GBX 110.75 per share

- 2016-11: GBX 111.00 per share

- 2016-12: GBX 113.00 per share

- 2017-01: GBX 111.25 per share

- 2017-02: GBX 113.00 per share

- 2017-03: GBX 114.25 per share

- 2017-04: GBX 118.00 per share

- 2017-05: GBX 117.75 per share

- 2017-06: GBX 117.75 per share

- 2017-07: GBX 120.25 per share

- 2017-08: GBX 119.25 per share

- 2017-09: GBX 117.00 per share

- 2017-10: GBX 117.25 per share

- 2017-11: GBX 112.75 per share

- 2017-12: GBX 112.50 per share

- 2018-01: GBX 115.00 per share

- 2018-02: GBX 107.50 per share

- 2018-03: GBX 103.00 per share

- 2018-04: GBX 110.50 per share

- 2018-05: GBX 110.00 per share

- 2018-06: GBX 110.50 per share

- 2018-07: GBX 111.00 per share

- 2018-08: GBX 114.50 per share

- 2018-09: GBX 114.50 per share

- 2018-10: GBX 109.50 per share

- 2018-11: GBX 108.00 per share

- 2018-12: GBX 108.00 per share

- 2019-01: GBX 113.00 per share

- 2019-02: GBX 115.00 per share

- 2019-03: GBX 115.00 per share

- 2019-04: GBX 116.80 per share

- 2019-05: GBX 116.40 per share

- 2019-06: GBX 115.60 per share

- 2019-07: GBX 111.40 per share

- 2019-08: GBX 117.40 per share

- 2019-09: GBX 114.60 per share

- 2019-10: GBX 112.00 per share

- 2019-11: GBX 116.00 per share

- 2019-12: GBX 116.00 per share

- 2020-01: GBX 120.00 per share

- 2020-02: GBX 115.50 per share

- 2020-03: GBX 107.00 per share

- 2020-04: GBX 108.00 per share

- 2020-05: GBX 105.00 per share

- 2020-06: GBX 110.00 per share

- 2020-07: GBX 111.40 per share

- 2020-08: GBX 108.80 per share

- 2020-09: GBX 105.00 per share

- 2020-10: GBX 107.00 per share

- 2020-11: GBX 114.00 per share

- 2020-12: GBX 114.00 per share

- 2021-01: GBX 115.20 per share

- 2021-02: GBX 111.80 per share

- 2021-03: GBX 113.40 per share

- 2021-04: GBX 118.20 per share

- 2021-05: GBX 115.00 per share

- 2021-06: GBX 115.40 per share

- 2021-07: GBX 124.60 per share

- 2021-08: GBX 118.60 per share

- 2021-09: GBX 114.80 per share

- 2021-10: GBX 119.20 per share

- 2021-11: GBX 113.60 per share

- 2021-12: GBX 118.00 per share

- 2022-01: GBX 114.80 per share

- 2022-02: GBX 108.80 per share

- 2022-03: GBX 112.20 per share

- 2022-04: GBX 111.00 per share

- 2022-05: GBX 117.80 per share

- 2022-06: GBX 108.40 per share

- 2022-07: GBX 115.00 per share

- 2022-08: GBX 110.60 per share

- 2022-09: GBX 91.50 per share

- 2022-10: GBX 86.70 per share

- 2022-11: GBX 78.80 per share

- 2022-12: GBX 80.20 per share

- 2023-01: GBX 81.00 per share

- 2023-02: GBX 78.90 per share

- 2023-03: GBX 70.10 per share

- 2023-04: GBX 77.20 per share

- 2023-05: GBX 78.60 per share

- 2023-06: GBX 71.80 per share

- 2023-07: GBX 73.50 per share

- 2023-08: GBX 72.80 per share

- 2023-09: GBX 75.80 per share

- 2023-10: GBX 72.10 per share

- 2023-11: GBX 81.50 per share

- 2023-12: GBX 86.30 per share

- 2024-01: GBX 83.80 per share

- 2024-02: GBX 77.80 per share

- 2024-03: GBX 84.20 per share

- 2024-04: GBX 77.80 per share

- 2024-05: GBX 78.20 per share

- 2024-06: GBX 78.50 per share

- 2024-07: GBX 81.20 per share

- 2024-08: GBX 83.40 per share

- 2024-09: GBX 90.00 per share

- 2024-10: GBX 90.70 per share

- 2024-11: GBX 84.00 per share

- 2024-12: GBX 84.00 per share

- 2025-01: GBX 86.70 per share

- 2025-02: GBX 86.20 per share

- 2025-03: GBX 91.90 per share

- 2025-04: GBX 98.30 per share

- 2025-05: GBX 99.40 per share

- 2025-06: GBX 104.20 per share

- 2025-07: GBX 99.50 per share

- 2025-08: GBX 95.60 per share

- 2025-09: GBX 96.80 per share

- 2025-10: GBX 94.30 per share

- 2025-11: GBX 96.80 per share

- 2025-12: GBX 97.60 per share

- 2026-01: GBX 103.80 per share

- 2026-02: GBX 106.80 per share

- 2026-03: GBX 100.00 per share

- 2026-04: GBX 104.40 per share

- 2026-05: GBX 109.20 per share

- 2026-06: GBX 108.40 per share

- 2026-07: GBX 113.20 per share

- 2026-08: GBX 112.40 per share

- 2026-09: GBX 114.20 per share

- 2026-10: GBX 114.60 per share

## Annual estimated value (GBX per share)

- FY2018: low GBX 72.77 per share, central GBX 81.20 per share, high GBX 92.43 per share

- FY2019: low GBX 75.93 per share, central GBX 85.55 per share, high GBX 98.34 per share

- FY2020: low GBX 83.36 per share, central GBX 93.78 per share, high GBX 107.64 per share

- FY2021: low GBX 86.42 per share, central GBX 97.86 per share, high GBX 113.08 per share

- FY2022: low GBX 95.87 per share, central GBX 108.32 per share, high GBX 124.89 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original ESEF filing](https://filings.xbrl.org/213800RXPY9WULUSBC04/2025-06-30/ESEF/GB/0/213800RXPY9WULUSBC04-2025-06-30/reports/213800RXPY9WULUSBC04-2025-06-30-T01.xhtml); period 2025-06-30, filed 2025-11-18.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.