Target Healthcare REIT - Operational progress and positive returns

Target Healthcare REIT’s Q422 report showed a continuation of consistently positive accounting returns since IPO. Subsequent asset management will significantly improve rent collection and generate recovery gains. For tenants, fee growth and increased occupancy are mitigating the impact of inflation. For Target, indexed rent uplifts, improved rent collection and selective portfolio investments are all positive drivers, but insufficient to offset the impact of higher capital costs. We expect continuing growth, but at a slower pace than previously, with DPS maintained but cover taking longer to achieve.