Care REIT Increases 2025 Dividend Target Significantly
Care REIT's Dividend Growth for 2025
Care REIT plc (LSE:CRT), a notable real estate investment trust in the UK, has made headlines with its recent announcement regarding its dividend targets for 2025. Following a successful Q4 in the previous year, the company declared a quarterly dividend of 1.7375 pence per share for Q4 2024. This culminates in a 3.6% increase in the dividend target to 7.20 pence per share for the upcoming year, showcasing its commitment to delivering value to shareholders.
Financial Strength Underpins Resilience
The financial stability of Care REIT is exemplified by a strong tenant rent cover ratio, which has been reported at 2.3 times for the fourth quarter of 2024. This represents a slight improvement from 2.2 times in the previous quarter, indicating the trust’s sound operational performance. Such robust figures ensure that tenants are likely to remain resilient, even with the anticipated rise in National Insurance in the second quarter of 2025.
Portfolio Expansion and Growth
Care REIT's impressive portfolio is fully let with no voids, demonstrating successful asset management and tenant retention. The annual contracted rent has reached £51.4 million as of December 31, 2024, a notable rise of 5.3% compared to the previous year. This growth is attributed to inflation-linked rent adjustments and strategic property acquisitions, with a weighted average unexpired lease term of 20.1 years across the properties.
Tenant Performance and Occupancy Rates
Occupancy rates among tenants have also seen a positive trend, achieving 89.2% by the close of 2024. The average fees charged weekly to tenants increased by 6.5% throughout the year, reflecting both the quality of the properties and the demand for healthcare facilities.
Debt Management and Financing
As for its financial obligations, Care REIT has drawn debt amounting to £197.8 million, translating to a net loan-to-value (LTV) ratio of 27.7%. The group has mitigated interest rate risks by hedging approximately 88% of its drawn debt, ensuring an average cost of debt at a manageable 4.56% per annum. Such prudent financial management is crucial for sustaining its growth strategy.
Upcoming Dividend Payment and Outlook
Shareholders can look forward to the scheduled dividend payment for Q4 2024, which is set for February 21, 2025. To be eligible, shareholders must be registered by February 7, 2025, with the ex-dividend date marked for February 6, 2025. This consistent approach to dividends reaffirms the company’s policy focused on providing progressive returns supported by adjusted earnings.
Future Financial Disclosure
Care REIT plans to publish its full financial results for the year ending December 31, 2024, in March 2025. This report will provide further insights into the valuation of its portfolio and overall performance, serving as an important update for investors.
Frequently Asked Questions
What is Care REIT's new dividend target for 2025?
Care REIT has set a dividend target of 7.20 pence per share for the year 2025, reflecting a 3.6% increase.
How much was the Q4 2024 dividend declared by Care REIT?
The Q4 2024 dividend was declared at 1.7375 pence per share.
What are the current occupancy rates for the properties managed by Care REIT?
The occupancy rates for Care REIT's properties improved to 89.2% by the end of 2024.
What is the ratio of tenant rent cover for Care REIT in Q4 2024?
The tenant rent cover ratio stood at 2.3 times for Q4 2024.
When will Care REIT release its full accounts for 2024?
The full accounts for the year ending December 31, 2024, will be released in March 2025.
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