Target Healthcare REIT (LSE:THRL) Effective Interest Rate on Debt %: 4.16% (As of Dec. 2025)

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LSE:THRL Target Healthcare REIT PLC LSE:THRL
39 GF Score
Price £1.13
GF Value £0.88
Valuation Modestly Overvalued
! 7 Warning Signs
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What is Target Healthcare REIT Effective Interest Rate on Debt %?

Target Healthcare REIT LSE:THRL +1.62% 39 Effective Interest Rate on Debt % is 4.16% as of Dec. 2025. GuruFocus rates LSE:THRL with a GF Score™ of 39/100 and a GF Value™ of £0.88 (Modestly Overvalued). The stock has 7 warning signs investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Target Healthcare REIT's annualized positive value of Interest Expense for the quarter that ended in Dec. 2025 was £9.17 Mil. Target Healthcare REIT's average total debt for the quarter that ended in Dec. 2025 was £220.62 Mil. Therefore, Target Healthcare REIT's annualized Effective Interest Rate on Debt % for the quarter that ended in Dec. 2025 was 4.16%.


Target Healthcare REIT  (LSE:THRL) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


Target Healthcare REIT Effective Interest Rate on Debt % Related Terms


Target Healthcare REIT Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Target Healthcare REIT's Effective Interest Rate on Debt % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Target Healthcare REIT Effective Interest Rate on Debt % Chart

Target Healthcare REIT Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.08 3.40 3.90 4.38 4.17

Target Healthcare REIT Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Effective Interest Rate on Debt % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.11 4.36 4.15 4.10 4.16

LSE:THRL vs WELL, VTR, DOC: Effective Interest Rate on Debt % Comparison

For the REIT - Healthcare Facilities subindustry, Target Healthcare REIT's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Target Healthcare REIT Effective Interest Rate on Debt % vs REITs Industry

For the REITs industry and Real Estate sector, Target Healthcare REIT's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Target Healthcare REIT's Effective Interest Rate on Debt % falls into.


LSE:THRL
39GF Score
Target Healthcare REIT PLC LSE:THRL
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
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Target Healthcare REIT Effective Interest Rate on Debt % Calculation

Target Healthcare REIT's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Jun. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Jun. 2024 )+Total Debt  (A: Jun. 2025 ))/ count )
=-1  *  -10.04/( (240.672+240.291)/ 2 )
=-1  *  -10.04/240.4815
=4.17 %

where

Total Debt  (A: Jun. 2024 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=240.672 + 0
=240.672

Total Debt  (A: Jun. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=240.291 + 0
=240.291

Target Healthcare REIT's annualized Effective Interest Rate on Debt % for the quarter that ended in Dec. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Jun. 2025 )+Total Debt  (Q: Dec. 2025 ))/ count )
=-1  *  -9.17/( (240.291+200.939)/ 2 )
=-1  *  -9.17/220.615
=4.16 %

where

Total Debt  (Q: Jun. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=240.291 + 0
=240.291

Total Debt  (Q: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=200.939 + 0
=200.939

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is two times the semi-annual (Dec. 2025) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 4.16% mean?
Target Healthcare REIT (LSE:THRL) has a Effective Interest Rate on Debt % of 4.16% as of Dec. 2025. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Target Healthcare REIT and its competitors.
Is Target Healthcare REIT's Effective Interest Rate on Debt % too high?
Target Healthcare REIT's current Effective Interest Rate on Debt % is 4.16%. Overall, Target Healthcare REIT has a GF Score™ of 39/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Target Healthcare REIT's Effective Interest Rate on Debt % compare to WELL and VTR?
Target Healthcare REIT's Effective Interest Rate on Debt % of 4.16% can be compared against companies in the REITs industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a REITs company?
A good Effective Interest Rate on Debt % depends on the REITs industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Target Healthcare REIT and its competitors. Target Healthcare REIT's current Effective Interest Rate on Debt % is 4.16%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Target Healthcare REIT stock overvalued right now?
Based on GuruFocus' analysis, Target Healthcare REIT (LSE:THRL) is currently considered Modestly Overvalued. The stock's GF Value™ is £0.88, compared to a current price of £1.13 — trading 28.6% above its estimated fair value. The current Effective Interest Rate on Debt % is 4.16%. Target Healthcare REIT's overall GF Score™ is 39/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Target Healthcare REIT (LSE:THRL), the current Effective Interest Rate on Debt % is 4.16% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Target Healthcare REIT (LSE:THRL) Overvalued in 2026?

Based on GuruFocus' analysis, Target Healthcare REIT stock appears to be overvalued. The current stock price of £1.13 is trading 28.6% above its estimated GF Value™ of £0.88. GuruFocus considers Target Healthcare REIT to be Modestly Overvalued.

Key valuation signals for LSE:THRL:

  • Effective Interest Rate on Debt %: 4.16%
  • GF Value™: £0.88 vs. price of £1.13 (28.6% above fair value)
  • GF Score™: 39/100 with 7 warning signs

No single metric tells the full story. See the LSE:THRL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Target Healthcare REIT Business Description

Industry Real EstateREITs
Address 69 Old Broad Street, Level 4, Dashwood House, London, GBR, EC2M 1QS
Target Healthcare REIT PLC is an investment company that acts as a long-term investor in care homes in the United Kingdom. The investment objective of the company is to provide shareholders with an attractive level of income together with the potential for capital and income growth from investing in a diversified portfolio of freehold and long-leasehold care homes, which are let to care home operators, and other healthcare assets in the United Kingdom.
39GF Score

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Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

£1.13
Price
£0.88
GF Value