Target Healthcare REITLSE:THRL -0.72%40 Return-on-Tangible-Equity is 12.95% as of Dec. 2025, which is 67% above its 10-year median of 7.76. GuruFocus rates LSE:THRL with a GF Score™ of 40/100 and a GF Value™ of £0.88 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 935 REITs companies, Target Healthcare REIT ranks better than 75.72% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Target Healthcare REIT's annualized net income for the quarter that ended in Dec. 2025 was £94.09 Mil. Target Healthcare REIT's average shareholder tangible equity for the quarter that ended in Dec. 2025 was £726.37 Mil. Therefore, Target Healthcare REIT's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 12.95%.
The historical rank and industry rank for Target Healthcare REIT's Return-on-Tangible-Equity or its related term are showing as below:
LSE:THRL'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -0.97 Med: 7.76 Max: 10.87
Current: 10.86
During the past 12 years, Target Healthcare REIT's highest Return-on-Tangible-Equity was 10.87%. The lowest was -0.97%. And the median was 7.76%.
LSE:THRL's Return-on-Tangible-Equity is ranked better than 75.72% of 935
companies
in the REITs industry
Industry Median: 6.23
vs LSE:THRL: 10.86
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Target Healthcare REIT Return-on-Tangible-Equity Related Terms
Target Healthcare REIT Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Target Healthcare REIT's Return-on-Tangible-Equity 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.
LSE:THRL vs WELL, VTR, DOC: Return-on-Tangible-Equity Comparison
For the REIT - Healthcare Facilities subindustry, Target Healthcare REIT's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs REITs Industry
For the REITs industry and Real Estate sector, Target Healthcare REIT's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Target Healthcare REIT's Return-on-Tangible-Equity falls into.
* 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 Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 12.95% mean?
Target Healthcare REIT (LSE:THRL) has a Return-on-Tangible-Equity of 12.95% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Target Healthcare REIT and its competitors. This is 67% above median its historical median of 7.76. According to the industry distribution chart, Target Healthcare REIT ranks #227 out of 935 companies in the REITs industry, placing it in the top 24.3%.
Is Target Healthcare REIT's Return-on-Tangible-Equity too high?
Target Healthcare REIT's current Return-on-Tangible-Equity of 12.95% is 67% above median its 10-year median of 7.76. The REITs industry median Return-on-Tangible-Equity is 6.23. Target Healthcare REIT's value of 12.95% is 107.9% above this industry median. Based on the distribution chart, Target Healthcare REIT ranks #227 out of 935 companies in the REITs industry, which is in the top quartile — a strong position relative to peers. Overall, Target Healthcare REIT has a GF Score™ of 40/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Target Healthcare REIT's Return-on-Tangible-Equity compare to WELL and VTR?
According to the REITs industry distribution chart, Target Healthcare REIT ranks #227 out of 935 companies for Return-on-Tangible-Equity. This places Target Healthcare REIT in the top 24% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.23. Target Healthcare REIT's value of 12.95% is 107.9% above this benchmark. While the company's 10-year median is 7.76 vs. the industry median of 6.23, Target Healthcare REIT has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a REITs company?
The median Return-on-Tangible-Equity among REITs companies is 6.23, based on 935 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Target Healthcare REIT's current Return-on-Tangible-Equity of 12.95% is 107.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Target Healthcare REIT and its competitors. For the REITs industry, the median Return-on-Tangible-Equity is 6.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Target Healthcare REIT's current Return-on-Tangible-Equity is 12.95%, which is 67% above median its own 10-year median of 7.76. 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 £1.09 — trading 24.3% above its estimated fair value. The current Return-on-Tangible-Equity is 12.95%, which is 67% above median its 10-year median of 7.76 and 107.9% above the REITs industry median of 6.23. Target Healthcare REIT's overall GF Score™ is 40/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Target Healthcare REIT (LSE:THRL), the current Return-on-Tangible-Equity is 12.95% 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 £1.09 is trading 24.3% above its estimated GF Value™ of £0.88.
GuruFocus considers Target Healthcare REIT to be Modestly Overvalued.
Key valuation signals for LSE:THRL:
Return-on-Tangible-Equity: 12.95% (67% above median its 10-year median of 7.76)
GF Value™: £0.88 vs. price of £1.09 (24.3% above fair value)
Industry Position: 107.9% above the REITs median (#227 of 935)
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 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.
40GF Score
Get the complete analysis for LSE:THRL
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
LSE:THRL has been successfully added to your 
