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Target Healthcare REITLSE:THRL +1.62%39 5-Year Yield-on-Cost % is 4.50 as of Jul. 17, 2026, which is 8% below its 10-year median of 4.90. 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. Among 869 REITs companies, Target Healthcare REIT ranks worse than 80.09% on this metric.
Target Healthcare REIT's yield on cost for the quarter that ended in Dec. 2025 was 4.50.
The historical rank and industry rank for Target Healthcare REIT's 5-Year Yield-on-Cost % or its related term are showing as below:
LSE:THRL'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 4.31 Med: 4.9 Max: 8.47
Current: 4.5
During the past 12 years, Target Healthcare REIT's highest Yield on Cost was 8.47. The lowest was 4.31. And the median was 4.90.
LSE:THRL's 5-Year Yield-on-Cost % is ranked worse than 80.09% of 869
companies
in the REITs industry
Industry Median: 7.32
vs LSE:THRL: 4.50
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Target Healthcare REIT 5-Year Yield-on-Cost % Related Terms
LSE:THRL vs WELL, VTR, DOC: 5-Year Yield-on-Cost % Comparison
For the REIT - Healthcare Facilities subindustry, Target Healthcare REIT's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs REITs Industry
For the REITs industry and Real Estate sector, Target Healthcare REIT's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Target Healthcare REIT's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Target Healthcare REIT (LSE:THRL) has a 5-Year Yield-on-Cost % of 4.50 as of Jul. 17, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Target Healthcare REIT and its competitors. This is near median its historical median of 4.90. Over the past decade, Target Healthcare REIT's 5-Year Yield-on-Cost % has ranged from 4.31 to 8.47. According to the industry distribution chart, Target Healthcare REIT ranks #696 out of 869 companies in the REITs industry, placing it in the top 80.1%.
Is Target Healthcare REIT's 5-Year Yield-on-Cost % too high?
Target Healthcare REIT's current 5-Year Yield-on-Cost % of 4.50 is near median its 10-year median of 4.90. Over the past 10 years, this metric has ranged from a low of 4.31 to a high of 8.47. The REITs industry median 5-Year Yield-on-Cost % is 7.32. Target Healthcare REIT's value of 4.50 is 38.5% below this industry median. Based on the distribution chart, Target Healthcare REIT ranks #696 out of 869 companies in the REITs industry, which is in the bottom quartile relative to peers. 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 5-Year Yield-on-Cost % compare to WELL and VTR?
According to the REITs industry distribution chart, Target Healthcare REIT ranks #696 out of 869 companies for 5-Year Yield-on-Cost %. This places Target Healthcare REIT in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 7.32. Target Healthcare REIT's value of 4.50 is 38.5% below this benchmark. Historically, Target Healthcare REIT's own 5-Year Yield-on-Cost % has ranged from 4.31 to 8.47 over the past decade. While the company's 10-year median is 4.90 vs. the industry median of 7.32, Target Healthcare REIT has consistently been below 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 5-Year Yield-on-Cost % for a REITs company?
The median 5-Year Yield-on-Cost % among REITs companies is 7.32, based on 869 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Target Healthcare REIT's current 5-Year Yield-on-Cost % of 4.50 is 38.5% below 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Target Healthcare REIT and its competitors. For the REITs industry, the median 5-Year Yield-on-Cost % is 7.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Target Healthcare REIT's current 5-Year Yield-on-Cost % is 4.50, which is near median its own 10-year median of 4.90. 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 5-Year Yield-on-Cost % is 4.50, which is near median its 10-year median of 4.90 and 38.5% below the REITs industry median of 7.32. 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 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Target Healthcare REIT (LSE:THRL), the current 5-Year Yield-on-Cost % is 4.50 as of Jul. 17, 2026. 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:
5-Year Yield-on-Cost %: 4.50 (near median its 10-year median of 4.90)
GF Value™: £0.88 vs. price of £1.13 (28.6% above fair value)
Industry Position: 38.5% below the REITs median (#696 of 869)
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.
39GF Score
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5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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