26th Jul 2023 10:05
(Alliance News) - Primary Health Properties PLC on Wednesday said its interim profit plunged, but noted it is set to benefit from the current inflationary environment.
The London-based healthcare facility investor said in the six months to June 30, pretax profit plummeted by 64% to GBP38.8 million from GBP107.7 million a year prior.
This was partly driven by a combined gain of GBP4.8 million, down from GBP11.8 million, due to the fair value movements of interest rate derivatives and convertible bonds.
Meanwhile, net rental income grew by 6.2% to GBP75.5 million from GBP71.1 million the year before. This was made up of GBP3.4 million of additional income from completed rent reviews and asset management projects, GBP800,000 from acquisitions, disposals and developments completed in 2022, and a GBP200,000 reduction in non-recoverable property costs.
Primary Health Properties upped its interim dividend by 3.1% to 3.35 pence from 3.25p.
Looking ahead, the company said it expects to benefit from the current inflationary environment and the significant rise in construction costs.
Chief Executive Officer Harry Hyman said: "The security and longevity of our income, near full occupancy together with stronger rental growth are the key drivers of our predictable cash-flows and underpin our progressive dividend policy with 27 years of continued growth."
Shares in Primary Health Properties were up by 2.1% at 96.61p each in London on Wednesday morning.
By Sabrina Penty, Alliance News reporter
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