21st Aug 2014 07:57
LONDON (Alliance News) - Primary Health Properties PLC Thursday reported an increase in profit and net asset value for the first half, as the value for new purpose-built primary care facilities continues to improve.
The company, which invests in modern primary healthcare facilities, posted pretax profit of GBP20.0 million for the six months ended June 30, up 47% from GBP13.6 million a year earlier, after realising a GBP16.1 million valuation gain on properties, compared with just GBP240,000 a year earlier.
Primary Health said its EPRA net asset value per share also increased 2.7% in the period to 308 pence per share, from 300 pence at the end of December. It said the growth came from positive movement on revaluation of the real estate portfolio, reflecting the increased attractiveness of primary care properties to the wider investment community. EPRA is the European Public Real Estate Association, the industry body for European REITs.
Rental income rose to GBP29.4 million from GBP19.6 million a year earlier, reflecting a full six month contribution from the Prime Public Partnerships Holdings Ltd (PPP) portfolio acquired in December 2013.
PPP invests in 54 healthcare facilities across the UK with an aggregate valuation of GBP233 million.
Additional income from rent reviews completed in the period is also reflected in this rental income growth. Reviews on a total of GBP6.5 million of rent were finalised on a mix of open market reviews, fixed rental uplifts and rents formally linked to the retail prices index.
At an operating level, three new property transactions were completed during the period for a total of GBP23.0 million. The biggest was for a site in Chester in a deal worth GBP19.0 million.
The company paid an interim dividend of 9.75 pence per share in April, after paying a dividend of 9.5 pence in June 2013. Primary Health also said it will pay an interim dividend for 2014 of 9.75 pence per share on November 7 to shareholders on the register on September 19.
The stock was quoted up 1.1% at 349.03 pence Thursday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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