19th Feb 2015 11:50
LONDON (Alliance News) - Healthcare real estate investment trust Primary Health Properties PLC Thursday reported higher annual profit and more than doubled its EPRA earnings per share in 2014, buoyed by good growth in net rental income and revaluation gains on its properties.
Primary Health Properties also named Phil Holland as its new finance director.
The company, which invests in modern primary healthcare facilities, reported a pretax profit of GBP36.9 million for 2014, up from GBP20.2 million a year earlier, as net rental income increased by 43% to GBP59.3 million from GBP41.6 million in 2013. The company said the major contributors to the increase were the acquisitions of the Prime Public Partnerships Ltd's portfolio in December 2013 and further assets totalling GBP43 million in 2014.
EPRA earnings increased to GBP18.2 million or 16.4 pence per share, from GBP6.8 million in 2013, equivalent to 7.6 pence per share.
The company's investment property portfolio at the end of the year was valued at GBP1.03 billion, compared with GBP0.94 billion at the end of 2013. The net surplus on revaluation was GBP29.2 million. Overall, EPRA net asset value per share increased by 6.3% to 319 pence from 300 pence last year. EPRA is the European Public Real Estate Association, the industry body for European REITs.
"We anticipate that, having slowed since 2013, the rate of approval of new premises will increase. Following the [UK] general election the integration of healthcare and social services will become more pronounced and increase the demand for new facilities. We are in an excellent position from which to further expand the portfolio and continue to deliver progressive returns to shareholders," said Managing Director Harry Hyman in a statement.
After declaring a second interim dividend of 10.0 pence, up from 9.75p, the group said it paid a total of 19.5p per share in dividends during the year, 2.6% higher than last year, and its 18th successive year of dividend growth. It also increased its dividend cover in 2014 to 84% from 57% in 2013.
"We continue to deliver value to shareholders both through earnings and valuation growth, significantly increasing dividend cover. This year was a landmark year as the portfolio value surpassed GBP1 billion and we expect this to continue to grow as we invest in more, modern, high quality properties," said Hyman.
In a separate statement, the company said it has appointed Phil Holland as its new finance director. Holland was previously CFO of Natixis Capital Partners Ltd, a private equity real estate fund manager, managing a family of funds invested in commercial real estate across Western Europe.
Primary Health Properties shares were trading 1.4% higher at 390.23 pence late Thursday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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