1st Apr 2020 09:57
(Alliance News) - Primary Health Properties PLC on Wednesday said rental collection has remained "robust" despite the ongoing pandemic, with its first-quarter collection rate in line with the previous year.
The primary healthcare facilities investor said 90% of its contracted rental revenue is paid by the UK and Irish governments, either directly or indirectly, and the rest comes from pharmacies co-located at its properties.
Given this, rental collection on Tuesday stood at 79% of first quarter rent, having been 73% in the fourth quarter of 2019. This 79% figure was also in line with the rent received in the first quarter of 2019.
In terms of financing, Primary Health Properties had net debt of GP1.09 billion on Tuesday, up from GBP1.07 billion at the end of 2019 while the pro-forma loan to value ratio was 44.8% versus 44.2% on December 31.
After capital commitments, the company's undrawn loan facilities and cash on deposit totalled GBP341.1 million on Tuesday, having been GBP356.6 million at December 31.
Primary Health Properties noted that, on a pro-forma basis, in order for its borrowing agreement covenants to be at risk of breach its portfolio would need to fall 42% or around GBP1.0 billion in value.
A second quarterly interim dividend of 1.475 pence per share was declared on Tuesday last week and is to be paid May 22. The company said it plans to maintain its progressive dividend strategy and make further dividend payments in August and November.
The investor's UK and Ireland potential acquisitions pipeline stands at GBP124.0 million, with GBP58.0 million in legal due diligence. However, Primary Health Properties said it "will continue to have regard to the current market before committing to these".
Within the company's existing portfolio, 56 rent reviews were settled in the first quarter, with rent up GBP400,000 and a weighted average annnualised increase of 2.4%.
Harry Hyman, managing director at Primary Health Properties, said: "Despite the uncertainty created around the world by the Covid-19 pandemic, our portfolio of properties stands on the front-line of delivering vital services for the NHS and HSE in the UK and Ireland and we are working closely with our occupiers to help them better utilise our assets during this global time of need.
"Whilst it is too early to understand in full the financial implications of the crisis, we remain in a very strong and robust position, with a well-funded balance sheet and excellent portfolio of assets, which will help underpin our strategy of paying a progressive dividend to shareholders which is fully covered by earnings."
Shares in Primary Health Properties were up 0.3% at 161.00p in London on Wednesday morning.
By Anna Farley; [email protected]
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