20th Aug 2015 07:49
LONDON (Alliance News) - Primary Health Properties PLC on Thursday said that higher net rental income boosted earnings in the first half.
Net rental income increased by 5.2% to GBP30.6 million in the six months to the end of June, with pretax profit rising to GBP32.4 million in the half from GBP22.1 million in the corresponding half the prior year.
The company, which invests in modern primary healthcare facilities, lifted its interim dividend to 10.0 pence per share from 9.75p. Dividend cover increased to 89% from 84% six months earlier.
"We continue to deliver on our priority target of returning to full dividend cover while maintaining our progressive dividend policy, which from next year we plan to pay quarterly to shareholders. This reflects our focus to increase returns for shareholders as we continue to boost earnings by investing in and actively managing the portfolio, growing rental income, lowering our funding costs and efficiently controlling our cost ratio," Harry Hyman, managing director of Primary Health Properties, said in a statement.
"Primary care remains the bedrock of the NHS. The newly elected government has stated its commitment to the NHS Five Year Forward View in which primary care will play an increasingly important role. Pressures on A&E departments, new models of care delivery aimed at being available 24 hours a day, seven days a week and an ageing population are adding to demand for modern, multi-disciplinary and flexible healthcare facilities in the community. PHP is well placed to continue to invest in quality investment and development property acquisitions in order to meet the NHS's requirements for more modern, flexible premises," Hyman added.
Primary Health Properties shares were up 0.4% at 415.50 pence on Thursday.
By Samuel Agini; [email protected]; @samuelagini
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