20th Feb 2014 08:49
LONDON (Alliance News) - Primary Health Properties PLC Thursday reported an increase in profit and revenue for the full-year, as it added over GBP300 million of assets to its portfolio during the period.
The healthcare facilities investor posted pretax profit of GBP20.2 million for the period ended December 31 2013, up from GBP1.1 million a year earlier, while rental income rose 27% to GBP41.9 million from GBP32.8 million in 2012.
Primary Health Properties bought Prime Public Partnerships' (PPP) portfolio of 54 properties for a gross consideration of GBP233 million, adding GBP14.4 million to annual rent roll.
It also added a further 23 properties for GBP70 million including Primary Health Care Centres Limited for GBP29 million in July. The portfolio consists of 11 fully occupied, standing let investment properties with a contracted rent roll of GBP1.7 million
The group's property portfolio as at December 31 comprised of a total of 259 assets; 252 of which are completed, let investments and seven that were on site under construction. The investment portfolio is now worth GBP941.6 million compared with GBP622.4 million a year earlier
Overall, 99.7% of the group's portfolio is let with annualised rent roll up by over 48% to GBP57.6 million, from GBP38.9 million in 2012.
Financially, the firm said it is in a good position having agreed a new GBP70 million four year facility with Barclays Bank PLC.
Net debt outstanding at the end of the period totalled GBP580 million including the GBPP178 million acquired with the PPP portfolio. In 2012 net debt outstanding totalled GBP381 million.
Looking ahead, Primary Health said it has a good pipeline of further acquisition opportunities and expects the new fiscal year to see an increased number of approvals for new primary care developments as demand continues to grow.
The firm said it is making progress to return to full dividend cover, including changing advisory fee structures which will generate savings for the group which when added to the increased earnings from the portfolio will see dividend cover grow "materially" this year.
"This growth has been achieved whilst maintaining a progressive dividend policy with 2013 being the 17th consecutive year of increased dividend for the group," Managing Director Harry Hyman said in a statement.
"The acquisitions in the year have increased the group's rent roll and provide opportunity for growth on review and additional income and capital value from asset management opportunities," he added.
The board proposed a dividend of 19.0 pence per share up from 18.5 pence a year earlier.
Shares in the firm were trading down 0.8% at 656.25 pence per share Thursday.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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