16th Oct 2024 08:59
(Alliance News) - Primary Health Properties PLC said on Tuesday it saw a "range of interesting and accretive" opportunities as the market adjusted to the new interest rate environment.
This represents change as the London-based healthcare facility investor has held back its investment activity, adopting a "very disciplined" approach to further investment and development activity.
In a statement ahead of the capital market day on Wednesday, Primary Health said it had generated an additional GBP2.7 million of extra rental income from its rent review and asset management activities, both in the UK and in Ireland, for the first nine months that ended September 30.
An extra GBP2.4 million of income was generated in the nine months from 241 reviews that have been settled, representing a 7.9% increase.
Primary Health said it remains on course to generate in excess of GBP3.0 million of extra income from rent reviews in 2024 driven by the improving open market value review outlook.
It said it had positively addressed the refinancing of debt maturities falling due in 2025 and has completed a new GBP170 million facility with Barclays with GBP70 million of the proceeds from the new facility being used to repay the variable rate bond ahead of maturity in December 2025.
The group said it had also agreed terms with Lloyds to extend its GBP100 million facility for a further three years with an option to increase the size to GBP125 million.
Chief Executive Officer Mark Davies said the company welcomed the new US government's commitment to reforming the national health service and specifically the need for increased investment in primary care.
Shares in Primary Health were up 1.0% at 98.10 pence each on Wednesday morning in London. In Johannesburg, they were up 1.6% at ZAR22.26.
By Artwell Dlamini, Alliance News reporter
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