18th Feb 2021 09:59
(Alliance News) - Primary Health Properties PLC on Thursday said it swung to profit in 2020, thanks to an increase in annualised rent.
The investor in modern primary health facilities said net rental income in 2020 rose by 13% to GBP131.2 million compared to GBP115.7 million reported a year earlier. Pretax profit for the year totalled GBP112.4 million, compared to a loss of GBP70.2 million the year before.
The company declared a 5.4% increase in dividend to 5.9 pence from 5.6p paid for 2019.
Primary Health Properties said net asset value per share rose to 107.5 pence as at the end of 2020, up 6.4% compared to 101.0p reported at the end of 2019.
Investment portfolio valuation increased by 2.0% year-on-year to GBP2.58 billion, while annualised contracted rent roll increased by 1.6% to GBP135.2 million.
Occupancy level improved to 99.6% from 99.5% in 2019.
"We continue to see demand for extra space to help enable the redirection of activities out of hospitals. The need for modern, integrated, local primary healthcare facilities is becoming ever more pressing in order to relieve the pressures being placed on hospitals and A&E departments," said Chief Executive Harry Hyman.
"In early 2021, we successfully completed the internalisation of the group's management structure which will immediately deliver material financial and operational benefits driving further earnings and dividend growth, enhancing shareholder returns, whilst simultaneously broadening our appeal to a wider investment community and underpinning the next stage of the company's growth," added Hyman.
Primary Health Properties shares were trading 0.1% lower in London on Thursday at 148.20 pence each.
By Evelina Grecenko; [email protected]
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