PHP generates its income from health centres and doctors surgeries with 90% of its rent roll funded from government sources
Primary Health Properties PLC (LSE:PHP) chief executive Harry Hyman hailed ‘another strong year’ as the company delivered progress across all financial metrics.
For the 12 months ended December 31, net income rose 4.2% to £136.7mln, giving earnings of £83.2mln, up 13.8%, and adjusted earnings per share of 6.2p, ahead 6.9% on the same point last in 2020. Profits measured using the IFRS accounting standard were £141.1mln, up 25.1%.
Investors will receive a dividend of 6.2p a share, up 6.9% and in line with earnings growth.
The net tangible value of the portfolio of health centres and doctors’ surgeries rose in the year by 3.4% to 116.7p a share, while IFRS NTA was 112.5p, up 4.7%.
The overall value of the PHP portfolio is just under £2.8bn, while the weighted average unexpired lease term on the buildings is 11.6 years and occupancy is 99.7%.
PHP’s loan to value moved up a smidge during 2021 to 42.9% from 41%, while the average cost of debt has decreased from 3.5% to 2.9% in the period. A total of 90% of its portfolio is funded by government bodies.
CEO Hyman said: “2021 has been another strong year of progress for PHP, having successfully completed the internalisation of our management structure and refinanced a number of legacy loan facilities which have delivered substantial annual cost savings.
“In addition, we have a strong targeted pipeline and continue to see good organic rental growth from rent reviews and asset management projects with record levels of activity during the year.”
