(Alliance News) - BB Healthcare Trust PLC reported an increased net asset value per share in 2020 despite the company having to contend with volatility brought on by the Covid-19 pandemic as well as the US presidential elections.
The FTSE 250-listed healthcare-focused investor focused on the US posted a net asset value per share at November 30 last year of 172.51 pence, up 21% from 143.11p the year prior.
NAV total return per share in the year ended November 30 was 24.6%, increasing from 6.6% the year before.
Pretax profit tripled year-on-year to GBP159.6 million from GBP45.2 million, driven by gains on investments increasing to GBP163.6 million from GBP50.7 million a year prior.
BB Healthcare said that the year was marked by extreme volatility, having had to weather the Covid-19 pandemic and a rather tumultuous US presidential election.
"Although share prices were extremely volatile during this year, healthcare is not an economically sensitive industry; people get sick in recessions and booms alike. As such, we felt strongly that the medium-to-long term growth outlook was not adversely impacted by the unfolding pandemic and thus it was clear that the market dislocation offered a compelling opportunity for capital deployment. Again, prior experience gave us confidence that there is usually an over-reaction on the downside in the short-term and this creates a window to acquire assets at discounted valuations," BB Healthcare said.
BB Healthcare proposed a final dividend of 2.50p per share, up 3.1% from 2.425p the year before, bringing the annual payout for 2020 to 5.00p, up 4.1% from the prior year's 4.85p.
Going forward, BB Healthcare said it is "this year more than most it is dangerous to predict changes", and urged investors to read the company's monthly factsheets for a more regular updates.
"We remain firmly of the view that the demographic factors which underpin healthcare demand growth have not been adversely impacted by the SARS-CoV-2 pandemic. If anything, the attendant economic and social crises have served to highlight the structural challenges in the healthcare marketplace and the need for increased investment and new approaches to care delivery to make the system fit for purpose," the company said.
BB Healthcare shares were up 1.4% at 187.50p each in London on Monday morning.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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