(Alliance News) - Primary Health Properties PLC on Wednesday said net asset value improved in the first half of 2020 with earnings benefiting from its MedicX merger in March 2019.
The primary health facilities investor reported a NAV per share of 101.8 pence as at June 30, up from 99.1p a year before and from 101.0p at the end of 2019. EPRA net tangible value per share rose to 105.5p from 101.1p a year before.
Adjusted EPRA earnings were GBP36.0 million, a figure that excludes the exceptional contract termination fee and amortisation of market-to-market adjustments for fixed rate debt acquired on the merger with MedicX. This was up 29% from GBP27.9 million a year before.
"The increase in the period reflects a full six-month contribution from the merger with MedicX in March 2019 which contributed GBP4.1 million with the balance driven by rental growth and reduction in the group's cost of finance," said Primary Health.
Primary Health Properties increased its dividend by 5.4% to 2.95p per share from 2.8p per share.
Chair Steven Owen and Managing Director Harry Hyman said: "In addition to the Covid-19 pandemic, the final outcome and consequences of Brexit for the UK are unlikely to have a direct impact on the primary health centres we invest in, which perform a vital role in the provision of healthcare across the UK and Ireland. Demand for our properties is driven by demographics and in particular populations that are growing, ageing and suffering from more instances of chronic illness.
"Despite the continued volatility in the economic and political environment and the prolonged era of low interest rates, there continues to be an unrelenting search for secure and reliable income. Primary healthcare, with its strong fundamental characteristics and government-backed income, has been a significant beneficiary. The UK market for primary healthcare property investment continues to be highly competitive with strong yields and prices being paid by investors for assets in the sector with yields maintained during the first half of 2020."
Shares in Primary Health were up 1.3% at 152.60p in London on Wednesday afternoon.
By Anna Farley; annafarley@alliancenews.com
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Primary Health (PHP)