(Alliance News) - Primary Health Properties PLC on Wednesday reported a double-digit rise in profit on increased net rental income for the first half of 2022.
For the six months ended June 30, the London-based healthcare facility investor said pretax profit rose 50% to GBP107.7 million from GBP72.0 million the same period a year prior.
Net rental income was up 5.0% to GBP71.1 million from GBP67.7 million a year ago. Meanwhile, administrated expenses during the period widened to GBP5.5 million from GBP5.0 million, due to increased staff costs.
Chief Executive Harry Hyman said: "We are encouraged by the firmer tone of rental growth experienced in the period from the ongoing rent reviews and asset management projects successfully completed."
Primary Health said rent reviews and asset management projects completed in the period added GBP1.8 million, compared to GBP1.3 million for the same period last year, to the "contracted rent roll with continued positive momentum on the number of rent reviews being settled".
PHP saw adjusted earnings increased by 9.8% to GBP44.7 million during the period, compared to GBP40.7 million a year earlier, driven by "strong organic rental growth from rent reviews and asset management projects together with interest cost savings arising from various refinancings completed in 2021 and the first half of 2022," the company noted.
The company said the robust performance in the period had delivered a total adjusted net tangible assets return of 6.3%, compared to 5.0% at June 30 a year prior. NTA per share increased by 3.5% to 120.8 pence, up from 116.7p as at December 31.
PHP declared an interim dividend of 3.25 pence per share, up 4.8% from 3.1p a year prior.
Looking ahead, PHP said it remains confident that it can deliver further earnings and dividend growth.
Shares were down 2.0% at 140.80 pence each on Wednesday morning in London.
By Xindi Wei; xindiwei@alliancenews.com
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Primary Health (PHP)