LONDON (Alliance News) - Primary Health Properties PLC on Wednesday said its profit declined in the first half of 2018 due to lower revaluation surplus.
The real estate investment trust said net rental income in the six months ended June 30 was GBP37.4 million, up by 7.5% from GBP34.8 million for the same period the year before.
Pretax profit came in at GBP38.7 million, down by 13% from GBP44.3 million, due to a lower revaluation surplus, which dropped to GBP21.2 million from GBP29.9 million. The company's portfolio was valued at GBP1.4 billion at the end of the period.
Primary Health Properties has continued to selectively grow its portfolio, it said, adding two assets and exchanging contracts to acquire its fourth property in Ireland.
The portfolio's average lot size also continued to grow, achieving GBP4.6 million compared to GBP4.5 million at at the end of 2017. The company said it has only two assets valued below GBP1.0 million, one of which it plans to sold in the second half of 2018.
Primary Health Properties proposed an interim dividend of 2.70 pence per share, up 3.1% from 2.62p paid the prior year.
"As we have already demonstrated, we are actively engaged in expanding our portfolio, with particular growth in the number of significant Irish assets," said Managing Director Harry Hyman.
"We are also encouraged by the continuing improvement in rental growth in the sector which will help to maintain our strategy of paying a progressive dividend to our shareholders which is covered by earnings," added Hyman.
Shares in Primary Health Properties were trading 0.5% lower on Wednesday at 115.80 pence each.
Primary Health (PHP)