Primary Health Properties posts 27th consecutive year of dividend growth

22nd Feb 2023 07:39

(Sharecast News) - Primary Health Properties saw modest growth in its full-year rental income and profits but sounded a confident note on its longer-term prospects.

For the year ending on 31 December, the real estate investment trust specialising in the rental of modern primary healthcare facilities announced a 3.5% increase in rental income to reach £141.5m.

In turn, its adjusted earnings rose by 6.6% to £88.7m or 6.6p per share.

Commenting on the company's results, chief executive officer, Harry Hyman, highlighted the predictability of the company's cash flows while highlighting the long-term potential of the business.

"In the longer term, the ageing and growing demographic of the UK and Irish populations means that the health services in both countries will be called upon to address more long-term, complex and chronic co-morbidities," Hyman explained.

"[...] PHP stands ready to play its part in delivering and modernising the real estate infrastructure required to meet this need."

The company's boss also said that the company would benefit from the "significant" rise in construction costs seen in recent years.

He further highlighted the fact that the bulk of Primary Health's debt was fixed or hedged for a weighted average period of just over seven years, adding that its exposure to additional cost increases and development risk were limited.

The dividend payout was increased for a 27th consecutive year by 4.8% to 6.5p.