Harry Hyman, chief executive of Primary Health Properties PLC (LSE:PHP, OTC:PHPRF), called the company’s operational and financial performance in 2022 resilient as he hailed a 27th year of dividend growth.
PHP, which owns surgeries and centres used by doctors, hiked the pay-out by 4.8% to 6.5p a share as net rental income grew by 3.5% to £141.5mln in the 12 months to 31 December 2022. This gave adjusted earnings of £88.7mln, up 6.6% from the year earlier.
The adjusted net tangible asset value of the properties it owns fell 3.5% to 112.6p a share, or 1.9% when measured on an IFRS accounting basis to 110.4p.
The weighted unexpired lease term at the end of the period was 11 years, while occupancy stood at 99.7%, with 89% of its rent roll funded by the government.
Looking ahead, Hyman said: "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.
“Consequently, the government needs to respond and invest in new structures to deliver more healthcare in primary care and community settings and away from over-burdened hospitals. PHP stands ready to play its part in delivering and modernising the real estate infrastructure required to meet this need."