Primary Health Properties PLC (LON:PHP) raised its dividend for the twenty-first year running as rental income growth picked up.
The annual dividend rose to 5.25p (5.125p), while PHP also increased its first quarterly payout to 1.35p or the equivalent of 5.4p in annual terms.
Rent roll rose 7.1% to £71.3mln on a net basis, while underlying net assets rose 10.5% to 100.7p per share.
WATCH: Primary Health Properties raises dividend again, rental growth picks up
The group owns 306 GP and medical-use properties in the UK and has started to replicate its business in Ireland, which faces similar pressures of an ageing population and out-of-date medical properties, said Harry Hyman, chief executive.
The group has set aside £150mln for acquisitions as PHP expects the emergence of larger practices providing an out-of-hours service will become more pronounced in the future as pressures on secondary healthcare in hospitals become acute.
At end December, the portfolio was worth £1.36bn (£1.22bn).
Shares rose 0.5% to 115.6p.
Broker Liberum said the results were broadly in line with expectations though NAV was ahead of its 99p forecast, primarily driven by 26bps of yield compression and asset management activity.
“Positively, annualised rental growth has improved to +1.1% but trails peer Assura,” said the broker.