Primary Health Properties PLC (LSE:PHP, OTC:PHPRF) said it has a strong investment and development pipeline as it updated on progress in the first quarter.
In all standing investments, direct and forward funded developments and asset management projects total £482mln for the UK and Ireland of which £139mln is currently in legal due diligence.
Investors were also told the group, which buys and develops doctors’ surgeries and health centres, generated an additional £900,000, or 0.6%, of extra income from its review and asset management activities. This is equivalent to 2% on an annualised basis (2021 was 1.7%).
A wide-ranging update revealed that PHP’s net debt stood at £1.22bn, while the loan to value (the benchmark for the industry) stood at 43.3% on March 31, up marginally from the 42.9% of 31 December.
After capital commitments, the group said it has undrawn loan facilities and cash on deposit of £270mln.
PHP pointed out that 97% of its debt is fixed or hedged for a weighted average period of just over nine years "providing significant protection from increasing interest rates".
Chief executive Harry Hyman told investors: "We expect to benefit from the current inflationary environment with an improving rental growth outlook and with the majority of our debt fixed or hedged we expect to remain in a very strong and robust position in the current volatile economic environment.”