Primary Health Properties PLC (LSE:PHP, OTC:PHPRF) chief executive Harry Hyman said he is encouraged by the ‘firmer tone of rental growth’ as remains confident PHP will continue to deliver earnings and dividend growth.
His comment accompanied interim results from the group, which develops and rents facilities such as doctors' surgeries and health centres.
They showed that net rental income rose 5% to £71.1mln in the six months to June 30, while adjusted earnings were up 9.8% to £44.7mln. The dividend rose 4.8% to 3.25p a share.
Net tangible assets, calculated on an internationally recognised basis, grew by 4.5% to 117.6p. The company’s investment portfolio is worth just over £2.9bn and generates a net yield of 4.57%.
The unexpired lease term was more or less steady at 11.4 years, and occupancy was 99.7%, with 89% of the rent roll funded by the government.
PHP’s loan to value, meanwhile, is 43.1%, and its average debt maturity currently stands at 7.8 years.
CEO Hyman told investors: "We are encouraged by the firmer tone of rental growth experienced in the period from the ongoing rent reviews and asset management projects successfully completed.
“Furthermore, with the majority of PHP's debt either fixed or hedged for a weighted average period of just under eight years the board remains confident that PHP can continue to deliver further earnings and dividend growth.”