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Primary Health Properties sees progress across the board at the halfway stage

Primary Health Properties PLC (LSE:PHP, FRA:PP51) (LON:PHP) unveiled occupancy levels and rental income growth numbers that mainstream rivals could probably only dream of at this stage of the pandemic with its focus on developing local medical centres literally paying dividends. The half-term round-up revealed a company in rude health. The occupancy level was 99.7% for the six months ended June 30, while net rental income grew 4.5% to £67.7mln over the period, giving adjusted earnings of £40.7mln, up 13.1%. The dividend increased 5.1% to 3.1p, while the PHP’s net asset value nudged 2.2% higher to 115.4p. The unexpired weighted average lease on its properties is just under 12 years. Weighted debt maturity, meanwhile, is six years, while the company is paying an average of 3.4% on its borrowings. The update revealed PHP has undrawn facilities and cash of £335mln. Chief executive Harry Hyman said: “As lockdowns and restrictions in the UK and Ireland are lifted, the COVID-19 pandemic continues to highlight the need for modern, integrated, local primary healthcare facilities to help in the provision of COVID-19 vaccines for many years to come while addressing the backlog of procedures missed over the last two years. “NHS initiatives to modernise the primary care estate supports the important role primary healthcare must play to re-focus services away from over-burdened hospital settings, and to satisfy the long-term demographic trends of populations that are growing, ageing and suffering from more instances of chronic illness. “We continue to maintain close relationships with our key stakeholders, working closely with the NHS in the UK, HSE in Ireland, and our GP partners in both markets to help them evolve and adapt as the ‘new normal’ is established.”