Primary Health Props
Preliminary Results
RNS Number : 5492P
Primary Health Properties PLC
18 February 2021
Primary Health Properties PLC
Preliminary results for the year ended 31 December 2020
Continued strong performance throughout COVID-19 pandemic and successful management internalisation
Primary Health Properties PLC ("PHP", the "Group" or the "Company"), a leading investor in modern primary health facilities, announces its audited preliminary results for the year ended 31 December 2020.
DELIVERING EARNINGS AND DIVIDEND GROWTH
· Adjusted earnings per share increased by 5.5% to 5.8p (2019: 5.5p)
· Notwithstanding the impact of Covid-19, average uplift of 1.8% per annum on rent reviews completed in the year, continuing the trend in rental growth (FY 2019: 1.9%; FY 2018: 1.4%)
· Additional annualised rental income on a like-for-like basis of £2.0 million or 1.6%, from rent reviews and asset management projects (FY 2019: £1.9 million or 1.5%; FY 2018: £1.3 million or 1.8%)
· Contracted annualised rent roll increased by 5.9% to £135.2 million (31 December 2019: £127.7 million)
· 23 purpose-built medical centres acquired in the year for £58.8 million with good asset management opportunities
· Four forward funded developments acquired in the year with a net development cost of £34.2 million at Arklow and Enniscorthy in Ireland, Epsom, Surrey and Llanbradach, Wales
· Post period end, successful completion of the internalisation of the Group's management structure, at a cost including fees of £35.7m, with shareholders representing 99.95% of the votes cast voting in favour of the internalisation which is anticipated to deliver annual cost savings of approximately £4.0 million.
· Quarterly dividends totalling 5.9p per share distributed in the year, a 5.4% increase over 2019 (5.6p per share)
· First quarterly dividend of 1.55p per share declared, payable on 26 February 2021, equivalent to 6.2p on an annualised basis. This represents a further 5.1% increase over the 2020 dividend per share and marks the start of the Company's 25th consecutive year of dividend growth
· The Company intends to make further dividend payments in May, August and November 2021 and maintain its strategy of paying a progressive dividend, in equal quarterly instalments, covered by underlying earnings in each financial year
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