Primary Health Properties has posted a 20.4% uplift in net rental income during H1 this year, while noting strong demand for extra space to tackle a backlog of consultations arising from the pandemic.
Net rental income grew to £64.8m in the six months ending 30 June, compared with the previous year.
IRFS profit after tax stood at £39.5m, compared with a £106.5m loss during the same period last year.
Overall, the firm’s portfolio was valued at £2.5bn across 510 properties, compared with an equivalent of £2.4bn in December.
The portfolio generated a 0.4% valuation surplus during H1, after allowing for acquisition costs and capital expenditure on forward funded developments.
The firm’s annualised contracted rent roll grew by 4.4% to £133.3m, driven by a portfolio purchase of 22 medical centres across England and Wales earlier this year.
Of PHP’s contracted rental income, 90% is paid either directly or indirectly by the UK and Irish governments, with the balance mainly coming from pharmacies located in its properties.
The company collected 96% of quarterly rent due in the UK and Ireland on 27 July. It has allowed £1.1m of quarterly rents, mainly pharmacies, to be paid in monthly instalments.
Harry Hyman, managing director of PHP, said: “As a result of the Covid-19 pandemic, we see strong demand for extra space to help alleviate the backlog of consultations that has arisen as a result of the coronavirus, while facilitating the movement of activity out of hospitals and the continued care of patients that have suffered from Covid-19.
“The successful equity placing on 9 July raised £140m of proceeds and was upsized from £120m due to strong investor demand. The funds raised will help further accelerate our growth by funding near-term portfolio expansion, forward funded developments and asset management projects.”
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