Primary Health Properties has lined up a £444m pipeline of deals as its chief executive hailed a “strong year of progress” for the investment company.
In its preliminary results for the year to 31 December, PHP said it now has £337m of deals in the pipeline in the UK and £107m in Ireland, of which £72m and £80m, respectively, are in legal due diligence.
In the UK pipeline, £87m of those are investment transactions, £163m direct development, £20m forward funding development and £67m asset management. In Ireland the company is lining up £18m of investment deals and £89m of forward funding.
“Despite the continued volatility in the economic and political environment and the prolonged era of low interest rates, there continues to be an unrelenting search for secure, long and reliable income,” the company said.
“Primary healthcare, with its strong fundamental characteristics and government-backed income, has been a significant beneficiary of this trend. The UK and Irish markets for primary healthcare property investment continues to be highly competitive with strong yields and prices being paid by investors for assets in the sector throughout 2021.”
The company posted a profit of £140.1m, up by 25% year-on-year. Adjusted NTA per share of 116.7p was 3.4% ahead of a year ago, while total property return of 9.5% was up by 210 basis points. The company’s portfolio valuation rose by 4.1% to £2.8bn.
Chief executive Harry Hyman said: “We have a strong targeted pipeline and continue to see good organic rental growth from rent reviews and asset management projects with record levels of activity during the year.”
Separately, the company set out its Net Zero Carbon Framework today, outlining its plans to become net zero carbon by 2030 across all its operational, development and asset management activities, and to help its occupiers achieve net zero carbon by 2040.
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