REG - Primary Health Props - Q1 2022 Trading Update

Primary Health PropertiesAnnouncement

27/04/2022 07:00

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RNS Number : 4262J  Primary Health Properties PLC  27 April 2022

27 April 2022

 

Primary Health Properties PLC

("PHP" or the "Company" or "Group")

Q1 2022 Trading Update

Primary Health Properties PLC, one of the UK's leading investors in modern
primary healthcare facilities, today publishes a trading update for the period
1 January 2022 to 31 March 2022 ahead of its AGM later today.

Investment and development

We have made good progress in converting our year-end pipeline into committed
deals and have already announced the acquisition of a large, state-of-the-art
diagnostic centre in Chiswick, let to HCA Healthcare, for £34.5 million and
the purchase of a clinical facility in Chertsey, let to the NHS, for £6.95
million.

In line with PHP's Net Zero Carbon ("NZC") Framework we have also announced
PHP's first NZC direct development; a new purpose-built medical centre at
Eastergate, West Sussex with a gross development value of £6.7 million. The
development will be one of the UK's first NZC healthcare facilities and
demonstrates our strategic commitment to transitioning all our operational,
development and asset management activities to NZC by 2030 and to help our
occupiers achieve NZC by 2040.

Including standing investments, direct and forward funded developments and
asset management projects, we continue to generate and grow a strong pipeline
totalling £360 million in the UK and €145 million (£122 million) in
Ireland of which £65 million and €87 million (£74 million) respectively is
in legal due diligence.

Like-for-like rental growth

In the first quarter of 2022 we have generated an additional £0.9 million or
0.6% (Q1 2021: £0.8 million or 0.6%) of extra rental income from our rent
review and asset management activities.

We continue to see an improvement in growth from rent reviews with an extra
£0.6 million (Q1 2021: £0.5 million) of income generated in the quarter from
99 reviews that have been settled, equivalent to 2.0% (2021: 1.7%) on an
annualised basis.

A further £0.3 million (Q1 2021: £0.3 million) has been generated in the
quarter from our asset management activities completing ten projects and we
have a further six schemes currently on site which in addition to extending
lease lengths will improve the environmental performance of the buildings.

Financing

As at 31 March 2022 the Group's net debt stood at £1,217.3 million (31
December 2021: £1,199.5 million) and on a pro-forma basis the Loan to Value
("LTV") ratio was 43.3% (31 December 2021: 42.9%). After capital commitments
the Group has undrawn loan facilities and cash on deposit totalling £270
million (31 December 2021: £321 million) providing significant liquidity
headroom.

97% of the Group's net debt is fixed or hedged for a weighted average period
of just over nine years providing significant protection from increasing
interest rates.

Dividend

On 24 March 2022, the Company declared its second quarterly interim dividend
of 1.625p per Ordinary Share which will be paid on 20 May 2022 to shareholders
who were on the share register at the close of business on 31 March 2022. The
dividend will comprise entirely of a normal dividend. The dividend is
equivalent to 6.5p on an annualised basis and represents a 4.8% increase over
6.2p paid in 2021.

The Company intends to maintain its strategy of paying a progressive dividend,
in equal quarterly instalments, covered by underlying earnings in each
financial year. Further dividend payments are planned to be made in August and
November 2022.

Annual General Meeting ("AGM")

The 2022 AGM of the Company is being held today at 10:30am at the offices of
CMS Cameron McKenna Nabarro Olswang LLP, Cannon Place, 78 Cannon Street,
London EC4 6AF. At the meeting shareholders will be able to interact with the
Directors who will answer any questions and provide their thoughts on our
performance and strategy. Further details of the AGM including the Notice of
Annual General Meeting can be found on the Company's website
www.phpgroup.co.uk.

More information on Primary Health Properties PLC can be found on
www.phpgroup.co.uk.

 

Harry Hyman, Chief Executive Officer of Primary Health Properties, commented:

"The first quarter of 2022 has seen a good start to the year for PHP good
progress converting our year-end pipeline into committed deals along with
stronger organic like-for-like rental growth across our rent review and asset
management activities, including the environmental upgrades that are required
to meet our sustainability targets.

"We expect to benefit from the current inflationary environment with an
improving rental growth outlook and with the majority of our debt fixed or
hedged we expect to remain in a very strong and robust position in the current
volatile economic environment.

"In a capital constrained NHS, the access to capital that our business can
bring can assist with the increased utilisation of primary care in order to
relieve the pressures being placed on healthcare systems, hospitals and
A&E departments from demographic drivers and the backlog of procedures
missed over the last couple of years following the COVID-19 pandemic. We are
proud of the role we play and look forward to continuing to expand our
business in the interest of the NHS and all of our stakeholders."

For further information:

 Harry Hyman                                                     Richard Howell

 Chief Executive Officer                                         Chief Financial Officer

 Tel: +44 (0) 20 7451 7050                                       Tel: +44 (0) 20 3833 3342

 David Rydell / Steph Whitmore / Tilly Abraham

(Buchanan Communications)

 Tel: +44 (0) 20 7466 5000

 

Legal Entity Identifier: 213800Y5CJHXOATK7X11

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