PHP said it expects to benefit from rising inflation.
In a Q1 update, the primary healthcare property investor said 97% of its net debt was fixed or hedged to protect against rising interest rates. Meanwhile inflation-linked rents, accounting for around 25%, mean it is in a stronger position than other landlords.
Chief exectuive Harry Hyman said: “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.”
As at 31 March 2022, the group’s net debt stood at £1.2bn, with LTV of 43.3%. PHP has undrawn loan facilities and cash on deposit totalling £270m.
Hyman said it had been a “good start to the year” for PHP, with good progress converting its year-end pipeline into committed deals.
PHP’s total pipeline now stands at £360m in the UK and €145m (£122m) in Ireland, of which £65m and €87m is in legal due diligence.
He added that “stronger organic like-for-like rental growth across our rent review and asset management activities” had led to an additional £1.5m in rent.
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