PHP valuation climbs 6.4%

Primary Health Properties’ has reported a 6.4% surge in its NAV per share amid ongoing demand for healthcare properties. The company’s IFRS NAV per share climbed to 107.5p, as the portfolio, rents and profit all surged during the year ended 31 December 2020 PHP had a portfolio valuation of £2.576bn at 31 December, reflecting net initial yield of 4.81%. Pretax profit surged by 44% to £109.3m. It reported a revaluation surplus and profit on sales of £51.4m for the year, up by 2% from the surplus last year. PHP attributed this to rental growth from rent reviews and asset management, partly offset by a deterioration in the rental outlook for pharmacies. Net rental income rose by 13.4% to £131.2m, with a contracted rent roll up 1.6% to £135.2m. Some 90% of PHP’s rent roll is funded by government bodies, with the remaining largely made up from pharmacies. It reported occupancy at 99.6% and a WAULT of 12.1 years. Chief executive Harry Hyman said: “We continue to see demand for extra space to help enable the redirection of activities out of hospitals. The need for modern, integrated, local primary healthcare facilities is becoming ever more pressing in order to relieve the pressures being placed on hospitals and A&E departments.”   To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette