Primary Health Properties PLC (LSE:PHP) reported £5.8 million of additional rental income from 480 rent reviews during the first nine months, as the healthcare property group completed its integration of Assura.
The rent reviews produced an annualised increase of approximately 3.1%, with rental income growth running slightly ahead of the company’s guidance.
PHP reported rental growth across its UK primary care, private hospital and Irish portfolios, which include properties leased to public healthcare bodies and private healthcare operators.
PHP Progresses Healthcare Property Developments
The company is continuing asset management and development activities across its portfolio, including projects to expand clinical space in Wakefield and Yeovil.
PHP is also progressing a £6.5 million extension at Tees Valley Hospital.
Five new-build projects are under development across the UK and Ireland, with the company reporting that the projects remain on schedule and within budget.
Joint Venture Proceeds Targeted at Debt Reduction
PHP is also progressing joint venture transactions as part of its capital management plans. The company intends to use proceeds from these transactions to reduce leverage.
The group is targeting lower debt metrics following its combination with Assura and continues to integrate the acquired business into its operations.
PHP also maintains a stated objective of continuing its record of progressive dividend growth, which has extended for 30 years.
Primary Health Properties Portfolio
Primary Health Properties is a real estate investment trust focused on healthcare properties in the UK and Ireland.
Following its combination with Assura, the group owns a portfolio valued at approximately £6 billion, comprising assets including GP surgeries, NHS- and HSE-backed healthcare facilities and private hospitals.
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