Big jump in profits for Primary Healthcare Properties

Primary Health Properties has announced results for the year ended 31 December 2014 that show a 6.3% increase in its EPRA net asset value to 319p (on property values up 3.2% on a like for like basis) and EPRA earnings per share more than doubled from 7.6p to 16.4p. The full year dividend has been increased from 19p to 19.5p meaning that the dividend was covered 0.84x – an improvement on last year’s 0.57x. the total return on net assets on an EPRA basis was 12.8%.

As at 31 December 2014, the Group held a total of 265 property assets, with 260 completed and 5 on-site, under construction.  The entire portfolio was independently valued by Lambert Smith Hampton. This totalled £1.04bn, including commitments, a surplus of £29.2m on the year, after the effect of the total costs of assets purchased and asset management projects undertaken in the period.

In 2014, PHP completed eight projects, investing a total of £4.4m.  These generated total additional rental income of £0.3m and produced an aggregated 42% valuation gain on capital spent.

Two further projects are currently in progress, which will cost a total of £2.1m.

The principal value of debt drawn as at 31 December 2014 totalled £670.1m, £658.0m net of cash.  Allowing for funding the cost to complete development commitments at the year end of £11.2m, headroom on existing facilities of £116.7m was available to the Group. Group loan to value (“LTV”) was 64.1% (31 December 2013: 61.6%) with interest cover for the year being 1.73 times (2013: 1.60 times). The average maturity of the Group’s debt facilities as at 31 December 2014 was 6.2 years.

PHP : Big jump in profits for Primary Healthcare Properties