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Primary Health Properties PLC on Wednesday said its interim profit plunged, but noted it is set to benefit from the current inflationary environment.
The London-based healthcare facility investor said in the six months to June 30, pretax profit plummeted by 64% to £38.8 million from £107.7 million a year prior.
This was partly driven by a combined gain of £4.8 million, down from £11.8 million, due to the fair value movements of interest rate derivatives and convertible bonds.
Meanwhile, net rental income grew by 6.2% to £75.5 million from £71.1 million the year before. This was made up of £3.4 million of additional income from completed rent reviews and asset management projects, £800,000 from acquisitions, disposals and developments completed in 2022, and a £200,000 reduction in non-recoverable property costs.
Primary Health Properties upped its interim dividend by 3.1% to 3.35 pence from 3.25p.
Looking ahead, the company said it expects to benefit from the current inflationary environment and the significant rise in construction costs.
Chief Executive Officer Harry Hyman said: ‘The security and longevity of our income, near full occupancy together with stronger rental growth are the key drivers of our predictable cash-flows and underpin our progressive dividend policy with 27 years of continued growth.’
Shares in Primary Health Properties were up by 2.1% at 96.61p each in London on Wednesday morning.
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