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PHP grows profit and secures debt

GP landlord Primary Health Properties (PHP) saw profit increase by around 10% last year, as the company also secured debt facilities of £300 million.

In results for the year ended 31 December 2011, PHP reported profit before revaluation result and change in fair value of derivatives of £10 million, up from £9.1 million the previous year.

The firm announced debt facilities totalling £125 million that were secured at the end of 2011, while credit approved terms were also agreed with Royal Bank of Scotland and Santander to refinance a £175 million club facility for a new four-year term.

Rental and related income increased by £3.8 million to £30.7 million for the year. In addition, payment of 18 pence of dividends during the year was confirmed (2010: 17.5 pence).

Total portfolio value increased by 7% to £539.7 million at an initial yield of 5.74%.

Harry Hyman, managing director of PHP, said: “I am delighted to announce a 15th successive year of dividend growth, underpinned by the strength of the group’s income as well as an increase on revaluation of the group’s property assets. 

“Market drivers remain very positive for PHP; the government has reaffirmed its commitment to the NHS, ring fenced its budget and provided for real terms increases in expenditure.”