Primary Health Properties sees earnings rise 14% as it plans further Irish expansion

London-listed Primary Health Properties (PHP), a company that invests in local primary healthcare facilities in Ireland and Britain, saw its adjusted earnings rise almost 14 per cent in 2021 to £83.2 million (€99.2 million), it said on Wednesday, as it signalled further expansion in the Irish market.

Since the end of 2021, a €75 million private placement loan note has been issued for a 12-year term at a fixed rate of 1.64 per cent “to finance continued expansion in Ireland”.

As it published its annual results, PHP, which already has a portfolio that includes 20 properties in the Republic, said 2021 had been “another strong year of progress” that had seen it complete changes in its management structure and refinance a number of legacy loan facilities with Aviva Investors.

"In addition, we have a strong targeted pipeline and continue to see good organic rental growth from rent reviews and asset management projects with record levels of activity during the year," said chief executive Harry Hyman.

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“Throughout 2021, PHP has successfully worked with the NHS, HSE and the group’s GP tenants to help them utilise our properties for deployment in the front line of the Covid-19 pandemic, delivering vaccines and boosters across the UK and Ireland,” he said.

Mr Hyman added that the need for modern local primary healthcare facilities was becoming “ever more pressing” in order to relieve pressures being placed on hospitals and A&E departments as they try to catch-up on waiting lists.

“The board looks forward to delivering further earnings and dividend growth in 2022 and remains confident in PHP’s future outlook.”

Portfolio additions

PHP’s total portfolio now stands at more than £2.8 billion across 521 assets, with nine assets added last year for £86.6 million and one sold for £2.3 million.

The 20 assets in the Republic are valued at £213 million (€253 million) and includes developments in Bray, Co Wicklow; Athy, Co Kildare; Rialto in Dublin; and Mullingar, Co Westmeath.

The company’s contracted annualised rent roll rose 4.1 per cent to £140.7 million, while dividends increased 5.1 per cent to 6.2p per share.

PHP chairman Steven Owen said the group had observed "a significant increase in the digitalisation and adaptation of triage", with many initial medical consultations carried out online in both Britain and Ireland

“However, we have not seen and do not expect to see, any reduction in space requirements across our portfolio,” he said.

“This is because of the increasing burden being placed on healthcare systems in both the UK and Ireland as a consequence of the ongoing Covid-19 pandemic, along with the long-term demographic trends of populations that are growing, ageing and suffering from more instances of chronic illness.”