Primary Health Properties, the property investment firm, has reported declining pre-tax profits but is rubbing its hands at the prospect of financing the new facilities demanded by the government's controversial Health and Social Care Act.
Rental income in the six months to the end of June came in at £16.21m, an increase of 6.3% on the prior year, while operating profit grew 6.5% to £13.4m.
Profits before tax came in at £4.2m, down sharply on the same point in 2011 when the figure stood at £11.9m. This may explain why the share price dropped 0.74% in Wednesday morning trading.
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A recent share issue has slightly dented the net asset value per share, bringing it down from 318.7p in December to 314.9p by the end of June.
The second interim dividend has been agreed at 9.25p, up on the 9p paid last year and the 16th successive dividend growth achieved by PHP.
The group's Chairman, Graeme Elliot also commented on the Health and Social Care Act, which he believes may create more chances for PHP to invest in health properties: "The Act brings major structural changes to the delivery of health care in England, transferring the commissioning of care to more localised Clinical Commissioning Groups.
"This supports a UK wide drive to deliver an increasing number of healthcare services within local communities. To do this efficiently and effectively, an increasing number of high quality primary care facilities will need to be provided. The Group is well placed to provide this investment..."
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