Primary Health Properties rental income grows, ups FY dividend

Real estate investor Primary Health Properties said on Wednesday that rental income had risen in the ended 31 December, leading the group to hike its final dividend payout.

Primary Health said net rental income had grown 5.5% to £149.3m, while adjusted earnings were 2.3% stronger at £90.7m. IFRS profits, on the other hand, were down 51.5% at £27.3m, reflecting broader economic volatility that has impacted the real estate sector.

The London-listed group also raised its dividend per share by 3.1% to 6.7p, while its dividend cover held steady year-on-year at 101%.

Chief executive Harry Hyman said: "We are encouraged by the organic rental growth achieved in 2023, resulting in another record year with an additional £4.3m generated from our rent review and asset management activities. The strong rental growth in the year has been reflected in the positive total property return, significantly ahead of the wider property market."

As of 0920 GMT, Primary Health shares were down 0.45% at 88.95p.

Reporting by Iain Gilbert at Sharecast.com