By Samuel Indyk
Investing.com – Primary Health Properties (LON:PHP) shares are trading higher on Wednesday morning after reporting higher rental income and earnings per share for the six months ended 30th June 2021.
The healthcare property investor said net profit in the period jumped to £71.4 million from £39.5 million as net rental income increased 4.5% to £67.7 million.
“As lockdowns and restrictions in the UK and Ireland are lifted, the COVID-19 pandemic continues to highlight the need for modern, integrated, local primary healthcare facilities to help in the provision of COVID-19 vaccines for many years to come while addressing the backlog of procedures missed over the last two years,” said Primary Health Properties Chief Executive Harry Hyman.
Alongside the results, the company also raised its dividend by 5.1% to 3.1 pence per share.
Speaking on the results, Steve Clayton, fund manager of the Hargreaves Lansdown (LON:HRGV) Select Income Shares fund, said: “PHP investors are accustomed to sleeping well at night, and these results suggest that will continue.”
“The company has raised its dividend for each of the last 25 years and has a conservative balance sheet structure to ensure that whatever events come along, they are unlikely to concern PHP overmuch.”
Looking ahead, Hyman said the company remains “confident” in its future outlook and looks forward to delivering further earnings and dividend growth.
At 09:36BST, shares in Primary Health Properties were trading higher by 1.6% at 163.43 pence per share.
Of note, HL Select Incomes Shares Fund holds a position in Primary Health Properties.