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PHP posts 12% rise in H1 EPS as merger creates 'significant value'

By BFN News | 08:48 AM | Thursday 25 July, 2019

Healthcare property investor Primary Health Properties reported a 12% increase in first-half adjusted EPRA earnings per share to 2.8p as it said its March merger with MedicX had already created 'significant value'. Meanwhile, net rental income surged 43.9% over the period to £53.9m. It said the merger had already produced a 22.7% shareholder return in the period and confirmed it had delivered the operating synergies of £4m per annum outlined at the time the merger was announced in January 2019, as well as further finance cost savings. Excluding the impact of the MedicX merger, PHP's adjusted earnings grew £3.2m or 19% to £20.3mln, driven by acquisitions and rental growth from asset management activities. The merger contributed a further £7.6m. Looking forward, the company said the final outcome and consequences of Brexit for the UK were 'unlikely' to have a direct impact on the primary health centres it invested in as demand for its properties was driven by populations that were growing, ageing and suffering from more instances of chronic illness. 'Continuing improvements to the rental growth outlook and further reductions in the cost of finance will help to maintain our strategy of paying a progressive dividend to our shareholders which is fully covered by earnings,' said managing director Harry Hyman, At 8:48am: (LON:PHP) Primary Health Properties Plc share price was +0.1p at 134.5p Story provided by

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