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26 Jun 2012

Business Highlights

  • Total property assets £549 million (2011: £519 million).
  • Rent roll has risen 12.2% to £34.9 million (core £32.2 million) at 31 March 2012, from £31.1 million (core £28.4 million) at 31 March 2011.
  • 99 rent reviews settled in year (29.0% of portfolio by rental value): whole portfolio 3.41% uplift (core portfolio 3.12%).
  • Core portfolio of 158 medical centres, with a weighted average lease length of 15.8 years (2011: 15.9 years).
  • Net initial yield on core portfolio stable at 5.89% (2011: 5.87%), non-core net initial yield of 14.03% (2011: 10.37%).
  • Core portfolio total return of 9.2% over 1 year and 7.4% over 5 years, compared to IPD Primary Healthcare benchmark of 8.5% over 1 year and 6.3% over 5 years.
  • 9 new developments completed at a total cost of £37.4 million, with 7.3% yield on cost. At 31 March 2012, 6 current projects on site with a committed cost to complete of £8.5 million, and a pipeline of a further 8 projects.
  • Board has concluded to progress with conversion to REIT status.

Corporate & Refinancing Activity

  • Refocused activity with the sale of Pharmacy and LIFT consultancy businesses sold for £36.3 million.
  • Closure of NAB interest rate swap for a cash cost of £69 million, financed partly through the Rights Issue, which raised £33.5 million net of expenses and disposal proceeds.
  • 10 year secured bond issue £110 million, refinancing maturing NAB facility. Average debt maturity now 12.3 years (2011: 9.4 years).

Financial Highlights

  • Gross profit from continuing activities has grown 50.0% to £30.9 million (2011: £20.6 million).
  • Underlying profit has increased to £7.1 million (2011: £0.7 million)1.
  • Adoption of a progressive dividend policy, payable on a quarterly basis, with the first quarterly payment of 0.285 pence per share payable on 25 July 2012.
  • Loss for the year £60.7 million (2011: profit £15.1 million) after charging exceptional swap costs of £54.7 million and other exceptionals of £20.3m (2011: £6.3 million).
  • Adjusted NAV at 31 March 2012 is 36.3 pence per share (2011: 55.5 pence per share), reduction is due to the loss for the year after exceptional items.

Preliminary results for the year ended 31 march 2012