Primary Health Properties increased its net asset value by 7% in the first half of this year.

The healthcare property REIT matched the performance of its main listed rival Assura, which has not converted to a REIT. The uplift was less than in the previous six months after the revaluation surplus dropped from £13.4m to £5.1m. But it was boosted by a £6.7m increase in unrealised gains from a portfolio of swaps taken out to hedge the impact of higher interest rates.

During the first half the company, headed by Harry Hyman, took delivery of £16.5m of completed and let properties and entered into £18.4m of forward purchases. The size of the portfolio now stands at £321m.

Pretax profits slipped from £9m in the first half of last year to £5.3m as a result of a lower revaluation surplus, an increase in administrative costs from £1.4m to £3.45m and a rise in finance costs from £2.9m to £4.4m.

‘Our strategy of sourcing new investments from several developers will enhance our ability to continue to enter into new commitments, ensuring the flow of new properties in coming years,’ said Hyman. ‘Future growth will be driven predominantly by further rental increases from the portfolio which continues to perform well.’