Primary Health Properties, the primary healthcare provider, has performed well despite tough market conditions in the first half of the year and increased its net asset value.

The REIT, headed by Harry Hyman, increased its NAV by 1% to 373p a share. Although the company suffered a small £4.7m deficit from the revaluation of its portfolio, this was more than offset by a £4.8m increase in the value of its interest rate swaps. The mark-to-market value fluctuates with movements in interest rates.

Underlying profits, excluding the non-cash effect of the portfolio revaluation, increased by £3m to £7m.

Niche markets

Primary Health bought or took delivery of £42.3m of assets during the six months, increasing the size of its portfolio to £352.7m.

It now has 112 primary care centres, of which six are in the course of development.

‘The challenging economic environment continues to have a negative impact on the value of commercial property,’ said Hyman.

‘However, the niche market in which we operate remains relatively strong and there is continued demand for the provision of modern primary health care facilities, from both tenants and investors.

'Furthermore the spending programmes of the government, from which we derive the majority of our rent roll, are not impacted by traditional economic factors.’