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Primary Health Properties (PHP) investor relations material
Primary Health Properties Status Update summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Market and strategic outlook
Positive market backdrop with significant growth opportunities driven by the government's 10-year NHS plan, emphasizing a shift from hospitals to primary care.
Demographic trends, such as an aging population, are increasing demand for healthcare infrastructure.
High-quality, government-backed property portfolio supports long-term, secure income and consistent dividend growth.
Double-digit rental growth emerging in London, with new schemes and long lease terms reflecting asset quality.
Strict cost control and efficient capital structure maintained, with plans to address temporary leverage increase post-merger.
Financial performance and rental growth
Annualized rent roll reached £158 million, with net rental income up 3% to nearly £79 million for H1 2025.
Adjusted earnings rose 2.2% to £47.3 million; loan-to-value ratio at 48.6%, within target range.
Portfolio valued at £2.8 billion, with a positive revaluation surplus and total accounting return of 4.5%.
Dividend per share increased 2.9% year-on-year, marking 29 years of consecutive growth; dividend cover at 100%.
Like-for-like rental growth of 1.4% in H1, with open market value rental growth accelerating to 3.6% annualized.
Assura combination and capital structure
Recommended merger with Assura expected to deliver significant strategic and financial benefits, including £9 million in annualized synergies.
Combined group to be one of the largest UK-listed REITs, with enhanced scale, liquidity, and index weighting.
Targeting 80-90% government-backed income and maintaining a progressive dividend policy.
Initial combined LTV may reach 55%, with plans to reduce via asset disposals and joint ventures.
Strong support from capital markets, new £1.2 billion bridging facility secured, and investment grade ratings reaffirmed.
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