Primary Health Properties (PHP) CMD 2025 & H1 2025 earnings summary

Executive summary

• The business delivered strong operational and financial performance in H1 2025, driven by rental growth, portfolio valuation gains, and a value-accretive acquisition in Ireland.

• The proposed combination with Assura is expected to be transformational, offering significant strategic and financial benefits, with over 99% shareholder approval and a £6bn portfolio.

• The NHS 10-year plan and UK Government's health policy are major growth drivers, shifting care to primary care and creating opportunities for value creation.

• The company maintains a focus on delivering shareholder value, with a 29-year track record of consecutive dividend growth and a commitment to a progressive dividend policy.

Financial highlights

• Annualized rent roll reached £158 million, with net rental income up 3.1% year-over-year to £78.6 million in H1 2025.

• Adjusted earnings increased by 2.2% to £47.3 million, and adjusted EPS rose 2.3% to 3.54p.

• IFRS profit after tax surged to £59.4 million from £3.6 million in H1 2024, reflecting valuation gains.

• Portfolio comprises 517 assets valued at £2.81 billion, with a positive revaluation surplus of nearly £20 million.

• Occupancy is close to 100%, with 88% of income government-backed and a WALT of over nine years.

Outlook and guidance

• Rental growth is accelerating, especially in London, with double-digit increases approved and strong reversion potential in both portfolios.

• The company targets 3%+ risk-adjusted rental growth and expects continued demand for long leases (20+ years).

• Combined group with Assura expected to deliver scale, enhanced income, and valuation growth, aiming to reduce leverage from an initial 55% LTV to the 40%-50% target range.

• Focus remains on organic rental growth, risk-controlled asset management, and maintaining a progressive dividend policy.

• Management remains committed to maintaining investment grade ratings and financial discipline.