Primary Health Properties (PHP) H1 2026 earnings summary

Executive summary

• Delivered robust operational performance and strong earnings growth in H1 2026, with adjusted EPS up 9% to 3.8p and 30th consecutive year of dividend growth, supported by secure, recurring income from a resilient healthcare infrastructure portfolio.

• Integration of Assura merger is substantially complete, with over 90% of cost synergies delivered and significant progress on strategic objectives including deleveraging and refinancing.

• Portfolio fundamentals remain strong, with high occupancy, long WAULT, and a progressive dividend policy underpinned by government-backed income.

• Well positioned for growth in evolving healthcare markets with attractive long-term fundamentals.

Financial highlights

• Net rental income rose to £176m, up 123% year-over-year; adjusted earnings reached £98m, up 109%; adjusted EPS increased by 9% to 3.8p.

• Dividend per share up 3% to 3.65p for H1 2026; annualised dividend now 7.3p, marking 30 years of consecutive growth.

• EPRA cost ratio reduced to 8.7%, among the lowest in the sector.

• Adjusted NTA per share stable at 104p; portfolio valued at £6bn with 99% occupancy and 10.4-year WAULT.

• IFRS profit after tax increased 68% to £99m.

Outlook and guidance

• Confident in delivering future growth, supported by strong structural demand in primary care UK, Ireland, and private hospitals, with positive rental growth outlook targeting >3% per annum.

• Full-year cost synergies from the Assura merger expected to be realised in FY27.

• Deleveraging and refinancing to continue, aiming for LTV below 50% and a strong investment grade credit rating.

• Pipeline of risk-controlled development and asset management opportunities supports future earnings growth.