Primary Health Properties (PHP) H2 2025 earnings summary

Executive summary

• Completed transformational merger with Assura, creating the UK's largest healthcare REIT with a £6bn portfolio and 1,142 assets, and significantly enhancing strategic capabilities.

• Achieved 30 consecutive years of dividend growth, with 2025 dividends fully covered and increased by 3% to 7.1p per share.

• Integration of Assura progressing ahead of schedule, with £7.5m of £9m cost synergies (over 80%) already delivered.

• Portfolio remains resilient with 99% occupancy, 11-year WAULT, and 76% government-backed income.

• Strategic focus on deleveraging through joint ventures and asset transfers.

Financial highlights

• Adjusted earnings per share up 4% year-over-year to 7.3p; adjusted earnings up 41% to £131m.

• Net rental income rose 49% to £230m; gross annual passing rent roll increased 122% to £342m.

• Portfolio revaluation gain of £48m, reversing a prior year deficit.

• EPRA NTA per share at 99p, down 4% due to one-off merger costs; adjusted NTA at 104p.

• Dividend per share up 3% to 7.1p, marking 30 years of consecutive growth.

Outlook and guidance

• Focus on reducing leverage to target range (below 50% LTV and net debt/EBITDA below 9.5x), delivering £9m annualised synergies, and integrating Assura.

• Positive rental growth outlook, targeting >3% organic growth per annum.

• Dividend policy remains progressive and fully covered; 2026 dividend expected to increase by 3%.

• Positioned to benefit from UK NHS 10-year plan and increased investment in community healthcare infrastructure.