Primary Health Properties (PHP) Investor presentation summary

Investment case and market positioning

• Benefiting from demographic tailwinds as the UK population grows and ages, driving high occupancy and demand for modern primary care facilities.

• 29-year track record of consecutive dividend growth, with a current yield of approximately 7.4% and strong dividend cover.

• 88% of rental income is government-backed, providing secure, long-term income streams with a WAULT of around 10 years.

• Over 50% of UK primary care premises are not fit for purpose, presenting significant upgrade and development opportunities.

• Strong cost control with an EPRA cost ratio below 10% and 100% of debt fixed or hedged at a low average cost.

Financial and operational performance

• H1 2025 net rental income rose 3.1% to £78.6m, with adjusted earnings up 2.2% to £47.3m and a revaluation surplus of £19.8m.

• Adjusted NTA per share increased 1.1% to 106.2p, and the adjusted NTA return was 4.5% including dividends.

• 29th consecutive year of dividend growth, with a 2.9% increase to 7.1p per share and 100% dividend cover.

• Portfolio value reached £2.81bn, rent roll £158m, occupancy at 99.1%, and LTV at 48.6% within the target range.

• EPRA cost ratio further reduced to 9.8%, maintaining sector leadership in cost efficiency.

Rental growth and asset management

• H1 2025 rent reviews delivered £2.1m additional rent, an 8.6% uplift, with a 3.0% weighted average annual rental growth.

• 66% of reviews were open market, 28% index-linked, and 6% fixed uplift, with Ireland's reviews fully index-linked.

• Advanced pipeline of 43 projects expected to increase average rent per sqm by 15%.