Primary Health Properties (PHP) Trading update summary

Rental growth and portfolio performance

• Rental income increased by £5.8 million in the first nine months, a 6.1% rise over the previous rent, with annualized growth at 3.1%, surpassing the target of over 3%.

• All portfolio segments performed well: Primary Care UK +2.8%, Private Hospitals +3.7%, and Ireland +3.7%.

• The portfolio benefits from secure, long-term rental income from public and private healthcare operators.

Asset management and development

• Significant asset management projects completed in Wakefield and Yeovil, increasing clinical space and enhancing local healthcare services.

• Five new build development projects are on track for timely and on-budget completion across the UK and Ireland.

• A £6.5 million extension to Tees Valley Hospital commenced, with further value-generating projects targeted.

• Strategic partnership with East of England Ambulance Service Trust for new ambulance hubs, funded through the primary care joint venture.

Joint ventures and financial strategy

• Progress continues on joint venture transactions, with financial terms agreed and due diligence complete.

• Proceeds from asset sales into joint ventures will be used to reduce debt, targeting Net Debt to EBITDA below 9.5x and LTV below 50%.

• Integration of Assura completed, with financial synergies expected ahead of plan.