Primary Health Properties (PHP) Trading Update summary

Trading and operational highlights

• Generated £2.7 million in extra rental income in the first nine months of 2024, with 241 rent reviews settled at a 7.9% total increase over previous rents, and a 3.0% annualised like-for-like increase.

• Asset management activities added £0.3 million, with four new projects, seven lease regears, and six new lettings in the UK, plus six initiatives in Ireland; 39 more projects are in the pipeline.

• Investment activity was deliberately restrained, but new accretive opportunities are emerging as the market adapts to higher interest rates.

• Construction began on the South Kilburn Medical Centre, with a 6.2% yield on cost and over 10% profit on cost, supported by local government funding.

Financial and capital management

• Completed a new £170 million Barclays facility, using £70 million to repay a variable rate bond early; agreed to extend a £100 million Lloyds facility with an option to increase to £125 million.

• Net debt at 30 September 2024 was £1,322.7 million, with a loan-to-value ratio of 48.1%, within the target range; £301 million of undrawn facilities remain available.

• 95% of debt is fixed or hedged at a weighted average cost of 3.3%.

Dividend and shareholder returns

• Fourth quarterly interim dividend of 1.725p per share declared, payable 22 November 2024, equivalent to 6.9p annualised, a 3.0% increase over 2023.

• Achieved 28 consecutive years of dividend growth, underpinned by operational resilience and secure income streams.

• Won MSCI's Highest 10-Year Risk Adjusted Total Return Award for the UK for the third consecutive year.