Primary Health Properties


Market Cap£1,940m

Last Close 145.4p

Primary Health Properties is a long-term investor in primary healthcare property in the UK and the Republic of Ireland. Assets are mainly long-let to GPs and the NHS or the HSE, organisations backed by the UK and Irish governments respectively.

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Investment summary

Primary Health Properties (PHP) reported H122 adjusted EPS up 9.7% y-o-y to 3.4p and adjusted NTA per share increased by 3.5% to 120.8p. Including DPS paid the adjusted NTA total return in the period was 6.3%. Dividends paid/declared of 4.9p ytd leave PHP well on track to archive its 6.5p annual target, its 26th year of unbroken DPS growth. Higher earnings were driven by growth in rental income and refinancing measures that lowered average debt cost. The EPRA cost ratio remains the lowest in the REIT sector. In part due to inflation, rents are rising at an accelerating pace while 95% of debt costs are fixed/hedged. Despite ample liquidity and a strong investment pipeline, given financial market uncertainties, PHP is being prudent and selective about which projects to pursue. With the expectation that earnings and dividend growth will continue, we will review our forecasts.

Y/E Dec
Revenue (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2020A 131.2 118.0 112.4 5.7 25.5 15.5
2021A 136.7 126.2 141.6 6.1 23.8 13.8
2022E 141.1 130.3 143.5 6.3 23.1 14.8
2023E 144.9 133.6 164.0 6.6 22.0 14.5
Industry outlook

Income visibility is strong, with long leases and upwards-only rents, 89% backed directly or indirectly by government bodies, little exposed to the economic cycle, or occupancy fluctuation. Health and social care planning suggests strong underlying demand for modern healthcare properties in both the UK and the Republic of Ireland.

Last updated on 08/08/2022
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Share price graph
Balance sheet
Forecast net cash (£m) 1292
Forecast gearing ratio (%) N/A
Price performance
Actual 4.5 3.8 (12.1)
Relative* 0.2 2.5 (13.1)
52-week high/low 169.6p/131.1p
*% relative to local index
Key management
Steven Owen Chairman
Harry Hyman CEO
Richard Howell CFO