Primary Health Properties


£1459.6m market cap

128.8p last close

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

Investment summary

Primary Health Properties (PHP) recently held a capital markets day in the Republic of Ireland (RoI), where it now has eight assets and looks for further strong growth, towards 10% of the overall portfolio. The RoI market shares similar drivers and attractive characteristics to the UK and currently benefits from higher yields and lower funding costs. The visit provided additional comfort to our forecasts for further income and dividend growth driven by asset acquisition in both the UK and RoI, an improving outlook for rental growth and more opportunities to optimise average borrowing costs.

Y/E Dec
Revenue (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2016A 66.6 59.2 26.7 4.7 27.4 12.7
2017A 71.3 62.6 31.0 5.1 25.3 12.9
2018E 75.9 66.0 36.9 5.2 24.8 13.4
2019E 81.4 71.2 43.3 5.5 23.4 14.0
Last updated on 22/03/2019
Industry outlook

Healthcare planning, with broad political support, suggests strong underlying demand for modern healthcare properties in both the UK and the Republic of Ireland. In addition to providing investment opportunities, this seems likely to support rental growth.

Last updated on 22/03/2019
Share price graph
Balance sheet
Forecast net debt (£m) 623
Forecast gearing ratio (%) 80
Price performance
Actual 6.8 17.3 13.3
Relative* 6.7 9.2 10.6
52-week high/low 130.8p/106.4p
*% relative to local index
Key management
Alun Jones Chairman
Harry Hyman MD

Content on Primary Health Properties