Primary Health Properties

LN: PHP

£1937.5m market cap

146p last close

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.

Investment summary

PHP has announced plans to internalise its management structure by acquiring its investment adviser since launch, Nexus Tradeco. The board believes there are a number of compelling financial and strategic benefits to the proposed transaction, including c £4.0m in annual cost savings and enhanced EPS/dividend paying capacity, and securing a well-regarded management team and fully operational management platform. This includes the services of Harry Hyman as CEO of PHP, consistent with the commitment he made at the time of the MedicX merger.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2018A 76.4 66.5 36.8 5.2 28.1 15.1
2019A 115.7 103.4 59.7 5.4 27.0 17.0
2020E 131.7 118.6 73.2 5.7 25.6 15.5
2021E 138.6 124.8 77.5 5.8 25.2 15.6
Industry outlook

The sector enjoys strong income visibility, with long leases and upwards-only rents, 90% backed directly or indirectly by government bodies, with little exposure to the economic cycle, or fluctuations in occupancy. Healthcare planning, with broad political support, already suggests strong underlying demand for modern healthcare properties in both the UK and the Republic of Ireland while the pandemic highlights existing pressures and may well lead to increased healthcare spending over the longer term.

Last updated on 19/01/2021
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Share price graph
Balance sheet
Forecast net debt (£m) 1070.5
Forecast gearing ratio (%) 77
Price performance
%
1m
3m
12m
Actual (4.8) 0.6 (8.9)
Relative* (7.4) (12.2) 2.3
52-week high/low 165.6p/126.2p
*% relative to local index
Key management
Steven Owen Chairman
Harry Hyman MD
Richard Howell FD

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