Primary Health Properties

LN: PHP

Market Cap£2150m

Last Close 161.4p

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

Including the first benefits from internalisation of the group management structure, expected to deliver immediate cost savings of c £4.0m pa, H121 recurring earnings progressed as expected. While a highly competitive investment market held back acquisitions, it was also reflected in strong portfolio revaluation gains and NAV growth. Meanwhile, progress continued with rent reviews and asset management projects, forward-funded developments and the recently acquired direct development pipeline. Robust rent collection underpins quarterly DPS payments with an annual target of a fully covered 6.2p (+5.1% vs FY20), a 25th year of DPS growth. With significant funding headroom and a strong pipeline of opportunities we expect investment to pick-up in H2.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2019A 115.7 103.4 (70.2) 5.5 29.3 18.7
2020A 131.2 118.0 112.4 5.8 27.8 17.2
2021E 136.1 126.5 136.3 6.2 26.0 16.8
2022E 140.5 130.7 134.1 6.5 24.8 16.6
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 21/09/2021
Content on Primary Health Properties
Primary Health Properties – Positively as expected
Real Estate | Update | 9 August 2021
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Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (3.4) 3.9 9.4
Relative* (2.1) 3.8 (12.1)
52-week high/low 169.6p/138.8p
*% relative to local index
Key management
Steven Owen Chairman
Harry Hyman CEO
Richard Howell CFO