Primary Health Properties (LSE: PHP)

Last close As at 21/05/2024


−0.10 (−0.11%)

Market capitalisation


Primary Health Properties (PHP) 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.

The primary health property market is driven by supportive demographic trends and the need to modernise health provision rather than the economy. PHP’s leases are long and substantially upward-only, 89% backed directly or indirectly by government bodies.

Latest Insights

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Real Estate | Update

Primary Health Properties — Stability with income growth

Real Estate | Update

Primary Health Properties — Sustaining dividend growth

Primary Health Properties


Real Estate

Equity Analyst

Martyn King

Martyn King

Director, Financials

Key Management

  • Harry Hyman


  • Richard Howell


  • Steven Owen


Balance Sheet

Forecast net cash (£m)


Forecast gearing ratio (%)


Share Price Performance

Price Performance
% 1M 3M 12M
Actual 3.3 3.7 (10.2)
Relative (3.4) (5.0) (17.3)
52 week high/low 106.3p/85.5p


FY23 adjusted earnings were slightly above consensus, with an EPS of 6.8p and a fully covered DPS of 6.7p (+3.1%). Earnings growth was mainly driven by strong organic rental growth from rent reviews and asset management projects, plus income arising from the acquisition of Axis. With building cost inflation yet to be reflected in rent levels, PHP is confident of further rental growth (to drive increased earnings and dividends) with 97% of debt costs fixed/hedged and one of the lowest cost ratios in the UK REIT sector (10.7%). A Q124 DPS of 1.725p (an annualised 6.9p or +3.0%) has already been paid, the 28th year of unbroken dividend growth. Property valuations were significantly more robust than the wider property sector, supported by rental growth and the defensive nature of the sector. As a result, adjusted NTA fell by just 4.1% to 108.0p/share and, adjusting for dividends, accounting total return was 1.9%.

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2022A 141.5 131.9 56.9 6.6 14.4 10.8
2023A 151.0 137.3 26.1 6.8 13.9 9.5
2024E 154.3 141.6 77.5 6.9 13.7 8.9
2025E 157.9 144.9 127.1 7.0 13.5 8.7



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