Primary Health Properties (LSE:PHP) delivered a strong trading update for the year ended 31 December 2025, reflecting the transformational acquisition and integration of Assura. The combination has created a £6bn healthcare-focused REIT and has already delivered around 60% of the targeted £9m in annualised cost synergies within roughly two months of regulatory approval.
The group declared its first quarterly interim dividend for 2026 at 1.825 pence per share, extending its record of 30 consecutive years of dividend growth. Annualised contracted rent increased to £342m, supported by robust rent review outcomes that added £8.3m of incremental income and improved the outlook for rental growth across both primary care assets and private hospitals.
Management highlighted the enlarged group’s strengthened financial position following the refinancing of Assura’s debt. Primary Health Properties ended the year with £552m of undrawn liquidity, an average cost of debt of 3.7% and an average debt maturity of just over four years. The board reiterated its target loan-to-value range of 40–50% and its commitment to maintaining a strong investment-grade credit profile.
Strategically, PHP is undertaking a comprehensive portfolio review, advancing disposals of non-core assets while exploring new and expanded joint ventures across primary care and its private hospital portfolio. The group expects supportive policy tailwinds, including the NHS’s 10-year Health Plan and the UK Government’s neighbourhood-based infrastructure agenda, to underpin organic rental growth, longer lease terms and enhanced ESG outcomes over time.
Overall, the company’s outlook is supported by resilient fundamentals, strong cash generation and an attractive dividend profile, although leverage and earnings variability remain factors to monitor. Positive technical momentum and the successful completion of the Assura transaction further underpin confidence in the long-term investment case.
More about Primary Health Properties plc
Primary Health Properties plc is a UK real estate investment trust focused on owning and managing modern primary healthcare infrastructure. The group holds a £6bn portfolio of long-leased medical centres, GP surgeries and private hospitals across the UK and Ireland, with assets predominantly let to government-backed NHS bodies and leading healthcare providers. Its strategy centres on secure, inflation-linked income, progressive dividends and capital-light asset management and development within primary care and private hospital real estate.
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