Primary Health Properties (LSE:PHP) reported a landmark year in 2025 following the completion of its merger with Assura, creating a healthcare real estate investment trust valued at around £6bn. The combination significantly expanded the group’s property portfolio and rental income base while maintaining near-full occupancy across long-term leases. The enlarged company achieved most of the £9m in targeted annual cost synergies earlier than expected, increased adjusted earnings per share and dividends, and is exploring joint ventures in primary care centres and private hospital assets as it works to reduce leverage and benefit from improving rental growth linked to the UK government’s 10-year NHS strategy.
Financial performance strengthened notably, with net rental income rising 49% to £230m and IFRS profit after tax almost tripling. The improvement was supported by property revaluations and stronger rent review outcomes, although EPRA net tangible assets per share declined slightly due to share issuance and transaction-related costs associated with the merger. The combined portfolio is now valued at about £6.0bn, with a weighted average unexpired lease term of 10.8 years, occupancy of 99% and approximately 76% of income backed by government tenants. Management expects further growth from rebasing primary care rents, expanding exposure to private hospital assets and increasing activity in Ireland. The company also confirmed a progressive dividend policy, marking the start of its 30th consecutive year of dividend increases.
The group’s outlook is supported by solid underlying fundamentals, including rising revenue and strong free cash flow generation. However, leverage levels and earnings volatility remain considerations. Valuation appears attractive with a relatively high dividend yield and moderate P/E ratio, while technical indicators show constructive share price momentum despite slightly stretched conditions. Corporate developments, including the completed Assura merger and governance enhancements, also contribute to a positive investment case.
More about Primary Health Properties plc R.E.I.T
Primary Health Properties is a UK-listed real estate investment trust specialising in healthcare infrastructure, particularly modern primary care facilities. Following its merger with Assura, the group’s portfolio has expanded to include private hospitals across the UK and Ireland. Much of its rental income is supported by long-term leases with NHS and related healthcare organisations, positioning the company as a key provider of social infrastructure with a 30-year track record of uninterrupted dividend growth.
Leave a Reply