Primary Health Properties PLC (LSE:PHP) reported a strong set of first-half 2026 results, with higher rental income and earnings driven by its merger with Assura and the continued resilience of its £6.0 billion healthcare property portfolio. The company, which focuses on healthcare real estate across the UK and Ireland, also made significant progress in reducing costs, strengthening its balance sheet and enhancing shareholder returns.
Net rental income increased substantially during the six months ended June 30, while adjusted earnings also rose sharply as the benefits of the Assura combination began to flow through. The portfolio continued to deliver stable performance, supported by high occupancy levels, long-term leases and a tenant base that is largely backed by government-funded healthcare organizations.
Merger Synergies and Debt Refinancing Progress
PHP said it has already delivered approximately 92% of its targeted annual cost synergies from the Assura acquisition, helping reduce its operating cost ratio to one of the lowest among UK real estate investment trusts.
The company also completed several strategic initiatives aimed at strengthening its financial position. These included establishing major joint ventures to recycle capital and lower leverage, as well as refinancing £1.2 billion of debt facilities. Management said these actions have improved financial flexibility while preserving the value of the group’s property portfolio.
Dividend Growth Continues
The board increased the company’s dividend for the 30th consecutive year, extending one of the longest records of annual dividend growth in the UK listed property sector.
Management said the combination of stable government-backed rental income, operational efficiencies and disciplined capital management positions PHP to continue generating reliable income and long-term value for shareholders.
Investment Outlook
Primary Health Properties continues to benefit from an attractive valuation, supported by a relatively high dividend yield and a moderate price-to-earnings ratio. However, investors remain mindful of higher leverage following the Assura acquisition, while free cash flow weakened significantly during 2025. Technical indicators also remain subdued, with the shares trading below key moving averages and momentum remaining negative. Even so, the company’s resilient healthcare property portfolio and consistent income profile continue to underpin its long-term investment appeal.
About Primary Health Properties
Primary Health Properties PLC (LSE:PHP) is a UK-listed real estate investment trust specializing in healthcare properties across the UK and Ireland. Its portfolio includes primary care centres, private hospitals and other healthcare facilities, with approximately 76% of rental income supported by government-backed tenants and long-term lease agreements.
Following its merger with Assura, the company has expanded its scale while improving operational efficiency through cost synergies and capital recycling initiatives. PHP remains focused on delivering dependable rental income, maintaining a strong balance sheet and providing shareholders with sustainable, progressive dividend growth through investment in essential healthcare infrastructure.
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