Primary Health Properties (PHP) H2 2025 earnings summary

Executive summary

• Completed transformational merger with Assura PLC, creating the UK's largest healthcare REIT with a £6bn portfolio and 1,142 assets, doubling portfolio size and enhancing strategic capabilities.

• Achieved 4% growth in adjusted earnings per share and marked the 30th consecutive year of dividend growth, with strong financial and operational performance.

• Integration of the merged businesses is ahead of schedule, with over £7.5m of £9m cost synergies already delivered.

• Portfolio remains resilient with 99% occupancy, 11-year WAULT, and 76% government-backed income.

• Strategic focus on deleveraging through joint ventures and asset transfers, with strong progress reported.

Financial highlights

• Adjusted earnings per share increased by 4% year-over-year to 7.3p; adjusted earnings up 41% to £131m.

• Gross annual passing rent roll increased 122% to £342m; net rental income up 49% to £230m.

• Portfolio revaluation gain of £48m, reversing a £38m deficit in the prior year, driven by rental growth.

• EPRA NTA per share at 99p, down 4% due to one-off merger costs; adjusted NTA at 104p.

• Dividend per share up 3% to 7.1p, marking 30 years of consecutive growth and an 8% CAGR.

Outlook and guidance

• Confident in delivering full £9m synergy target in H1 2026, with full-year earnings impact in FY27.

• Targeting leverage reduction to below 50% LTV and net debt-to-EBITDA below 9.5x.

• Expecting continued organic rental growth above 3% and strong sector tailwinds.

• Positioned to support UK Government’s 10-year health plan and NHS infrastructure investment.

• Integration synergies and development pipeline expected to drive future earnings.