Primary Health Properties (PHP) Trading update summary

Strategic and financial performance

• Achieved strong Q1 2026 performance with organic rental growth adding £3 million income, a 3.4% annualized increase over 2025.

• Annualized contracted rent roll increased to £345 million, up from £342 million in 2025.

• Continued focus on asset management, risk-controlled development, and integration post-Assura combination.

• Targeting leverage reduction to 40–50% and net debt/EBITDA below 9.5x, with progress ahead of schedule.

Portfolio and development updates

• Progressed establishment of a new private hospital vehicle to reduce gearing, with a transaction expected summer 2026.

• Ongoing transfer of £103 million in assets to a primary care joint venture, expected to complete by July 2026.

• Six development schemes underway, including UK, Ireland, and private hospital projects, all on track for 2026–2027 completion.

• Engaged with NHS on Neighbourhood Health Centres, with three existing assets included in the first wave.

Cost synergies and operational efficiency

• Delivered £7.8 million of annualized cost synergies, 87% of the £9 million target.

• Initiated a rationalization program to rightsize the enlarged group.

• Continued focus on driving growth and efficiencies across the enlarged portfolio.