Wrap Text
Primary Health Properties PLC
(Incorporated in the United Kingdom)
Company Number: 3033634
LSE Share Code: PHP
JSE Share Code: PHP
ISIN Code: GB00BYRJ5J14
LEI: 213800Y5CJHXOATK7X11
("PHP" or the "Company")
13 January 2026
Trading update & notice of interim dividend
Company's 30th anniversary of consecutive dividend growth
Primary Health Properties PLC, the UK's leading investor in modern primary healthcare facilities, today
publishes a trading update for the year ended 31 December 2025 and announces the first 2026
quarterly interim dividend of 1.825 pence per ordinary share, equivalent to 7.3 pence (2025: 7.1 pence)
on an annualised basis, marking the Company's 30th anniversary of consecutive dividend growth.
Highlights
' Transformational combination between PHP and Assura successfully delivered, creating a #6
billion healthcare REIT
' 60% of total annualised synergies of #9 million, identified at time of the deal, already delivered
in the c. 2 months since Competition and Markets Authority ("CMA") clearance, as integration
moves forward at pace and benefits of the deal are delivered for shareholders
' Rent reviews in the year generated an additional #8.3 million, an increase of 6.8% over the
previous passing rent or 3.2% on an annualised basis, which supports our positive rental growth
outlook. Annualised contracted rent roll now stands at #342 million
' Enlarged Group is now well placed to take advantage of the improving rental growth outlook
across primary care and private hospitals, with six developments on site and an advanced
pipeline of 51 asset management projects
' Good progress is being made on expanding the existing joint ventures and establishing a
strategic joint venture for our private hospital portfolio where we see exciting growth
opportunities
' Strong support from the debt and credit markets for the combination with the refinancing of
Assura debt facilities, subject to change of control clauses, now completed providing the
enlarged Group with significant undrawn liquidity headroom, after capital commitments, of #552
million, a weighted average cost of debt of 3.7% and debt maturities of just over four years
Mark Davies, CEO of PHP, commented:
"2025 was a transformational year for PHP, obtaining overwhelming shareholder and wider stakeholder
support for the combination with Assura plc ("Assura") to create a #6 billion healthcare REIT invested
in critical social infrastructure across the UK and Ireland which will deliver financial and strategic benefits
to our stakeholders. Our immediate focus is now on delivering the post-transaction objectives of
reducing leverage back to our targeted range of 40% to 50%; delivering the #9 million of annualised
synergies identified; and integrating the two businesses to achieve the best of both organisations.
"We are delighted to be reporting that, despite only two months since CMA clearance on 29 October
2025, we have made good progress on delivering against the above objectives and we expect to report
further progress with the Group's full year results.
"The NHS's 10-year Health Plan published in July 2025 is clearly positive for PHP. We welcome the
Government's commitment to strengthening the NHS, particularly its emphasis on shifting more
services to modern primary care facilities embedded in local communities, enhanced by the NHS
Neighbourhood Rebuild programme announced in the Autumn Budget. This plays directly to our
strengths and long-standing partnerships across the NHS give us a strong foundation to support this
transition and deliver value to our shareholders.
"We have now achieved PHP's 30-year anniversary of consecutive dividend growth and approach the
future with a dedicated determination to continue growing our dividend on a fully covered basis. We are
encouraged by the improving rental growth outlook underpinned by the Group's primary care assets
along with the solid trading performance from the recently acquired private hospital portfolio."
Combination with Assura
The acquisition of Assura was completed in full on 20 October 2025 when the final 2% of Assura shares
were legally acquired and Phase 1 clearance from the CMA was received on 29 October 2025 which
enabled integration of the two businesses to commence.
In the short space of time since CMA clearance, we have made strong progress and delivered
annualised cost synergies totalling #5.4 million or 60% of the target, which has been achieved primarily
through a reduction in people costs and elimination of duplicated professional fees.
The fair value of the total consideration paid for the acquisition of Assura was just over #1.6 billion
funded through the issue of 1.26 billion new ordinary shares of 12.5 pence each, at a weighted average
price of 93.0 pence per share, equivalent to #1,171 million, cash consideration of #407 million and
transaction costs including stamp duty of #42 million.
Strategy and financial framework
The transaction has created a UK REIT of significant scale and liquidity with a combined portfolio of
approximately #6 billion of long leased, sustainable infrastructure assets principally let to government
tenants and leading UK healthcare providers benefiting from increased income security, longevity,
diversity of assets, geography and mix of rent review types.
To support the combined Group's progressive dividend policy, paid on a quarterly basis, we have set
out our strategy and financial framework which will focus on:
' 80% to 90% government backed income target with new or regeared leases typically in excess
of 20 years
' Organic rental growth greater than 3% to deliver sector leading, risk adjusted total property
returns
' Risk controlled and capital light asset management and development projects
' Targeting a strong investment grade credit rating of BBB+ or better
' LTV target of 40% to 50%
' Net debt : EBITDA target of less than 9.5x
' Interest cover target of greater than 2.5x net rental income with more than 90% of debt fixed or
hedged
' Strong control on costs and overheads with one of the lowest EPRA cost ratios in the sector at
below 10%
Joint ventures and disposals
A full portfolio review is currently ongoing and as previously reported we aim to establish new strategic
joint ventures and deliver further disposals to achieve our goal to reduce leverage back to our targeted
range of 40-50%.
We continue to make good progress regarding opportunities for both existing joint ventures within
primary care real estate and with several highly credible counterparties regarding options for a potential
joint venture for the private hospital portfolio. We are excited about the prospect of continuing to build
joint ventures of size and scale which will bring financial benefits to all parties while supporting
investment in critical healthcare infrastructure and generating positive social impact across the UK.
Following completion of the combination with Assura the enlarged Group has sold four non-core assets
for #8.3 million.
Robust portfolio metrics
The security and longevity of our income are important drivers of our secure, long term predictable
income stream and enable our progressive dividend policy.
The annualised contracted rent roll of the Group's enlarged portfolio at 31 December 2025 was #342
million and the key portfolio metrics are summarised in the table at Appendix 1.
Rental growth
The enlarged Group's sector-leading metrics remain robust and we continue to focus on delivering the
organic rental growth that can be derived from our existing assets. This growth arises mainly from rent
reviews and asset management projects (extensions, refurbishments and lease re-gears). These
initiatives provide an important opportunity to increase income, extend lease terms and avoid
obsolescence whilst ensuring that our properties continue to meet their communities' healthcare needs,
improve their ESG credentials and ensure they also play a crucial role in helping the Government fulfil
its 10-year Health Plan.
In the year ended 31 December 2025, both the PHP and Assura portfolios have continued to see strong
organic rental growth on a like-for like basis with total income increasing by #9.1 million or 2.7% (PHP:
#4.1 million or 2.6%; Assura: #5.0 million or 2.8%) continuing the improving rental growth outlook seen
over recent years.
Rent review performance
In the year ended 31 December 2025, the enlarged Group generated an additional #8.3 million of extra
rental income from its rent review activities, both in the UK and in Ireland.
Importantly, the Company continues to see an improving open market rent review performance for
primary care assets with an additional #2.7 million an increase of 6.5% over the previous passing rent
completed across 324 reviews.
The growth from rent reviews completed by both PHP and Assura in 2025 is summarised below:
Previous rent Rent increase Increase Increase
(per annum) (per annum) total annualised
Review type Number # million # million % %
Primary care ' open market1 324 42.0 2.7 6.5% 2.1%
Primary care ' indexed 249 33.2 3.1 9.4% 4.6%
Primary care ' fixed 47 7.9 0.4 4.8% 2.1%
Primary care ' total 620 83.1 6.2 7.5% 3.1%
Private hospitals ' indexed / fixed 20 34.1 1.1 3.2% 3.2%
UK - total 640 117.2 7.3 6.2% 3.1%
Ireland ' indexed 25 4.7 1.0 20.9% 4.1%
Total ' all reviews 665 121.9 8.3 6.8% 3.2%
1 ' includes 36 reviews where no uplift was achieved.
Asset management performance
The Group continues to progress an advanced pipeline of 51 projects across the enlarged Group which
highlight the improving rental growth outlook with the current weighted average rent of #189 psm due
to increase by around 15% to #218 psm post completion. These projects provide important evidence
for future rent review settlements across the wider portfolio.
In the UK, across both the PHP and Assura portfolios we exchanged on eight new asset management
projects, 21 lease re-gears and 20 new lettings during the year. These initiatives will increase rental
income by #0.8 million, investing #5.0 million and extending the leases back to an average of 17 years
for the asset management projects.
The Company will continue to invest capital in a range of physical extensions or refurbishments through
asset management projects which help avoid obsolescence, including improving energy efficiency, and
which are key to maintaining the longevity and security of our income through long-term occupier
retention, increased rental income and extended occupational lease terms, adding to both earnings and
capital values.
Development
During the year, PHP completed two net zero carbon developments at Croft, West Sussex and South
Kilburn, London. Assura completed three schemes in 2025 including a net zero carbon development of
an NHS children's therapy centre at Fareham, Hampshire, a GP medical centre development in
Winchester, Hampshire and a primary care centre in Ballybay, Ireland.
The enlarged Group has an improved development capability at a time the sector needs new buildings
and is currently on site with six developments which are summarised in the table below:
Est. practical Total Cost to Yield on
completion cost complete cost
Birr primary care centre, Ireland Q2 2026 #13.0m ('15.0m) #2.9m ('3.3m) 5.1%
Castlebar primary care centre, Ireland Q4 2026 #13.6m ('15.7m) #6.3m ('7.2m) 5.3%
Youghal primary care centre, Ireland Q1 2027 #13.9m ('16.0m) #10.5m ('12.0m) 4.6%
Private hospital, Peterborough Q1 2027 #20.8m #17.2m 6.1%
Tetbury Primary Care Centre Q4 2026 #1.0m1 #0.8m1 5.5%
Weston-super-Mare PCC Q3 2027 #2.3m1 #1.8m1 5.1%
Total #64.6m #39.5m 5.4%
1 ' Joint ventures at share
We continue to monitor a number of potential development opportunities with a pipeline across primary
care in both the UK and Ireland and private hospitals. These will only be progressed if accretive to
earnings and they deliver the appropriate risk adjusted returns.
Financing
We received strong support for the combination with Assura from the debt and credit markets
highlighted by the record amount of financing activity in the year including:
' The transaction was funded by way of a new #1.225 billion unsecured bridging loan provided by
Citibank, N.A., London Branch, Lloyds Bank plc and The Royal Bank of Scotland Plc. We have
subsequently cancelled #225 million of this facility due to the refinancing work noted below with
#1.0 billion of the facility now remaining
' Change of control waivers obtained plus term extensions to the unsecured Assura #266 million
term-loan and #200 million revolving credit facility
' #357 million of Assura private placement debt, subject to change of control clauses, has been
refinanced since completion of the acquisition, through a combination of a new unsecured euro
denominated private placement debt and re-couponing of an existing unsecured loan note, as
follows:
o A new '120 million (#105 million) private placement loan, maturing in November 2032, has been
issued at an all-in fixed rate of 3.89% providing a natural currency hedge for the Assura Irish
property portfolio and the Laya Healthcare Facility, Cork acquired for '22 million in February
2025
o #60 million tranche maturing October 2034 has been refinanced and re-couponed at an all-in
rate of 5.60%
o The balance of the private placement debt, including #70 million that matured in October 2025,
has been repaid from the bridging facility put in place to finance the acquisition of Assura
' Total debt facilities at 31 December 2025 of #4.0 billion comprising #1.5 billion (37%) of PHP
secured facilities and #2.5 billion (63%) of unsecured facilities including the bridging loan provided
to finance the combination with Assura
' Net debt drawn at 31 December 2025 of #3.4 billion, with an average weighted maturity of just over
four years, providing significant liquidity headroom with cash and collateralised undrawn loan
facilities totalling #552 million after capital commitments of #56 million across the development and
asset management projects currently on site.
' Weighted average interest rate of 3.7% at 31 December 2025
' Fitch confirmed Assura's credit rating as BBB+ (negative outlook) from A- following completion of
the merger reflecting the execution risk of the planned asset disposals
Notice of interim dividend
The Company announces the first quarterly interim dividend in 2026 of 1.825 pence per ordinary share,
equivalent to 7.3 pence on an annualised basis, which represents an increase of 2.8% over the dividend
per share distributed in 2025 of 7.1 pence and will mark the 30th year of consecutive dividend growth
for PHP.
The 1.825 pence dividend will be paid by way of a Property Income Distribution ("PID") of 1.325 pence
and an ordinary dividend of 0.500 pence on 13 March 2026 to shareholders on the register on 30
January 2026.
The Company intends to maintain its strategy of paying a progressive dividend, paid in equal quarterly
instalments, that is covered by adjusted earnings in each financial year. Further dividend payments are
planned to be made on a quarterly basis in May, August and November 2026 which are expected to
comprise a mixture of both PID and normal dividend.
The Company also confirms that shareholders may participate in a dividend reinvestment plan ("DRIP")
in respect of the current interim dividend and any future dividends. The DRIP is provided by Equiniti
Financial Services Limited ("Equiniti FS") and administered by PHP's registrars, Equiniti Limited
("Equiniti"), and provides shareholders with the opportunity to reinvest dividend payments to purchase
additional ordinary shares in PHP in the market.
Shareholders who hold their ordinary shares in certificated form and who wish to participate in the DRIP
will need to ensure that a completed DRIP Application Form is received by Equiniti no later than 5:00pm
on 20 February 2026 (the "Election Date"). Shareholders who hold their ordinary shares in CREST and
who wish to participate in the DRIP must do so by submitting an election by CREST input message by
the Election Date.
The key dates for the dividend are detailed in the timetable below:
Timetable
Ex-dividend date 29 January 2026
Record date 30 January 2026
Latest date for receipt by Equiniti of DRIP Application Forms and input 5.00 p.m. on 20 February 2026
of CREST elections
Dividend payment date/CREST credit date 13 March 2026
Estimated DRIP purchase date 13 March 2026
DRIP shares credited/certificates posted 18 March 2026
A separate announcement with additional information concerning shares held on the Johannesburg
Stock Exchange has been published via the SENS system.
Board changes
As previously reported, Jonathan Davies was appointed as an independent Non-executive Director
effective from 1 December 2025. Jonathan brings a deep understanding of Assura, having served as
its Senior Independent Director and, latterly, Chair providing the Company's stakeholders with
continuity during the integration period and beyond.
Jonathan Murphy, Jayne Cottam and the other non-executive directors of Assura have left the business.
Appointment of Shore Capital as broker
The Company has appointed Shore Capital as corporate broker acting alongside existing brokers
Deutsche Numis and Peel Hunt. JP Morgan Cazenove are no longer a retained broker.
Analyst webcast and conference call:
A live webcast and conference call facility for analysts will be held today, at 10.00am (12.00pm SAST)
via.
Webcast: https://brrmedia.news/PHP_TU
Telephone: +44 (0) 33 0551 0200 / quote PHP if prompted by the operator.
If you would like to register your interest in attending the meeting, please contact Sodali & Co
at PHP@client.sodali.com.
Appendix 1 ' Key portfolio metrics
Primary care Primary care Private Joint ventures1 /
Total
UK Ireland hospitals other
Number of assets 1,059 28 33 22 1,142
Value (approx.) #4.9bn #0.3bn #0.7bn #0.1bn #6.0bn
Rent roll (#m) 275.0 20.1 44.1 2.7 341.9
WAULT (years) 8.4 16.1 22.0 19.5 11.0
Review type
OMV 75% 2% 2% 6% 60%
Indexed 20% 97% 87% 73% 34%
Fixed 5% 1% 11% 21% 6%
Total 100% 100% 100% 100% 100%
Covenant type
GP / Government 87% 90% - 95% 76%
Pharmacy 9% 6% - 4% 7%
Nuffield - - 38% - 5%
Circle - - 16% - 2%
Spire - - 14% - 2%
Ramsay - - 13% - 2%
Genesis - - 7% - 1%
HCA - - 5% - 1%
PPG - - 3% - 0%
Laya (Ireland) - - 3% - 0%
Other 4% 4% 1% 1% 4%
Total 100% 100% 100% 100% 100%
Income expiry
Holding over (#m) 15.8 - - - 15.8
< 3 years (#m) 41.5 - 0.4 - 41.9
4 ' 5 years (#m) 45.0 - 0.4 - 45.4
5 ' 10 years (#m) 80.9 - 0.5 0.1 81.5
10 ' 15 years (#m) 47.7 4.5 3.3 0.9 56.4
15 ' 20 years (#m) 29.5 8.6 2.8 0.6 41.5
20 - 25 years (#m) 12.1 5.2 18.3 0.4 36.0
> 25 years (#m) 2.5 1.8 18.4 0.7 23.4
Total (#m) 275.0 20.1 44.1 2.7 341.9
1 ' Joint ventures at share
- Ends -
For more information, please contact:
PHP Via Sodali & Co
Mark Davies, CEO
Richard Howell, CFO
David Purcell, Investor Relations
Sodali & Co Email: PHP@client.sodali.com
Elly Williamson Tel: +44 (0)207 250 1446
Louisa Henry
Saskia Bottomley
Further information is available at www.phpgroup.co.uk
The Company has a primary listing on the London Stock Exchange and a secondary listing on the JSE Limited.
United Kingdom
Sponsor: PSG Capital
Date: 13-01-2026 09:00:00
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