Wrap Text
Trading and financial update for the six months ended 30 June 2025
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")
THIS ANNOUNCEMENT AND THE INFORMATION HEREIN IS NOT FOR RELEASE, PUBLICATION OR
DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES,
AUSTRALIA, CANADA, JAPAN, NEW ZEALAND OR ANY OTHER JURISDICTION WHERE TO DO SO
WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT
JURISDICTION.
THIS ANNOUNCEMENT IS AN ADVERTISEMENT AND NOT A PROSPECTUS OR PROSPECTUS
EQUIVALENT DOCUMENT AND NO INVESTMENT DECISION IN RELATION TO THE OFFER OR THE NEW
PHP SHARES SHOULD BE MADE EXCEPT ON THE BASIS OF INFORMATION IN THE OFFER DOCUMENT,
THE REVISED OFFER DOCUMENT, THE COMBINED CIRCULAR AND PROSPECTUS AND THE
SUPPLEMENTARY PROSPECTUS.
Trading and financial update for the six months ended 30 June 2025
PHP positioned for secure income and valuation growth supporting its progressive
dividend policy
Primary Health Properties PLC, a leading investor in modern primary care facilities in the
UK and Ireland announces an unaudited trading update, including the key financial
highlights, for the six months ended 30 June 2025.
- Improving rental growth and stabilisation in yields underpin valuation growth,
further evidencing an inflexion point in the cycle
- 10-Year Health Plan for England supports investment in primary healthcare estate
as a social infrastructure asset, with a clear pathway to future growth
- PHP is excited about the compelling market backdrop for the Group and
opportunities ahead
Mark Davies, Chief Executive O icer ("CEO") of PHP commented:
"At a pivotal time for our sector, PHP has delivered a strong operational and financial
performance driven by rental growth across our portfolio, a value-accretive acquisition in
Ireland, valuation gains and another period of dividend growth. The improving rental
growth outlook and a stabilisation of our property yields at 5.25% signal that we've moved
through a key inflexion point in the property cycle with a very encouraging outlook ahead.
The 10 year Health Plan which was published last week 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. This plays directly to our strengths and our long standing partnerships
across the NHS give us a strong foundation to support this transition and deliver value to
our shareholders.
We continue to believe in the compelling strategic and financial rationale for the
recommended combination with Assura plc. The transaction is expected to be earnings
accretive for both sets of shareholders and we were pleased to have secured strong
support for the transaction from PHP shareholders at our general meeting last week with
over 99% of voting shareholders approving the proposed combination. This is a clear
endorsement of the Company's ability to deliver a financially beneficial transaction that
is strategically valuable, supported by an expected strong investment grade credit rating
that will deliver future value to shareholders and underpin the Group's progressive
dividend policy.
Since the announcement of the Assura plc recommendation, we've been discussing
forming a joint venture, which is expected to include the private hospital portfolio.
Conversations are ongoing with a range of high quality investors and we remain confident
of our ability to conclude a transaction in a timely manner post completion.
From day one the combined group will o er a powerful platform with greater scale,
enhanced income and valuation growth potential and a lower cost of capital-all
underpinned by a clear and important social purpose. The proposed combination also
positions us strongly to invest in the future of healthcare infrastructure and we will have
the financial capacity and Government support to help deliver it".
Recommended combination with Assura
On 16 May 2025, PHP announced a firm intention to make a share and cash o er for the
entire issued share capital of Assura pursuant to Rule 2.7 of the Takeover Code and on
13 June 2025 posted an o er document to Assura shareholders along with a combined
circular and prospectus to PHP shareholders.
Subsequent to the above, on 23 June 2025, the Boards of both PHP and Assura
announced the terms of a recommended combination which will be implemented by way
of an increased shares and cash o er. Under the increased terms of PHP's o er, Assura
shareholders will receive for each share held 0.3865 new PHP shares and 12.5 pence in
cash. Assura shareholders will be entitled to receive a special dividend of 0.84 pence per
Assura share in addition to the dividends, each of 0.84p, already declared and paid in
April 2025 and to be paid on 9 July 2025. The o er is not conditional on any antitrust,
competition or merger control approvals.
On 1 July 2025, PHP's general meeting was held to approve the transaction with 99.3% of
shareholders who voted approving the proposed combination which is a strong
endorsement of the transaction.
The transaction will create 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 an attractive 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
- Focus on 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%
- 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
A return to PHP and Assura's long term trading valuations could potentially deliver
significant share price valuation upside for shareholders, whilst also benefiting from
capital growth and a growing dividend.
PHP encourages all Assura shareholders to accept the PHP o er and to make a mix
and match election. Further details including completion and return of the Form of
Acceptance and Election or making of an Electronic Acceptance ahead of the
deadline on 12 August 2025 can be found on the Group's website:
https://www.phpgroup.co.uk/investors/o er-for-assura-plc. If you have any
questions in relation to this o er please telephone the Receiving Agent, Equiniti
Helpline on +44 (0) 371 384 2414.
The NHS 'fit for the future' 10-year health plan for England
The UK Government's 10-year plan for the NHS in England was launched on 3 July 2025,
to create a new model of care fit for the future, setting out three radical shifts - from
hospital to community, analogue to digital, and sickness to prevention.
- The move from hospital to community will be delivered through a 'neighbourhood
health service' that will join up multiple services through local teams to make them
patient focused, accessible and, in time, to o er predictive and preventitive care,
anticipating need rather than reacting to it.
- The move to digital will be through the NHS app to improve patient access to services
and control their data in a single patient record.
- The move from sickness to prevention will include an ambition to end obesity,
incentivisation of healthier choices, better support for people to find and stay in work,
an expansion of mental health support and increased use of genomics to enable
intervention for people at high risk of developing disease.
There is a clear theme of reducing the reliance on hospitals and an accompanying
commitment to shift expenditure away from expensive hospital care. Consequently, the
plan should be a catalyst for unlocking significant future opportunities in primary care
and community diagnostics.
In support of the shift from hospital to community, the plan outlines the development of
neighbourhood health centres ("NHC") in every community acting as a 'one stop shop'
for patient care and the place from which multidisciplinary teams operate. The objective
of NHC's is to create an o er that meets population needs holistically by co-locating
NHS, local authority and voluntary sector services, bringing historically hospital based
activities such as diagnostics, post-operative care and rehabilitation into the community
but also o er a variety of services such as smoking cessation, weight management,
employment support and debt advice providing convenient access to services,
particularly for those with complex needs, but will also support more integrated working
by healthcare and allied professionals. Importantly, much of the existing UK primary care
infrastructure is incapable of facilitating these broad, multi-disciplinary services in the
community.
The creation of NHCs will therefore mandate the improved utilisation of existing assets
and the delivery of new premises. The plan recognises that private capital, including third
party development, will be essential to the delivery of the new estate and proposals for a
new plan to support the establishment of an NHC in every community is expected with
the Autumn 2025 Budget.
PHP is strategically well placed to assist and support the government and NHS with the
NHC programme by enhancing its existing estate through both the Group's pro-active
asset management and development activities.
Financial and operational highlights for the six months ended 30 June 2025
Income statement and financial metrics Six months to Six months to
30 June 2025 30 June 2024 Change
Net rental income £78.6m £76.2m +3.1%
Adjusted earnings £47.3m £46.3m +2.2%
Adjusted earnings per share 3.54p 3.46p +2.3%
IFRS profit for the period £59.4m £3.6m
IFRS earnings per share 4.4p 0.3p
Dividends
Dividend per share 3.55p 3.45p +2.9%
Dividends paid £47.4m £46.1m +2.8%
Dividend cover 100% 100%
Balance sheet and operational metrics 30 June 31 December
2025 2024 Change
Adjusted NTA per share 106.2p 105.0p +1.1%
IFRS NTA per share 104.0p 103.0p +1.0%
EPRA NDV per share 113.9p 114.1p -0.2%
Property portfolio
Investment portfolio valuation £2.81bn £2.75bn +0.7%
Net initial yield ("NIY") 5.25% 5.22% +3bps
Contracted rent roll (annualised) £157.7m £153.9m +2.5%
Weighted average unexpired lease term ("WAULT") 9.1 years 9.4 years
Occupancy 99.1% 99.1%
Rent-roll funded by government bodies 88% 89%
Debt
Average cost of debt 3.4% 3.4%
Loan to value ratio ("LTV") 48.6% 48.1%
A glossary of the above terms is available on pages 166 to 168 of the 2024 Annual Report. For the purposes of Rule 29.1(a) and Rule
29.2(a) of the Takeover Code, updated valuations of PHP's property portfolio supported by valuation reports have been produced by
each of CBRE, Avison Young and Knight Frank as external valuers (as defined by the Royal Institution of Chartered Surveyors' Valuation
- Global Standards (2022)) as at 30 June 2025 pursuant to the requirements of Rule 29 of the Takeover Code and will promptly be
available on PHP's website at www.phpgroup.co.uk.
Rental growth
We have continued to focus on delivering organic rental growth derived from our existing
assets. This growth arises mainly from rent reviews and asset management projects with
income increasing by £2.2 million or 1.4% in the six-month period (H1 2024: £1.8 million
or 1.2%). The progress continues the improving rental growth outlook seen over the last
couple of years.
Rent review performance
In the six months to 30 June 2025, the Company generated an additional £2.1 million (Q1
2024: £1.6 million; Q2 2024: £1.6 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 with an additional £0.8 million (H1 2024: £0.6 million; H2 2024: £0.8 million)
an increase of 7.6% over the previous passing rent completed across 86 reviews. This
includes 37 open market value rent reviews arising in 2022, 2023 and 2024 which
delivered an increase of 12.3% over the previous passing rent or 3.6% on an annualised
basis.
The growth from rent reviews completed in the period is summarised below:
Rent
Previous rent increase
% increase % increase
(per annum) (per annum) total annualised
Review type Number £ million £ million % %
UK – open market1 86 10.8 0.8 7.6% 2.3%
UK – indexed 63 7.6 0.7 8.5% 4.0%
UK – fixed 13 3.6 0.2 6.1% 2.6%
UK – total 162 22.0 1.7 7.7% 3.0%
Ireland – indexed 14 2.7 0.4 16.0% 3.4%
Total – all reviews 176 24.7 2.1 8.6% 3.0%
1
– includes 20 (H1 2024: 24) reviews where no uplift was achieved.
Asset management
The Group continues to progress an advanced pipeline of 43 projects (31 December
2024: 37 projects) which highlight the improving rental growth outlook with the current
weighted average rent of £195psm due to increase by around 15% to £223psm post
completion. These projects provide important evidence for future rent review
settlements across the wider portfolio.
In the UK, we exchanged on two (H1 2024: three) new asset management projects, three
(H1 2024: seven) lease re-gears and two (H1 2024: three) new lettings during the period.
These initiatives will increase rental income by £0.12 million, investing £2.2 million and
extending the leases back to 18 years.
Valuation and returns
In the period, we have continued to see values stabilise (see table below) with yield
expansion continuing to moderate and the impact of rental growth outweighing yield
shift. This continues the trend experienced in the second half of 2024 and we expect this
to continue in the future.
As at 30 June 2025, the Group's portfolio comprised 517 assets (31 December 2024: 516)
independently valued at £2.81 billion (31 December 2024: £2.75 billion). After allowing
for acquisition costs and capital expenditure on developments and asset management
projects, the portfolio generated a valuation surplus of £19.8 million or +0.7%, equivalent
to 1.5 pence per share.
During the period, the Group's portfolio NIY has expanded by 3bps to 5.25% (31
December 2024: 5.22%) and the reversionary yield remains unchanged at 5.6% (31
December 2024: 5.6%).
The movement in the portfolio's valuation over the last three six monthly periods is
summarised below and follows on from several years of valuation declines as a result of
the higher interest rate environment.
£ million H1 2025 H2 2024 H1 2024
NIY expansion (£9.0) / +3bps (£28.6) / +4 bps (£73.0) / +13 bps
Rental growth £28.8 £30.2 £33.0
Total surplus / £19.8 £1.6 (£40.0)
(deficit)
We continue to see evidence of an improving market for healthcare real estate both in the
UK and Ireland which are increasingly viewed as social infrastructure assets with a
growing rental income stream considered secure, long and predictable. There are new
pools of capital looking at the asset class including global infrastructure funds, pension
funds and life assurance companies most of whom manage large pools of capital at a
lower cost. This improved liquidity is likely to enhance asset valuations in the future.
The total property returns generated by the portfolio in the period are set out below:
H1 2025 H1 2024 FY 2024
Income return 2.9% 2.8% 5.5%
Capital return 0.7% (1.4%) (1.3%)
Total return 3.6% 1.4% 4.2%
Ireland
As previously reported, in February 2025 the Group acquired the Laya Healthcare facility,
Cork, Ireland for €22.0 million / £18.2 million delivering an earnings yield of 7.1%. The
private medical facility is let to Laya Healthcare, Ireland's second largest provider of
private health insurance and clinical services providing a bespoke urgent care and
diagnostic facility providing some of the best medical technology available in Ireland, and
has been subject to a comprehensive tenant led, €6 million, fit-out to provide a number
of services including X-ray, MRI, CT, Ultrasound and Dexa scanning and is open 365 days
of the year with patients guaranteed to be seen within one hour. The property also
provides space for several health and wellbeing clinics providing access to a number of
expert teams and services and also acts as the headquarters for Laya Healthcare in
Ireland.
At 30 June 2025, the portfolio in Ireland comprised 22 standing and fully let properties
with no developments currently on site, valued at £292.6 million or €340.9 million (31
December 2024: 21 assets/£255.3 million or €308.6 million). The portfolio in Ireland has
been valued at a NIY of 5.1% (31 December 2024: 5.0%).
PHP continues to see significant growth opportunities in Ireland driven by sustained
Government investment in primary care infrastructure and a strategic shift towards
community-based healthcare. We continue to monitor a number of potential
opportunities in Ireland and in particular three forward funded developments with an
expected cost of approximately €75 million being progressed by our development partner
in Ireland.
Development
In July 2025, the Group completed work on a development scheme at South Kilburn,
London, where we worked with both the local council and ICB, each contributing £0.5
million, to make the scheme economically viable. The scheme comprises the fit-out of a
shell unit, being constructed to net zero carbon ("NZC") standards, for a total cost of £3.3
million net of the £1.0 million capital contribution which equates to a 26% uplift in the
rent originally set by the District Valuer.
The NZC development, Croft Primary Care Centre, West Sussex, is also due to complete
imminently. All further development activity has currently been placed on hold whilst
negotiations with the NHS, ICBs and DVs continue to increase rental levels to make
schemes economically viable with rental values needing to increase by around 20%-
30%.
Financing
The Group's balance sheet and financing position remain strong with cash and
committed undrawn facilities totalling £107.3 million (31 December 2024: £270.9
million) after contracted capital commitments of £12.7 million (31 December 2024:
£36.3 million) and the planned repayment of the £150 million convertible bond maturing
on 15 July 2025.
At 30 June 2025, total available loan facilities were £1,636.8 million (31 December 2023:
£1,630.4 million) of which £1,377.2 million (31 December 2024: £1,326.7 million) had
been drawn. Cash balances of £10.4 million (31 December 2024: £3.5 million) resulted
in Group net debt of £1,366.8 million (31 December 2024: £1,323.2 million). Contracted
capital commitments at the balance sheet date totalled £12.7 million (31 December
2024: £36.3 million) and comprise asset management projects of £12.3 million and
development expenditure on the one scheme on site of £0.4 million.
The Group's key debt metrics are summarised in the table below:
Debt metrics 30 June 2025 31 December
2024
Average cost of debt – drawn 3.4% 3.4%
Average cost of debt – fully drawn 3.9% 4.0%
Loan to value 48.6% 48.1%
Total net debt fixed or hedged 100.0% 100.0%
Net rental income to net interest cover 3.1 times 3.1 times
Net debt / EBITDA 9.4 times 9.3 times
Weighted average debt maturity – drawn facilities 5.1 years 5.7 years
Weighted average debt maturity – all facilities 4.5 years 4.9 years
Total undrawn facilities and available to the Group £107.3m £270.9m
Dividends
The Company distributed a total of 3.55 pence per share in the six months to 30 June
2025, equivalent to 7.1 pence on an annualised basis, which represents an increase of
2.9% over the dividend per share distributed in 2024 of 6.9 pence. This will mark the 29th
year of consecutive dividend growth for PHP.
A third quarterly interim dividend of 1.775 pence per share was declared on 16 June 2025.
The dividend will be paid on 15 August 2025 to shareholders who were on the register at
the close of business on 3 July 2025. The Company intends to maintain its strategy of
paying a progressive dividend, which is paid in equal quarterly instalments, and covered
by underlying earnings in each financial year. A further interim dividend payment is
planned to be made in November 2025, which is expected to comprise a mixture of both
Property Income Distribution and normal dividend.
For further information contact:
Mark Davies Richard Howell
CEO CFO
Primary Health Properties PLC Primary Health Properties PLC
T: +44 (0) 7968 122448 T: +44 (0) 7766 072272
E: mark.davies@phpgroup.co.uk E: richard.howell@phpgroup.co.uk
Burson Buchanan (retained financial PR) Sodali & Co (media re proposed combination
with Assura)
Mark Court/Stephanie Whitmore/ Rory Godson/Elly Williamson
Verity Parker/Jesse McNab
T: +44 (0) 7754 941 250 T: +44 (0) 7970 246 725
E: php@buchanan.uk.com E: php@client.sodali.com
The LEI of PHP is 213800Y5CJHXOATK7X11 and the LEI of Assura is 21380026T19N2Y52XF72.
Capitalised terms used in this announcement (the "Announcement"), unless otherwise defined, have the
same meanings as set out in the original offer document published by PHP on 13 June 2025 (as amended
by a revised offer document published by PHP on 27 June 2025).
Further information
N.M. Rothschild & Sons Limited ("Rothschild & Co"), which is authorised and regulated by the FCA in the
United Kingdom, is acting exclusively as joint lead financial adviser to PHP and for no one else in
connection with the subject matter of this Announcement and will not be responsible to anyone other than
PHP for providing the protections afforded to its clients or for providing advice in connection with the
subject matter of this Announcement. Neither Rothschild & Co nor any of its affiliates (nor any of their
respective directors, officers, employees or agents), owes or accepts any duty, liability or responsibility
whatsoever (whether direct or indirect, whether in contract, in tort, under statute or otherwise) to any
person who is not a client of Rothschild & Co in connection with this Announcement, any statement
contained herein or otherwise.
Numis Securities Limited ("Deutsche Numis"), which is authorised and regulated in the United Kingdom
by the FCA in the United Kingdom, is acting exclusively as joint lead financial adviser to PHP and for no one
else in connection with the subject matter of this Announcement and will not be responsible to anyone
other than PHP for providing the protections afforded to its clients or for providing advice in connection
with the subject matter of this Announcement. Neither Deutsche Numis nor any of its affiliates (nor any of
their respective directors, officers, employees or agents), owes or accepts any duty, liability or
responsibility whatsoever (whether direct or indirect, whether in contract, in tort, under statute or
otherwise) to any person who is not a client of Deutsche Numis in connection with this Announcement,
any statement contained herein or otherwise.
Citigroup Global Markets Limited ("Citi"), which is authorised by the PRA and regulated by the FCA and the
PRA in the United Kingdom, is acting exclusively as joint financial adviser to PHP and for no one else in
connection with the subject matter of this Announcement and will not be responsible to anyone other than
PHP for providing the protections afforded to its clients or for providing advice in connection with the
subject matter of this Announcement. Neither Citi nor any of its affiliates (nor any of their respective
directors officers, employees or agents) owes or accepts any duty, liability or responsibility whatsoever
(whether direct or indirect, whether in contract, in tort, under statute or otherwise) to any person who is
not a client of Citi in connection with this Announcement, any statement contained herein or otherwise.
Peel Hunt LLP ("Peel Hunt"), which is authorised and regulated in the United Kingdom by the FCA, is acting
exclusively as joint financial adviser to PHP and for no one else in connection with the subject matter of
this Announcement and will not be responsible to anyone other than PHP for providing the protections
afforded to its clients or for providing advice in connection with the subject matter of this Announcement.
Neither Peel Hunt nor any of its affiliates (nor any of their respective directors, officers, employees or
agents) owes or accepts any duty, liability or responsibility whatsoever (whether direct or indirect, whether
in contract, in tort, under statute or otherwise) to any person who is not a client of Peel Hunt in connection
with the matters referred to in this Announcement, any statement contained herein, or otherwise.
This Announcement is for information purposes only and is not intended to, and does not, constitute, or
form part of, an offer, invitation or the solicitation of an offer to purchase, otherwise acquire, subscribe for,
sell or otherwise dispose of, any securities or the solicitation of any vote or approval in any jurisdiction
pursuant to the Combination or otherwise, nor shall there be any sale, issuance or transfer of securities of
Assura in any jurisdiction in contravention of applicable law. In particular, this Announcement does not
constitute an offer of securities to the public as contemplated in the South African Companies Act, 71 of
2008.
The Combination will be implemented solely pursuant to the terms of the Original Offer Document and
Revised Offer Document which will contain the full terms and conditions of the Combination, including
details of how to accept the Revised Offer. Any decision or response in relation to the Combination should
be made only on the basis of the information contained in the Original Offer Document, the Revised Offer
Document, the Original Combined Circular and Prospectus and the Supplementary Prospectus.
The statements contained in this Announcement are made as at the date of this Announcement, unless
some other time is specified in relation to them, and publication of this Announcement shall not give rise
to any implication that there has been no change in the facts set forth in this Announcement since such
date.
This Announcement does not constitute or form part of, and should not be construed as, any public offer
under any applicable legislation or an offer to sell or solicitation of any offer to buy any securities or
financial instruments or any advice or recommendation with respect to such securities or other financial
instruments.
This Announcement does not constitute a prospectus, prospectus equivalent document or exempted
document. PHP has published the Original Combined Circular and Prospectus and Supplementary
Prospectus containing information on the New PHP Shares and the Combined Group as well as the Original
Offer Document and Revised Offer Document. PHP urges Assura Shareholders to read the Original Offer
Document, the Revised Offer Document, the Forms of Acceptance and Election, the Original Combined
Circular and Prospectus and Supplementary Prospectus carefully because they contain important
information in relation to the Combination, the New PHP Shares and the Combined Group. Any decision
by Assura Shareholders in respect of the Combination should be made only on the basis of the information
contained in the Original Offer Document, the Revised Offer Document the Original Combined Circular
and Prospectus and Supplementary Prospectus. PHP urges Assura Shareholders to read the Original Offer
Document, the Revised Offer Document, the Forms of Acceptance and Election, the Original Combined
Circular and Prospectus and Supplementary Prospectus.
If you are in any doubt about the contents of this Announcement or the action you should take, you are
recommended to seek your own independent financial advice immediately from your stockbroker, bank
manager, solicitor, accountant or independent financial adviser duly authorised under the Financial
Services and Markets Act 2000 (as amended) if you are resident in the United Kingdom or, if not, from
another appropriately authorised independent financial adviser.
Overseas Shareholders
The information contained herein is not for release, distribution or publication, directly or indirectly, in or
into South Africa, the United States, Australia, Canada, Japan, New Zealand or any other Restricted
Jurisdiction where applicable laws prohibit its release, distribution or publication.
The release, publication or distribution of this Announcement in, into or from jurisdictions other than the
UK may be restricted by law and therefore any persons who are subject to the law of any jurisdiction other
than the UK should inform themselves of, and observe, any applicable legal or regulatory requirements.
Any failure to comply with such requirements may constitute a violation of the securities laws of any such
jurisdiction. To the fullest extent permitted by applicable law, the companies and persons involved in the
Combination disclaim any responsibility or liability for the violation of such restrictions by any person. This
Announcement has been prepared in accordance with and for the purpose of complying with English law,
the Takeover Code, the Market Abuse Regulation, the UK Listing Rules and the Disclosure Guidance and
Transparency Rules and the information disclosed may not be the same as that which would have been
disclosed if this Announcement had been prepared in accordance with the laws of jurisdictions outside
England.
The availability of the Offer to Assura Shareholders who are not resident in and citizens of the UK may be
affected by the laws of the relevant jurisdictions in which they are located or of which they are citizens.
Persons who are not resident in the UK should inform themselves of, and observe, any applicable legal or
regulatory requirements of their jurisdictions.
In particular, the ability of persons who are not resident in the United Kingdom to execute Second Forms
of Acceptance and Election in connection with the Revised Offer; and persons who are not resident in the
United Kingdom to receive New PHP Shares in part consideration pursuant to terms of the Combination,
may be affected by the laws of the relevant jurisdictions in which they are located. Any failure to comply
with the applicable restrictions may constitute a violation of the securities laws of any such jurisdiction.
To the fullest extent permitted by applicable law, the companies and persons involved in the Combination
disclaim any responsibility or liability for the violation of such restrictions by any person. Further details in
relation to Overseas Shareholders are contained in the Original Offer Document and the Revised Offer
Document.
Unless otherwise determined by PHP or required by the Takeover Code, and permitted by applicable law
and regulation, the Revised Offer will not be made available, in whole or in part, directly or indirectly, in,
into or from a Restricted Jurisdiction where to do so would violate the laws in that jurisdiction and no
person may accept the Revised Offer by any such use, means, instrumentality or from within a Restricted
Jurisdiction or any other jurisdiction if to do so would constitute a violation of the laws of that jurisdiction.
Copies of this Announcement and any formal documentation relating to the Combination are not being,
and must not be, directly or indirectly, mailed or otherwise forwarded, distributed or sent in or into or from
any Restricted Jurisdiction and persons receiving such documents (including, without limitation, agents,
custodians, nominees and trustees) must not mail or otherwise forward, distribute or send it in or into or
from any Restricted Jurisdiction. Doing so may render invalid any related purported acceptance of the
Revised Offer. Unless otherwise determined by PHP and permitted by applicable law and regulation, the
Revised Offer may not be made, directly or indirectly, in or into, or by the use of mails or any means or
instrumentality (including, but not limited to, facsimile, e-mail or other electronic transmission, telex or
telephone) of interstate or foreign commerce of, or of any facility of a national, state or other securities
exchange of any Restricted Jurisdiction, and the Revised Offer may not be capable of acceptance by any
such use, means, instrumentality or facilities.
The New PHP Shares to be issued pursuant to the Revised Offer have not been and will not be registered
under the relevant securities laws of or with any securities regulatory authority of any Restricted
Jurisdiction. Accordingly, the New PHP Shares may not be offered, sold or delivered, directly or indirectly,
in or into any Restricted Jurisdiction nor to any U.S. Person or Restricted Overseas Person, except pursuant
to exemptions from the registration requirements of any such jurisdiction.
Further details in relation to Overseas Shareholders are included in the Original Offer Document and
Revised Offer Document and Assura Shareholders are advised to read carefully the Original Offer
Document and Revised Offer Document.
The Combination is subject to English law, the applicable requirements of the Companies Act, the
Takeover Code, the Panel, the UK Listing Rules, the Market Abuse Regulation, the FCA, the London Stock
Exchange, the Registrar of Companies, the Johannesburg Stock Exchange, the JSE Listing Requirements
and applicable securities law.
The information contained in this Announcement constitutes factual advice as contemplated in section
1(3)(a) of the South African Financial Advisory and Intermediary Services Act, 37 of 2002, as amended
("FAIS Act") and should not be construed as express or implied advice (as that term is used in the FAIS Act
and/or the South African Financial Markets Act, 19 of 2012, as amended) that any particular transaction in
respect of the Combination, is appropriate to the particular investment objectives, financial situations or
needs of a shareholder, and nothing in this Announcement should be construed as constituting the
canvassing for, or marketing or advertising of, financial services in South Africa. PHP is not a financial
services provider licensed as such under the FAIS Act.
Nothing in this Announcement should be viewed, or construed, as "advice", as that term is used in the
South African Financial Markets Act, 19 of 2012, as amended.
Notice relating to the United States
This document is not intended to, and does not, constitute or form part of any offer or invitation to
purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities or the solicitation
of any vote or approval in any jurisdiction pursuant to the Revised Offer or otherwise. The Combination will
be made solely through the Original Offer Document and the Revised Offer Document which will contain
the full terms and conditions of the Combination, including details of how the Combination may be
accepted. Any acceptance or other response to the Combination should be made only on the basis of the
information in the Original Offer Document and the Revised Offer Document.
The Combination relates to the shares of an English company and is subject to UK procedural and
disclosure requirements that are different from certain of those of the United States. The financial
statements and other financial information included in this document have been prepared in accordance
with non-U.S. accounting standards that may not be comparable to the financial statements of U.S.
companies or companies whose financial statements are prepared in accordance with generally accepted
accounting principles in the United States. It may be difficult for U.S. holders of shares to enforce their
rights and any claims they may have arising under the U.S. federal securities laws in connection with the
Combination, since PHP and Assura are located in countries other than the United States, and all or some
of their officers and directors may be residents of countries other than the United States. U.S. holders of
shares in PHP or Assura may not be able to sue PHP, Assura or their respective officers or directors in a
non-U.S. court for violations of U.S. securities laws. Further, it may be difficult to compel PHP, Assura and
their respective affiliates to subject themselves to the jurisdiction or judgment of a U.S. court.
The New PHP Shares have not been and will not be registered under the U.S. Securities Act or under the
securities laws of any state or other jurisdiction of the United States and may not be offered, taken up,
sold, resold, delivered, pledged, renounced, distributed or otherwise transferred, directly or indirectly, in
or into the United States or to, or for the account or benefit of, any U.S. Person except in transactions
exempt from, or not subject to, the registration requirements of the U.S. Securities Act and in compliance
with any applicable securities laws of any state or other jurisdiction of the United States.
None of the New PHP Shares, the Original Combined Circular and Prospectus, the Supplementary
Prospectus, the Original Offer Document, the Revised Offer Document, the Second Form of Acceptance
or any other offering document has been approved or disapproved by the SEC, any state securities
commission in the United States or any other U.S. regulatory authority, nor have such authorities passed
upon or determined the adequacy or accuracy of the information contained in any of those documents or
passed upon or endorsed the merits of the Combination. Any representation to the contrary is a criminal
offence in the United States.
It is intended that the Combination will be implemented by way of a takeover offer within the meaning of
the Companies Act. The Revised Offer will not be subject to the disclosure and other procedural
requirements of Regulation 14D under the U.S. Exchange Act. If made into the United States, the Revised
Offer will be made in accordance with applicable requirements of Regulation 14E under the U.S. Exchange
Act. However, the Revised Offer will qualify for "Tier II" exemptions from the tender offer rules included in
Regulation 14E under the U.S. Exchange Act. Accordingly, the Revised Offer will be subject to disclosure
and other procedural requirements, including with respect to withdrawal rights, offer timetable,
settlement procedures and timing of payments that may be different from those applicable under U.S.
domestic tender offer procedures and law.
No document relating to the Revised Offer or the Combination will be posted into the United States, but a
"qualified institutional buyer" (as such term is defined in Rule 144A promulgated under the U.S. Securities
Act) may be permitted, at PHP's sole discretion, to participate in the Revised Offer upon establishing its
eligibility as an Eligible U.S. Holder (as defined in this document). PHP will require the provision of a letter
by Eligible U.S. Holders (and may require the provision of a letter by subsequent transferees in the United
States) with such acknowledgements, warranties, and representations to and agreements with PHP, as
PHP may require, to, among other things, confirm compliance with applicable laws as well as other
supporting documentation. PHP will refuse to issue or transfer New PHP Shares to investors that do not
meet the foregoing requirements.
The receipt of consideration pursuant to the Revised Offer by an Eligible U.S. Holder may be a taxable
transaction for U.S. federal income tax purposes and under applicable U.S. state and local, as well as
foreign and other, tax laws. Each Assura Shareholder is urged to consult its independent professional
adviser immediately regarding the tax consequences of accepting the Revised Offer.
In accordance with normal United Kingdom market practice and to the extent permissible under applicable
law or regulatory requirements, including Rule 14e-5 under the U.S. Exchange Act (to the extent
applicable), PHP and its affiliates or its brokers and its broker's affiliates (acting as agents for PHP or its
affiliates, as applicable) may from time to time whilst the Revised Offer remains open for acceptance make
certain purchases of, or arrangements to purchase, Assura Shares outside the United States otherwise
than under the Revised Offer, such as in the open market or through privately negotiated purchases. Such
purchases, or arrangements to purchase, shall comply with applicable rules in the United Kingdom and
the rules of the London Stock Exchange. Details about any such purchases will be available from a
Regulatory Information Service and will be available on the London Stock Exchange website
(www.londonstockexchange.com).
Dealing and Opening Position Disclosure Requirements
Under Rule 8.3(a) of the Takeover Code, any person who is interested in 1% or more of any class of relevant
securities of an offeree company or of any securities exchange offeror (being any offeror other than an
offeror in respect of which it has been announced that its offer is, or is likely to be, solely in cash) must
make an Opening Position Disclosure following the commencement of the offer period and, if later,
following the announcement in which any securities exchange offeror is first identified. An Opening
Position Disclosure must contain details of the person's interests and short positions in, and rights to
subscribe for, any relevant securities of each of (i) the offeree company and (ii) any securities exchange
offeror(s). An Opening Position Disclosure by a person to whom Rule 8.3(a) of the Takeover Code applies
must be made by no later than 3.30 pm (London time) on the 10th business day following the
commencement of the offer period and, if appropriate, by no later than 3.30 pm (London time) on the 10th
business day following the announcement in which any securities exchange offeror is first identified.
Relevant persons who deal in the relevant securities of the offeree company or of a securities exchange
offeror prior to the deadline for making an Opening Position Disclosure must instead make a Dealing
Disclosure.
Under Rule 8.3(b) of the Takeover Code, any person who is, or becomes, interested in 1% or more of any
class of relevant securities of the offeree company or of any securities exchange offeror must make a
Dealing Disclosure if the person deals in any relevant securities of the offeree company or of any securities
exchange offeror. A Dealing Disclosure must contain details of the dealing concerned and of the person's
interests and short positions in, and rights to subscribe for, any relevant securities of each of (i) the offeree
company and (ii) any securities exchange offeror(s), save to the extent that these details have previously
been disclosed under Rule 8. A Dealing Disclosure by a person to whom Rule 8.3(b) applies must be made
by no later than 3.30 pm (London time) on the business day following the date of the relevant dealing.
If two or more persons act together pursuant to an agreement or understanding, whether formal or
informal, to acquire or control an interest in relevant securities of an offeree company or a securities
exchange offeror, they will be deemed to be a single person for the purpose of Rule 8.3.
Opening Position Disclosures must also be made by the offeree company and by any offeror and Dealing
Disclosures must also be made by the offeree company, by any offeror and by any persons acting in
concert with any of them (see Rules 8.1, 8.2 and 8.4).
Details of the offeree and offeror companies in respect of whose relevant securities Opening Position
Disclosures and Dealing Disclosures must be made can be found in the Disclosure Table on the Panel's
website at www.thetakeoverpanel.org.uk, including details of the number of relevant securities in issue,
when the offer period commenced and when any offeror was first identified. You should contact the
Panel's Market Surveillance Unit on +44 (0)20 7638 0129 if you are in any doubt as to whether you are
required to make an Opening Position Disclosure or a Dealing Disclosure.
Publication on a website
A copy of this Announcement and the documents required to be published pursuant to Rule 26 of the
Takeover Code will be available at PHP's website at www.phpgroup.co.uk and Assura's website at
www.assuraplc.com/investor-relations/shareholder-information/offer-from-php promptly and in any
event by no later than 12 noon on the Business Day following this Announcement. The content of this
website is not incorporated into and does not form part of this Announcement
General
Investors should be aware that PHP may purchase Assura Shares otherwise than under the Revised Offer,
including pursuant to privately negotiated purchases.
Requesting hard copy documents
In accordance with Rule 30.3 of the Takeover Code, Assura Shareholders, persons with information rights
and participants in Assura Share Plans may request a hard copy of this Announcement by contacting PHP's
company secretary at cosec@phpgroup.co.uk. For persons who receive a copy of this Announcement in
electronic form or via a website notification, a hard copy of this Announcement will not be sent unless so
requested. Such persons may also request that all future documents, announcements and information to
be sent to them in relation to the Combination should be in hard copy form.
For persons who receive a copy of this Announcement in electronic form or via a website notification, a
hard copy of this Announcement will not be sent unless so requested. Such persons may also request that
all future documents, announcements and information to be sent to them in relation to the Combination
should be in hard copy form.
Electronic communications
Please be aware that addresses, electronic addresses and certain other information provided by Assura
Shareholders, persons with information rights and other relevant persons for the receipt of
communications from Assura may be provided to PHP during the offer period as required under Section 4
of Appendix 4 of the Takeover Code to comply with Rule 2.11(c) of the Takeover Code.
Rule 26.1 disclosure
In accordance with Rule 26.1 of the Takeover Code, a copy of this announcement will be available at
www.phpgroup.co.uk promptly and in any event by no later than 12 noon on the business day following
this announcement. The content of this website is not incorporated into and does not form part of this
announcement.
Profit Forecasts and Estimates
For the purposes of Rule 28.1 of the Takeover Code, the Directors of PHP confirm that the earning per share
and profit for the period contained in this Announcement have been properly compiled on the basis of the
assumptions stated and that the basis of accounting used is consistent with the company's accounting
policies.
Save as stated above, no statement in this Announcement is intended to constitute a profit forecast or
profit estimate, no statement in this Announcement is subject to the requirements of Rule 28 of the
Takeover Code and no statement in this Announcement should be interpreted to mean that the earnings
or future earnings per share of or dividends or future dividends per share of PHP and/or Assura for current
or future financial years will necessarily match or exceed the historical or published earnings or dividends
per share of PHP or Assura, as appropriate.
Property Valuation Reports
For the purposes of Rule 29.1(a) and Rule 29.2(a) of the Takeover Code, updated valuations of PHP's
property portfolio supported by valuation reports have been produced by each of CBRE, Avison Young and
Knight Frank as external valuers (as defined by the Royal Institution of Chartered Surveyors' Valuation -
Global Standards (2022)) as at 30 June 2025 pursuant to the requirements of Rule 29 of the Takeover Code
(the "Valuation Reports"). Copies of the Valuation Reports will be made available promptly on PHP's
website at www.phpgroup.co.uk. No material changes have occurred in the valuations of the properties
which are the subject of the Valuation Reports since the date of valuation of the portfolio (being 30 June
2025) to the date of this Announcement. For the purposes of Rule 29.5 of the Takeover Code: (i) the PHP
Directors confirm that the valuations in the Valuation Reports remain valid; and (ii) each of CBRE, Avison
Young and Knight Frank have confirmed that an updated valuation would not be materially different.
7 July 2025
United Kingdom
Sponsor: PSG Capital
Date: 07-07-2025 08:00:00
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