Our opinion on the current state of PHPPrimary Healthcare Properties is a real estate investment trust (REIT) that owns a portfolio of 513 healthcare properties in the UK, worth GBP2,8bn. The company describes its market as a "low-risk, long-term, non-cyclical market with development opportunities on-site and in the immediate pipeline, with further emerging in the UK." It highlights that most of its rental income comes from government-funded leases, stating, "opportunities in Ireland are priced attractively, the majority of rents in both jurisdictions are funded by the government for long lease terms, WAULT of 11.0 years (2021: 11.6 years), and 89% of the rent roll is funded by government bodies."
In its results for the year to 31st December 2024, the company reported rental income up 2,9% and headline earnings per share (HEPS) up 8,33%. The company’s loan-to-value (LTV) was 48,1%, and occupancy was at 99,1%. The company said, "...we have also seen positive valuation growth in the second half of the year, the first time since 2021, which has led to stability in our Adjusted NTA per share. The dividend per share has continued to grow by 3% and remains fully covered."
The share is well-traded, with more than R3m worth of shares changing hands on average each day. However, it has been trending sideways and downwards and, like most REITs, trades below its NAV.
