Primary Health Properties (PHP)

Business description

Primary Health Properties is a long-term investor in primary healthcare property in the UK and, recently, Ireland. Assets are mainly long-let to GPs and the NHS or the HSE, organisations backed by the UK and Irish governments, respectively.

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2015A 63.1 55.5 21.7 4.9 23.2 8.9
2016A 67.4 59.2 26.7 4.8 23.7 11.2
2017E 71.9 62.6 31.8 5.3 21.4 10.9
2018E 77.9 68.1 34.7 5.7 19.9 10.0

Last updated on 18/12/2017

Investment summary

Primary Health Properties (PHP) has agreed the acquisition of a large and modern primary care facility in the Republic of Ireland (RoI), its third to date, at a cost of €20m. Yields in the RoI remain noticeably ahead of those currently available in the UK despite some signs of competition. Acquisitions of c £70m since end-H1, and a current contracted rent roll of just over £73m, are in line with our forecasts for the year and sufficient to trigger investment adviser performance fees, now included in reported, but not underlying, earnings forecasts. Acquisitions, rent increases, and long and largely government-backed leases underpin PHP’s attractive, growing and fully covered dividend, which we expect to continue its 20-year growth trend.

Last updated on 18/12/2017

Industry outlook

Healthcare planning, with broad political support, suggests strong underlying demand for modern healthcare properties in both the UK and the Republic of Ireland. In addition to providing investment opportunities, this seems likely to support rental growth.

Last updated on 13/12/2017

Key management

Alun Jones, Chairman
Harry Hyman, MD

Company address

c/o Nexus PHP Management Ltd
2nd Floor, Griffin House, West Street
GU21 6BS
United Kingdom
+44 (0) 1483 749 020
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