Primary Health Properties reports strong H1 results amid NHS plan

Published 24/07/2025, 07:46
Primary Health Properties reports strong H1 results amid NHS plan

LONDON - Primary Health Properties PLC (LSE:PHP), a leading investor in modern primary health facilities, reported strong operational and financial performance for the first half of 2025, driven by rental growth, an acquisition in Ireland, and valuation gains.

The company announced continued dividend growth and noted that improving rental growth outlook and stabilization of property yields at 5.25% indicate a positive inflection point in the property cycle.

PHP’s CEO Mark Davies highlighted the recently published 10-year Health Plan from July 3 as "clearly positive" for the company, citing the government’s commitment to shifting more services to modern primary care facilities in local communities.

The company continues to pursue its recommended combination with Assura plc, which received over 99% approval from voting shareholders at a general meeting on July 1. The transaction is expected to be earnings accretive for both companies’ shareholders.

PHP is also in ongoing discussions with third-party investors about forming a joint venture that would likely include the private hospital portfolio, as part of its deleveraging strategy. Management expressed confidence in concluding this transaction after the Assura combination is completed.

According to the company’s statement, the combined entity with Assura would offer "greater scale, enhanced income and valuation growth potential and a lower cost of capital" while maintaining a "clear and important social purpose" in healthcare infrastructure.

The information was disclosed in a press release statement accompanying PHP’s interim results for the six months ended June 30, 2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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