GP landlord PHP brings in £2.7m of new rent

Primary Health Properties (PHP) added £2.4m in rent over the last nine month, increasing its rental revenue by three per cent on an annualised basis.

The GP landlord, which published its trading update ahead of a capital markets day today, had stronger growth in indexed leases in the UK and Ireland (4.5 per cent growth), which was offset by slower open market growth in the UK.

In total, the real estate investment trust expects to bring in more than £3m in extra income from rent reviews throughout 2024.

“At today’s Capital Markets Day we will focus on the significant opportunity ahead in primary care and PHP’s continued dedication to dividend growth,” said PHP chief executive Mark Davies.

“We will be demonstrating PHP’s capabilities in this regard across both the UK and Ireland and how extremely well placed the Company is to benefit from the growth drivers and political momentum we see in our sector and how this will deliver future earnings and rental growth.”

PHP said it had also added an additional £300,000 from asset management activities, and currently had a pipeline of 39 asset management projects in the works.

Construction of development on its South Kilburn Medical Centre also began, with a yield on cost of 6.8 per cent and profit on cost of 10 per cent.

“We welcome the new government’s commitment to reforming the NHS and specifically the need for increased investment in primary care which will add further resilience to the business model,” added PHP’s Davies.

“As highlighted in the Lord Darzi report, the current primary care estate in the UK is not fit for purpose and there is an urgent need to provide more high-quality, multidisciplinary care in the community in modern facilities with digital infrastructure and diagnostics.

“In the future this will result in a shift in resources from hospitals towards primary care and community led health services that PHP has been successfully delivering for nearly 30 years.”

“PHP is very well placed to capture the significant opportunity ahead and this will be the focus of our capital markets day.”