GP landlord PHP welcomes Labour government amid portfolio dip

GP landlord Primary Health Properties (PHP) saw its portfolio valuation dip 1.4 per cent over the last year, with the company welcoming the new Labour government’s commitment to the NHS.

The group reported in its interim results that its portfolio was currently 99.2 per cent occupied, with rent-roll funded by government bodies at 89 per cent.

Net rental income ticked up 0.9 per cent since June 2023, while adjusted earnings rose by the same amount. Earnings per share was up 2.9 per cent to 3.5 pence.

However, net tangible assets per share dipped 2.8 per cent as the value of its property portfolio dropped to £2.75bn, down from £2.78bn the year before.

Peel Hunt analysts James Carswell and Matthew Saperia noted that estimated rental value had still ticked up, by 1.7 per cent, leaving the results “broadly in line with our expectations, and it is pleasing to see the rental growth story building”.

Mark Davies, chief executive of PHP, said the year was: “Another period of robust operational and financial performance and we are encouraged by the continued improvement in open market value rental growth, together with a strong control on costs resulting in one of the lowest EPRA cost ratios in the REIT sector and with the vast majority of PHP’s debt either fixed or hedged for a weighted average period of six years”.

“As PHP approaches its 30-year anniversary of continuous dividend growth in 2026, the management team appreciates the importance of driving further earnings growth in the future and this continues to be an important focus of the Group’s business model.

Davies also welcomed the new Labour government’s commitment to the NHS, highlighting the new health secretary’s “identification of increased investment in primary care”.

“As reported in the media, there are commitments to reform GP services and wider community care in order to expand service delivery in these settings, relieving the pressures on the NHS. PHP is extremely well placed to facilitate and benefit from these objectives, creating new and modern facilities to deliver services with huge social impact,” he added.