Primary Health Properties


£1533.8m market cap

135p last close

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

Investment summary

PHP will report interim results for the six months ended 30 June 2019 (H119) on 25 July. This will be the first results since completing the all-share merger with MedicX which created the leading primary healthcare investor in the UK and Ireland, well placed to profitably address the substantial investment needs of the primary healthcare sectors in both countries. Near-term merger-related cost savings are highly deliverable, primarily based on contracted management fee arrangements, and the increased scale of the group offers further strong potential in the medium term. This includes enhanced access to funding, both debt and equity, leaving PHP well positioned for further profitable growth. Additionally, a significant medium-term refinancing opportunity exists as the larger group benefits from improved borrowing terms. PHP has completed the issue of £150m in convertible bonds with a coupon of 2.875% and will use the proceeds to repay £75m of 5.375% bonds at maturity and to support portfolio growth.

Y/E Dec
Revenue (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2017A 71.3 62.6 31.0 5.2 26.0 13.5
2018A 76.4 66.5 36.8 5.2 26.0 14.0
2019E 115.6 103.8 59.3 5.6 24.1 18.5
2020E 131.9 119.6 68.1 6.0 22.5 13.0
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 25/07/2019
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
Actual 0.2 2.3 16.6
Relative* (1.0) 1.8 19.8
52-week high/low 139.0p/106.4p
*% relative to local index
Key management
Alun Jones Chairman
Harry Hyman MD

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