24th Jul 2025 11:51
(Alliance News) - Primary Health Properties PLC on Thursday attributed its "strong" interim financial results to rental growth, an acquisition in Ireland and valuation gains, and reported that it will borrow slightly less than initial commitments to fund the cash component of its acquisition of Assura PLC.
Late last month, Assura directors recommended a raised cash-and-shares offer from fellow FTSE 250 listing PHP.
On Thursday, PHP said this transaction will be funded through a combination of new PHP shares and a new GBP1.125 billion unsecured loan, following an agreement with Citibank NA, Lloyds Bank PLC and Royal Bank of Scotland PLC. It had indicated on June 23 that the loan commitments from these banks would be GBP1.225 billion.
PHP said the loan provides headroom to refinance debt facilities maturing in the next 18 to 24 months and offered additional undrawn working capital headroom for the combined group.
The London-based healthcare facility investor on Thursday reported pretax profit of GBP61.9 million for the six months that ended June 30, multiplied from GBP4.5 million a year earlier.
Total revaluation gain was GBP19.8 million, compared to a deficit of GBP40.0 million.
Net rental income rose 3.1% to GBP78.6 million from GBP76.2 million.
PHP declared an interim dividend of 3.55 pence, up 2.9% from 3.45p.
Earnings per share multiplied to 4.4p from 0.3p, reflecting non-cashflow gains and losses arising on the valuation of its property portfolio, convertible bond and interest rate derivatives. But adjusted EPS was up 2.3% to 3.54p from 3.46p, excluding these once-off items.
As at June 30, net tangible asset per share was 104.0p, slightly up 0.5% from 103.5p at June 230, and was up 0.9% from 103.0p at December 31, 2024.
"At a pivotal time for our sector, PHP has delivered a strong operational and financial performance driven by rental growth across our portfolio, a value-accretive acquisition in Ireland, valuation gains and another period of dividend growth," PHP Chief Executive Officer Mark Davies said.
"From day one the combined group will offer a powerful platform with greater scale, enhanced income and valuation growth potential and a lower cost of capital, all underpinned by a clear and important social purpose," Davies said, referring to its bid to acquire Assura.
Assura on Tuesday last week formally rejected an all-cash offer from a consortium led by US private equity investor Kohlberg Kravis Robert & Co Inc.
Sana Bidco Ltd, the consortium made up of KKR and property investor Stonepeak Partners LP, made the "best and final" offer for Assura early last month.
Under the terms of the increased PHP offer, Assura shareholders will receive 0.3865 of a new PHP share and 12.5 pence in cash. Also, Assura shareholders are entitled to receive or retain a quarterly dividend of 0.84p per Assura share paid on April 1, and a quarterly dividend of 0.84p per Assura share paid on July 9.
Looking ahead, PHP said it has pipeline of 43 asset management projects and lease re-gears planned over next two to three years, highlighting the improving rental growth outlook.
PHP shares were down 0.2% to 95.40p in London on Thursday, while they were down 2.8% to ZAR22.61 in Johannesburg.
By Artwell Dlamini, Alliance News senior reporter South Africa
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.
Related Shares:
AssuraPrimary Health