29th Apr 2026 10:26
(Alliance News) - Primary Health Properties PLC on Wednesday hailed a "strong start" to 2026, and said it would detail plans for a new private hospital vehicle later this year.
Shares in the London-based healthcare facility investor were down 0.5% to 93.15 pence each on Wednesday morning in London, and rose 0.7% to 2,098.00p in Johannesburg.
PHP said organic rental growth from the enlarged portfolio's rent reviews generated an additional GBP3 million of income during the first quarter, which represents an increase of 3.4% on an annualised basis, compared to a 3.2% increase on-year.
Annualised contracted rent roll amounted to GBP345 million at the end of March, up from GBP342 million a year earlier.
"The company continues to see an improving rental growth outlook, especially from rent reviews," PHP said on Wednesday.
The company also noted "considerable progress" in plans to set up a new vehicle for its private hospital portfolio. PHP is eyeing "a transaction that will reduce our gearing and act as an alternative source of capital and growth for the future."
It added: "A shortlist of potential counterparties is engaged and the board is focused on selecting a partner and structure that will deliver the optimum shareholder value for the future. We are confident that a transaction will be announced during the summer of 2026."
In parallel, PHP reported that the transfer of a further GBP103 million of assets into the company's existing primary care joint venture is moving through due diligence, and is expected to complete before the end of July.
PHP has achieved GBP7.8 million of its existing GBP9 million cost savings target so far, having "recently commenced a rationalisation programme aimed at rightsizing the enlarged group".
Chief Executive Mark Davies commented: "We have continued to make excellent progress on the delivery of the post Assura combination objectives, since we announced PHP's latest results in March. These include reducing leverage back to our target range of 40% to 50%, net debt/EBITDA below 9.5x, delivering GBP9 million of annualised cost synergies and integrating the two businesses, all of which we expect to complete ahead of schedule."
PHP acquired its peer Assura back in October. Last month, PHP reported pretax profit of GBP122 million in 2025, more than doubled from GBP47 million in 2024. Net debt, however, stood at GBP3.4 billion as of December 31, up sharply from GBP1.3 billion on-year, driven by bridging loan to finance the Assura deal.
By Holly Munks, Alliance News reporter
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