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Primary Health Properties plc R.E.I.T
(LSE:PHP)
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Rating:67Neutral
Price Target:
105.00 p
▲(10.94% Upside)
Action:Reiterated
Date:07/30/26
The score is driven by mixed financial quality—higher leverage and a sharp deterioration in free cash flow temper otherwise strong 2025 revenue/profitability. Offsetting this, the earnings call signaled solid post-merger execution (EPS growth, covered dividend, synergies, refinancing) and the stock’s trend is supported by trading above major moving averages; valuation is also supported by a high dividend yield and moderate P/E.
Positive Factors
Portfolio quality & occupancy
A large, highly occupied portfolio with a long WAULT and majority government-backed rents creates durable, predictable cash flows. This structural income profile reduces tenant credit risk and supports steady rental revenue and dividend distributions over a multi‑month horizon.
Negative Factors
Elevated leverage
A materially higher leverage ratio increases refinancing exposure and interest burden, constraining financial flexibility. Sustained elevated gearing raises the sensitivity of earnings and NAV to rate moves and requires successful asset/liability management to restore target risk metrics.
Read all positive and negative factors
Positive Factors
Negative Factors
Portfolio quality & occupancy
A large, highly occupied portfolio with a long WAULT and majority government-backed rents creates durable, predictable cash flows. This structural income profile reduces tenant credit risk and supports steady rental revenue and dividend distributions over a multi‑month horizon.
Read all positive factors
Primary Health Properties plc R.E.I.T (PHP) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£2.45B
Dividend Yield7.68%
Average Volume (3M)13.49M
Price to Earnings (P/E)15.4
Beta (1Y)0.76
Revenue Growth104.07%
EPS Growth-15.96%
CountryUK
Employees156
SectorReal Estate
Sector Strength53
IndustryREIT - Healthcare Facilities
Share Statistics
EPS (TTM)0.06
Shares Outstanding2,595,149,200
10 Day Avg. Volume13,738,178
30 Day Avg. Volume13,487,678
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)0.69
Price to Sales (P/S)6.78
P/FCF Ratio16.88
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£119.00Price Target Upside25.73% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.07
Revenue Forecast (FY)£340.19M
Primary Health Properties plc R.E.I.T Business Overview & Revenue Model
Company Description
Primary Health Properties (PHP) stands as the premier investor in contemporary healthcare real estate throughout the United Kingdom and Ireland. This UK-based Real Estate Investment Trust (REIT) is committed to delivering growing returns for its i...
How the Company Makes Money
PHP makes money primarily by renting healthcare properties to tenants under long-term leases. Its core revenue stream is recurring contractual rental income generated from letting medical centres and other primary/community healthcare buildings, w...
Primary Health Properties plc R.E.I.T Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 18, 2027
Earnings Call Sentiment Positive
The call conveyed a strongly positive operational and financial performance driven by the Assura merger: double-digit development returns highlighted, solid rental uplifts, material cost-synergy delivery, refinancing progress, and a near-term plan to deleverage via a private hospital JV. Near-term risks were acknowledged — elevated LTV in the short term, reliance on completion of the JV and planned disposals to repay remaining bridge facilities, and some sensitivity of valuations if financing costs were to rise. Overall, management presented confidence in execution and a clear path to targets, with more upside from rental reversion and development fees.Positive Updates
Earnings and EPS Growth
Adjusted earnings rose to GBP 98 million in H1 2026, driven by full 6-month consolidation of Assura (adding ~GBP 50 million); adjusted EPS increased 9% to 3.8p.
Negative Updates
Elevated Near-Term Leverage
Loan-to-value (LTV) is above the company’s long-term target; management expects LTV to move into the low 50s in the short term and targets below 50% over time, indicating near-term elevated leverage until JV/disposals complete.
Read all updates
Q2-2026 Updates
Positive
Negative
Earnings and EPS Growth
Adjusted earnings rose to GBP 98 million in H1 2026, driven by full 6-month consolidation of Assura (adding ~GBP 50 million); adjusted EPS increased 9% to 3.8p.
Read all positive updates
Company Guidance
Management guided that post‑merger targets are on track: H1 adjusted earnings were £98m with adjusted EPS up 9% to 3.8p, supporting a fully covered 2026 dividend of 7.3p; like‑for‑like rental growth added £4m (6% uplift on reviews, 3.2% annualised, open‑market reviews +6.3%), producing a £18m valuation surplus (rental growth +£29m offset by £11m from 1bp yield expansion) and leaving adjusted NTA at 104p on a £6bn portfolio (net initial yield 5.4%, 99% occupancy, 10‑year WAULT, c.76–80% government‑backed income). They have refinanced c.£1.2bn (an £800m RCF and £400m term loan), cut margins by ~40bps, kept average cost of debt at 3.8% (expected to fall to ~3.5% in H2), hold £300m undrawn liquidity, expect to repay the c.£260m remaining bridge from a near‑term £0.7bn private hospital JV (50:50 day‑1), and have delivered c.92% (≈£8m) of the £9m synergies with an EPRA cost ratio around 8.7% (target <9%), while aiming to reduce LTV into the low‑50s short term and below 50% over time and to become 80–90% unsecured with an investment‑grade rating.Primary Health Properties plc R.E.I.T Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
46
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 366.30M | 259.00M | 181.70M | 169.80M | 154.10M | 145.60M |
| Gross Profit | 328.70M | 232.00M | 155.70M | 151.00M | 141.50M | 135.60M |
| EBITDA | 285.60M | 207.00M | 94.70M | 79.80M | 163.20M | 132.30M |
| Net Income | 158.60M | 119.00M | 41.40M | 27.30M | 56.30M | 140.10M |
Balance Sheet | ||||||
| Total Assets | 6.10B | 6.04B | 2.79B | 2.83B | 2.86B | 2.85B |
| Cash, Cash Equivalents and Short-Term Investments | 31.00M | 20.00M | 3.50M | 13.70M | 29.10M | 33.40M |
| Total Debt | 3.36B | 3.31B | 1.34B | 1.33B | 1.30B | 1.28B |
| Total Liabilities | 3.54B | 3.48B | 1.42B | 1.40B | 1.38B | 1.35B |
| Stockholders Equity | 2.56B | 2.55B | 1.38B | 1.42B | 1.48B | 1.50B |
Cash Flow | ||||||
| Free Cash Flow | 142.60M | 104.00M | 135.20M | 133.60M | 79.30M | 246.60M |
| Operating Cash Flow | 142.60M | 104.00M | 135.20M | 133.60M | 79.30M | 100.20M |
| Investing Cash Flow | -455.50M | -464.00M | -20.60M | -44.60M | -47.30M | -147.10M |
| Financing Cash Flow | 332.10M | 376.00M | -114.30M | -114.90M | -37.00M | -22.70M |
Primary Health Properties plc R.E.I.T Technical Analysis
Positive
94.65
Price Trends
92.75
Positive
92.22
Positive
93.69
Positive
Market Momentum
0.82
Positive
56.65
Neutral
45.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:PHP, the sentiment is Positive. The current price of 94.65 is below the 20-day moving average (MA) of 94.71, above the 50-day MA of 92.75, and above the 200-day MA of 93.69, indicating a bullish trend. The MACD of 0.82 indicates Positive momentum. The RSI at 56.65 is Neutral, neither overbought nor oversold. The STOCH value of 45.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:PHP.
Primary Health Properties plc R.E.I.T Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | £4.53B | 9.61 | 7.73% | 5.27% | 15.13% | 29.40% | |
71 Outperform | £2.81B | 6.85 | 9.48% | 2.81% | 9.10% | 20.49% | |
71 Outperform | £4.62B | 15.42 | 5.78% | 4.73% | 36.45% | -26.38% | |
69 Neutral | £1.34B | 20.52 | 2.86% | 4.25% | 6.65% | -77.89% | |
68 Neutral | £5.23B | 15.34 | 5.29% | 5.94% | 7.21% | -13.23% | |
67 Neutral | £2.45B | 15.43 | 6.20% | 7.66% | 104.07% | -15.96% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
GB:PHP
Primary Health Properties plc R.E.I.T
95.65
8.35
9.56%
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Primary Health Properties plc R.E.I.T Corporate Events
Business Operations and StrategyDividendsFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
PHP delivers strong earnings and synergies after Assura merger
Positive
Jul 30, 2026
Primary Health Properties PLC is a UK-listed real estate investment trust that specialises in owning and managing critical healthcare infrastructure in the U.K. and Ireland. Its portfolio spans primary care centres and private hospitals with 76% o...
Financial Disclosures
Primary Health Properties Sets Date for Interim Results and Investor Webcast
Neutral
Jul 22, 2026
Primary Health Properties PLC has scheduled the release of its interim results for the six months ended 30 June 2026, with publication set for Thursday, 30 July 2026. The update will provide investors and analysts with insight into the companyR...
Business Operations and StrategyPrivate Placements and Financing
Primary Health Properties Secures £800m Unsecured Facility to Refinance Debt and Support Deleveraging
Positive
Jul 1, 2026
Primary Health Properties has refinanced its existing borrowings with a new £800 million unsecured term loan and multi-currency revolving credit facility arranged with eight banks, including three new lenders. The facility is structured in th...
Business Operations and StrategyM&A Transactions
Primary Health Properties in Advanced Talks on Private Hospital Joint Venture
Positive
Jun 24, 2026
Primary Health Properties plc, a healthcare-focused real estate investment trust, owns and manages a portfolio of medical properties including private hospitals, serving both public and private sector healthcare tenants. It targets long-term, infl...
Business Operations and StrategyDividends
Primary Health Properties Declares Q3 2026 Interim Dividend and Confirms DRIP Option
Positive
Jun 10, 2026
Primary Health Properties has declared a third quarterly interim dividend for 2026 of 1.825 pence per ordinary share, split between a property income distribution of 0.725 pence and a non-PID element of 1.100 pence, to be paid on 14 August 2026 to...
Executive/Board ChangesRegulatory Filings and Compliance
Primary Health Properties discloses share option grant to CFO under all-employee plan
Neutral
Jun 1, 2026
Primary Health Properties has disclosed that Chief Financial Officer Richard Howell has been granted options over 23,947 ordinary shares at an exercise price of £0.76 under the company’s all-employee ShareSave scheme. The off-market gra...
DividendsRegulatory Filings and Compliance
PHP Chair Increases Stake via Dividend Reinvestment Plan
Positive
May 12, 2026
Primary Health Properties has disclosed that its non-executive chair, Harry Hyman, acquired additional ordinary shares in the company through a dividend reinvestment plan within an ISA. The purchase, executed on the London Stock Exchange, involved...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.