Primary Health Properties PLC R.E.I.T (GB:PHP)
LSE:PHP
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Primary Health Properties plc R.E.I.T
(LSE:PHP)
Select Model
Select Model
Rating:63Neutral
Price Target:
106.00 p
▲(10.82% Upside)
Action:DowngradedDate:03/19/26
The score is supported mainly by valuation (moderate P/E and high dividend yield), but capped by mixed financial quality: increased leverage and a sharp deterioration in free cash flow to zero in 2025. Weak technical momentum (below key moving averages with negative MACD) further restrains the overall rating.
Positive Factors
Predictable rental income from long leases
PHP’s core model is long-duration contracted rent from primary healthcare premises. These leases produce stable, predictable cash flows and lower vacancy risk versus commercial retail, supporting durable income generation, distribution capacity and bank financing over the medium term.
Negative Factors
Materially higher leverage
Debt-to-equity near 1.29, up from ~0.85–0.97, raises interest expense and refinancing sensitivity. Elevated leverage reduces financial flexibility, magnifies earnings volatility from rent or occupancy shocks, and increases refinancing risk over the next several months if rates or liquidity tighten.
Read all positive and negative factors
Positive Factors
Negative Factors
Predictable rental income from long leases
PHP’s core model is long-duration contracted rent from primary healthcare premises. These leases produce stable, predictable cash flows and lower vacancy risk versus commercial retail, supporting durable income generation, distribution capacity and bank financing over the medium term.
Read all positive factors
Primary Health Properties plc R.E.I.T (PHP) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£2.48B
Dividend Yield7.3%
Average Volume (3M)13.49M
Price to Earnings (P/E)14.8
Beta (1Y)0.70
Revenue Growth0.96%
EPS GrowthN/A
CountryUK
Employees87
SectorReal Estate
Sector Strength53
IndustryREIT - Healthcare Facilities
Share Statistics
EPS (TTM)0.02
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 Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£116.00Price Target Upside21.28% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.07
Revenue Forecast (FY)£325.57M
Primary Health Properties plc R.E.I.T Business Overview & Revenue Model
Company Description
Primary Health Properties (PHP) is the leading investor in modern healthcare properties in the UK & Ireland. PHP is a UK based Real Estate Investment Trust (REIT) with a clear objective to create progressive returns to shareholders through a combi...
How the Company Makes Money
PHP makes money primarily by earning rental income from leasing its healthcare properties to tenants. Its core revenue stream is contracted rent under long-duration leases on buildings used for primary and community healthcare delivery; these leas...
Primary Health Properties plc R.E.I.T Earnings Call Summary
Earnings Call Date:Feb 28, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with increased rental income, a strategic acquisition, and a strong pipeline in Ireland. Positive valuation performance in the second half of the year and successful asset management projects indicate growth potential. However, challenges such as increased administrative costs and a decline in WAULT were noted. Overall, the positive aspects and growth opportunities outweigh the challenges.Positive Updates
Record-Breaking Rental Income
Net rental income increased by GBP 4.3 million, just under 3%, reaching GBP 153.6 million, driven by rent reviews and asset management activities.
Negative Updates
Increased Administrative Costs
Administrative costs increased by GBP 500,000, influenced by a redundancy program and a write-off of some work in progress costs.
Read all updates
Q4-2024 Updates
Positive
Negative
Record-Breaking Rental Income
Net rental income increased by GBP 4.3 million, just under 3%, reaching GBP 153.6 million, driven by rent reviews and asset management activities.
Read all positive updates
Company Guidance
During the PHP FY '24 results call, CEO Mark Davies highlighted the company's strong financial performance, emphasizing key metrics such as a net rental income increase of £4.3 million to £153.6 million and an adjusted earnings figure just under £93 million. The company maintained an occupancy rate close to 100% and a WAULT of nearly 10 years, reflecting stable income streams. The portfolio's valuation showed a positive turnaround in the second half of the year, with a modest yet meaningful valuation growth after several challenging years. The acquisition of the Laya Health and Wellbeing Clinic in Cork, valued at €22 million with a 7.1% earnings yield, was highlighted as a strategic addition, funded from existing resources. PHP's commitment to dividend growth was underscored, with a nearly 30-year track record and a dividend yield close to 8%. The presentation also addressed future growth drivers, including favorable government policies and rental growth prospects, with PHP positioned strongly to benefit from the upcoming 10-year NHS plan emphasizing primary care. Richard Howell, the CFO, outlined financial strategies like debt refinancing initiatives while maintaining a low average cost of debt at 3.4%. The call concluded with a reaffirmation of PHP’s strategic focus on government-backed income streams and ongoing asset management to enhance rental growth and shareholder value.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 | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 259.00M | 181.70M | 169.80M | 154.10M | 145.60M |
| Gross Profit | 232.00M | 155.70M | 151.00M | 141.50M | 135.60M |
| EBITDA | 207.00M | 94.70M | 0.00 | 163.20M | 132.30M |
| Net Income | 119.00M | 41.40M | 27.30M | 56.30M | 140.10M |
Balance Sheet | |||||
| Total Assets | 6.04B | 2.79B | 2.83B | 2.86B | 2.85B |
| Cash, Cash Equivalents and Short-Term Investments | 20.00M | 3.50M | 13.70M | 29.10M | 33.40M |
| Total Debt | 3.31B | 1.34B | 1.33B | 1.30B | 1.28B |
| Total Liabilities | 3.48B | 1.42B | 1.40B | 1.38B | 1.35B |
| Stockholders Equity | 2.55B | 1.38B | 1.42B | 1.48B | 1.50B |
Cash Flow | |||||
| Free Cash Flow | 0.00 | 135.20M | 133.60M | 79.30M | 246.60M |
| Operating Cash Flow | 104.00M | 135.20M | 133.60M | 79.30M | 100.20M |
| Investing Cash Flow | -464.00M | -20.60M | -44.60M | -47.30M | -147.10M |
| Financing Cash Flow | 376.00M | -114.30M | -114.90M | -37.00M | -22.70M |
Primary Health Properties plc R.E.I.T Technical Analysis
Positive
95.65
Price Trends
99.50
Negative
97.14
Negative
92.90
Positive
Market Momentum
-2.14
Negative
51.53
Neutral
77.58
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 95.65 is above the 20-day moving average (MA) of 93.93, below the 50-day MA of 99.50, and above the 200-day MA of 92.90, indicating a neutral trend. The MACD of -2.14 indicates Negative momentum. The RSI at 51.53 is Neutral, neither overbought nor oversold. The STOCH value of 77.58 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 | £3.81B | 3.98 | 7.75% | 5.85% | -20.83% | ― | |
73 Outperform | £4.11B | 10.57 | 5.78% | 5.30% | 35.06% | 127.62% | |
73 Outperform | £4.36B | 11.16 | 3.85% | 6.34% | 10.69% | 135.58% | |
69 Neutral | £2.68B | 3.50 | 8.78% | 2.58% | -0.04% | 655.16% | |
68 Neutral | £1.49B | 12.28 | 4.88% | 4.25% | 1.66% | 11.42% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
63 Neutral | £2.48B | 14.75 | 6.03% | 7.30% | 0.96% | ― |
* Real Estate Sector Average
GB:PHP
Primary Health Properties plc R.E.I.T
95.65
9.71
11.29%
GB:BLND
British Land Company plc
381.20
68.52
21.92%
GB:SHC
Shaftesbury Capital
137.60
27.08
24.50%
GB:LAND
Land Securities Group plc REIT
587.00
112.52
23.72%
GB:SAFE
Safestore Holdings
683.50
177.03
34.95%
GB:BBOX
Tritax Big Box REIT
152.00
33.89
28.69%
Primary Health Properties plc R.E.I.T Corporate Events
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Primary Health Properties posts transformational year after Assura merger and extends 30-year dividend growth record
Positive
Mar 17, 2026
Primary Health Properties reported a transformational year in 2025, completing its merger with Assura to create a £6 billion healthcare REIT and sharply expanding its portfolio and rent roll while remaining almost fully occupied on long lease...
Regulatory Filings and Compliance
Primary Health Properties Discloses Share Purchase by Chair Harry Hyman
Positive
Mar 16, 2026
Primary Health Properties PLC has disclosed a director dealing, reporting that non-executive chair Harry Hyman purchased 4,150 ordinary shares via an Individual Savings Account under a dividend reinvestment plan. The transaction, conducted on 13 M...
Business Operations and StrategyFinancial Disclosures
Primary Health Properties Sets Date for 2025 Preliminary Results and Investor Briefing
Neutral
Mar 12, 2026
Primary Health Properties PLC will publish its preliminary results for the year ended 31 December 2025 on 17 March 2026. The company, a leading investor in UK healthcare infrastructure with primary and secondary listings in London and Johannesburg...
Business Operations and StrategyDividends
Primary Health Properties Announces Q2 2026 Interim Dividend and DRIP Option
Positive
Mar 11, 2026
Primary Health Properties has declared its second quarterly interim dividend for 2026 at 1.825 pence per ordinary share, comprising a 1.325 pence Property Income Distribution and a 0.500 pence non-PID element, payable on 8 May 2026 to shareholders...
Regulatory Filings and Compliance
Primary Health Properties Discloses Nil-Cost Share Transfer to Non-Executive Director
Neutral
Jan 26, 2026
Primary Health Properties plc has disclosed a director dealing notification relating to non-executive director Laure Duhot, in line with Market Abuse Regulation requirements. The company reported a nil-cost transfer of 23,169 ordinary shares from ...
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Primary Health Properties Marks 30 Years of Dividend Growth After Transformational Assura Deal
Positive
Jan 13, 2026
Primary Health Properties reported a strong trading update for the year to 31 December 2025, underpinned by the transformational acquisition and integration of Assura, which has created a £6 billion healthcare REIT and delivered 60% of the &#...
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.