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Primary Health Properties PLC R.E.I.T (GB:PHP)
LSE:PHP

Primary Health Properties plc R.E.I.T (PHP) AI Stock Analysis

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GB:PHP

Primary Health Properties plc R.E.I.T

(LSE:PHP)

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Outperform 71 (OpenAI - 5.2)
Rating:71Outperform
Price Target:
108.00p
▲(10.32% Upside)
The score is driven primarily by solid fundamentals—revenue growth and strong free cash flow—balanced against leverage and earnings volatility. Valuation is attractive with a high dividend yield and moderate P/E, while technicals show constructive momentum with mildly stretched conditions. Corporate events add support via the completed Assura deal and positive governance-related updates.
Positive Factors
Strategic Merger Potential
The potential merger with Assura could significantly enhance PHP's market position, offering improved access to capital markets and operational synergies, which are crucial for long-term growth and competitiveness in the healthcare REIT sector.
Strong Financial Health
PHP's robust financial health, characterized by strong equity and no debt, provides significant financial flexibility and stability, enabling sustained operations and strategic investments in the long term.
Government-Backed Income Streams
Government-backed income streams reduce tenant default risk and ensure stable cash flows, supporting PHP's long-term revenue stability and attractiveness to investors seeking reliable income.
Negative Factors
Decline in WAULT
A decline in WAULT indicates shorter lease durations, which could lead to increased lease renewal risks and potential revenue volatility, impacting long-term income stability.
Increased Administrative Costs
Rising administrative costs can pressure profit margins, reducing operational efficiency and potentially impacting the company's ability to invest in growth initiatives over time.
Revenue Decline
A decline in revenue can signal challenges in maintaining growth momentum, potentially affecting the company's ability to fund operations and strategic initiatives, impacting long-term financial performance.

Primary Health Properties plc R.E.I.T (PHP) vs. iShares MSCI United Kingdom ETF (EWC)

Primary Health Properties plc R.E.I.T Business Overview & Revenue Model

Company DescriptionPrimary 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 combination of earnings growth and capital appreciation. PHP achieve this by investing in healthcare real estate let on long-term leases, backed by a secure underlying covenant funded mostly by government bodies. The Group's portfolio comprises over 480 primary healthcare facilities, both completed and committed, the majority of which are GP surgeries, with other properties let to NHS organisations, pharmacies and dentists.
How the Company Makes MoneyPrimary Health Properties plc generates revenue through the leasing of its healthcare properties. The company's income primarily comes from rental payments made by tenants, which include general practitioners, NHS organizations, and other healthcare providers. PHP enters into long-term lease agreements, often with fixed or inflation-linked rent reviews, ensuring stable and predictable cash flows. Additionally, the company benefits from government-backed healthcare funding, providing security and reducing the risk of tenant default. PHP also actively manages its portfolio to enhance value through strategic acquisitions, developments, and asset management initiatives.

Primary Health Properties plc R.E.I.T Earnings Call Summary

Earnings Call Date:Feb 28, 2025
(Q4-2024)
|
% Change Since: |
Next Earnings Date:Feb 18, 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.
Q4-2024 Updates
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.
Successful Acquisition in Ireland
PHP announced the acquisition of the Laya Health and Wellbeing Clinic in Cork, Ireland, for EUR 22 million, with an earnings yield of 7.1%.
Positive Valuation Performance
For the first time since 2021, PHP reported positive valuation performance, with valuation growth in the second half of the fiscal year.
Strong Pipeline in Ireland
PHP has a robust pipeline in the Irish primary care market, with significant opportunities emerging due to government tenders.
Rental Growth and Asset Management Success
PHP reported a 7.7% increase in rental income from rent reviews, with strong examples of asset management projects yielding rental increases of 15%-20%.
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.
Lower WAULT
Weighted Average Unexpired Lease Term (WAULT) declined to 9.4 years, although it could increase to 10.2 years if all current asset management deals were completed.
Valuation Decline in First Half
The first half of the fiscal year experienced valuation declines due to yield expansion, although this stabilized in the second half.
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
Primary Health Properties plc exhibits strong financial stability with solid equity backing and a positive cash flow stance. While revenue has seen a recent downturn, profitability margins have been maintained, supported by efficient cost management. The absence of debt in 2024 significantly enhances the company's financial flexibility. Overall, the financial health remains robust, with opportunities for revenue growth and further strengthening of the balance sheet.
Income Statement
The income statement reveals fluctuating revenue trends with a recent decline in total revenue from 2023 to 2024. The gross profit margin remained stable, while the net profit margin showed improvement due to a decrease in revenue and a corresponding reduction in costs. Notably, EBIT and EBITDA data for 2024 are unavailable, hindering comprehensive margin analysis. Previous years showed stable EBIT margins, indicating operational efficiency.
Balance Sheet
The balance sheet indicates a strong equity position with substantial stockholders' equity relative to total assets. No debt in 2024 reflects improved financial stability and reduced leverage risk, contrasting with prior years' significant debt levels. Consistent equity ratios and positive return on equity suggest profitability and effective equity utilization.
Cash Flow
Cash flow analysis shows a stable operating cash flow with substantial free cash flow, indicating effective cash management. The free cash flow to net income ratio is strong, reflecting robust cash generation capabilities. The operating cash flow to net income ratio is positive, underscoring efficient conversion of net income into cash flow.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue179.50M181.70M169.80M154.10M145.60M139.00M
Gross Profit78.00M155.70M151.00M141.50M135.60M120.50M
EBITDA136.10M94.70M0.00163.20M132.30M107.20M
Net Income97.20M41.40M27.30M56.30M140.10M112.00M
Balance Sheet
Total Assets2.87B2.79B2.83B2.86B2.85B2.70B
Cash, Cash Equivalents and Short-Term Investments11.50M3.50M13.70M29.10M33.40M103.60M
Total Debt1.40B1.34B1.33B1.30B1.28B1.22B
Total Liabilities1.48B1.42B1.40B1.38B1.35B1.28B
Stockholders Equity1.39B1.38B1.42B1.48B1.50B1.41B
Cash Flow
Free Cash Flow96.70M135.20M133.60M79.30M246.60M79.20M
Operating Cash Flow96.70M135.20M133.60M79.30M100.20M79.20M
Investing Cash Flow-37.30M-20.60M-44.60M-47.30M-147.10M-102.80M
Financing Cash Flow-52.20M-114.30M-114.90M-37.00M-22.70M-16.50M

Primary Health Properties plc R.E.I.T Technical Analysis

Technical Analysis Sentiment
Positive
Last Price97.90
Price Trends
50DMA
96.98
Positive
100DMA
93.43
Positive
200DMA
94.18
Positive
Market Momentum
MACD
1.74
Negative
RSI
66.90
Neutral
STOCH
87.53
Negative
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 97.9 is below the 20-day moving average (MA) of 98.58, above the 50-day MA of 96.98, and above the 200-day MA of 94.18, indicating a bullish trend. The MACD of 1.74 indicates Negative momentum. The RSI at 66.90 is Neutral, neither overbought nor oversold. The STOCH value of 87.53 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
£1.67B5.6913.69%4.25%1.66%11.42%
83
Outperform
£4.24B9.229.42%5.30%35.06%127.62%
75
Outperform
£3.97B11.316.14%5.85%-20.83%
73
Outperform
£4.66B18.733.85%6.34%10.69%135.58%
71
Outperform
£2.69B14.037.01%7.30%0.96%
68
Neutral
£2.79B8.458.66%2.58%-0.04%655.16%
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:PHP
Primary Health Properties plc R.E.I.T
102.00
20.24
24.76%
GB:BLND
British Land Company plc
397.40
73.58
22.72%
GB:SHC
Shaftesbury Capital
142.30
26.13
22.49%
GB:LAND
Land Securities Group plc REIT
627.50
129.84
26.09%
GB:SAFE
Safestore Holdings
767.50
154.56
25.22%
GB:BBOX
Tritax Big Box REIT
158.00
35.27
28.74%

Primary Health Properties plc R.E.I.T Corporate Events

Private Placements and FinancingRegulatory Filings and Compliance
PHP Chair’s Associate Pledges Shares as Security for £1.5m Loan
Neutral
Dec 18, 2025

Primary Health Properties PLC disclosed that Nexus Group Holdings Limited, a company closely associated with non-executive chair Harry Hyman, has pledged 10 million PHP ordinary shares as security for a £1.5 million loan facility with Royal Bank of Canada. Nexus remains the beneficial owner of the pledged shares and retains full voting rights, leaving both Nexus’ total holding at 12.33 million shares (about 0.475% of issued capital) and the ultimate beneficial ownership of Hyman and his connected parties at 24.6 million shares (about 0.948% of issued capital) unchanged, signalling that the transaction is a financing arrangement rather than a change in economic interest in the company.

The most recent analyst rating on (GB:PHP) stock is a Buy with a £1.10 price target. To see the full list of analyst forecasts on Primary Health Properties plc R.E.I.T stock, see the GB:PHP Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
Primary Health Properties PLC Strengthens Board with New Appointment
Positive
Dec 2, 2025

Primary Health Properties PLC has appointed Jonathan Davies as an independent Non-executive Director, effective from December 1, 2025. Davies, who brings extensive experience in finance, mergers, acquisitions, and corporate governance, is expected to contribute significantly to the company’s integration of Assura and its future growth. This strategic appointment strengthens PHP’s board with a majority of independent Non-executive Directors, enhancing its governance and positioning in the healthcare investment sector.

The most recent analyst rating on (GB:PHP) stock is a Buy with a £1.10 price target. To see the full list of analyst forecasts on Primary Health Properties plc R.E.I.T stock, see the GB:PHP Stock Forecast page.

Business Operations and StrategyDividends
PHP’s Non-executive Chair Invests in Company Shares
Positive
Nov 24, 2025

Primary Health Properties PLC has announced a transaction involving its Non-executive Chair, Harry Hyman, who purchased ordinary shares through an ISA under a dividend reinvestment plan. This transaction, conducted on the London Stock Exchange, reflects a continued commitment to the company’s growth and stability, potentially reinforcing investor confidence in PHP’s strategic direction.

The most recent analyst rating on (GB:PHP) stock is a Buy with a £1.10 price target. To see the full list of analyst forecasts on Primary Health Properties plc R.E.I.T stock, see the GB:PHP Stock Forecast page.

Business Operations and StrategyM&A Transactions
PHP Secures CMA Clearance for Assura Acquisition, Paving Way for Growth
Positive
Oct 29, 2025

Primary Health Properties PLC has received clearance from the UK’s Competition and Markets Authority for its acquisition of Assura plc, with no competition concerns identified. This strategic transaction is set to create a £6 billion healthcare REIT, enhancing PHP’s platform for growth and enabling the company to achieve cost synergies of at least £9 million. The integration will support the NHS’s 10-year plan by facilitating a shift towards primary care, helping to save costs and deliver modern healthcare facilities across the UK and Ireland.

The most recent analyst rating on (GB:PHP) stock is a Buy with a £1.10 price target. To see the full list of analyst forecasts on Primary Health Properties plc R.E.I.T stock, see the GB:PHP Stock Forecast page.

Executive/Board ChangesM&A TransactionsShareholder Meetings
Primary Health Properties PLC Reaffirms Leadership Confidence Post-AGM
Positive
Oct 24, 2025

Primary Health Properties PLC provided an update following its 2025 Annual General Meeting, where the re-election of Harry Hyman as Non-executive Chair received 79.28% support, slightly below the UK Corporate Governance Code threshold. The company highlighted successful shareholder engagement following its acquisition of Assura plc, reaffirming investor confidence in its leadership and commitment to high corporate governance standards. PHP intends to continue engaging with shareholders to ensure a balanced mix of skills and experience on its Board, aligning with evolving government health policies.

The most recent analyst rating on (GB:PHP) stock is a Buy with a £1.10 price target. To see the full list of analyst forecasts on Primary Health Properties plc R.E.I.T stock, see the GB:PHP Stock Forecast page.

Business Operations and StrategyM&A Transactions
Primary Health Properties Completes Acquisition of Assura Plc
Positive
Oct 20, 2025

Primary Health Properties PLC has announced the successful completion of its acquisition of Assura Plc, following a recommended shares and cash offer. The acquisition, which involved the issuance of new PHP shares, is expected to enhance PHP’s market position in the healthcare real estate sector, providing increased scale and diversification. The new shares have been admitted to trading on the London Stock Exchange and the JSE, marking a significant step in PHP’s growth strategy.

The most recent analyst rating on (GB:PHP) stock is a Buy with a £1.10 price target. To see the full list of analyst forecasts on Primary Health Properties plc R.E.I.T stock, see the GB:PHP Stock Forecast page.

Delistings and Listing ChangesM&A Transactions
Primary Health Properties Announces Takeover of Assura Plc
Positive
Oct 17, 2025

Primary Health Properties PLC has announced a recommended takeover offer for Assura Plc, to be implemented under the Companies Act 2006. The admission of new PHP shares to the London Stock Exchange and the Main Board of the JSE is expected to occur by October 20, 2025, marking a significant expansion in PHP’s market presence and potentially enhancing its industry positioning.

The most recent analyst rating on (GB:PHP) stock is a Buy with a £1.10 price target. To see the full list of analyst forecasts on Primary Health Properties plc R.E.I.T stock, see the GB:PHP Stock Forecast page.

Delistings and Listing ChangesM&A Transactions
Primary Health Properties Completes Assura Takeover
Positive
Oct 15, 2025

Primary Health Properties PLC has completed the compulsory acquisition of Assura Plc’s remaining shares, following a recommended takeover offer. This acquisition will result in the issuance of new PHP shares, which will be admitted to trading on the London Stock Exchange and the JSE. The move is expected to consolidate PHP’s position in the healthcare property market, enhancing its portfolio and potentially offering more value to shareholders.

The most recent analyst rating on (GB:PHP) stock is a Buy with a £1.10 price target. To see the full list of analyst forecasts on Primary Health Properties plc R.E.I.T stock, see the GB:PHP Stock Forecast page.

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.Date of analysis: Dec 30, 2025