**Summary**
Primary Health Properties PLC (PHP) announced its preliminary results for the year ended December 31, 2025, highlighting a transformative year marked by the successful combination with Assura plc, creating a £6 billion healthcare REIT focused on critical social infrastructure assets across the UK and Ireland. The merger received overwhelming shareholder support and is expected to deliver financial and strategic benefits, including £9 million in annualized synergies. PHP achieved over 80% of these synergies ahead of schedule and received offers for a new strategic joint venture on its private hospital portfolio. The company also agreed to inject a £103 million portfolio into an existing joint venture to reduce leverage.
Financial highlights include a 49% increase in net rental income to £230 million, a 41% rise in adjusted earnings to £131 million, and a 3% dividend increase to 7.1 pence per share. The property portfolio valuation grew by 115% to £6.0 billion, with a net initial yield of 5.4%. PHP maintained its 30-year track record of dividend growth, with a 3% increase in the dividend per share.
The company’s strategic focus includes reducing leverage, integrating Assura, and leveraging the NHSs 10-year Health Plan, which emphasizes modern primary care facilities. PHP is well-positioned to support this transition, given its long-standing NHS partnerships. The rental growth outlook remains positive, with a 3.2% increase in 2025 and a 3.4% annualized growth rate in early 2026.
PHP’s balance sheet remains robust, with significant liquidity headroom and a clear plan to reduce its loan-to-value ratio to the targeted 40-50% range. The company is committed to its progressive dividend policy, fully covered by adjusted earnings, and aims to maintain its position as a leading investor in healthcare infrastructure.
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Net rental income (£m) | £230 | £154 | +49% |
| Adjusted earnings (£m) | £131 | £93 | +41% |
| Adjusted earnings per share (pence) | 7.3 | 7.0 | +4% |
| IFRS profit after tax (£m) | £119 | £41 | +190% |
| IFRS earnings per share (pence) | 6.6 | 3.1 | +113% |
| Dividend per share (pence) | 7.1 | 6.9 | +3% |
| Investment portfolio valuation (£bn) | £6.0 | £2.8 | +115% |
| Contracted rent roll (£m) | £342 | £154 | +122% |
| Loan to value ratio | 57% | 48% | +9% |
| Average cost of debt | 3.7% | 3.4% | +30 bps |
| Weighted average debt maturity (years) | 4.1 | 5.7 | -1.6 |