Primary Health Properties to pay 40.276 cents quarterly dividend with strong rental growth

PRIMARY Health Properties (PHP) will pay out a 40.276 cents (1.825 pence) per share cash first quarterly dividend to its South African shareholders, following a positive rental growth outlook for 2023, the JSE-listed UK-based private healthcare facilities group said Tuesday.

- EDWARD WEST

The 30th year of consecutive dividend growth had marked a transformational period, with the combination between PHP and Assura successfully delivered, creating a £6 billion healthcare REIT, the company remarked in a trading update for the 12 months to December 31, 2023.

Some 60% of £9 million of synergies identified at time of the deal had already been delivered in the 2 months since Competition and Markets Authority clearance, and integration moves forward "at pace", CEO Mark Davies said.

Rent reviews generated an additional £8.3m, a 6.8% increase over the previous passing rent, or 3.2% on an annualised basis, which supports a positive rental growth outlook. The annualised contracted rent roll stood at £342m.

The enlarged group was now "well placed" to take advantage of the improving rental growth outlook across primary care and private hospitals, with six developments and a pipeline of 51 asset management projects, he said.