Primary Health Properties' rental income rises, showcasing robust growth

PRIMARY Health Properties (PHP), a leading investor in modern primary care facilities in the UK and Ireland, in a trading update released on Monday said improving rental growth and stabilisation in yields underpin valuation growth.

- PHILIPPA LARKIN

For the six months to 30 June net rental income rose 3.1% to £78.6 million (R1.9 billion) with adjusted earnings per share up 2.3% to 3.54 pence. Dividends declared were 3.55 pence up 2.9%.

PHP said it had continued to focus on delivering organic rental growth derived from its existing assets. This growth arises mainly from rent reviews and asset management projects with income increasing by £2.2m, or 1.4%, in the six-month period. The company generated an additional £2.1m of extra rental income from its rent review activities, both in the UK and in Ireland.

The group said it continues to progress an advanced pipeline of 43 projects, which highlight the improving rental growth outlook with the current weighted average rent of £195psm (pounds per square meter) due to increase by around 15% to £223psm post completion.

As at June 30, 2025, the group's portfolio comprised 517 assets independently valued at £2.81 billion. After allowing for acquisition costs and capital expenditure on developments and asset management projects, the portfolio generated a valuation surplus of £19.8m.