Primary Health Properties (PHP), the GP landlord transformed by the acquisition of rival Assura last year, said in annual results that it was “encouraged by the improving rental growth outlook” having achieved annualised growth rate of 3.4% on rent reviews in the first two months of this year compared to 3.2% in 2025.

Chief executive Mark Davies said: “In a short space of time and ahead of schedule, we have delivered over 80% of the annualised transaction synergies and offers have been received from highly credible investors to establish a new strategic joint venture on our private hospital portfolio. Alongside this, we have agreed commercial terms with our existing joint venture partner on primary care assets to inject a portfolio of £103 million which will help to reduce leverage back to our targeted range.”

The shares slipped 1.9% to 99.4p, just above their EPRA net tangible assets of 99p, down 4p from the 103p at the end of 2024. Dividends of 7.1p per share rose 3% from 6.9p in 2024, covered 112% by 7.3p of adjusted earnings per share. This puts PHP on a 7.1% yield.

Our view

Richard Williams, senior analyst at QuotedData, said: “PHP continues to work on delivering on its promise to reduce its LTV (currently 57%) back down below 50% following the additional debt it took on in acquiring peer Assura last year. Encouragingly, it says it is just months away from bringing on a strategic joint venture partner to release equity from its £700m private hospital portfolio. It is also looking to add more properties into its joint venture with USS, which should generate £82m. It is confident that with receipts from these two initiatives, its LTV will fall below 50%. Promising progress in the Assura integration process (where £9m of cost synergies are close to being realised) adds to a brighter outlook at a time when the government is pushing on with its policy to shift patients from hospitals into primary care settings.”