James Carthew: doctor your portfolio with a GP landlord
Primary Healthcare Properties (PHP) last week announced results for the year to 31 December 2017. It is one of three listed funds investing in GP surgeries and other primary healthcare facilities in the UK and Ireland, the others being MedicX (MXF) and Assura (AGR). Most of the revenue the three companies earn comes directly or indirectly from the NHS or the Health Service Executive (the Irish equivalent).
I wrote about MedicX in March last year in an article that, amongst other things, tried to explain the different accounting approaches behind the International Financial Reporting Standards (IFRS), which funds are required to use in their reports, and the alternative measure from the European Public Real Estate association (EPRA) which many property funds use. Like make investors I find it much easier to use EPRA.
PHP’s net asset value under EPRA was 100.7p at the end of 2017 and its shares currently trade at a 14.3% premium to this figure, reflecting, in part, its attractive yield. It aims for quarterly dividends totalling 5.4p for 2018, which would put it on a yield of 4.7%.
Despite a rising population, the number of GP practices in the UK is falling and falling fairly quickly. A BMA press release in April 2017 said… read more here