Primary Health Properties lifts annual profit, grapples with high debt

(Alliance News) - Primary Health Properties PLC on Tuesday reported a substantial rise in annual profit, but debt ballooned following the acquisition its peer Assura PLC.

For 2025, the London-based healthcare facility investor saw its pretax profit more than double to GBP122 million from GBP47 million in 2024.

Net rental income rose 49% to GBP230 million from GBP154 million, after PHP's acquisition of Assura, which became unconditional in August last year.

The occupancy rate was flat at 99% on an annual basis.

PHP raised its 2025 dividend to 7.1 pence, up 2.9% from 6.9p. The group said it intends to maintain its progressive dividend policy.

Earnings per share more than doubled to 6.6p from 3.1p, while headline EPS fell 4.62% to 6.2p from 6.5p.

PHP said the key difference between HEPS and EPS it "non-cashflow gains" arising on the valuation of its property portfolio and interest rate derivatives.

Investment property portfolio valuation multiplied to GBP6.0 billion at December 31, from GBP2.8 billion at December 31, 2024.

As at December 31, EPRA net asset value per share fell 3.9% to 99p from 103p at December 31, 2024, and was down 5.2% from 104.4p at June 30, 2025. This reflected the effects of the share exchange ratio and transaction costs incurred in the Assura deal.

"2025 was a transformational year for PHP, obtaining overwhelming shareholder and wider stakeholder support for the combination with Assura PLC to create a GBP6 billion healthcare REIT invested in critical social infrastructure assets across the UK and Ireland which will deliver financial and strategic benefits to our stakeholders," PHP Chief Executive Officer Mark Davies said.

PHP said its "immediate focus" is to cut debt.

Net debt rose to GBP3.4 billion as at December 31, up sharply from GBP1.3 billion at December 31, 2024, driven by bridging loan to finance the Assura deal.

Looking ahead, PHP said it is encouraged by the improving rental growth outlook underpinned by its primary care assets, along with the solid trading performance from the recently acquired private hospital portfolio.

Shares in PHP were down 2.8% to ZAR22.12 on Tuesday in Johannesburg, and they were down 1.9% to 99.50p in London.

By Artwell Dlamini, Alliance News senior reporter South Africa

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