Primary Health Properties Plc · LSE:PHP
Primary Health Properties — Investor Day (2018)
27 slides from Primary Health Properties's investor day presentation, 2018
Slide 1: Primary Health Properties
Primary Health | Properties z “4
Slide 2: Contents
Capital Markets Day - Ireland Contents * Introduction ° Progress on delivery of Primary Care Centres in Ireland ° Irish Primary Care Centres- the opportunity © PHP's Irish Portfolio * Site visits: Navern Road, Celbridge and Bray Primary Care Centres ° Appendices — Market Fundamentals — Ireland CPI f
Slide 3: Tipperary and Mallow Primary Care Centres
• • • • • • Tipperary Primary Care Centre Mallow Primary Healthcare Centre
Slide 4: Progress on delivery of Primary Care Centres in Ireland
Capital Markets Day - Ireland Progress on delivery of Primary Care Centres in Ireland Celbridge Primary Care Centre * The data on the number of modern operational Primary Care Centres (“PCCs”) is limited albeit we understand that of a total of circa 114, only a small number represent modern purpose
Slide 5: Irish Primary Care Centres - the opportunity
Capital Markets Day - Ireland lrish Primary Care Centres - the opportunity * PHP believes that the Primary Care Centres Sector in Ireland presents an excellent investment opportunity given the following: Stable cash flows idsd benefits of Other tenants include from long term leases. No voids due to
Slide 6: Positive Yield Gap
Capital Markets Day - Ireland Positive Yield Gap Illustrative yield ment 1. Net margin over funding cost - UK Acquisitions 2. Net margin over funding cost - Ireland 6.0% 7.0% )9 4.9% 6.0% oo —s 6.0% Es 0.3% . 4.0% ° 5.0% 0.3% 3.0% 40% 3.0% — fo 2.0% Lm 1.2% 2.0% 1.0% 79 _ | | “ 0.0% . 0.0% Valuation
Slide 7: PHP's Irish portfolio at a glance
Capital Markets Day - Ireland PHP’s Irish portfolio at a glance * Portfolio valued at over €106m across eight assets: * Total rent roll €6.3m with an average rent of €215 psm. Tipperary Carrigaline Mallow Mountmellick Celbridge Navan Road Newbridge Bray (under development) Total Primary Health Prope
Slide 8: Location of PHP's Irish assets
Capital Markets Day - Ireland Location of PHP's Irish assets Oy hid www.phpgroup.co.uk e
Slide 9: Forward Funded Development: Bray Primary Care Centre
Capital Markets Day - Ireland Forward Funded Development Bray Primary Care Centre, Ireland Tenants Health Service Executive (HSE), GP practice (11 doctors), pharmacy and coffee shop Size 4,800 sqm Completion Autumn 2019 Development cost £19.7m (€22.3m) WAULT 25 years Number of GPs Starting with 11 w
Slide 10: Investment Acquisition: Navan Road
Capital Markets Day - Ireland Investment Acquisition Navan Road Primary Care Centre, Dublin 7, Ireland Tenants Health Service Executive (HSE), Centric Health Primary Care (5 GPs), Mangan Pharmacies Limited, Insomnia Limited (coffee shop) Size 3,100 sqm Date purchased September 2018 Acquisition cost
Slide 11: Investment Acquisition: Celbridge
Capital Markets Day - Ireland Investment Acquisition Celbridge Primary Care Centre, Co. Kildare, Ireland Tenants Health Service Executive (HSE), Centric Health Primary Care (5 GPs), The Child & Family Agency (Irish Government), Mangan Pharmacies Limited Size 3,500 sqm Date purchased September 2018 A
Slide 12: Investment Acquisition: Newbridge
Capital Markets Day - Ireland Investment Acquisition Newbridge Primary Care Centre, Co. Kildare, Ireland Health Service Executive (HSE), Centric Health Primary Care (4 GPs), Kildare & Wicklow Education & Training Board (Irish Government), and Mangan Pharmacies Limited 4,100 sqm September 2018 £12.1m
Slide 13: Investment Acquisition: Mountmellick
Capital Markets Day - Ireland Investment Acquisition Mountmellick Primary Care Centre, Co. Laois, Ireland Tenants Health Service Executive (HSE), GP Practice (2 doctors), pharmacy Size 1,800 sqm Date purchased May 2018 Acquisition cost £5.1m (€5.8m) WAULT 17.7 years Number of GPs 2 Rent review Irish
Slide 14: Investment Acquisition: Tipperary
Capital Markets Day - Ireland Investment Acquisition Tipperary Primary Care Centre, Tipperary, Republic of Ireland Tenants Health Service Executive (HSE), 5 GPs, pharmacy Size 2,400 sqm Acquisition cost £5.8m (€6.7m) Date purchased September 2018 WAULT 23.1 years Number of GPs 5 Rent review Irish CP
Slide 15: Investment Acquisition: Mallow
Capital Markets Day - Ireland Investment Acquisition Mallow Primary Health Centre, Ireland at ee Health Service Executive (HSE), 4 GP practices (21 doctors), dentist, optician, pharmacy and café. 6,500 sqm February 2018 £17.7m (€20.0m) 20.4 years 21
Slide 16: Completed Development: Carrigaline
Capital Markets Day - Ireland Completed Development Carrigaline Primary Care Centre, Ireland Tenants Health Service Executive (HSE), GP practice (5 doctors) and pharmacy Size 3,000 sqm Date completed August 2017 Development cost £6.4m (€7.3m) WAULT 24.3 years Number of GPs 5 Rent review Irish CPI
Slide 17: Appendices
Primary Health Properties
Slide 18: Market Fundamentals Remain Strong
Capital Markets Day - Ireland Market Fundamentals Remain Strong + Growing and ageing population with declining health in Ireland + Demands on health services increasing and budgets under severe pressure Healthy Ireland survey results indicate the following prevalence of risk factors and unhealthy be
Slide 19: Irish CPI forecast to increase to just below 2%
Capital Markets Day - Ireland Irish CPI forecast to increase to just below 2% * The chart below from Statista shows the average inflation rate in Ireland from 2012 to 2017, with projections up until 2022. In 2017, the average inflation rate in Ireland had amounted to 0.26 % compared to the previous
Slide 20: Characteristics of the HSE leases
Capital Markets Day - Ireland Characteristics of the HSE leases * Asthe HSE typically commissions the building and takes the majority of the space, they are the anchor tenant in a PCC and typically account for 60 — 75% of the annual passing rent for the building. * The HSE typically requires 800 sq.
Slide 21: Characteristics of the HSE leases: Maintenance
Capital Markets Day - Ireland Characteristics of the HSE leases 1. Maintenance * Under the typical HSE leases, the Landlord is responsible for the maintenance of the building but receives a fixed service level agreement (SLA) contribution typically €5.00 psf. p.a., increasing by Irish CPI, to pay fo
Slide 22: Characteristics of the HSE leases: Minimum number of GPs
Capital Markets Day - Ireland Characteristics of the HSE leases 2. Minimum number of GPs The typical HSE leases contain an obligation on the landlord to ensure a minimum number of GPs will be based in the building. The exact requirements varies lease to lease depending usually on the size of the bui
Slide 23: The Irish Government's continued focus on Primary Care
Capital Markets Day - Ireland The Irish Government’s continued focus on Primary Care The Irish government has developed a clear programme to support the healthcare system with a primary care focus that has evolved in a clear way since 2012. We would highlight the following government reviews, policy
Slide 24: Funding new Primary Care Centres
Capital Markets Day - Ireland Funding new Primary Care Centres * The HSE is predominantly funded by the exchequer from tax proceeds. A total of 78.3% of all health expenditure, both public and private, was raised from taxation, including pay-related social insurance (“PRSI”) and other sources of gov
Slide 25: Accessing Ireland's healthcare system
Capital Markets Day - Ireland Accessing Ireland’s healthcare system Access to publicly funded healthcare is in principle available to anyone who is ‘ordinarily resident’ in the Republic of Ireland. Residents can apply for a Medical Card or GP Visit Card and eligibility will be assessed based on an i
Slide 26: Delivery of Primary Care in Ireland
Capital Markets Day - Ireland Delivery of Primary Care in Ireland * Inline with the health reforms set out in the DoH’s strategy as set out in “Future Health — A Strategic Framework for Reform of the Health Service 2012-2015”, health and social care services are delivered through a number of Nationa
Slide 27: Delivery of Primary Care in Ireland: CHOs
Capital Markets Day - Ireland Delivery of Primary Care in Ireland * — Primary Care is delivered through Community Healthcare Organisations (“CHOs”) of which there are nine. * — CHOs are responsible for the delivery of primary care and other community based services responsive to the needs of local c