Primary Health Properties Plc · LSE:PHP
Primary Health Properties — Investor Day (July 2025)
27 slides from Primary Health Properties's investor day presentation, Jul 24, 2025
Slide 1: Primed For Growth – Capital Markets Update
Primed For Growth Capital Markets Update 24 July 2025 Victoria Medical Centre, Eastbourne. A large, modern medical centre developed by PHP in 2021
Slide 2: Agenda
Agenda Mark Davies Richard Howell 14:30-14:40 Introduction CEO CFO 14:40-14:50 Financial update 14:50-15:00 Recommended combination with Assura 15:00-15:10 10 Year Health Plan and the opportunity for PHP Rt Hon Sir Jeremy Hunt MP Dame Clare Gerada DBE Former Health Secretary, Foreign Former Presiden
Slide 3: PHP investment case
PHP investment case 29-year track record of dividend growth Demographic UK population is growing and ageing, demand Dividend currently yielding at c.7.4%2, confident in future tailwind for space is leading to high occupancy progressive and covered dividend growth NHS policy Significant continued shi
Slide 4: Financial update
Financial update Primary Health Properties PLC Capital Markets Update July 2025 4
Slide 5: H1 2025 key financial and operational highlights
H1 2025 key financial and operational highlights 29th year of consecutive dividend growth H1 2025 financial highlights Portfolio ▪ Net rental income £78.6m +3.1% (H1 2024: £76.2m) £2.81 billion (2024: £2.75 billion) ▪ Adjusted earnings £47.3m +2.2% (H1 2024: £46.3m) ▪ Revaluation surplus £19.8m +0.7
Slide 6: Improving rental growth outlook
Improving rental growth outlook Rent reviews ▪ £2.1m additional rent in H1 2025 from rent reviews, 8.6% increase over previous rent, 3.0% p.a. total weighted average rental growth ▪ 66% reviewed to open market (ave. 2.3% p.a.), includes 37 reviews arising in 2022, 2023 and 2024 which delivered an in
Slide 7: Recommended combination with Assura
Recommended combination with Assura Primary Health Properties PLC Capital Markets Update July 2025 7
Slide 8: Combination expected to deliver significant strategic and financial benefits
Combination expected to deliver significant strategic and financial benefits to PHP and Assura shareholders 1 2 3 4 5 Earnings Further valuation Strong Greater scale Growth sector enhancing upside management ▪ Annualised run-rate ▪ Portfolio of long- ▪ 10 Year Health Plan ▪ Return to normalised, ▪ P
Slide 9: Attractive strategy and financial framework
Attractive strategy and financial framework Proposed operating policies ▪ Progressive dividend paid on a quarterly basis ▪ 80% to 90% government backed income target ▪ Focus on organic rental growth > 3% to deliver sector leading, risk adjusted total property returns ▪ Long income with occupiers on
Slide 10: Capital structure – strong support from the capital markets for the combination
Capital structure – strong support from the capital markets for the combination ▪ £1,125m1 bridging and back stop facility from new and existing lenders ▪ Fitch confirmed that Assura would remain investment grade after the combination Achieved to ▪ £900m of Assura listed bonds to remain, with no cha
Slide 11: Joint venture and disposal strategy – good progress continues
Joint venture and disposal strategy – good progress continues Engagement with Shortlisting and Targeting counterparties proposed structuring completion ▪ Positive ongoing discussions with ▪ Shortlist being finalised to progress ▪ High confidence in delivering a a number of highly credible to heads o
Slide 12: Recommended combination of PHP and Assura
Recommended combination of PHP and Assura ▪ Assura shareholders receive, for each Assura share: ▪ 0.3865 new PHP shares PHP offer ▪ 12.50 pence in cash ▪ 0.84 pence special dividend, payable on the transaction becoming unconditional ▪ In addition, Assura shareholders retain, with no adjustments the
Slide 13: Next steps
Next steps ▪ Assura Shareholders who have not yet accepted the PHP offer are urged to do so as soon as possible and, Acceptance of in any event, no later than 1.00 p.m. (London time) on 12 August 2025 the offer ▪ PHP requires shareholder acceptances of greater than 50% of the voting shares of Assura
Slide 14: 10 Year Health Plan and the opportunity for PHP
10 Year Health Plan and the opportunity for PHP Primary Health Properties PLC Capital Markets Update July 2025 14
Slide 15: The Government's 10 Year Health Plan for England, July 2025
The Government's 10 Year Health Plan for England, July 2025 Shift from hospitals to community with Neighbourhood PHP is strategically well placed to assist and support the Health Centres (NHC) at the core of the Government’s vision Government and NHS with the NHC programme: ▪ c.500 existing assets a
Slide 16: Eastbourne Victoria Medical Centre development – A neighbourhood health centre
Eastbourne Victoria Medical Centre development – A neighbourhood health centre Development opportunity: The outcome: ▪ Unfit for purpose smaller separate GP practices Let for 25 years to allow patients and the wider unable to cope with increasing patient demand primary care network to access a wide
Slide 17: Trinity Medical Centre, Wakefield – Creating value through asset management
Trinity Medical Centre, Wakefield – Creating value through asset management Asset management opportunity: Shifting care into the community: ▪ Originally built in 1998 for 2 GP practices, ▪ A strategic local neighbourhood hub built opticians, and pharmacy on 25-year leases around patient need, delive
Slide 18: Kilburn Park Medical Centre – A purpose-built modern medical centre
Kilburn Park Medical Centre – A purpose-built modern medical centre Practical completion 26 June 2025 Primary Health Properties PLC Capital Markets Update July 2025 18
Slide 19: Fireside chat with Sir Jeremy Hunt and Dame Clare Gerada
Fireside chat with Sir Jeremy Hunt and Dame Clare Gerada Mark Davies Rt Hon Sir Jeremy Hunt MP Dame Clare Gerada DBE CEO Former Health Secretary, Foreign Secretary Former President of the Royal College of and Chancellor General Practitioners Primary Health Properties PLC Capital Markets Update July
Slide 20: Closing remarks
Closing remarks Primary Health Properties PLC Capital Markets Update July 2025 20
Slide 21: Closing remarks
Closing remarks ▪ PHP is primed for growth and the 10 Year Health Plan plays to our strengths ▪ We have multiple levers to generate shareholder value: ▪ A combination with Assura would be transformational, creating a business with greater scale, operating excellence and the ability to further invest
Slide 22: Appendices
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Slide 23: 29th year of consecutive growth and sector outperformance
29th year of consecutive growth and sector outperformance 8.0 Implied PHP 2025 dividend yield 2 Historic dividend progression CAGR 8.1%1 6.90p 7.10p Share price3 Yield 6.50p 6.70p 6.20p 5.90p 6.0 5.40p 5.60p 95.6p 7.4% 4.75p 4.88p 5.00p 5.125p 5.25p 4.50p 4.63p 4.13p 4.25p 4.38p 3.75p 4.0 3.38p 3.00
Slide 24: Acquisition in Ireland, completed in February 2025
Acquisition in Ireland, completed in February 2025 Laya Health and Wellbeing Clinic ▪ Accretive earnings yield 7.1%, fully occupied and let to Laya Healthcare Limited ▪ State-of-the-art health and wellbeing clinic with urgent care and diagnostics facilities ▪ Great relationship with the occupier who
Slide 25: Development pipeline
Development pipeline ▪ Short-cycle and de-risked development activity: Adding high quality assets, capturing attractive development margins and supporting ESG commitments ▪ Irish forward funded developments: Three projects in pipeline with a total cost of £64m/c.€75m Forward funded development Forwa
Slide 26: Disclaimer
Disclaimer This document comprises the slides for a presentation in respect of Primary Health Properties PLC (the “Company”) and its Capital Markets Update on 24 July 2025(the “Presentation”). No reliance may be placed for any purposes whatsoever on the information in this Presentation or on its com
Slide 27: Disclaimer (continued)
Disclaimer (continued) Other jurisdictions The distribution of this Presentation or any information contained in it may be restricted by law in certain jurisdictions, and any person into whose possession any document containing this Presentation or any part of it comes should inform themselves about