Primary Health Properties (LON:PHP) Releases Earnings Results

Primary Health Properties (LON:PHP) issued its earnings results on Tuesday. The real estate investment trust reported GBX 7.30 earnings per share for the quarter, Digital Look Earnings reports. Primary Health Properties had a net margin of 54.15% and a return on equity of 7.03%.

Here are the key takeaways from Primary Health Properties’ conference call:

• Completed the transformational Assura merger with integration ahead of schedule and >80% of the planned GBP 9m cost synergies already delivered, with integration expected to finish by end-June.
• Announced a 3% increase in dividend to GBP 0.073 (30th consecutive year of growth); adjusted EPS rose ~4% and management says the dividend is fully covered.
• Leverage is elevated post?merger with an enlarged group LTV of 57% and net debt-to-EBITDA just over 10x, and EPRA NTA was reduced by one?off acquisition/exchange costs.
• Clear deleveraging plan underway — transfers to the USS primary care JV (GBP 103m) plus a planned private hospital JV and refinancing (new ~GBP 800m club facility and EMTN program) are expected to realize ~GBP 700m of proceeds and target LTV 40–50% and investment-grade credit.
• Portfolio fundamentals remain strong — 99% occupancy, 11?year WALT, ~76–80% government-backed income, accelerating rental growth (~3.2–3.4% annualized) and a GBP 48m valuation surplus supporting future income and value upside.

Primary Health Properties Stock Performance

Shares of PHP opened at GBX 101 on Tuesday. Primary Health Properties has a 52-week low of GBX 87.40 and a 52-week high of GBX 109.60. The stock’s 50-day simple moving average is GBX 104.32 and its 200 day simple moving average is GBX 97.45. The stock has a market capitalization of £2.62 billion, a price-to-earnings ratio of 14.03, a price-to-earnings-growth ratio of 5.64 and a beta of 0.73.

Wall Street Analyst Weigh In

Separately, Berenberg Bank raised their price objective on shares of Primary Health Properties from GBX 122 to GBX 128 and gave the stock a “buy” rating in a report on Monday, January 26th. Three equities research analysts have rated the stock with a Buy rating, According to data from MarketBeat, Primary Health Properties currently has an average rating of “Buy” and a consensus target price of GBX 121.

About Primary Health Properties

PHP invests in flexible, modern properties for local primary healthcare.

The overall objective of the group is to create progressive returns to shareholders through a combination of earnings growth and capital appreciation.

To achieve this, PHP invests in healthcare real estate let on long-term leases, backed by secure underlying covenants where the majority of rental income is funded directly or indirectly by a government body.