Primary Health Properties PLC

Q3 Update on rental growth and joint ventures

Primary Health Properties PLC, a leading investor in critical healthcare infrastructure in the UK and Ireland, today publishes an update for the period to 30 September 2026 demonstrating continued rental growth, positive momentum in asset management and risk-controlled development and progress on our joint venture transactions.

Mark Davies, CEO of PHP, commented:

“PHP’s portfolio of critical healthcare infrastructure assets is defined by the security and longevity of rental income from GPs, the NHS, the HSE in Ireland and proven private healthcare operators, giving our sector attractive investment characteristics. We continue to deliver rental growth slightly ahead of our guidance and are encouraged by recent investment transactions in our sector at supportive valuations.

“We remain focused on completing the previously announced deleveraging plan and we are pleased to report that key transactions with our joint venture partners remain on track.”

Rental growth remains ahead of guidance

The Company continues to see an improving rental growth outlook, especially from rent reviews, with an extra £5.8 million of income generated in the first 9 months of the year from 480 completed reviews. This represents a total increase of 6.1% over the previous rent of £96 million, equivalent to 3.1% (target: >3%) on an annualised basis. All parts of the enlarged portfolio are performing very well with Primary Care UK +2.8%, Private Hospitals +3.7% and Ireland +3.7%.

Active asset management and development

The Government remains committed to the NHS 10-year plan and the creation of new Neighbourhood Health Centres, aiming to increase both the capacity for, and range of, healthcare services in a primary care setting and to relieve the pressure on NHS hospitals. PHP offers both the asset management and development capability to deliver this essential improvement in critical healthcare infrastructure over the coming years for the benefit of patients, health occupiers and investors.

We have recently completed significant asset management projects at our assets in Wakefield and Yeovil, both of which increase clinical space to enhance healthcare services and set a positive rental tone in the locality, and we continue to target further value generating asset management projects. This includes opportunities in private hospitals, such as the £6.5 million extension to Tees Valley Hospital in Middlesborough that has moved on site in the quarter.

PHP is currently on site with five new build development projects across the UK and Ireland, which all remain on track for completion on time and on budget. Our enhanced development capability means we have a growing pipeline of risk-controlled development opportunities across the UK, including a number of schemes meeting the criteria of Neighbourhood Health Centres and a strategic partnership with East of England Ambulance Service Trust for the delivery of new ambulance hubs, that are expected to be funded through the existing primary care joint venture.

Joint venture transactions remain on track

PHP has made further progress on its joint ventures since the Interim Results in late July. The transactions remain on track with financial terms agreed and due diligence complete. A further update will follow shortly.

Proceeds from the sale of assets into joint ventures will be used to pay down debt. The Company remains focused on bringing the key debt metrics of Net Debt to EBITDA below 9.5 times and LTV below 50%.

The Company is pleased to have completed the integration of Assura during the period and expects to deliver its financial synergies ahead of plan.

PHP’s portfolio of modern healthcare buildings, which act as essential infrastructure for the delivery of healthcare services in the UK and Ireland, offer secure and growing rental income in a market benefitting from long-term structural demand. With a strong track record of cost control, with one of the lowest EPRA cost ratios in the sector and a disciplined approach to liability management, PHP is proud to be in its 30th consecutive year of delivering dividend growth for investors and remains committed to a progressive covered dividend policy.