Peel Hunt has given a bullish rating on healthcare-based REIT Primary Health Properties PLC (LSE:PHP, OTC:PHPRF) following a recent set of annual results.
The REIT reported net rental income of £149.3 million for 2023, a 5.5% increase from £141.5 million in 2022.
This growth was underpinned by rent reviews and asset management activities, which contributed an extra £4.3 million in the year.
PHP’s annualised rental uplift “is better than many long-income peers, and the outlook from here is strong”, said Peel Hunt.
Comparing PHP FTSE£ 250-listed competitor Assura plc, analysts said that PHP “has generated significant outperformance – its property return is 1.3x greater than Assura’s, and this also feeds through into total accounting and shareholder returns”.
“PHP benefits from higher Irish exposure, limited development activity, larger lot sizes, and a higher degree of government-backed income,” they added.
PHP stock is a buy with a 110p price target against a 94p publication price.