Company
LON:PHP
Primary Health Properties PLC is a UK-based Real Estate Investment Trust (REIT) with a clear objective to create progressive returns for shareholders through a combination of earnings growth and capital appreciation. PHP achieves this by investing in healthcare real estate in the UK and Ireland let on long-term leases backed by a secure underlying covenant funded mostly by government bodies. The company's portfolio comprises over 300 primary healthcare facilities, both completed and committed, the majority of which are GP surgeries, with other properties let to NHS organisations, pharmacies and dentists.
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The placing, which represents approximately 7.9% of Primary Health Properties’ issued ordinary share capital prior to the fundraising, was upsized from approximately £120mln due to strong investor demand
The proceeds will be used to fund continued portfolio growth through acquisition and forward funded developments and to finance asset management projects totalling around £128mln
Last month, PHP acquired a portfolio of 20 purpose-built medical centres and conditionally agreed to buy two more, one of which has now been purchased
The acquisition will increase Primary Health Properties' portfolio to a total of 511 assets, of which 17 are in Ireland, with a gross value of just under £2.5bn and a contracted rent roll of £132mln
"The current coronavirus pandemic is expected to reinforce the need for modern, integrated primary care facilities to relieve pressure on hospitals and A&E facilities"
The two developments are a 4,822 square metre (m2 ) centre at Bray, Co. Wicklow, 12 miles south of Dublin, and a 3,232m2 centre at Rialto, Dublin 8
The group said its latest quarterly dividend of 1.475p will be paid on May 22
PHP has contracted with a developer to fund the fitting out of a doctors' surgery within a modern residential development in the centre of Epsom, Surrey
For the 12 months ended 31 December, the healthcare property group reported that net rental incomes had risen 51.4% to £115.7mln
The group said it has contracted with a developer to fund the development and acquisition of the centre in Llanbradach, near Caerphilly in Wales for a total cost of £2.8mln
Assets now have a gross value of just under £2.4bn and a contracted rent roll of approximately £127mln.
According to the managing director this deal is “one of several development projects which the group is pursuing at present in the UK and in Ireland”
The British bank said the sector offered “relatively ‘safe’, attractive and growing dividend yields” as well as “favourable underlying market dynamics”
The new facility, located in Wales, will expand PHP’s portfolio to 485 assets with a value of just under £2.4bn and rent roll of £127mln
The FTSE 250-listed REIT said it was seeing a rise in the number of opportunities for funding the construction of new healthcare premises in Ireland and the UK
"We are delighted to have concluded this transaction at attractive rates and to have received continued support from the private placement market."
The healthcare facilities have been let on 20 year leases
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