Primary Health Properties (LSE and JSE: PHP) is a leading investor in modern primary healthcare properties across the UK and Ireland. Since listing on the London Stock Exchange ("LSE") in 1998, it has created progressive returns for shareholders through a combination of rental growth and capital appreciation, generating 29 years of consecutive dividend growth. Its primary listing is on the LSE (Equity shares (commercial companies) category) and is included in the FTSE 250 Index. It has a secondary listing on the JSE and is included in the FTSE/JSE All-Share index and All-Property index. The Group owns and manages a £2.8 billion portfolio of 517 healthcare assets, including 22 in Ireland that generate strong, high quality rent roll of over £155 million following completion of the above acquisition. Its internal management team delivers sector-leading financial management, with one of the lowest peer cost ratios. In particular PHP is positioned for growth in the emerging Irish market following its 2023 acquisition of Axis Technical Services, the Irish property management business to create Axis PHP in Ireland. PHP's long-term leases offer unique security with c.90% of rental income directly or indirectly backed by the government, via the NHS in the UK or HSE in Ireland. Growing and ageing patient populations are placing increasing and significant pressure on the government's under-invested healthcare systems; the provision of better front line primary care offers a proven solution. The Board has a strong commitment to responsible growth and has set out a clear plan to transition operational, development and asset management activities to Net Zero Carbon by 2030.
Metrics to compare | PHPJ | Sector Sector - Average of metrics from a broad group of related Real Estate sector companies | Relationship RelationshipPHPJPeersSector | |
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P/E Ratio | 32.4x | 9.6x | 8.3x | |
PEG Ratio | 0.59 | 0.05 | 0.01 | |
Price/Book | 1.0x | 0.8x | 0.9x | |
Price / LTM Sales | 7.4x | 7.7x | 3.7x | |
Upside (Analyst Target) | - | 17.1% | 19.5% | |
Fair Value Upside | Unlock | −3.6% | 3.2% | Unlock |