Creating long term sustainable value

We invest 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 has invested in healthcare real estate let on long-term leases, backed by a secure underlying covenant where the majority of rental income is funded directly or indirectly by a government body.

Our key strengths

Prudent risk management

PHP aims to operate in a relatively low risk environment to generate progressive returns to shareholders through investment in the primary healthcare real estate sector, which is less cyclical than other real estate sectors.

Long term focus

By providing additional space facilitating the provision of additional services or extending the term of underlying leases, PHP can increase and lengthen its income streams and create the opportunity to add capital value.

Experienced and innovative management

PHP’s portfolio is managed by an experienced team within an efficient management structure, where operating costs are tightly controlled.

Appropriate capital structure

PHP funds its portfolio with a diversified mix of equity and debt, as well as partnering with selected joint venture partners, in order to optimise risk-adjusted returns to shareholders.

Key characteristics of the portfolio

Highly visible cash flows and stable valuation yields. Strong tenant covenant – 89% of rent roll paid directly/indirectly by government bodies. 32% of portfolio on fixed or indexed uplifts, 68% open market review, typically every three years. Occupancy rate of 99.1%. UK leases have effectively upward-only rent reviews, Irish leases linked to Irish CPI. Weighted average unexpired lease length of 9.4 years.

Underpinned by our strategy

The Group looks to selectively grow its property portfolio by funding and acquiring high quality developments and newly developed facilities and investing in already completed, let healthcare real estate.

Activity in 2025

  • Transformational acquisition of Assura plc, doubling the size of our portfolio and enhancing our capabilities for developments and in the private hospital market

  • Portfolio now stands at 1,142 healthcare assets, including 28 in Ireland, 33 private hospitals and 22 held in joint ventures

  • Total property return in the year of 7.0%, with the income return remaining strong at 5.7% supported by 1.3% of capital return as property valuations have now stabilised

Looking forward

  • Sector fundamentals of long leases and government backed income continue to drive demand in the sector

  • Continue to monitor a number of potential standing investments, direct and forward funded developments and asset management projects with an advanced pipeline across a number of opportunities in both the UK and Ireland but these will only be progressed if accretive to earnings

PHP manages its portfolio effectively and efficiently, managing the risks faced by its business in order to achieve its strategic objectives.

Activity in 2025

  • £9.1 million, or 2.7% additional income from rent reviews and asset management projects

  • Across both the PHP and Assura portfolios we exchanged on eight new asset management projects, 21 lease re-gears and 20 new lettings during the year. These initiatives will increase rental income by £0.8 million, investing £5.0 million and extending the leases back to an average of 17 years for the asset management projects

  • EPRA cost ratio of 9.8% continues to be one of the lowest in the sector, targeting a reduction to 9% when cost synergies have been delivered

Looking forward

  • Strong pipeline of over 51 advanced asset management projects and lease regears across the enlarged Group, aiming to increase the weighted average rent due on these schemes by around 15%, providing important rent review evidence

  • Continued discussions with occupiers and the NHS to discuss requirements and opportunities as well as continue to negotiate rents in order to deliver an acceptable return

The Group funds its portfolio with a diversified mix of equity and debt on a secured and unsecured basis, in order to optimise risk-adjusted returns to shareholders.

Activity in 2025

  • Significant activity in the year with support from a range of lenders to provide acquisition facilities for the combination with Assura

  • Subsequently, all debt subject to change of control clauses successfully waived or facilities refinanced

  • Significant liquidity headroom with cash and collateralised undrawn loan facilities totalling £571 million (2024: £271 million) after taking into account capital commitments of £56 million

Looking forward

  • Good progress is being made on expanding the existing joint ventures and establishing a strategic joint venture for our private hospital portfolio where we see exciting growth opportunities

  • Following deleveraging target being achieved, acquisition facilities to be refinanced. Demand from debt investors remains strong, reflecting the secure income generated by our asset class and the enhanced scale of our portfolio

PHP aims to deliver growing adjusted earnings, whilst maintaining a strong balance sheet, to support our progressive dividend policy.

Activity in 2025

  • Adjusted earnings per share of 7.3 pence increased by 4.3% (2024: 7.0 pence)

  • Dividend per share increased by 2.9% to 7.1 pence

  • Total EPRA NTA return of 2.7% (2024: 3.6%)

  • Strong organic rental growth from rent reviews and asset management projects

  • Acquisition of Assura has grown presence and expertise in growth markets of private hospitals and Ireland

Looking forward

  • Increased scale and liquidity increases range of funding options for future growth, including utilisation of selected joint ventures to optimise capital structure

  • Group maintains close cost control with clear target for expected cost synergies and just under 80% of the Group’s termed out net debt being fixed or hedged, protecting underlying earnings from potential future economic changes. This will increase as we refinance the acquisition facility as part of the deleveraging strategy.

Wider outcomes

Social impact

PHP aims to provide modern premises located within communities around the UK and Ireland to enable better access to an increasing range of services being delivered locally with greater accessibility than from hospitals.

We own, manage and develop critical social infrastructure and have a big and positive social impact on the communities we invest in.

Environmental impact

Environmental impact is an integral consideration in the development, design and construction of new PHP properties. When developing new premises, PHP and its development partners seek to achieve the highest BREEAM standards in the UK or a nearly zero energy building (“nZEB”) rating in Ireland, as well as improving our premises’ energy performance.

We have seen continued improvement in portfolio EPC ratings with 63% and 93% (2024: 47% and 88%) rated A–B and A–C respectively, driven by the asset management programme and Assura merger.

Healthcare targets

The modern, flexible premises that PHP provides facilitate the provision of more wide ranging and integrated care services helping to realise the NHS’s target of 24/7 access to GP services and the HSE’s expansion of primary care infrastructure.

Investors

The Company’s share price started the year at 93.3 pence per share and closed on 31 December 2025 at 97.9 pence, an increase of 4.9%. Including dividends, those shareholders who held the Company’s shares throughout the year achieved a Total Shareholder Returns of 12.5% (2024: -3.5%).

Values

We employ sustainable design to develop, refurbish and upgrade our buildings to modern medical and environmental standards.

NHS/primary healthcare

Our flexible, modern properties benefit not only our shareholders but also our occupiers, patients, the NHS and HSE, suppliers and the wider communities in both the UK and Ireland.

Patients

PHP’s portfolio serves over 11 million patients, which is expected to further increase as primary healthcare demands increase to assist with overstretched Accident & Emergency (“A&E”) departments, and with the ageing and growing population.

Communities

We support initiatives that further the health, wellbeing and education of our local communities. Our buildings enable a growing array of health services to be delivered by a range of health professionals, supporting the NHS 10-year plan as well as the Government’s Neighbourhood Health Centre model.

People

We conduct our business with integrity and invest in human capital, with 156 employees in the UK and Ireland. We have a long standing track record of supporting employees in their professional development studies.

People are our biggest asset and following the transformational merger with Assura, the business has benefitted from the best of both.

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