
Chair’s statement continued
Board succession and changes
As previously reported, Mark Davies succeeded myself as Chief
Executive Officer (“CEO”) with effect from the conclusion of the 2024
Annual General Meeting (“AGM”) on 24 April 2024. At the same time,
Steven Owen retired from the Board as Non-executive Chairman and I
was appointed, with strong shareholder support at the AGM, as
Non-executive Chair.
Following my appointment as Non-executive Chair and in order to ensure
that the Board consists of a majority of independent Non-executive
Directors and is therefore compliant with the UK Corporate Governance
Code 2024, Dr Bandhana (Bina) Rawal was appointed as a fourth
independent Non-executive Director of the Company with effect from
27February 2024, increasing the size of the Board to seven. Dr Rawal
brings a wealth of experience from senior executive and non-executive
roles across healthcare, including instrategy, partnerships, governance
and risk management.
The Board is grateful to Steven for his commitment and dedication to
the Company since his appointment as a Non-executive Director in
2014 and for subsequently chairing the Company from 2018 to 2024,
aperiod of transformational growth and change, particularly following
the merger with MedicX, the process of internalising the management
function and establishing PHP as a key member of the FTSE 250 Index.
Secondary listing
On 24 October 2023 the Company completed a secondary listing of
PHP shares on the Johannesburg Stock Exchange (“JSE”). The Board of
PHP believes that the secondary listing will contribute to liquidity in
the Group’s shares as a result of the growing interest in the Company
and its increased profile in the South African market, where a number
of investors have shown strong interest in our unique healthcare
property investment opportunity. Since listing on the JSE
approximately 14 million shares, across 450 shareholders, have been
transferred to the Company’s South Africa register to date and we
continue to help potential South African investors acquire PHP shares
and provide further liquidity on the JSE with the objective of
increasing the number of shares listed there to between 5% and 10%
of the Group’s total issued share capital. We are delighted that PHP
isnow included in a number of key South African indices as of
September 2024, including the prominent FTSE/JSE All Share Index
and All Property Index, helping to further increase liquidity on
thismarket.
Environmental, social and governance (“ESG”)
PHP has a strong commitment to responsible business. ESG matters
are at the forefront of the Board’s and our various stakeholders’
considerations and the Group has committed to transitioning to
netzero carbon (“NZC”). PHP published, at the start of 2022, a NZC
Framework setting out the five key steps we are taking to achieve
anambitious target of being NZC by 2030 for all of PHP’s operational,
development and asset management activities.
We continue to make good progress on the delivery of our NZC
Framework commitments and achieved our first milestone of net
zerooperations for the last three years, one year ahead of target.
Additionally, the Group’s has two NZC developments under
construction at Croft, West Sussex, and South Kilburn, London,
withboth projects due to achieve practical completion in Q2 2025.
We continue to modernise existing buildings and improve
theenvironmental credentials of our portfolio through the asset
management programme and have completed six projects in the year,
all of which saw an improvement in the EPC ratings to a B. In the year,
we also completed PHP’s first net zero asset management project at
Long Stratton, Norfolk, where oil fired heating was replaced with air
sourced heating, solar PV was installed and the residual carbon
incurred was offset. A further ten projects are currently on site or
committed with an advanced pipeline of additional schemes where
we continue to evaluate options for energy efficiency, renewables
andnet zero asset management projects.
As at 31 December 2024, 47% of assets have an EPC rating of A or B
(31 December 2023: 42%) and 88% at A to C (31 December 2023: 85%).
As part of establishing the wider carbon impact of the buildings and
improving our access to energy performance data we have partnered
with arbnco, the award-winning Protech company addressing climate
change, to increase and move towards 100% energy data coverage
across the portfolio, allowing us to proactively engage with and
support tenants on improving their energy performance.
As a leading provider of modern primary care premises, we aim to
create a lasting positive social impact, particularly on the health
outcomes and wellbeing in the communities where we are invested.
We believe that our activities benefit not only our shareholders but
also our wider stakeholders, including occupiers, patients, the NHS
and HSE, suppliers, lenders, and the wider communities in both the
UKand Ireland.
Further details on our progress in the year, objectives for the future
and approach to responsible business can be found throughout this
report and on our website.
Market update and outlook
We welcome the new Labour Government’s continued commitment to
the NHS and its manifesto pledge to reform primary care along with
three key proposals for change, in particular:
• changes so that more people can get care at home or in
theircommunity;
• changes so that the NHS has the workforce of the future, with the
technology it needs; and
• changes so that there is a focus on prevention to reduce pressures
on theNHS.
Labour’s policy includes a continuation of the shift of services out of
hospitals and into the community with healthcare delivered close to
home and readily available for individuals when they need it. As part
of this commitment Labour acknowledges there needs to be a reform
of primary care with patients needing new and more varied
opportunities to access healthcare, unlocking earlier diagnosis of
progressive health conditions and promoting better health outcomes
for the population. Amongst the proposals for primary care are:
• improve GP access;
• bring back the family doctor;
• join up community health and social care services;
• open new referral routes;
• further expand the role of community pharmacy;
• free up GP appointments by boosting mental health support; and
• create a Neighbourhood NHS Workforce.
Primary care will continue to face challenges in meeting the above
objectives. The growing demand for healthcare services alongside the
capacity constraints of existing facilities represent a significant obstacle
to successfully implementing the new government’s policies aimed at
expanding service delivery within general practice and local communities.
Strategic report Governance Financial statements Shareholder information
Primary Health Properties PLC Annual Report 2024
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