213800Y5CJHXOATK7X112022-01-012022-12-31iso4217:GBP213800Y5CJHXOATK7X112021-01-012021-12-31iso4217:GBPxbrli:shares213800Y5CJHXOATK7X112022-12-31213800Y5CJHXOATK7X112021-12-31213800Y5CJHXOATK7X112020-12-31213800Y5CJHXOATK7X112021-12-31ifrs-full:IssuedCapitalMember213800Y5CJHXOATK7X112021-12-31ifrs-full:SharePremiumMember213800Y5CJHXOATK7X112021-12-31phpplc:MergerAndOtherReserveMember213800Y5CJHXOATK7X112021-12-31ifrs-full:ReserveOfCashFlowHedgesMember213800Y5CJHXOATK7X112021-12-31ifrs-full:RetainedEarningsMember213800Y5CJHXOATK7X112022-01-012022-12-31ifrs-full:IssuedCapitalMember213800Y5CJHXOATK7X112022-01-012022-12-31ifrs-full:SharePremiumMember213800Y5CJHXOATK7X112022-01-012022-12-31phpplc:MergerAndOtherReserveMember213800Y5CJHXOATK7X112022-01-012022-12-31ifrs-full:ReserveOfCashFlowHedgesMember213800Y5CJHXOATK7X112022-01-012022-12-31ifrs-full:RetainedEarningsMember213800Y5CJHXOATK7X112022-12-31ifrs-full:IssuedCapitalMember213800Y5CJHXOATK7X112022-12-31ifrs-full:SharePremiumMember213800Y5CJHXOATK7X112022-12-31phpplc:MergerAndOtherReserveMember213800Y5CJHXOATK7X112022-12-31ifrs-full:ReserveOfCashFlowHedgesMember213800Y5CJHXOATK7X112022-12-31ifrs-full:RetainedEarningsMember213800Y5CJHXOATK7X112020-12-31ifrs-full:IssuedCapitalMember213800Y5CJHXOATK7X112020-12-31ifrs-full:SharePremiumMember213800Y5CJHXOATK7X112020-12-31phpplc:MergerAndOtherReserveMember213800Y5CJHXOATK7X112020-12-31ifrs-full:ReserveOfCashFlowHedgesMember213800Y5CJHXOATK7X112020-12-31ifrs-full:RetainedEarningsMember213800Y5CJHXOATK7X112021-01-012021-12-31ifrs-full:IssuedCapitalMember213800Y5CJHXOATK7X112021-01-012021-12-31ifrs-full:SharePremiumMember213800Y5CJHXOATK7X112021-01-012021-12-31phpplc:MergerAndOtherReserveMember213800Y5CJHXOATK7X112021-01-012021-12-31ifrs-full:ReserveOfCashFlowHedgesMember213800Y5CJHXOATK7X112021-01-012021-12-31ifrs-full:RetainedEarningsMember
Delivering
long term
sustainable
income
Primary Health Properties PLC
Annual Report 2022
Primary Health Properties PLC Annual Report 2022
Strategic report
1 Highlights
2 At a glance
4 Our portfolio
6 Investment case
8 Chairman’s statement
14 Business model
16 Our strategy
18 Key performance indicators
20 Business review
24 Financial review
30 EPRA performance measures
32 Responsible business
48 Task Force on Climate-related
FinancialDisclosures
54 Section 172(1) statement
56 Risk management and
principal risks
63 Viability statement
Governance
64 Chairman’s introduction
togovernance
66 Board of Directors
68 Senior Leadership Team
70 Corporate governance report
82 Audit Committee report
88 Nomination Committee
report
90 Remuneration Committee
report
93 Directors’ remuneration
report
107 Directors’ report
111 Directors’ responsibility
statement
Financial statements
112 Independent auditor’s report
121 Group statement of
comprehensive income
122 Group balance sheet
123 Group cash flow statement
124 Group statement of changes
in equity
125 Notes to the financial
statements
153 Company balance sheet
154 Company statement of
changes in equity
155 Notes to the Company
financial statements
Shareholder information
163 Notice of Annual General
Meeting 2023
176 Shareholder information
177 Advisers and bankers
178 Glossary of terms
Discover more at phpgroup.co.uk
Leading investor
inflexible, modern
primary healthcare
accommodation across
the UK andIreland
Delivering
long term
sustainable
income
Primary Health Properties PLC
Responsible Business Report 2022
Read more about our Responsible
Business Report at phpgroup.co.uk
Strategic report Governance Financial statements
1Primary Health Properties PLC Annual Report 2022
Shareholder information
* The IFRS profit after tax per share as set out in the summarised results table on page 25.
∆ Alternative performance measures (“APMs”): Measures with this symbol ∆ are APMs defined in the Glossary section on pages 178 to 180, and presented throughout
this Annual Report. All measures reported on a continuing operations and 52-week comparable basis.
2022
2020 £112.0m
IFRS profit/(loss) after tax
£56.3m
-59.8%
2019
IFRS profit/(loss) after
taxpershare*
4.2p
-60.0%
2022 112.6p
2021 116.7p
2019 107.9p
2020 112.9p
2018 105.1p
Adjusted NTA per share
∆
112.6p
-3.5%
2022 6.6p
2021 6.2p
2019 5.5p
2020 5.8p
2018 5.2p
Adjusted earnings per share
∆
6.6p
+6.5%
2022 £141.5m
2020 £131.2m
2018 £76.4m
2019 £115.7m
Net rental income
∆
£141.5m
+3.5%
2022 £2.8bn
2021 £2.8bn
2019 £2.4bn
2020 £2.6bn
2018 £1.5bn
Total property portfolio
£2.8bn
-2.2%
2022 £88.7m
2021 £83.2m
2019 £59.7m
2018 £36.8m
2020 £73.1m
Adjusted earnings
∆
£88.7m
+6.6%
Dividend per share
6.5p
+4.8%
2022 6.5p
2021 6.2p
2019 5.6p
2020 5.9p
2018 5.4p
2022 110.9p
2020 107.5p
2018 102.5p
2019 101.0p
IFRS NTA per share
110.9p
-1.4%
2022 3.2%
2020 3.5%
2018 3.9%
2019 3.5%
Average cost of debt
∆
3.2%
+30bps
2022
2021 9.5%
2018 8.0%
2020 7.4%
2019 7.7%
Total property return
∆
2.8%
-670bps
2022
2021 8.9%
2018 9.7%
2020 10.1%
2019 8.0%
Total NTA return
∆
2.1%
-680bps
2021 £136.7m
2018 £74.3m
(£71.3m) 2019
2021 £140.1m
2022
2020 8.8p
2018 10.5p
(6.5p)
2021 10.5p
2021 112.5p 2021 2.9%
4.2p£56.3m
2.8%2.1%
Highlights
Strategic report Governance Financial statements
2 Primary Health Properties PLC Annual Report 2022
Shareholder information
At a glance
Who we are
We invest in flexible, modern properties for local primary
healthcare, leton long term leases with a property portfolio
of513assets in the UKand Ireland valued at £2.8 billion.
OUR PORTFOLIO IN 2022
A 140% increase in Adjusted Earnings, with dividend per share paid out to
investors increasing by over 20% in the five year period.
Contracted rent roll
£145.3m
Adjusted Earnings
£88.7m
Number of properties
513
Number of tenants
1,215
Property portfolio
513
(2021: 521)
Property value
£2.8bn
(2021: £2.8bn)
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
ENTERING 27 YEARS OF CONSECUTIVE DIVIDEND GROWTH
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
0.80p
2.75p
1.40p
3.00p
4.50p
1.50p
3.38p
4.63p
1.75p
3.75p
4.75p
5.40p
2.00p
4.13p
4.88p
5.60p
2.25p
4.25p
5.00p
5.90p
2.50p
4.38p
5.25p
6.50p
6.70p*
5.125p
6.20p
* 6.70p is an annualised amount, based on the first quarterly dividend, declared 5 January 2023.
Strategic report Governance Financial statements
3Primary Health Properties PLC Annual Report 2022
Shareholder information
OUR PORTFOLIO IN 2018
A 140% increase in Adjusted Earnings, with dividend per share paid out to
investors increasing by over 20% in the five-year period.
Contracted rent roll
£79.4m
Adjusted Earnings
£36.8m
Number of properties
313
Number of tenants
709
Locations Value % Value
Midlands and EastAnglia
£604m 22%
North East, Yorkshire
andHumberside
£407m 15%
North West
£380m 13%
South East
£382m 13%
Wales
£206m 7%
Scotland
£208m 8%
Republic of Ireland
£231m 8%
London
£243m 9%
South West
£132m 5%
£2,793m 100%
GEOGRAPHICAL SPREAD BYVALUATION
38
89
40
32
83
51
119
41
20
“ Having successfully delivered 26 years
of consecutive dividend growth for our
shareholders, we have firmly established
ourselves as a leading investor in flexible,
modernprimary healthcare accommodation
across the UK and Ireland.”
Strategic report Governance Financial statements
4 Primary Health Properties PLC Annual Report 2022
Shareholder information
Our portfolio
Building on our strengths
&maintaining resilience
The majority of our healthcare facilities are GPsurgeries,
with otherproperties let to NHS organisations, the HSE in
Ireland, pharmacies anddentists.
RENTAL GROWTH OUTLOOK
2022 was a record year for rental growth, with rent review
completions generating £3.0 million of additional annualised
income, an increase of 50% over 2021 with open market
generating £1.2 million (1.5%growth) and inflationary and
fixedgenerating £1.8 million (6.6% growth).
This was largely generated from rent reviews between
2018 – 2020 outstanding, so does not reflect the impact
ofsignificantly higher inflation seen in recent years.
Asset management projects completed in the year delivered
£0.3 million of additional rental growth.
RENT REVIEW RENTAL GROWTH HISTORY*
ADDITIONAL INCOME FROM RENT
REVIEWS – GROWING MOMENTUM
4.5%
4.0%
3.5%
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
Like-for-like rental growth
£3.3m
(2021: £2.4m)
Occupancy rate
99.7%
(2021: 99.7%)
£3.0m
£2.5m
£2.0m
£1.5m
£1.0m
£0.5m
£0.0m
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
0.6 0.6
0.4
0.3
0.5
1.1
1.6
1.7
2.0
3.0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
3.9
3.4
3.4
4.0
3.1
3.2
3.0
2.4
2.2
1.8
0.9 0.9
1.1
1.4
1.9
1.8
1.7
3.4
* Annualised percentage increase.