PHP is a strong business creating progressive returns for shareholders by investing 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.
01
Low risk, long term, non-cyclical market
- Development opportunities emerging in the UK
- Opportunities in Ireland, priced attractively
- Majority of rents in both jurisdictions funded by government for long lease terms
- WAULT of 11.6 years (2020: 12.1 years)
90%
Rent roll funded by government bodies
(2020: 90%)
02
Strong, high quality and growing cash flow
- Effectively upward-only or indexed rent reviews
- Positive rental growth outlook
- Positive yield gap between acquisition yield and funding costs
- Efficient cost structure enhances earnings
+£2.4m or 1.8%
Rental growth (2020: +£2.0m or 1.6%)
03
Efficient management and reduction in cost of funds
- EPRA cost ratio now the lowest in the sector
- Internalisation of Group’s management structure in 2021, saving approximately £4.0 million p.a.
- Refinancing in 2021, saving approximately £5.0 million of interest p.a.
- Low, average marginal cost of debt of 1.8%
9.3%
EPRA cost ratio (2020: 11.9%)
04
Sector demand factors dictate continued development of healthcare premises
- Demand from population growth, ageing and suffering from more instances of chronic illness
- Unwavering political support in the UK and Ireland and promotion of integrated primary care and NHS Long Term Plans to effectively manage patient needs
-
COVID-19 increasing the burden being placed on healthcare systems
6.0m patients
PHP's portfolio serves 6.0m patients
or 9.0% of UK population
05
Stable, increasing returns
- Growing shareholder return through dividend and capital appreciation
- Dividend fully covered by earnings
- Strong yield characteristics and low volatility
- 26 consecutive years of dividend growth
6.5p
Dividend per share
(2021: 6.2p)