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 very attractively
- Majority of rents in both jurisdictions funded by government for long lease terms
90%
Rent roll funded by government bodies
(2018: 91%)
02
Strong, high quality and growing cash flow
- Positive yield gap between acquisition yield and funding costs
- Effectively upward-only or indexed rent reviews
- Simple cost structure enhances earnings
+£1.9m or 1.5%
Rental growth (2018: +£1.3m or 1.8%)
03
Efficient management and reduction in cost of funds
- EPRA cost ratio amongst the lowest in the sector
- Underlying investment characteristics make PHP attractive to invetors
12.0%
EPRA cost ratio (2018: 14.3%)
04
Sector demand factors dictate continued development of healthcare premises
- Healthcare demand increasing due to ageing population
- Unwavering political support in the UK and Ireland and promotion of integrated care
5.3m patients
PHP's portfolio serves 5.3m patients
or 8.0% of UK population
05
Stable, increasing returns
- Growing shareholder return through dividend increase and capital appreciation
- Dividend fully covered by earnings
- Strong yield characteristics, low volatility
5.6p
Dividend per share
(+3.7% over 2018)