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 12.1 years
90%
Rent roll funded by government bodies
(2019: 90%)
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
- Continued improvements to the rental growth outlooks
+£2.0m or 1.6%
Rental growth (2019: +£1.9m or 1.5%)
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
- Internalisation of Group's management structure in 2021, saving approximately £4.0 million p.a.
- Low, average marginal cost of debt of 1.7% following refinancing of revolving credit facilities
11.9%
EPRA cost ratio (2019: 12.0%)
04
Sector demand factors dictate continued development of healthcare premises
- Healthcare demand increasing due to ageing populations growing, ageing and suffering from more instances of chronic illness
- Unwavering political support in the UK and Ireland and promotion of integrated care
5.8m patients
PHP's portfolio serves 5.8m patients
or 8.7% 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
- 24 consecutive years of dividend growth
5.9p
Dividend per share
(2019: 5.6p)