Delivering
critical social
infrastructure
2025 was a transformational year.
The combination with Assura creates
a £6 billion healthcare REIT investing
in critical social infrastructure in the
UK and Ireland
Strategic report
1 Our 2025 highlights
2 Acquisition of Assura plc
4 At a glance
6 Our portfolio
7 Investment case
8 Government’s 10-year plan for the NHS
10 Chair’s statement
14 Business review
18 Market review
20 Business model
22 Strategy
24 Key performance indicators
26 Financial review
30 EPRA performance measures
32 Responsible business
48 Task Force on Climate-related Financial Disclosures
55 Section 172 statement
56 Risk management and principal risks
63 Viability statement
Governance
64 Chair’s introduction to governance
66 Compliance with the Code
67 Principles of the Code
68 Board of Directors
70 Corporate governance statement
79 Audit Committee report
84 Nomination Committee report
86 Remuneration Committee report
89 Directors’ remuneration report
106 Directors’ report
110 Directors’ responsibility statement
Financial statements
111 Independent auditor’s report
119 Group statement of comprehensive income
120 Group balance sheet
121 Group cash flow statement
122 Group statement of changes in equity
123 Notes to the Group financial statements
148 Company balance sheet
148 Company statement of changes in equity
149 Notes to the Company financial statements
Shareholder information
156 Notice of Annual General Meeting 2026
171 Shareholder information
172 Glossary of terms
175 Advisers and bankers
Discover more at phpgroup.co.uk Read more in our
Responsible Business Report at
phpgroup.co.uk
Shareholder informationFinancial statementsGovernanceStrategic report
Primary Health Properties PLC Annual Report 2025
Our 2025 highlights
* The IFRS profit after tax per share as set out in the summarised
results table on page 26.
** Including joint ventures at share of ownership.
∆ Alternative performance measures (“APMs”): Measures with this
symbol ∆ are APMs defined in the Glossary section on pages 172
to 174, and presented throughout this Annual Report. All measures
reported on a continuing operations and 52-week comparable basis.
Net rental income
∆
£230m
+49%
2025
2024
2023
2022
2021
£230m
£154m
£149m
£142m
£137m
Adjusted earnings
∆
£131m
+41%
2025
2024
2023
2022
2021
£131m
£93m
£91m
£89m
£83m
IFRS profit after tax
£119m
+190%
2025
2024
2023
2022
2021
£119m
£41m
£27m
£56m
£140m
IFRS profit after
tax per share*
6.6p
+113%
2025
2024
2023
2022
2021
6.6p
3.1p
2.0p
4.2p
10.5p
IFRS NTA per share
98p
-5%
2025
2024
2023
2022
2021
98p
103p
107p
111p
113p
Average cost of debt
∆
3.7%
+30bps
2025
2024
2023
2022
2021
3.7%
3.4%
3.3%
3.2%
2.9%
Dividend per share
7.1p
+3%
2025
2024
2023
2022
2021
7.1p
6.9p
6.7p
6.5p
6.2p
Adjusted earnings per share
∆
7.3p
+4%
2025
2024
2023
2022
2021
7.3p
7.0p
6.8p
6.6p
6.2p
Total property portfolio**
£6.0bn
+115%
2025
2024
2023
2022
2021
£6.0bn
£2.8bn
£2.8bn
£2.8bn
£2.8bn
EPRA NTA per share
∆
99p
-4%
2025
2024
2023
2022
2021
99p
103p
106p
110p
114p
Total property return
∆
7.0%
+280bps
2025
2024
2023
2022
2021
7.0%
4.2%
3.5%
2.8%
9.5%
Total EPRA NTA return
∆
2.7%
-90bps
2025
2024
2023
2022
2021
2.7%
3.6%
1.9%
2.1%
8.9%
Transformational
merger to deliver
value from
becoming the
leading UK
investor in critical
healthcare
infrastructure
Primary Health Properties PLC Annual Report 2025
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Strategic report Governance Financial statements Shareholder information
Acquisition of Assura plc
Transformational merger
With overwhelming shareholder support, the acquisition of Assura was completed in August
2025, creating a £6bn Healthcare REIT investing in critical healthcare infrastructure.
Newly enlarged portfolio
Total property value
£6.0bn
Rent roll
£342m
Properties
1,142
WAULT
10.8yrs
Keeping essential healthcare infrastructure
on the listed market
Following a competitive bid process over several months through
the first half of 2025, we were delighted to receive overwhelming
support from both PHP and Assura shareholders to successfully
complete the merger.
PHP is now the largest UK healthcare REIT, with a portfolio of over
1,100 assets which act as essential social infrastructure enabling
the provision of healthcare services across the UK and Ireland.
Our portfolio provides long dated and secure income, supporting
our progressive dividend policy and enabling shareholders to invest
in community-based assets that respond to the changing needs of
the healthcare system in the UK and Ireland.
A disciplined strategy and
financial framework
• 80% to 90% government backed income target range with new
or regeared leases typically in excess of 20 years
• Organic rental growth greater than 3% to deliver sector-leading,
risk-adjusted total property returns
• Risk controlled and capital light asset management and
development projects
• Targeting a strong investment grade credit rating of BBB+ or better
• LTV target between 40% to 50%
• Net debt : EBITDA target of less than 9.5x
• Interest cover target of greater than 2.5x net rental income
with more than 90% of net debt fixed or hedged
• Strong control on costs and overheads with one of the lowest
EPRA cost ratios in the sector at below 10%
Well placed for future growth in attractive
healthcare markets
As well as enhancing the operating metrics of the combined
portfolio, a “best-of-both” approach has been applied to the
integration to ensure the expertise and capabilities of the
enlarged Group allow shareholders to benefit from the growing
healthcare market.
PHP now has a unique portfolio and skill set across primary
care in the UK and Ireland to access asset enhancement and
development opportunities.
In addition, we have the ability to access attractive future
growth opportunities around private hospitals and adjacent
healthcare assets.
Primary Health Properties PLC Annual Report 2025
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Strategic report Governance Financial statements Shareholder information
Compelling strategic and financial rationale
Management remain focused to generate shareholder value and continue our 30-year track
record of dividend growth
Acquisition of Assura plc continued
Delivering shareholder value
Strong early progress against objectives
Following CMA clearance at the end of October, 60% of expected
cost synergies have been delivered by year end (increasing to 83%
at the date of this report), all debt subject to change of control
clauses have been refinanced and strong progress has been made
on our deleveraging plans.
Cost synergies delivered to date
83%
Future growth opportunities
PHP’s unique portfolio and skill set means we can access a growing
pipeline of development and asset enhancement opportunities
across primary care in the UK and Ireland, as well as in the
private hospital market.
Current development pipeline
£62m
Continuing shareholder value
Our resolute focus remains delivering shareholder value. In January
2026, we announced a 2.8% increase in the quarterly dividend, our
30th consecutive year of dividend growth.
Dividend growth
+2.8%
Focus is on delivering transaction objectives
Creating a market leading platform for secure
income in a growth sector
Realising significant value from
cost synergies
Strengthening the combined Group’s
balance sheet
Reducing the cost of capital through
access to new debt and equity markets
Enhancing liquidity in our listed shares
Leveraging the strong experience and
expertise of the combined management team
Delivering cost
synergies
£9 million of expected cost
savings, targeting an EPRA
Cost Ratio of <10%
Integration
Integrating two businesses
with a “best of both”
approach to enhance
the capabilities of the
enlarged Group
Refinancing
Acquisition facilities to be
refinanced in line with our
financial framework
Strong investment grade
credit rating
Managing leverage
Targeting LTV within
40-50% policy through
disposal of assets utilising
strategic joint ventures
Primary Health Properties PLC Annual Report 2025
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Strategic report Governance Financial statements Shareholder information
At a glance
Capturing significant opportunity
We invest in flexible, modern properties for local healthcare services, let on long term leases to secure tenants with a
property portfolio of over 1,100 assets in the UK and Ireland.
Our purpose
To support the NHS in the UK, the HSE in Ireland and other healthcare providers in tackling the underinvestment in primary care facilities
in both countries by being a leading investor in modern healthcare premises.
Our ambition
To create long term sustainable value for shareholders through investment, development and asset management of healthcare real estate.
Our strategy
Approach to sustainability
A strategy and approach to meet the evolving sustainability needs of the healthcare sector. PHP is committed to transitioning to net zero
carbon (“NZC”) by 2030 for all of the Group’s operational, development and asset management activities.
Manage Grow Deliver Fund
Read more in our Strategy section on pages 22 and 23
Read more in our Responsible business section on pages 32 to 47
Primary Health Properties PLC Annual Report 2025
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Strategic report Governance Financial statements Shareholder information
7.5p
7.0p
6.5p
6.0p
5.5p
5.0p
4.5p
4.0p
3.5p
3.0p
2.5p
2.0p
1.5p
1.0p
0.5p
0.0p
At a glance continued
Building on a strong and resilient portfolio
Our portfolio delivers resilient and growing cash flows which, through careful
management and cost control, flows into growing adjusted earnings to support
our progressive
1
dividend policy.
Entering 30 years of consecutive dividend growth
1 Progressive is where it is expected to continue to rise each year, as defined in the Glossary section on pages 172 to 174.
2 7.30 pence is an annualised amount, based on the first quarterly dividend of 1.825 pence.
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 2024 2025 2026
1.50p
0.8p
1.40p
1.75p
2.00p
2.25p
2.50p
2.75p
3.00p
3.38p
3.75p
4.13p
4.25p
4.38p
4.50p
4.63p
4.75p
4.88p
5.00p
5.125p
5.25p
5.40p
5.60p
5.90p
6.20p
6.50p
6.70p
6.90p
7.30p
2
7.10p
Our portfolio of growth
Contracted rent roll
£342m
(2024: £154m)
Adjusted earnings
£131m
(2024: £93m)
Number of tenants
2,608
(2024: 1,207)
Number of properties
1,142
(2024: 516)
Primary Health Properties PLC Annual Report 2025
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Strategic report Governance Financial statements Shareholder information
Our portfolio
Like-for-like
rental growth
2.7%
(2024: 2.7%)
Occupancy rate
99%
(2024: 99%)
Our properties and geography
The majority of our healthcare facilities are GP surgeries, with a growing proportion of our portfolio let
to the HSE in Ireland and independent health providers in the UK.
Rental growth outlook
2025 continued to see strong like-for-like organic
rental growth of £9.1 million, with rent review
completions generating £8.3 million of
additional annualised income.
We continue to see an improving outlook for
open market rent reviews, supported by the
40% of our portfolio which is now subject to
indexed or fixed uplifts.
Completed asset management projects
in the year delivering a further £0.8 million
of annualised rental growth.
Portfolio size by location (£m)
Midlands and East Anglia
North East, Yorkshire and Humberside
London
South East
North West
Republic of Ireland
Wales
South West
Scotland
1,319
782
1,015
670
809
340
307
337
360
GP/Government
bodies 76%
Independent
operators 13%
Pharmacy 7%
Other 4%
Tenant covenant analysis
Open market 60%
Indexed 34%
Fixed 6%
Rent review basis
Primary care (UK)
Number of assets
1,059
Value
£4.9bn
Rent roll
£275m
WAULT
8.4yrs
Primary care (Ireland)
Number of assets
28
Value
£0.3bn
Rent roll
£20m
WAULT
16.1yrs
Private hospitals
Number of assets
33
Value
£0.7bn
Rent roll
£44m
WAULT
22.0yrs
JVs & other
Number of assets
22
Value
£0.1bn
1
Rent roll
£3m
1
WAULT
18.5yrs
Read more about our markets on pages 18 and 19
1 JVs included at share of ownership.
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Strategic report Governance Financial statements Shareholder information
Investment case
A proven, long term success story
PHP is a strong business creating progressive
1
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.
• The UK’s largest healthcare REIT, with over 1,100 properties
across the UK and Ireland, at a combined valuation of £6 billion,
11 year WAULT and 99% occupancy.
• Low risk, long term, non-cyclical, secure government
backed income.
• Progressive income generation with 30-year track record
of consistent dividend growth.
• Confidence in rental growth outlook, targeting 3%
annual growth.
• Demographic tailwind created by growing and ageing
population, generating demand for health services.
• Continued shift of services into primary care setting,
supported by the NHS 10-year plan and Neighbourhood
Health Centre model.
• Significant investment required with 50% of the existing
UK primary care estate deemed “not fit for purpose”
• Relationships with key health stakeholders place PHP at the
centre of the solution to deliver on the Government’s plans.
• Active management of portfolio central to the strategic
priorities of stable income, growth through investment
and a disciplined approach to leverage.
• Strong control on overhead with EPRA Cost Ratio <10%.
• 100% of termed out debt fixed or hedged, with a low average
cost of 3.7%.
• Enhanced total property returns and delivering shareholder
value, with 8% CAGR on 30-year dividend track record.
Annualised growth from rent reviews
3.2%
(2024: 2.9%)
Neighbourhood health centres announced in the
2025 Autumn Budget
250
Growth in quarterly dividend announced
2
2.8%
(2024: 2.9%)
1 Progressive is where it is expected to continue to rise each year, as defined in the Glossary section on pages 172 to 174.
2 Increase in dividend of 2.8% announced on 13 January 2026 with effect from March 2026 quarterly payment.
PHP’s portfolio –
modern healthcare properties
Operating in a growth sector Sector leading financial performance
and cost control
Primary Health Properties PLC Annual Report 2025
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Strategic report Governance Financial statements Shareholder information
Government’s 10-year plan for the NHS
Core vision
The plan aims to address structural failings and make the NHS sustainable by focusing on three major shifts:
1 2 3
From hospital to community Analogue to digital
Sickness to prevention
Move care closer to home, reducing
reliance on hospitals.
Focus on the estate
The Government has recognised that much of the current
primary care estate is ageing and has committed to rolling
out neighbourhood health centres across the country.
250
Neighbourhood health centres planned by 2035
Embrace technology for faster,
more efficient care.
More power to patients
The Government plans for the NHS app to become the front door
to the NHS, with people able to access care and choose their
providers directly, including the private sector.
39m
Registered NHS app users
Prioritise proactive health management
over reactive treatment.
Priority for long term conditions
With a focus on improving well being and increasing life
expectancy, the 10-year plan aims to keep people well for longer,
especially in under-served communities.
46%
Of adults over 16 have a long term condition
Shift in the focus of healthcare and Primary Care
Why this matters to investors
Primary Health Properties PLC Annual Report 2025
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Strategic report Governance Financial statements Shareholder information
Government’s 10-year plan for the NHS continued
Secure government-backed income
Rent reimbursement for GP practices and leases held directly
by NHS organisations with long term covenants will be at the
core of neighbourhood health services.
Mergers and consolidations
of GP practices will continue
Operating at scale supports practices’
sustainability and enhances their ability to
work with the NHS to invest in their premises.
Higher technology specification
The shift to digital along with greater use of
AI requires investment in the estate to unlock
productivity gains.
Primary Care Networks (“PCNs”)
and further models will be backed
New contracting mechanisms will support the
delivery of neighbourhood health services at
scale in all communities.
Providing and hosting a wider
range of services
Co-location and consolidation of services
will bring more care and more professionals
to neighbourhoods.
Care will increasingly move
into community settings
Training of the workforce will also need to shift
to enable professionals to develop the skills to
deliver neighbourhood health services.
Health and wellbeing focus
Getting people back to work and, with an
ageing population, keeping people well for
longer will be an integral part of keeping the
NHS sustainable.
Government favours a hub-
and-spoke model
To ensure that care truly is closer to people’s
home, a mixed model of provision is required
to meet communities’ needs.
Delivering a sustainable NHS
The NHS remains committed on its journey
towards a net zero carbon service by 2045.
Portfolio resilience
Properties with the space to scale and adapt will play a major
role in delivering additional capacity in primary care alongside
new builds.
Structural growth opportunities
The Government is committed to shifting more care into
communities and working with the private sector to deliver
more efficient care to improve patient outcomes.
ESG alignment
Managing costs and increasing the sustainability of services is
key to maintaining the viability of GP partnerships and
neighbourhood health services.
20%
of the current primary care
estate is older than the NHS
>30m
appointments at GP surgeries
a month
>50%
of patients are seen by
practice nurses or an allied
health professional
What will the 10-year plan mean for PHP? Why this matters to investors
Increasing momentum
The momentum is clearly towards a shift in the system, with greater emphasis on community-based care and increasing
investment in Primary Care services and infrastructure. Plan to achieve this shift requires external investment.
Primary Health Properties PLC Annual Report 2025
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Strategic report Governance Financial statements Shareholder information
Chair’s statement
Building momentum
2025 was a transformational year for PHP, obtaining overwhelming
shareholder and wider stakeholder support for the combination
with Assura plc (“Assura”) to create a £6 billion healthcare REIT
invested in critical social infrastructure across the UK and Ireland
which will deliver material financial and strategic benefits to
stakeholders in the future.
I am delighted to welcome former Assura shareholders to the
enlarged Group. The resulting increase in the Company’s market
capitalisation places PHP in the top quartile of the London Stock
Exchange FTSE 250 with the additional benefits of significantly
increased share liquidity, investor reach and a lower cost of capital.
We are pleased to have produced such a good set of results
despite the time spent by the business on the transaction, and
continue to deliver on our track record of continuous dividend
growth, which now enters the 30th consecutive year, highlighting
the benefit of PHP’s long-standing disciplined approach to
managing our portfolio and balance sheet and our cost base.
The performance in the year is a testament to the quality of PHP’s
business model, portfolio and management team. I am proud of
how colleagues across the newly enlarged business have
collaborated together in the short period since the Competition
and Markets Authority (“CMA”) review concluded at the end of
October. We recognise that the future success of the Group
depends on our people and I would again like to warmly thank all
our employees and the Board for their continued commitment,
dedication and professionalism.
Future strategy and financial framework
The combination with Assura has created a UK REIT of significant
scale and liquidity with a portfolio of long-leased, sustainable
infrastructure assets principally let to government tenants and
leading UK healthcare providers, benefiting from high income
security, longevity, diversity of assets, geography and broad
mix of rent review types.
To support the combined Group’s progressive dividend policy,
paid on a quarterly basis, we have set out our future strategy
and financial framework which will focus on:
• 80% to 90% government backed income target with new
or regeared leases typically in excess of 20 years;
• Organic rental growth greater than 3% to deliver sector-leading,
risk-adjusted total property returns;
• Risk controlled and capital light asset management and
development projects;
• Targeting a strong investment grade credit rating of BBB+
or better;
• LTV target of 40% to 50%;
Harry Hyman
Non-executive Chair
“ The dividend increase highlights
the benefit of PHP’s long standing
disciplined approach to managing
our portfolio, balance sheet and
cost base.”
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Strategic report Governance Financial statements Shareholder information
Adjusted earnings per share growth
+4.3%
Dividend per share growth
+2.9%
Chair’s statement continued
Future strategy and financial framework continued
• Net debt : EBITDA target of less than 9.5x;
• Interest cover target of greater than 2.5x net rental income,
with more than 90% of debt fixed or hedged; and
• Strong control on costs and overheads, with one of the lowest
EPRA cost ratios in the sector at below 10%.
Our immediate focus is now on delivering the post combination
objectives of reducing leverage back to our targeted range,
delivering the £9 million of annualised cost synergies identified and
integrate the two businesses effectively, combining their
respective strengths to deliver the best of both organisations.
Joint ventures and disposals
A full portfolio review is currently ongoing and as previously reported
we aim to establish new strategic joint ventures and deliver further
disposals to achieve our goal to reduce leverage back to our
targeted range of 40-50% and optimise shareholder returns.
We continue to make good progress regarding opportunities to
expand our existing joint venture, where we have agreed terms
to transfer a further £103 million of assets from our primary care
portfolio. Additionally, we have received four offers, from highly
credible investors, to establish a new strategic joint venture on our
private hospital portfolio. We are excited about the prospect of
continuing to build a new strategic joint venture of size and scale
which will bring financial benefits to all parties while supporting
investment in critical healthcare infrastructure and generating
positive social impact across the UK.
Following completion of the combination with Assura the enlarged
Group has sold four non-core assets for £8.3 million.
Combination with Assura
On 12 August 2025, PHP obtained control of Assura with 63%
of shareholders accepting our shares and cash offer, which
subsequently increased to 98% before the offer was closed on
10 September 2025. The acquisition of Assura completed in full on
20 October 2025 when the final 2% of Assura shares were legally
acquired, and Phase 1 clearance from the CMA was received on
29 October 2025 which enabled integration of the two businesses
to commence.
In the short space of time since CMA clearance, we have made
strong progress and delivered annualised cost synergies totalling
£7.5 million or 83% of the target, which has been achieved primarily
through a reduction in people costs and elimination of duplicated
professional fees. These synergies do not include any reductions in
the enlarged Group’s cost of funds.
The fair value of the total consideration paid for the acquisition
of Assura was just over £1.6 billion, funded through the issue of
1.26 billion new ordinary shares of 12.5 pence each, at a weighted
average price of 93 pence per share, equivalent to £1,171 million,
cash consideration of £407 million and transaction costs including
stamp duty of £42 million.
Operational performance
Throughout 2025 we have continued to focus on and deliver
a strong and resilient operational performance, reflecting the
security and longevity of our income, which are important drivers
of our predictable, growing income stream and underpin our
progressive dividend policy.
We have maintained our strong operational property metrics,
with high occupancy at 99% (31 December 2024: 99%) and a long
weighted average unexpired lease term (“WAULT”) of 10.8 years (31
December 2024: 9.4 years). Following the combination, 76%
(31 December 2024: 89%) of the Group’s rent is currently funded
directly or indirectly by the UK and Irish governments, with a
further 13% funded by strong and well established private hospital
operators who continue to experience improving operational
performance at our assets.
The value of the property portfolio, including our share of joint
ventures, now stands at £6.0 billion (31 December 2024: £2.8 billion)
across 1,142 assets (31 December 2024: 516 assets), including
28 assets in Ireland, with a total rent roll of £342 million
(31 December 2024: £154 million).
It is pleasing to report that the portfolio generated a valuation
surplus of £48 million (2024: deficit of £38 million), reflecting gains
of approximately £72 million (2024: gain of £63 million) arising from
rental growth and asset management activity, partially offset by
a deficit of £24 million (2024: deficit of £101 million) as a result
of yield expansion of 3 bps (2024: 17 bps), primarily due to small
adjustments to align the valuation approach across the enlarged
portfolio. Following a stabilisation of primary care valuation
yields in the second half of 2024, these have continued to remain
broadly flat in 2025 with a small uptick in transaction volumes.
The portfolio’s average lot size has remained unchanged at
£5.3 million (31 December 2024: £5.3 million).
The reversionary potential of the enlarged Group’s primary care
portfolio continues to remain strong with a current low average
rent, subject to open market reviews, of c.£200 psm. New
asset management and development projects are starting to
see rents being rebased to an average of £218 psm and £277 psm
respectively, to make these schemes economically viable, providing
crucial evidence to support our rent review activities across the
wider portfolio. In 2025, rent reviews and asset management
generated an extra £9.1 million (2024: £4.0 million) of annualised
rental income.
We continue to focus on driving rental growth and unlocking
the reversionary potential from our enhanced rent review, asset
management and development capabilities. The integration of
the two teams will achieve the best of both and unlock further
opportunities in the UK and Ireland across primary and private
healthcare markets.
Primary Health Properties PLC Annual Report 2025
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Strategic report Governance Financial statements Shareholder information
Overview of results
Adjusted earnings increased by £38 million or +41% (2024: +£2 million
or +2.4%) to £131 million (2024: £93 million). The significant increase
reflects just under five months of additional income arising from
the combination with Assura portfolio along with the solid
performance of the underlying portfolio driven by organic growth
from rent reviews and asset management activity in the year. Using
the weighted average number of shares in issue in the year, the
adjusted earnings per share increased to 7.3 pence
(2024: 7.0 pence), an increase of 4.3% (2024: +2.9%).
A revaluation surplus of £48 million (2024: deficit of £38 million)
was generated in the year from the portfolio, equivalent to 2 pence
(2024: deficit of 3 pence) per share.
Profit after tax as reported under IFRS rose to £119 million
(2024: £41 million).
EPRA NTA reduced by 4% to 99 pence per share (31 December
2024: 103 pence). The combination with Assura impacted the EPRA
NTA by 6 pence per share, reflecting the effects of the share
exchange ratio and transaction costs incurred. On an underlying
basis, a 2 pence per share uplift was delivered from the positive
portfolio revaluation. Including the MtM benefit of fixed rate debt
of 5 pence per share, Adjusted NTA stands at 104 pence.
The Group’s balance sheet remains robust, with significant liquidity
headroom, with cash and collateralised undrawn loan facilities,
after capital commitments, totalling £571 million (31 December 2024:
£271 million). The loan to value ratio of 57% (31 December 2024:
48%) is currently higher than our targeted range of between 40%
and 50%, as a result of the combination with Assura, but as noted
above, we have a clear plan to bring this back within the targeted
range during 2026.
Dividends
The Company distributed a total of 7.1 pence per share in 2025
which was fully covered, an increase of 2.9% over the 2024
dividend of 6.9 pence per share. The total value of dividends
distributed in the year increased by 27% to £117 million (2024:
£92 million), which were fully covered by adjusted earnings. During
2025, the scrip dividend scheme continued to be suspended as a
consequence of the ongoing weakness in the share price and a
Dividend Reinvestment Plan continued to be offered in its place.
The first interim dividend of 1.825 pence per share, equivalent to
7.3 pence on an annualised basis, an increase of 2.8% over the 2025
rate, was paid on 13 March 2026 and the second is payable on 8
May 2026 to shareholders on the register at 27 March 2026.Both
dividends represent a Property Income Distribution of 1.325 pence
and an ordinary dividend of 0.5 pence.
The Company intends to maintain its strategy of paying a
progressive dividend, paid in equal quarterly instalments, that
is covered by adjusted earnings in each financial year. Further
dividend payments are planned to be made on a quarterly basis
in May, August and November 2026 which are expected to
comprise a mixture of both Property Income Distribution and
normal dividend. It is proposed that authority will be sought at
the AGM for the re-introduction of the scrip dividend for future
dividends, at the Directors’ discretion.
Board changes
We were delighted to welcome Jonathan Davies to the Board
following his appointment as an independent Non-executive
Director effective from 1 December 2025. Jonathan brings a deep
understanding of the sector and Assura’s business, having served
as its Senior Independent Director and, latterly, Chair, providing the
Company’s stakeholders with continuity during the integration
period and beyond.
Johannesburg Stock Exchange (“JSE”)
secondary listing
During the year, the Company continued to build on the growing
interest in the Company and its profile in the South African market,
where investors have shown strong interest in the combination with
Assura and the Group’s unique healthcare property investment
opportunity. Since joining the JSE in October 2023, the secondary
listing has helped contribute to liquidity in the Group’s shares and
as at 31 December 2025, approximately 49 million shares or 2%
(31 December 2024: 14 million or 1%) of the register is now listed
on the JSE. 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.
Environmental, Social and Governance (“ESG”)
PHP has a strong commitment to responsible business and ESG
matters are at the forefront of the Board’s and our various
stakeholders’ considerations. PHP published in 2022 a Net Zero
Carbon (“NZC”) Framework setting out the five key steps we are
taking to achieve a target of being NZC by 2030. However, the
combination with Assura and significant increase in the scale of the
portfolio means now is the right time to review appropriate targets.
Consequently, we will revisit both PHP’s NZC Framework and
Assura’s NZC Pathway, including Science Based Targets initiative
targets, over the course of 2026.
During 2025, we continued to progress the delivery of our original
NZC Framework achieving net zero operations for the third year in
succession and the Group completed three NZC developments at
Croft, West Sussex; South Kilburn, London; and an NHS children’s
therapy centre at Fareham, Hampshire.
We continue to modernise existing buildings and improve the
environmental credentials of our portfolio through the asset
management programme. As at 31 December 2025, 63% of assets
have an EPC rating of A or B (31 December 2024: 47%) and 93%
at A to C (31 December 2024: 88%).
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
UK and Ireland.
Further details on our progress in the year, objectives for the future
and approach to responsible business can be found in
our Responsible Business Report.
Chair’s statement continued
Primary Health Properties PLC Annual Report 2025
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Healthcare market update and outlook
The UK Government’s 10-year plan for the NHS in England was
launched in July 2025 to create a new model of care fit for the
future, setting out three radical shifts – from hospital to
community, analogue to digital, and sickness to prevention.
• The move from hospital to community will be delivered through a
“neighbourhood health service” that will join up multiple services
through local teams to make them patient focused, accessible
and, in time, offer predictive and preventative care, anticipating
need rather than reacting to it.
• The move to digital will be through the NHS app to improve
patient access to services and control their data in a single
patient record.
• The move from sickness to prevention will include an ambition to
end obesity, incentivisation of healthier choices, better support
for people to find and stay in work, an expansion of mental
health support and increased use of genomics to enable
intervention for people at high risk of developing disease.
There is a clear theme of reducing the reliance on hospitals and
an accompanying commitment to shift expenditure away from
expensive hospital care. Consequently, the plan should be a
catalyst for unlocking significant future opportunities in primary
care and community diagnostics.
In support of the shift from hospital to community, the plan
outlines the development of neighbourhood health centres (“NHC”)
in every community acting as a “one stop shop” for patient care
and the place from which multidisciplinary teams operate. The
objective of NHCs is to create an offer that meets population
needs holistically by co-locating NHS, local authority and voluntary
sector services, bringing historically hospital based activities such
as diagnostics, post-operative care and rehabilitation into the
community. They should also offer a variety of services such as
smoking cessation, weight management, employment support and
debt advice providing convenient access to services, particularly
for those with complex needs, and supporting more integrated
working by healthcare and allied professionals. Importantly, much
of the existing UK primary care infrastructure is incapable of
facilitating these broad, multi-disciplinary services in the
community.
The creation of NHCs will therefore mandate the improved
utilisation of existing assets and the delivery of new premises.
The plan recognises that private capital, including third-party
development, will be essential to the delivery of the new estate
and this was enhanced by the announcement of the NHS
Neighbourhood Rebuild Programme in the Autumn 2025 Budget.
PHP is strategically well placed to assist and support the
Government and NHS with the NHC programme by enhancing
its existing estate through both the Group’s pro-active asset
management and development activities.
Investment market update
Primary care asset values have continued to perform well due to
recognition of the security of their government backed income,
crucial role in providing sustainable healthcare infrastructure
and more importantly a stronger rental growth outlook enabling
attractive reversion over the course of long leases. As a result, we
have continued to see a pick-up in transaction volumes in the UK,
across both primary care and private hospital markets, which are
supportive of our property valuations and give us confidence in our
ability to complete our deleveraging objectives in the short term.
Yields adopted by the enlarged Group’s valuers have remained
stable in 2025, moving out by only 3 bps to 5.4%, primarily as a
result of small adjustments to align the valuation approach across
the enlarged portfolio. We believe the sector has reached an
inflexion point with future rental growth driving positive
performance in the future.
PHP outlook
The immediate focus of the business is on delivering the strategic
benefits and priorities following the combination with Assura:
managing leverage through moving assets into joint ventures or
sales, integrating the two businesses and continuing to deliver cost
synergy benefits and refinancing the acquisition facilities.
PHP has delivered another year of strong operational and financial
performance with a focus on driving rental growth from our existing
assets, and we are encouraged by the firmer tone of rental growth
experienced over the last couple of years. We believe the dynamics
of inflation in recent years, including significantly increased build
costs combined with demand for new primary care facilities and
the need to modernise the estate, will continue to drive future
rental growth, and we are starting to see the evidence of this
through our asset management and development pipelines.
Our portfolio has very resilient operating metrics in a healthcare
market with strong fundamental demographic characteristics,
supported by a supportive political backdrop and the need for
greater investment in healthcare infrastructure to support the
delivery of services in local community settings. PHP has a unique
portfolio, strong operational platform and skill-set across primary
care in the UK and Ireland with attractive future growth
opportunities focused around private hospitals and adjacent
healthcare assets.
These factors give us confidence in our ability to continue to
generate attractive shareholder returns which, combined with
our disciplined strategy and financial framework, support our
progressive dividend policy and enable us to look forward to
2026 and beyond with confidence.
Harry Hyman
Non-executive Chair
16 March 2026
Read more in our Responsible
Business Report at phpgroup.co.uk
Read more about our culture
on page 45
Read more about our stakeholders
on pages 45 and 49
Chair’s statement continued
Primary Health Properties PLC Annual Report 2025
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Business review
The leading healthcare
REIT investing in critical
social infrastructure across
the UK & Ireland
2025 has been a very active and transformational year following
the combination with Assura; adding £3.0 billion of assets with
a rent roll of £182 million per annum. The combination provides a
significant increase in the Group’s scale, with a property portfolio
entirely focused on critical social healthcare infrastructure.
The increased scale resulting from the Assura merger provides the
Group with a lower cost of capital and more scope to drive and
improve the organic income growth that can be derived from the
portfolio. We are targeting rental growth in the future in excess of
3% per annum to continue to deliver sector-leading, risk-adjusted
total property returns.
The Assura portfolio increased our exposure to private hospitals
and post year end we have progressed negotiations with offers
received from four credible counterparties to put this portfolio
into a new strategic joint venture to help to reduce the Group’s
leverage back to the target range of 40% to 50% and a
government-backed income target of 80% to 90%.
Rental growth
PHP’s sector-leading metrics remain robust and we continue
to focus on delivering organic rental growth derived from our
portfolio of secure income assets. This growth arises mainly
from rent reviews and asset management projects (extensions,
refurbishments and lease re-gears), which provide an important
opportunity to increase income, extend lease terms and create
value. Enhancing our assets ensures that they continue to meet
their communities’ healthcare needs, often improving their ESG
credentials and ensure they also play a crucial role in helping
the NHS fulfil its 10-year plan.
Throughout 2025, we continued to see strong organic rental
growth from both our existing and the newly acquired Assura
portfolio on a like-for-like basis with rent roll increasing by
£9.1 million or 2.7% (PHP: £4.1 million or 2.6%; Assura: £5.0 million
or 2.8%). The improving rental growth outlook seen over the last
couple of years has continued and it should be noted that most
of the increase comes from rent reviews arising primarily in the
periods prior to 2023, a period when rental growth was muted
and did not reflect the higher levels of construction cost and
general inflation experienced in recent years.
We have also seen the improving rental growth outlook reflected in
the valuation of the portfolio, with the independent valuers’
assessment of estimated rental values (“ERV”) subject to open
market reviews increasing by 2.7% in 2025 (2024: 3.2%).
Rent review performance
The enlarged Group completed 665 (2024: 341) rent reviews with
a combined rental value of £122 million (2024: £42 million), adding
£8 million and delivering an average uplift of 6.8% against the
previous passing rent (2024: £3 million/7.7%).
60% of our rents are reviewed on an open market basis, which
typically takes place every three years. The balance of the portfolio
has either indexed (34%) or fixed uplift (6%) based reviews which
also provide an element of certainty to future rental growth within
the portfolio. Approximately 50% of index-linked reviews, including
private hospitals, in the UK are subject to caps and collars which
typically range from 6% to 12% over a three-year review cycle.
Reviews in Ireland and relating to the private hospital portfolio
performed very strongly, adding over £1 million to rent roll
respectively. In the private hospital portfolio, an uplift of 3.2%
over the previous passing rent was achieved on 20 index-based
reviews, which are annual reviews subject to collars and caps which
typically range from 1.5% to 4% per annum. In Ireland, this related
to 25 index-based reviews (2024: 12) with an uplift of 20.9% (2024:
15.3%) against the previous passing rent. Irish rent reviews
generally occur every five years, linked to the Irish Consumer Price
Index, and are upwards and downwards typically with a cap of 25%
over a five-year cycle.
Mark Davies
Chief Executive Officer
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Business review continued
Rent review performance continued
The growth from reviews completed in the year, noted above,
is summarised below:
Review type Number
Previous
rent
(per annum)
£m
Rent
increase
(per annum)
£m
% increase
total
% increase
annualised
Primary care
– open market
1
324 42 2.7 6.5% 2.1%
Primary care
– indexed 249 33 3.1 9.4% 4.6%
Primary care
– fixed 47 8 0.4 4.8% 2.1%
Primary care
– total 620 83 6.2 7.5% 3.1%
Private hospitals
– indexed/fixed 20 34 1.1 3.2% 3.2%
UK – total 640 117 7.3 6.2% 3.1%
Ireland
– indexed 25 5 1.0 20.9% 4.1%
Total – all
reviews 665 122 8.3 6.8% 3.2%
1 Includes 36 reviews (2024: 35) where no uplift was achieved.
At 31 December 2025, 1,159 (31 December 2024: 600) open market rent
reviews representing £169 million (31 December 2024: £89 million)
of passing rent, were outstanding, out of which 575 (31 December
2024: 326) have been triggered to date. These reviews are expected
to add another £5.1 million (31 December 2024: £2.7 million) to the
contracted rent roll when concluded, representing an uplift of 5.9%
(31 December 2024: 5.5%) against the previous passing rent. The
balance of the outstanding reviews will be actioned when there is
further comparative evidence to support the estimated rental values
.
Valuation and returns
In the year, we have continued to see values stabilise with yields
flat and the impact of rental growth delivering valuation growth.
We expect this trend to continue in 2026.
As at 31 December 2025, the Group’s portfolio comprised 1,142
assets (31 December 2024: 516) independently valued at £6.0 billion
(31 December 2024: £2.75 billion), including the Group’s share of joint
ventures. After allowing for acquisition costs and capital expenditure
on developments and asset management projects, the portfolio
generated a valuation gain of £48 million or 0.8% (2024: deficit
of £38 million or -1.4%).
During the second half of the year, the Group’s portfolio net initial
yield (“NIY”) was flat, albeit the overall yield increased to reflect
the change in portfolio composition, including the private hospital
portfolio following the acquisition of Assura, to stand at 5.4%
(31 December 2024: 5.2%), and the true equivalent yield is 5.7%
at 31 December 2025 (31 December 2024: 5.3%). The movement of
yields created a deficit of approximately £24 million, but this has been
outweighed by gains of approximately £72 million arising from an
improving rental growth outlook and asset management projects.
The movement in the portfolio’s valuation deficit is summarised
in the table below:
£ million H1 2025 H2 2025 FY 2025
NIY expansion (£9m)/
+3bps
(£15m)/
0 bps
(£24m)/
+3 bps
Rental growth £29m £43m £72m
Total surplus £20m £28m £48m
We continue to see evidence of an improving market for healthcare
real estate both in the UK and Ireland which are increasingly viewed
as attractive social infrastructure assets with a growing rental income
stream which is secure, long and predictable. There are new pools
of capital looking at the asset class including global infrastructure
funds, pension funds and life assurance companies, most of whom
manage large pools of capital at a lower cost of capital. This improved
liquidity is likely to enhance asset valuations in the future.
The large number of outstanding reviews reflect the requirement
for all awards to be agreed with the District Valuer. A great deal
of evidence to support open market reviews comes from the
completion of historical rent reviews and the rents set on delivery
of new properties into the sector. Recent asset enhancement
projects and new build developments have shown a willingness
of the District Valuer to accept higher rent levels, and whilst this is
encouraging, further progress is still required.
Asset management projects
The enlarged Group continues to progress an advanced pipeline of 51
projects which highlight the improving rental growth outlook, with the
current weighted average rent of £189 psm due to increase by around
15% to £218 psm post completion. These projects provide important
evidence for future rent review settlements across the wider portfolio.
In the UK, across both PHP and Assura portfolios, we exchanged on
eight (2024: ten) new asset management projects, 21 (2024: eight)
lease re-gears and 20 (2024: seven) new lettings during 2025.
These initiatives will increase rental income by £0.8 million, investing
£5.0 million and extending the leases back to an average of 17 years
for the asset management projects.
The Company will continue to invest capital in a range of physical
extensions or refurbishments through asset management projects
which help avoid obsolescence, including improving energy efficiency,
and which are key to maintaining the longevity and security of our
income through long term occupier retention, increased rental income
and extended occupational lease terms, adding to both earnings and
capital values.
Primary Health Properties PLC Annual Report 2025
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Valuation and returns continued
The total property returns generated by the portfolio in the period
are set out below:
Year ended
31 December 2025
Year ended
31 December 2024
Income return 5.7% 5.5%
Capital return 1.3% (1.3%)
Total return 7.0% 4.2%
The portfolio’s average lot size remained at £5.3 million
(31 December 2024: £5.3 million), with 85% of the portfolio
(31 December 2024: 88%) valued at over £3.0 million.
Number of
properties
Valuation
£m %
Average
lot size
£m
>£10m 131 2,217 37 17
£5m–£10m 244 1,636 28 7
£3m–£5m 312 1,209 20 4
£1m–£3m 417 844 14 2
<£1m (including
land £4m) 38 31 <1 <1
Total
1
1,142 5,937 100 5.3
1 Excludes the £13 million impact of IFRS 16 Leases with ground rents
recognised as finance leases.
Robust portfolio metrics
The portfolio’s annualised contracted rent roll at 31 December 2025
was £342 million (31 December 2024: £154 million), with the majority
of the increase (£182 million) relating to the acquisition of Assura.
The remainder of the increase was driven by organic rent reviews and
asset management totalling £4 million and additions of £1 million, as
well as £1 million of foreign exchange benefit on the portfolio in
Ireland. These increases were offset by £1 million relating to
disposals and tenant expiries. The rent roll includes £2.7 million
which represents PHP’s share of properties held in joint ventures.
The security and longevity of our income are important drivers
of our secure, long term predictable income stream and enable
our progressive dividend policy.
PHP continues to see significant growth opportunities in Ireland,
driven by sustained Government investment in healthcare
infrastructure and a strategic shift towards community-based
healthcare. We completed the acquisition of the Laya Healthcare
facility, Cork, in the year for consideration of €22 million/£18 million
delivering an earnings yield of 7.1%, let to Ireland’s second largest
provider of private health insurance and clinical services, providing
a bespoke urgent care and diagnostic facility utilising the latest
medical technology available. We have also completed the
development of a primary care centre in Ballybay and are on
site with three further new build projects.
We continue to monitor several potential opportunities in Ireland
and in particular two forward funded developments with an
expected cost of approximately €60 million (£52 million) being
progressed by our development partner in Ireland.
Private hospitals
The enlarged Group now has a portfolio of 33 private hospitals,
including one forward funded development on site, with a total
value of approximately £0.7 billion.
In the period since acquisition, PHP has benefited from the strong
income growth from the private hospitals and we have since
identified opportunities to capture upside from asset management
and development.
During the year, the portfolio has continued to demonstrate strong
operating metrics, reflecting the sustained growth of the private
healthcare sector. Private hospital rents increased by 3.2% in 2025
with the weighted average rent cover also improving to 2.8x
(2024: 2.6x).
With the sustained growth of the private sector market, across
the three main payor groups of private medical insurance, NHS
referred and self-pay, we see this asset class as an attractive
investment opportunity offering robust cash flows, typically with
annual indexed-linked rent reviews and strong growth prospects.
We are currently on site with a £21 million forward fund development
in Peterborough and a £6 million extension to Tees Valley Hospitals,
both for Ramsay Healthcare, strengthening our long-standing
relationship with one of the UK’s largest independent providers of
NHS referred services.
Security: PHP continues to benefit from secure, long term cash
flows with 76% (31 December 2024: 89%) of its rent roll funded
directly or indirectly by the NHS in the UK or HSE in Ireland.
The portfolio also benefits from a consistently high occupancy
rate of 99% (31 December 2024: 99%).
Longevity: The portfolio’s WAULT at 31 December 2025 was
10.8 years (31 December 2023: 9.4 years). £58 million or 17%
of our income is currently holding over or expires over the next
three years, of which c.75% have agreed terms or are in advanced
discussions to renew their lease. £157 million or 46% expires
beyond ten years. The table below sets out the current lease expiry
profile of our income:
Income subject to expiry £ million %
Holding over
1
16 5
<3 years 42 12
4–5 years 45 13
5–10 years 81 24
10–15 years 57 17
15–20 years 42 12
>20 years 59 17
Total 342 100
1 Given the unique nature of the portfolio, growing demand and low supply it is
extremely unlikely that the occupiers will not renew their lease.
Ireland
At 31 December 2025, the portfolio in Ireland comprised 28 standing
and fully let properties which includes three developments currently
on site, valued at £341 million or €391 million (31 December 2024:
21 assets/£255 million or €309 million). The portfolio in Ireland has
been valued at a NIY of 5.1% (31 December 2024: 5.0%) and a true
equivalent yield of 5.3% (31 December 2024: 5.3%), reflecting the
acquisition of the Assura Irish assets.
Business review continued
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Private hospitals continued
As previously announced and reported above, we expect the
portfolio will be moved into a new strategic joint venture during
2026, retaining a meaningful economic exposure whilst benefiting
from bringing in a strategic long term partner to reduce leverage
and diversify our funding sources.
Joint ventures
The Group has a strategic joint venture with USS which,
a at 31 December 2025, held assets valued at £176 million
(PHP share: £35 million), including two developments on site at
Weston-super-Mare and Tetbury currently under construction.
The joint venture offers the Group a long term strategic partner
with which to jointly fund essential community-based NHS
infrastructure, including new build primary care schemes,
generating positive social impact across the UK which offer
important rental evidence for the wider portfolio.
PHP has agreed commercial terms, subject to due diligence, to
transfer a further £103 million of assets into the joint venture,
generating a cash receipt of £82 million, net of PHP’s 20% share,
which is due to complete in the second quarter of 2026. If
completed, this will increase the total size of the joint venture
to approximately £290 million, including the two development
schemes under construction.
The Group also holds interests in two smaller joint ventures, acquired
with Assura, with a value of £27 million (PHP share: £14 million).
Risk-controlled development
During the year, the Group completed two net zero carbon
developments at Croft, West Sussex and South Kilburn, London. The
Group also completed a net zero carbon development of an NHS
children’s therapy centre at Fareham, Hampshire, a GP medical
centre development in Winchester, Hampshire and a primary care
centre in Ballybay, Ireland.
The enlarged Group has an improved development capability
at time when the sector needs new healthcare infrastructure and is
currently on site with six developments which are summarised in
the table below:
Development
Estimated
practical
completion
Total
cost
Cost to
complete
Yield on
cost
Birr PCC, Ireland Q2 2026 £13m
€15m)
£3m
(€3m)
5.1%
Castlebar PCC,
Ireland
Q4 2026 £14m
€16m)
£6m
(€7m)
5.3%
Youghal PCC,
Ireland
Q1 2027 £14m
(€16m)
£11m
(€12m)
4.6%
Private hospital,
Peterborough
Q1 2027 £21m £17m 6.1%
Tetbury PCC Q4 2026 £1m
1
£1m
1
5.5%
Weston-super-
Mare PCC Q3 2027 £2m
1
£2m
1
5.1%
Total £65m £40m 5.4%
1 JV assets included at 20% share.
Business review continued
Investment and pipeline
We continue to monitor several potential development opportunities
with a pipeline across primary care in both the UK and Ireland and
private hospitals, as detailed in the table below. These will only be
progressed if accretive to earnings and they deliver the appropriate
risk-adjusted returns.
The immediate pipeline of opportunities in legal due diligence
continues to be focused predominantly on PHP’s existing portfolio
through asset management projects, but we see a growing opportunity
for development with the opportunity to fund some of these
through our joint ventures to ensure appropriate risk-adjusted
returns are achieved.
In legal due diligence Advanced pipeline
Pipeline Number Cost Number Cost
UK Primary Care –
asset management 15 £9m 36 £16m
UK Primary Care –
development — — 1 £4m
UK Primary Care
– joint venture at
share — — 3 £6m
Ireland – forward
fund development — — 2
£52m
(€60m)
Total pipeline 15 £9m 42 £78m
Conclusion
This has been a transformational year for PHP and the strong
platform we have created is well placed to deliver value as the
leading investor, manager and developer of critical healthcare
infrastructure across the UK and Ireland. The management are very
focused on delivering on our priorities and excited about the
prospects to create growth in the future.
Mark Davies
CEO
16 March 2026
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“ We are very pleased with
performance of the private hospital
assets and see significant upside
potential from our portfolio. Our
preference remains to hold the
private hospital assets in a strategic
joint venture and very good
progress is being made.”
Market review “ Each of the markets that we
operate in faces growing demand
to support the shifting
demographics and trend for more
services to be delivered out of
hospitals and in the community.”
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Market review continued
Capitalising on our growth drivers
Each of the markets that we operate in faces growing demand to support the shifting demographics and trend for more services to be delivered out of hospitals.
Primary care (UK)
The largest component of our portfolio, GP surgeries and
medical centres are the first point of access for patients,
acting as a central hub for the communities they serve and
housing a growing range of health professionals and services
to ease the pressure on hospitals.
Approximately 50% of primary care buildings in the UK are not
fit for purpose, meaning significant investment is required to
support the aims of the NHS 10-year plan and create a system
of neighbourhood health centres.
Primary care (Ireland)
Like in the UK, Irish primary care facilities play a vital role
in the local population’s access to healthcare services.
With a more rural population, typically a greater range of
services is provided, to avoid patients needing to travel long
distances to hospital. This means primary care and enhanced
community care centres (“ECC”) include technology for
services such as X-rays, MRI scans and blood tests.
The HSE’s Slaintecare programme has identified the locations of
the next wave of ECCs to be developed over the coming years.
Private hospitals
Independent hospitals play a vital and growing role in the
provision of health services in the UK. Whether specialising
in diagnostic testing, investing in technological advancements
such as robotic surgery, or focusing on procedures such as
cataracts, orthopaedic surgery or oncology, each hospital
meets the needs of the local population and health economy.
With growing demand across the three patient routes (private
medical insurance, NHS referral and self-pay), most of the
top operators are looking to add new hospitals, or enhance
existing buildings by adding new theatres or equipment
such as MRI scanners.
Our response
We are working with customers in our buildings to identify
opportunities to enhance our assets with extensions,
reconfigurations or new build development projects that
facilitate a greater range of services being provided –
which benefits both patients and the entire health system.
Our response
PHP’s leading portfolio in Ireland and the specialist expert
capabilities of our Axis Technical Services team mean we are
well placed to capture new building development opportunities.
We have recently moved on site with the €16 million primary
care centre in Youghal.
Our response
Our portfolio of 33 private hospitals has seen growing demand
for services – creating opportunities to enhance these
buildings through the addition of additional theatres or space
for equipment such as MRI scanners. We are also on site with
a £21 million new build hospital in Peterborough.
Private hospitals
+46%
Growth in revenues by independent operators
in the private health sector 2019-2024
Primary care (UK)
250
Planned neighbourhood health centres announced
in Autumn Budget 2025
Primary care (Ireland)
SC2025+
Slaintecare 2025+ Vision to provide high quality health
and social care for all the people of Ireland
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Business model
Creating long term
sustainable value
We invest in flexible, modern properties for local primary healthcare.
The overall objective of the Group is to create progressive returns to
shareholders through a combination of earnings growth and capital
appreciation. To achieve this, PHP has invested 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.
Our key strengths
Prudent risk management:
PHP aims to operate in a relatively low risk
environment to generate progressive returns to
shareholders through investment in the
primary healthcare real estate sector, which is
less cyclical than other real estate sectors.
Long term focus:
By providing additional space facilitating the
provision of additional services or extending
the term of underlying leases, PHP can
increase and lengthen its income streams
and create the opportunity to add
capital value.
Experienced and
innovative management:
PHP’s portfolio is managed by an
experienced team within an efficient
management structure, where operating
costs are tightly controlled.
Appropriate capital structure:
PHP funds its portfolio with a diversified
mix of equity and debt, as well as
partnering with selected joint venture
partners, in order to optimise risk-adjusted
returns to shareholders.
Key characteristics of the portfolio
Occupancy rate
of 99%
Weighted average
unexpired lease length
of 10.8 years
UK leases have effectively
upward-only rent reviews
Irish leases linked
to Irish CPI
Strong tenant covenant –
76% of rent roll paid directly/
indirectly by government
bodies
40% of portfolio on
fixed or indexed uplifts.
60% open market
review, typically
every three years
Highly visible
cash flows
and stable
valuation yields
Primary Health Properties PLC Annual Report 2025
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Wider outcomes
Social impact
PHP aims to provide modern premises located within
communities around the UK and Ireland to enable
better access to an increasing range of services
being delivered locally with greater accessibility than
from hospitals.
We own, manage and develop critical social
infrastructure and have a big and positive social
impact on the communities we invest in.
Environmental impact
Environmental impact is an integral consideration
in the development, design and construction of new
PHP properties. When developing new premises,
PHP and its development partners seek to achieve
the highest BREEAM standards in the UK or a nearly
zero energy building (“nZEB”) rating in Ireland, as well
as improving our premises’ energy performance.
We have seen continued improvement in portfolio
EPC ratings with 63% and 93% (2024: 47% and 88%)
rated A–B and A–C respectively, driven by the asset
management programme and Assura merger.
Healthcare targets
The modern, flexible premises that PHP provides
facilitate the provision of more wide ranging and
integrated care services helping to realise the NHS’s
target of 24/7 access to GP services and the HSE’s
expansion of primary care infrastructure.
Investors
The Company’s share price started the year at
93.3 pence per share and closed on 31 December 2025
at 97.9 pence, an increase of 4.9%. Including
dividends, those shareholders who held the
Company’s shares throughout the year achieved a
Total Shareholder Returns of 12.5% (2024: -3.5%).
Values
We employ sustainable design to develop, refurbish
and upgrade our buildings to modern medical and
environmental standards.
NHS/primary healthcare
Our flexible, modern properties benefit not only our
shareholders but also our occupiers, patients, the
NHS and HSE, suppliers and the wider communities in
both the UK and Ireland.
Patients
PHP’s portfolio serves over 11 million patients, which
is expected to further increase as primary healthcare
demands increase to assist with overstretched
Accident & Emergency (“A&E”) departments, and
with the ageing and growing population.
Communities
We support initiatives that further the health,
wellbeing and education of our local communities.
Our buildings enable a growing array of health
services to be delivered by a range of health
professionals, supporting the NHS 10-year plan as
well as the Government’s Neighbourhood Health
Centre model.
People
We conduct our business with integrity and invest
in human capital, with 156 employees in the UK
and Ireland. We have a long standing track record of
supporting employees in their professional
development studies.
People are our biggest asset and following the
transformational merger with Assura, the business
has benefited from the best of both.
Our strategy
1
Grow
The Group looks to selectively grow its
property portfolio by funding and acquiring
high quality developments and newly
developed facilities and investing in
already completed, let properties.
Manage
PHP manages its portfolio effectively
and efficiently, managing the risks faced
by its business in order to achieve its
strategic objectives.
Fund
The Group funds its portfolio with a
diversified mix of equity and debt on
a secured and unsecured basis, in order
to optimise risk-adjusted returns
to shareholders.
Deliver
PHP aims to deliver growing adjusted earnings
to support our progressive dividend policy.
Business model continued
4
3
2
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Strategic report Governance Financial statements Shareholder information
Strategy
Grow
The Group looks to selectively
grow its property portfolio
by funding and acquiring high
quality developments and newly
developed facilities and
investing in already completed,
let healthcare real estate.
Link to KPIs
A
B
C
D
E
F
G
H
Link to risks
1
2
Activity in 2025
• Transformational acquisition of Assura plc,
doubling the size of our portfolio and
enhancing our capabilities for developments
and in the private hospital market
• Portfolio now stands at 1,142 healthcare
assets, including 28 in Ireland, 33 private
hospitals and 22 held in joint ventures
• Total property return in the year of 7.0%,
with the income return remaining strong
at 5.7% supported by 1.3% of capital return
as property valuations have now stabilised
Looking forward
• Sector fundamentals of long leases and
government backed income continue to
drive demand in the sector
• Continue to monitor a number of potential
standing investments, direct and forward
funded developments and asset
management projects with an advanced
pipeline across a number of opportunities
in both the UK and Ireland but these will
only be progressed if accretive to earnings
Manage
PHP manages its portfolio
effectively and efficiently,
managing the risks faced by its
business in order to achieve
its strategic objectives.
Link to KPIs
A
D
E
F
Link to risks
3
4
5
Activity in 2025
• £9.1 million, or 2.7% additional income
from rent reviews and asset
management projects
• Across both the PHP and Assura portfolios
we exchanged on eight new asset
management projects, 21 lease re-gears
and 20 new lettings during the year.
These initiatives will increase rental income
by £0.8 million, investing £5.0 million and
extending the leases back to an average of
17 years for the asset management projects
• EPRA cost ratio of 9.8% continues to be
one of the lowest in the sector, targeting a
reduction to 9% when cost synergies have
been delivered
Looking forward
• Strong pipeline of over 51 advanced asset
management projects and lease regears
across the enlarged Group, aiming to
increase the weighted average rent due
on these schemes by around 15%, providing
important rent review evidence
• Continued discussions with occupiers and
the NHS to discuss requirements and
opportunities as well as continue to
negotiate rents in order to deliver an
acceptable return
Our core strategic objectives
Primary Health Properties PLC Annual Report 2025
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Strategic report Governance Financial statements Shareholder information
Fund
The Group funds its portfolio
with a diversified mix of equity
and debt on a secured and
unsecured basis, in order
to optimise risk-adjusted returns
to shareholders.
Link to KPIs
A
B
C
F
G
H
Link to risks
6
7
Activity in 2025
• Significant activity in the year with support
from a range of lenders to provide
acquisition facilities for the combination
with Assura
• Subsequently, all debt subject to change
of control clauses successfully waived or
facilities refinanced
• Significant liquidity headroom with cash
and collateralised undrawn loan facilities
totalling £571 million (2024: £271 million)
after taking into account capital
commitments of £56 million
Looking forward
• Good progress is being made on expanding
the existing joint ventures and establishing a
strategic joint venture for our private
hospital portfolio where we see exciting
growth opportunities
• Following deleveraging target being
achieved, acquisition facilities to be
refinanced. Demand from debt investors
remains strong, reflecting the secure
income generated by our asset class and the
enhanced scale of our portfolio
Deliver
PHP aims to deliver growing
adjusted earnings, whilst
maintaining a strong balance
sheet, to support our
progressive dividend policy.
Link to KPIs
A
B
C
D
E
F
G
H
Link to risks
8
9
Activity in 2025
• Adjusted earnings per share of 7.3 pence
increased by 4.3% (2024: 7.0 pence)
• Dividend per share increased by 2.9%
to 7.1 pence
• Total EPRA NTA return of 2.7% (2024: 3.6%)
• Strong organic rental growth from rent
reviews and asset management projects
• Acquisition of Assura has grown presence
and expertise in growth markets of private
hospitals and Ireland
Looking forward
• Increased scale and liquidity increases range
of funding options for future growth,
including utilisation of selected joint
ventures to optimise capital structure
• Group maintains close cost control with
clear target for expected cost synergies
and just under 80% of the Group’s termed
out net debt being fixed or hedged, protecting
underlying earnings from potential future
economic changes. This will increase as we
refinance the acquisition facility as part of
the deleveraging strategy.
Strategy continued
KPIs
A
Adjusted earnings per share
B
Dividend cover
C
Total property portfolio
D
Total property return
E
Capital invested in asset management projects
F
EPRA cost ratio
G
Loan to value
H
Average cost of debt
Read more about our Key Performance Indicators
on pages 24 and 25
Risks
1
Property pricing and competition
2
Financing
3
Lease expiry management
4
People
5
Responsible business
6
Debt financing
7
Interest rates
8
Potential over-reliance on the NHS and HSE
9
Foreign exchange risk
Read more about our Risks on pages 56 to 62
Primary Health Properties PLC Annual Report 2025
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Key performance indicators
How our performance is measured
A
Adjusted earnings per share
∆
7.3p
+4.3%
7.3p
7.0p
6.8p
2025
2024
2023
Rationale
Adjusted earnings per share is a key measure of the
Group’s operational performance as it excludes all
elements not relevant to the underlying net income
performance of the properties.
Performance
Adjusted earnings per share increased in the year,
reflecting the strong organic rental growth in the
period and a partial year impact of the Assura
acquisition which completed in August 2025.
B
Dividend cover
∆
112%
+900bps
103%
101%
101%
2025
2024
2023
Rationale
The Group looks to maintain a progressive dividend
policy which it aims to cover from its operational
performance. Dividend cover looks at the proportion
of dividends paid in the year that are funded
by adjusted earnings, presented on a per share basis.
Performance
Dividends paid in 2025 were fully covered by adjusted
earnings and we intend to maintain a strategy of
paying a progressive dividend that is covered by
adjusted earnings in each financial year.
C
Total property portfolio
£6.0bn
+115%
£6.0bn
£2.8bn
£2.8bn
2025
2024
2023
Rationale
The Group looks to selectively grow its portfolio in
order to secure the yield gap between income returns
and the cost of funds.
Performance
The acquisition of Assura in August 2025 saw our
portfolio significantly increase in scale to £6.0 billion.
In addition, two acquisitions were completed (Laya
Healthcare, Ireland and Coatham, Redcar) and three
development projects in South Kilburn (London), Croft
(West Sussex) and Ballybay (Ireland).
D
Total property return
∆
7.0%
+280bps
7.0%
4.2%
3.5%
2025
2024
2023
Rationale
The Group invests in properties that provide
the opportunity for increased returns through
a combination of rental and capital growth.
Performance
Income return of 5.7% in the year (2024: 5.5%) was
boosted by a capital return of 1.3% (2024: deficit of
1.3%) delivering a total property return of 7.0%.
Strategy
1
Grow
2
Manage
3
Fund
4
Deliver
Read more about our strategy on pages 22 and 23
Link to strategy
1
2
3
4
Link to strategy
1
3
4
Link to strategy
1
4
Link to strategy
1
2
4
∆ Alternative performance measures (“APMs”): Measures with this symbol ∆ are APMs defined in the Glossary section on pages 172 to 174,
and presented throughout this Annual Report. All measures reported on a continuing operations and 52-week comparable basis.
Primary Health Properties PLC Annual Report 2025
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Key performance indicators continued
E
Capital invested in asset
management projects
£16m
+21%
£16m
£13m
£13m
2025
2024
2023
Rationale
The Board is committed to keeping its assets fit for
purpose and developing them to meet the needs of the
Group’s occupiers.
Performance
Across both the PHP and Assura portfolios, we
exchanged on eight new asset management projects,
21 lease re-gears and 20 new lettings during the year.
These projects maintain the longevity of the use of its
properties as well as generating enhanced income and
capital growth. A strong pipeline of 51 projects will
continue to achieve this objective.
F
EPRA cost ratio
∆
11.3%
+50bps
11.3%
10.8%
10.7%
2025
2024
2023
Rationale
The EPRA cost ratio is used to provide an indicator
of the efficiency of the management of the Group
looking at total administrative costs as a proportion
of net rental income.
Performance
The slightly higher EPRA cost ratio reflects a temporary
increase during the integration of the Assura business,
with the full benefit of synergies expected in the 2027
financial year. Excluding vacancy and Axis costs, the
EPRA cost ratio is 9.8%.
G
Loan to value
∆
56.9%
+880bps
56.9%
48.1%
47.0%
2025
2024
2023
Rationale
The Board seeks to maintain an appropriate balance
between the use of external debt facilities and
shareholder equity in order to enhance shareholder
returns whilst managing the risks associated with
debt funding.
Performance
The Assura acquisition has resulted in a temporary
increase to the LTV. A clear plan is in place to bring this
within the Group’s targeted range of between 40% and
50% during 2026.
H
Average cost of debt
∆
3.7%
+30bps
3.7%
3.4%
3.3%
2025
2024
2023
Rationale
The combination of a range of maturities and tenors of
debt is key to the Group achieving the lowest blended
cost of debt.
Performance
The Company continues to operate with just under
80% of termed out facilities being fixed or hedged with
interest rate swaps. All facilities inherited from Assura
have had change of control clauses waived or have
been successfully refinanced. Acquisition facilities are
expected to be refinanced during 2026.
Strategy
1
Grow
2
Manage
3
Fund
4
Deliver
Read more about our strategy on pages 22 and 23
Link to strategy
1
2
4
Link to strategy
1
2
3
4
Link to strategy
1
3
4
Link to strategy
1
3
4
∆ Alternative performance measures (“APMs”): Measures with this symbol ∆ are APMs defined in the Glossary section on pages 172 to 174,
and presented throughout this Annual Report. All measures reported on a continuing operations and 52-week comparable basis.
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Financial review
Organic rental growth and effective cost management
The combination with Assura has transformed the portfolio,
more than doubling in size to £6.0 billion (31 December 2024:
£2.8 billion) and increasing our contracted rent roll to £342 million
(31 December 2024: £154 million). The merger also brings
significant additional benefits of increased scale, share liquidity,
investor reach and a lower cost of capital that will continue to
support our progressive dividend policy.
Earnings in the year benefited from the combination with Assura
in August 2025 which contributed approximately 4.5 months of
income to the enlarged Group. Adjusted earnings increased by
41% to £131 million (2024: £93 million) or by 4.3% to 7.3 pence
(2024: 7.0 pence) on a per share basis. Driving this increase was
a 49% increase in net rental income supported by organic rental
growth achieved from the portfolio and a strong culture of cost
control. The full benefits of the merger will be seen in 2026
and beyond.
Richard Howell
Chief Financial Officer
Summarised results
The financial results for the Group are summarised as follows:
£m £m
Net rental income 230 154
Share of joint venture profit and
Axis PHP contribution 1 1
Administrative expenses (19) (12)
Operating profit before
revaluation, net financing costs
and exceptional items 212 143
Net financing costs (81) (50)
Adjusted earnings 131 93
Revaluation gain/(deficit) on
property portfolio 48 (38)
Exceptional revaluation loss arising
on acquisition of Assura
1
(37) —
Total revaluation gain/(deficit) on
property portfolio (inc. share of JVs) 11 (38)
Fair value loss on interest rate
derivatives and convertible bond (9) (8)
Amortisation of debt MtM at
acquisition (Assura and MedicX) (6) 3
Other exceptional items /
amortisation of intangible assets (5) (3)
IFRS profit before tax 122 47
Taxation (corporation and deferred
tax provision) (3) (6)
IFRS profit after tax 119 41
1 The exceptional revaluation loss arising on the acquisition of Assura comprises
transaction costs of £42 million less a £5 million discount arising on the
difference between the total consideration paid and the fair value of the net
assets acquired.
The Group’s balance sheet remains robust, with significant
liquidity headroom, with cash and collateralised undrawn
loan facilities, after capital commitments, totalling £571 million
(31 December 2024: £271 million). The loan to value ratio of
just under 57% (31 December 2024: 48.1%) is currently above
our targeted range of between 40% and 50%, as a result of the
combination with Assura, but we have a clear plan to bring this back
within the targeted range during 2026.
Assura acquisition
On 12 August 2025, PHP obtained control of Assura with 63%
of shareholders accepting our shares and cash offer which
subsequently increased to 98% before the offer was closed on
10 September 2025. The acquisition of Assura was completed
in full on 20 October 2025 when the final 2% of Assura shares were
legally acquired and Phase 1 clearance from the CMA was
received on 29 October 2025 which enabled integration of the
two businesses to commence.
The acquisition of Assura has been accounted for as a property
acquisition and the fair value of the consideration paid and net
assets acquired was just under £1.6 billion, funded through a
combination of shares and cash and summarised in the table below:
£m
Fair value of consideration paid
1,258.6 million shares issued 1,171
Cash 407
Total consideration paid including costs 1,578
Fair value of net assets acquired
Investment property 3,021
Investment in joint ventures and investments 57
Net debt (1,382)
Other net assets and liabilities (118)
Total net assets 1,578
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Financial review continued
Summarised results continued
The increase in adjusted earnings in the year can be summarised as follows:
Year ended
31 December
2025
£m
Year ended
31 December
2024
£m
Year ended 31 December
93 91
Net rental income 74 —
Administrative expenses (5) —
Net interest payable
(30) —
Total contribution from Assura 39 —
PHP like-for-like net rental income growth 3 4
Administrative expenses (2) (1)
Net financing costs (2) (1)
Year ended 31 December 131 93
The largest impact on adjusted earnings came from the acquisition of Assura, which contributed
£39 million reflecting approximately 4.5 months of additional income from 12 August 2025 when
PHP obtained control.
Excluding this contribution, net rental income received in 2025 increased by £3 million, reflecting the
rental growth arising from completed rent reviews and asset management projects across the PHP
portfolio, and the addition of Laya Healthcare facility, Cork and completed developments at South
Kilburn, London and Croft, West Sussex, offset by an increase in non-recoverable property costs.
Administration expenses continue to be tightly controlled and the Group’s EPRA cost ratio remains
one of the lowest in the sector at 9.8% (2024: 10.1%) excluding Axis PHP and direct vacancy costs.
The increase in the year reflects the temporary increase in overheads whilst the targeted £9 million
of synergies are delivered. By December 2025, £5.4 million or 60% of synergies had been agreed
(which has increased to £7.5 million or 83% at the date of reporting on 16 March 2026) but the full year
impact of these savings will be seen in 2026.
EPRA cost ratio
Year ended
31 December
2025
Year ended
31 December
2024
EPRA cost ratio 11.3% 10.8%
EPRA cost ratio excluding Axis overheads and direct vacancy costs 9.8% 10.1%
Total expense ratio
1
(administrative expenses as a percentage of
gross asset value) 0.5% 0.4%
1 Total expense ratio adjusted to reflect a pro-forma full year of administration costs for Assura.
Excluding the impact of acquisition facilities, net finance costs in the period increased by £2 million,
reflecting the increase in net debt since December 2024, as a result of the acquisition of the Laya
Healthcare facility and expenditure on development and asset enhancement activity, as well as the
effect of new swap arrangements entered into January 2025.
IFRS profit after tax increased by £78 million to £119 million (2024: £41 million) predominantly driven by the
contribution from the combination with Assura of £39 million and a £86 million movement in the valuation
of property portfolio with a gain of £48 million in 2025 compared to a deficit of £38 million in 2024.
Balance sheet
A summary of the enlarged Group’s balance sheet along with a reconciliation between Adjusted,
EPRA and IFRS net tangible assets (“NTA”) is detailed in the table below:
Year ended 31 December 2025 2025 2025 2024
Wholly
owned
£m
Share of
JVs and
investments
£m
EPRA
proportionally
consolidated
£m
Wholly
owned
£m
Investment properties 5,891 49 5,940 2,750
Properties held for sale 11 — 11 3
Group investment property 5,902 49 5,951 2,753
Net debt (3,392) — (3,392) (1,323)
Other net (liabilities) / assets (116) 9 (107) (29)
Unamortised fair value of acquired debt 102 — 102 (25)
IFRS NTA
1
2,496 58 2,554 1,376
Deferred tax and intangible assets 8 — 8 2
EPRA NTA
1
2,504 58 2,562 1,378
Fair value of bank debt not recognised under IFRS 129 — 129 150
Adjusted NTA
1
2,633 58 2,691 1,528
IFRS NTA per share (pence) 98p 103p
EPRA NTA per share (pence) 99p 103p
Adjusted NTA per share (pence) 104p 114p
1 See Note 7, net asset value per share, to the financial statements. Adjusted net tangible assets (“NTA”), EPRA NTA, EPRA
net disposal value (“NDV”) and EPRA net reinstatement value (“NRV”) are considered to be alternative performance measures.
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Strategic report Governance Financial statements Shareholder information
Shareholder value
EPRA NTA reduced by 4% to 99 pence per share (31 December 2024: 103 pence). The combination with
Assura impacted the EPRA NTA by 6 pence per share, reflecting the effects of the share exchange ratio
and transaction costs incurred. On an underlying basis, a 2 pence per share uplift was delivered from
the positive portfolio revaluation. Including the MtM benefit of fixed rate debt of 5 pence per share,
Adjusted NTA stands at 104 pence.
The table below sets out the movements in the EPRA NTA and Adjusted NTA over the year:
EPRA & Adjusted NTA per share £m Pence per share
Opening EPRA NTA 1,378 103
Adjusted earnings for the year 131 7.3
Dividends paid (117) (7.1)
Revaluation of property portfolio 48 2
Impact of Assura combination 1,122 (6)
Closing EPRA NTA per share 2,562 99
Fair value of bank debt not recognised under IFRS 129 5
Closing Adjusted NTA 2,691 104
The mark-to-market (“MtM”) of the Group’s fixed rate debt as at 31 December 2025 was an asset of
£231 million (31 December 2024: asset £126 million), equivalent to 9 pence per share (31 December 2024:
asset of 9 pence), illustrating the attractive, long term fixed nature of the Group’s debt book. Of this,
4 pence relates to the Assura debt acquired, with the 5 pence balance relating to existing PHP facilities
and is not reflected in EPRA NTA. The MtM valuation is sensitive to movements in interest rates
assumed in forward yield curves.
Financing
The cash component of the transaction was funded by way of a new £1.225 billion unsecured bridging
loan provided by Citibank, N.A., London Branch, Lloyds Bank plc and The Royal Bank of Scotland Plc.
We have subsequently cancelled £225 million of this facility due to the refinancing work noted below
with £1.0 billion of the facility now remaining.
Subsequent to acquisition, several refinancing steps have been taken:
• Change of control waivers obtained plus term extensions to the unsecured Assura £266 million
term-loan and £200 million revolving credit facility.
• £357 million of Assura private placement debt has been refinanced since completion of the
acquisition, through a combination of a new unsecured Euro denominated private placement
debt and re-couponing of an existing unsecured loan note, as follows:
• A new €120 million (£105 million) private placement loan, maturing in November 2032, has been
issued at an all-in fixed rate of 3.89% providing a natural currency hedge for the Assura Irish
property portfolio and the Laya Healthcare Facility, Cork acquired for €22 million in February 2025;
• £60 million tranche maturing October 2034 has been refinanced and re-couponed at an all-in rate
of 5.60%; and
• The balance of the private placement debt, including £70 million that matured in October 2025,
has been repaid from the bridging facility put in place to finance the acquisition of Assura.
In August 2025, Fitch confirmed Assura’s credit rating as BBB+ (negative outlook) from A- following
completion of the merger, reflecting the execution risk of the planned asset disposals. It is our
intention to seek a credit rating for the enlarged Group in the coming months which we believe will
be beneficial to the cost of finance and will widen the range of funding sources available.
The Group’s balance sheet and financing position remain strong, with cash and committed undrawn
facilities totalling £571 million (31 December 2024: £271 million) after contracted capital commitments
of £56 million (31 December 2024: £36 million) across the development and asset management
projects currently on site.
At 31 December 2025, total available loan facilities were £4,019 million (31 December 2024: £1,630 million),
of which £3,411 million (31 December 2024: £1,327 million) had been drawn. Cash balances of £20 million
(31 December 2024: £4 million) resulted in Group net debt of £3,392 million (31 December 2024: £1,323 million).
The Group’s key debt metrics are summarised in the table below:
Debt metrics
31 December
2025
31 December
2024
Average cost of debt – drawn 3.7% 3.4%
Average cost of debt – fully drawn 4.0% 4.0%
Loan to value 57% 48.1%
Total net debt fixed or hedged 73% 100.0%
Net rental income to net interest cover 2.8 times 3.1 times
Net debt/EBITDA
2
10.4 times 9.3 times
Weighted average debt maturity – drawn facilities 4.1 years 5.7 years
Weighted average debt maturity – all facilities 3.7 years 4.9 years
Total drawn secured debt £1,082m £1,177m
Total drawn unsecured debt £2,330m £150m
Total undrawn facilities and available to the Group
1
£571m £271m
Unfettered assets £3,197m £47m
1 Including the impact of capital commitments at the year end.
2 Net debt/EBITDA adjusted to reflect the pro-forma full year of earnings from Assura.
The unsecured convertible bond with a nominal value of £150 million was repaid, post period end,
at maturity on 15 July 2025 from the Group’s undrawn committed revolving credit facilities.
Financial review continued
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Average cost of debt
The Group’s average cost of debt increased at the year end to 3.7% (31 December 2024: 3.4%) as a
result of the acquisition facilities taken on. As explained above, the Group intends to reduce leverage
back to the targeted range of 40–50% in 2026 through the establishment of new strategic joint
ventures and delivery of further disposals. Following this, the Group expects to partially repay and
refinance these acquisition facilities to fixed rates to protect the Group from interest rate volatility.
Interest rate exposure
The analysis of the Group’s exposure to interest rate risk in its debt portfolio as at 31 December 2025
is as follows:
Facilities Net debt drawn
£m % £m %
Fixed rate debt 2,028 51 2,028 60
Hedged by fixed rate interest rate swaps
1
466 12 466 14
Floating rate debt – unhedged 1,525 37 898 26
Total 4,019 100 3,392 100
Interest rate swap contracts
In January 2025, the Group fixed, for two years, £200 million of nominal debt at a rate of 3.0% and
a new FX forward trade hedge, detailed below, for an all-in premium of £4.9 million. The Group also
inherited from Assura a fixed rate interest rate swap in respect of the £266 million term loan, fixed at a
rate of 4.148% until August 2026. The fixed rate swaps provide further protection to the Group’s
interest rate exposure, especially whilst rates continue to remain elevated and volatile. The fixed rate
swaps in place effectively hedge out the current net debt drawn, with the exception of acquisition
facilities which we expect to refinance during 2026, to bring the level of fixed and hedged proportion
of the net debt drawn to above 95%.
Accounting standards require PHP to mark its interest rate swaps to market at each balance
sheet date. During the year there was a loss of £4 million (2024: loss of £5 million) on the fair value
movement of the Group’s interest rate derivatives due the passage of time and decreases in interest
rates assumed in the forward yield curves used to value the interest rate swaps. The net MtM of the
swap portfolio is an asset value of £0.1 million (31 December 2024: net MtM asset £0.2 million).
Financial review continued
Currency exposure
The Group owns €391 million or £341 million (31 December 2024: €309 million/£255 million) of Euro
denominated assets in Ireland, as at 31 December 2025, and the value of these assets and rental
income represented 6% (31 December 2024: 9%) of the Group’s total portfolio. In order to hedge the
risk associated with exchange rates, the Group has chosen to fund its investment in Irish assets
through the use of Euro denominated debt, providing a natural asset to liability hedge, within the
overall Group loan to value limits set by the Board. At 31 December 2025, the Group had €367 million
(31 December 2024: €274 million) of drawn Euro denominated debt.
Euro rental receipts are used firstly to finance Euro interest and administrative costs and any surpluses
are used to fund further portfolio expansion. Given the large Euro to Sterling fluctuations seen in recent
years and continued uncertainty in the interest rate market, the Group entered, in January 2025, a new
FX forward trade hedge (fixed at €1.1459: £1) for a two-year period to cover the approximate
Euro denominated net annual income of €10 million per annum, minimising the downside risk of the
Euro remaining above €1.1459:£1.
Alternative Performance Measures (“APMs”)
PHP uses adjusted earnings and EPRA net tangible assets amongst other APMs to highlight the
recurring performance of the property portfolio and business, which management believes provide
additional information to help understand the financial performance in the period. The APMs are
in addition to the statutory measures from the financial statements. The measures are defined and
reconciled to amounts presented in the financial statements within this Annual Report at Note 7 and in
the Glossary.
Richard Howell
Chief Financial Officer
16 March 2026
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EPRA performance measures
Providing
transparent
information
Adjusted earnings per share
∆
7.3 pence, up 4% (2024: 7.0 pence).
Definition
Adjusted earnings is EPRA earnings excluding the MtM
adjustments for fixed rate debt acquired with the mergers
with Assura (2025) and MedicX (2019), divided by the weighted
average number of shares in issue during the year.
Purpose
A key measure of a company’s underlying operating results and
an indication of the extent to which current dividend payments
are supported by earnings.
Calculation
See Note 7 to the Group financial statements.
EPRA earnings per share
∆
6.9 pence, down 4% (2024: 7.2 pence).
Definition
EPRA earnings is the profit after taxation excluding investment
and development property revaluations, gains or losses on
disposals, changes in the fair value of financial instruments
and associated close-out costs and their related taxation
and one-off exceptional payments divided by the weighted
average number of shares in issue during the year.
Purpose
A measure of a company’s underlying operating results and
an indication of the extent to which current dividend payments
are supported by earnings.
Calculation
See Note 7 to the Group financial statements.
Adjusted net tangible assets (“NTA”) per share
∆
104 pence, down 9% (2024: 114 pence).
Definition
Adjusted net tangible assets are the EPRA net tangible
assets including the MtM adjustment of the fixed rate debt not
included on the balance sheet under IFRS, divided
by the number of shares in issue at the balance sheet date.
Purpose
Makes adjustments to IFRS net assets to provide stakeholders
with the most relevant information on the fair value of the
assets and liabilities within a true real estate investment
company with a long term investment strategy.
Calculation
See Note 7 to the Group financial statements.
EPRA NTA per share
∆
99 pence, down 4% (2024: 103 pence).
Definition
EPRA net tangible assets are the balance sheet net assets,
excluding the MtM value of derivative financial instruments and
the convertible bond fair value movement, and deferred taxes
divided by the number of shares in issue at the balance
sheet date.
Purpose
Makes adjustments to IFRS net assets to provide stakeholders
with the most relevant information on the fair value of the
assets and liabilities within a true real estate investment
company with a long term investment strategy.
Calculation
See Note 7 to the Group financial statements.
The Company is a member of the European
Public Real Estate Association (“EPRA”). EPRA
has developed a series of measures that aim
to establish best practices in accounting,
reporting and corporate governance and
to provide transparent and comparable
information to investors.
We use EPRA and adjusted measures to illustrate PHP’s underlying
recurring performance and to enable stakeholders to benchmark
the Group against other property investment companies.
Set out opposite is a description of each measure and how
PHP performed.
∆ Alternative performance measures ("APMs"): Measures with this symbol ∆ are APMs defined in the Glossary section on pages 172 to 174, and presented throughout
this Annual Report. All measures are reported on a continuing operations and 52-week comparable basis.
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EPRA performance measures continued
EPRA cost ratio
∆
11.3%, up 50bps (2024: 10.8%) (including direct vacancy cost).
9.8%, down 30bps (2024: 10.1%) (excluding direct vacancy cost).
Definition
EPRA cost ratio is the ratio of net overheads and operating
expenses against gross rental income (with both amounts
excluding ground rents payable). Net overheads and operating
expenses relate to all administrative and operating expenses,
net of any service fees, recharges or other income specifically
intended to cover overhead and property expenses. The Group
has direct vacancy costs of £2.5 million that have been deducted.
Purpose
A key measure to enable meaningful measurement
of the changes in a company’s operating costs.
Calculation
See page 27, Financial Review.
EPRA vacancy rate
∆
1.4%, increase of 60bps (2024: 0.9%).
Definition
EPRA vacancy rate is, as a percentage, the estimated rental value
(“ERV”) of vacant space in the Group’s property portfolio divided
by the ERV of the whole portfolio.
Purpose
A measure of investment property space that is vacant,
based on ERV.
Calculation
2025
£m
2024
£m
ERV of vacant space 5 1
ERV of completed property portfolio 342 154
EPRA vacancy rate 1.4% 0.9%
EPRA net initial yield
∆
5.3%, increase of 1bps (2024: 5.2%).
Definition
Annualised rental income based on the cash rents passing
at the balance sheet date, less non-recoverable property
operating expenses, divided by the market value of the property,
increased with (estimated) purchaser’s costs.
Purpose
A comparable measure for portfolio valuations. This measure
should make it easier for investors to judge for themselves how
the valuation of the Group’s portfolio compares with others.
Calculation
2025
£m
2024
£m
Investment property (including those
held for sale but excluding those
under construction) 5,870 2,745
Estimated purchaser’s costs and
capital commitments 393 195
Grossed-up completed property
portfolio valuation (B) 6,263 2,940
Annualised passing rental income 337 153
Property outgoings net of deemed
rent increases 2 —
Annualised net rents (A) 339 153
EPRA net initial yield (A/B)* 5.3% 5.2%
EPRA LTV
∆
57%, increase of 900bps (2024: 48%).
Definition
Net debt at nominal value, divided by the fair value of properties.
Purpose
A comparable measure to assess gearing.
Calculation
2025
£m
2024
£m
Net debt (see page 28) 3,392 1,323
Total property value 5,960 2,750
EPRA LTV 57% 48%
∆ Alternative performance measures ("APMs"): Measures with this symbol ∆ are APMs defined in the Glossary section on pages 172 to 174, and presented throughout this
Annual Report. All measures are reported on a continuing operations and 52-week comparable basis.
* The Group does not have any material rent free periods and therefore the EPRA "Topped-up" NIY is the same as the EPRA net initial yield.
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Responsible business
Towards net zero
PHP is committed to transitioning to net zero carbon (“NZC”) across its operations and property portfolio.
Our framework focuses on five key steps to achieve this across our operational, development and asset
management activities by 2030 and to help our occupiers achieve NZC by 2040.
Highlights 2025
Development
Net zero projects at Croft, West
Sussex, South Kilburn, London and
Fareham, Hampshire achieved
practical completion in the year
and are now operational and open
to the public
Asset management
First NZC pilot project completed
Tenants and operations
Achieved Toitu Carbon Reduce
certification and purchased 100%
renewable energy
Projects
Committed to applying
science-based targets and
continued EPC reassessments
generate significant improvements
PHP Net Zero Carbon Framework
Our net zero targets relate to the emissions from our direct operations,
embodied carbon from new build and refurbishment projects and our
tenants’ emissions from their use of our buildings. Purchased goods and
services are not yet included in our targets as these are new sources of
emissions being measured for PHP. However, we will consider a suitable
target over time.
By 2023 – operations net zero
• Reduce emissions from offices, transport and assets where we procure
energy for tenants
• We are now procuring 100% renewable energy where PHP
controls supplies
• We are offsetting residual emissions using high quality nature-based
carbon offset projects
By 2025 – all new developments net zero
• Continually reduce energy use intensity of new buildings and ensure
they can operate with net zero emissions
• Measure, minimise, benchmark and improve embodied carbon
performance for all new developments, setting incrementally more
challenging targets for reduction
• Offset residual embodied carbon emissions via high quality projects
By 2030 – net zero asset management and EPC B
• Across the portfolio all properties to have an EPC rating of B or better,
where economically feasible
• Achieve reductions in energy use intensity (kWh/m
2
) through asset
management projects and electrify buildings where feasible, as part
of net zero operational assets
• Measure, target reductions and offset residual embodied carbon
from our asset management activities
• Collect and communicate energy performance data for all our occupiers
and support them to transition to lower energy and carbon operations
By 2035 – 80% carbon reduction of the portfolio
• Continued energy demand reduction through upgrade
and refurbishment
• Remove fossil fuel heating systems from all properties
• Increase proportion of renewable energy generation on our sites
• Reduce the carbon intensity of buildings compared to 2021
portfolio baseline
By 2040 – enabling a net zero portfolio
• Help occupiers to lease and operate our buildings with net zero
carbon emissions
• Offset any remaining occupier residual carbon from 2040 for all
properties where the lease was signed or renewed after 2035
• NZC achieved five years ahead of the NHS’s target of 2045 and
ten years ahead of the UK and Irish governments’ targets of 2050
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Responsible business continued
Members of the ESG Committee
(the “Committee”)
Member
Number of meetings
and attendance
Laure Duhot (Chair) 2 (2)
David Austin 2 (2)
Ivonne Cantú 2 (2)
Jonathan Davies (appointed 1 December 2025) 1 (1)
Mark Davies 1 (2)
Richard Howell 2 (2)
Harry Hyman 1 (2)
Ian Krieger 2 (2)
Bina Rawal 2 (2)
Bracketed numbers indicate the number of meetings the member was
eligible to attend in 2025. The Company Secretary acts as the secretary
to the Committee and attends all the meetings. The Committee became an
Executive Committee in 2026.
Responsible business
and ESG review
Premises, Health and People: investing in the health and wellbeing of our communities.
Laure Duhot
Chair of the ESG Committee
“ The combination with Assura
in 2025 and significant increase
in the scale of the portfolio
requires us to reassess our
previous NZC targets.”
Dear shareholder,
PHP has a strong commitment to responsible business, and ESG
matters are at the forefront of the Board’s and our various
stakeholders’ considerations.
In 2021, we established PHP’s Net Zero Carbon (“NZC”) Framework,
and in 2025 we had intended to establish our corporate targets for
energy use intensity and embodied carbon for approval by the
Science Based Targets initiative (“SBTi”).
However, the combination with Assura and significant increase in
the scale of the portfolio requires us to reassess our previous NZC
targets. Consequently, we will need to revisit both PHP’s NZC
Framework and Assura’s NZC Pathway, including SBTi targets, over
the course of 2026.
Historically, both businesses have made strong progress on achieving
NZC across their operational and development (Scope 1 and 2)
activities, and consequently our occupiers’ (Scope 3) activities will
be the main source of future carbon emissions. The combination
with Assura has significantly increased the reliance on our occupiers’
environmental ambitions, particularly the NHS, and instigating
asset management improvements to the portfolio in the medium to
long term will now be critical in meeting future emissions targets.
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Responsible business continued
Responsible business and ESG review continued
In 2025, we continued to deliver and make good progress on our
NZC Framework and our wider ESG commitments, building on the
strong progress made in previous years.
Through our development and asset management activities, we
have continued to invest in the portfolio, improving energy and
carbon performance, driving rental growth and creating more
sustainable healthcare infrastructure for the future, and notable
achievements included:
• completion of our first pilot NZC asset management project
at Swan Lane Medical Centre, Norfolk;
• completion of our first NZC development at Croft, West Sussex,
in August 2025; and
• completion of our second NZC fit-out project at South Kilburn,
London, in July 2025.
• Assura completed a further NZC development at an NHS therapy
centre at Fareham, Hampshire.
The PHP ESG Committee has also overseen the further development
of our work on energy and carbon reduction and I am pleased to
report that in 2024 we committed to the application of science-
based targets and for the second year in succession achieved
certification from Toitu Carbon Reduce and ISO 14064, which
demonstrates our robust approach to carbon measurement
and reduction. As part of this we continued to improve our
understanding of the energy performance of the wider portfolio
and continued to build on our partnership with ARBNCO Ltd to
move towards 100% data coverage and to enable engagement with
tenants to help them improve their performance.
Following our extensive work on climate risks and scenario
analysis in previous years, we have produced our fifth TCFD
disclosure, which is set out on pages 48 to 54.
We have also amended our social impact programme to focus on
and link with our asset management projects, working directly with
tenants to provide support for their chosen social prescribing
initiatives in favour of their patient list and wider local community.
Additionally, we continue to engage with and support our employees
to allow them to volunteer for the charities of their choice. We also
allow them to focus on professional and personal development.
I trust you find this report helpful and informative and would be
delighted to receive any feedback or comments you may have
on our approach.
Laure Duhot
Chair of the ESG Committee
16 March 2026
Size of Scope 1, 2 and 3 emissions
Scope 1 emissions 2.5%
Scope 2 emissions 0.4%
Scope 3 emissions 97.1%
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Responsible business continued
Our approach
PHP’s approach is based around its core activities of investment, development,
and asset and property management, together with its corporate activities.
PHP supports and links its strategy to the UN Sustainable Development Goals (“SDGs”), focusing on the most relevant SDGs
where it can have a positive impact. Our strategy is based around three core pillars that run through our activities focused on
Premises, Health and People and is supported by our ESG policies (available on our website). These are:
Our approach Performance against our commitments
Approach Purpose Aims Focus Commitments and targets Progress 2025 Focus areas 2026
1. Premises – Built environment
Investing in and
developing
sustainable
buildings.
To employ
sustainable design
to develop,
refurbish and
upgrade our
buildings to
modern medical
and environmental
standards.
Building a more
resilient portfolio
for the long term.
Reducing risk by building purpose-built
new developments and making
quality acquisitions.
Working with occupiers to improve the energy
efficiency of our properties and integrate
more sustainable features.
Having a preference for reusing existing
buildings, upgrading them in an energy and
resource efficient way, reducing reliance on
new resources.
Sourcing responsibly and designing for future
reuse of assets and materials.
All new developments are to be NZC by 2025
and asset management projects by 2030.
Delivering BREEAM and
nZEB certified buildings.
Improving portfolio
EPC ratings.
Increasing visibility of
energy performance
across the portfolio.
Delivering on our net zero
carbon commitments.
During 2025 we continued to progress the delivery of our
original NZC framework achieving net zero operations for
the third year in succession and the Group completed
three NZC developments at Croft, West Sussex; South
Kilburn, London and an NHS children’s therapy centre at
Fareham, Hampshire.
Future development and asset management projects
(in excess of £1.5 million project cost) are targeted to
achieve BREEAM Excellent or Very Good in the UK or
nZEB and BER A3 in Ireland.
The overall portfolio now has 63% A–B ratings and 93%
A–C, by value.
We have energy data points for 79% and continue to
partner with ARBNCO with ambition to get to 100% and
improve data quality.
We also committed to the application of science-based
targets and include our supply chain within our carbon
measurement and gained Toitu Carbon Reduce
certification for our Scope 1, 2 and 3 emissions for the
third year in succession.
100% of PHP procured electricity is now from
renewable sources.
PHP has a strong commitment to
responsible business and ESG matters are
at the forefront of the Board’s and our
various stakeholders’ considerations. PHP
published in 2022 a Net Zero Carbon
(“NZC”) Framework setting out the five
key steps we are taking to achieve a
target of being NZC by 2030. However,
the combination with Assura and
significant increase in the scale of the
portfolio will require us to reassess our
previous targets. Consequently, we will
revisit both PHP’s NZC Framework and
Assura’s NZC Pathway, including Science
Based Targets initiative targets, over the
course of 2026.
Measure embodied carbon from our asset
management projects to understand our
performance and set targets as part of
our NZC commitments.
Continue partnership with ARBNCO with
ambition to collect 100% of energy data,
enabling tenant engagement and
performance improvement.
Keep under review targets for energy use
intensity and embodied carbon and
submit our corporate targets for approval
by the Science Based Targets initiative.
Reducing our
carbon footprint.
Working with our stakeholders to improve the
energy efficiency of our properties and integrate
more sustainable features with a long term
ambition of the whole portfolio, including
occupiers’ operations, being NZC by 2040.
Policies Net Zero Carbon Framework; Sustainability;
Sustainable Development and Refurbishment.
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Our approach Performance against our commitments
Approach Purpose Aims Focus Commitments and targets Progress 2025 Focus areas 2026
2. Health – Community impact
Engaging with and
enhancing the
right stakeholders
to drive effective
decision making.
To support
initiatives that
further the health,
wellbeing and
education of our
local communities.
Meeting the
healthcare needs
of communities.
Engaging in effective communications and
collaborative practices with our occupiers.
Investing, via our Community
Impact Fund, into causes
which enhance health and
deliver social value.
Demonstrating the
positive impact investment
in primary healthcare
can generate.
We continued grant giving as part of asset
management projects, awarding three grants totalling
£33k to charitable organisations directly linked to our
assets, and will continue in 2026.
Continue to expand our social prescribing
programme, linked to our asset management
projects, focusing on local initiatives
linked directly to PHP’s tenants.
Capture the positive social outcomes
of our initiatives and business activities.
Creating
social value.
Working with partners to enhance wellbeing
and inclusivity through initiatives that
contribute to the creation of healthy,
supportive and thriving communities.
Policies Sustainability.
3. People – Responsible business
Conducting our
business with
integrity and
investing in
human capital.
To create
opportunities and
maximise the
potential of the
stakeholders we
work with.
Providing a good
place to work.
Ensuring effective investment in the
professional development of the
Group’s employees.
Maintaining a culture of empowerment,
inclusion, development, openness and
teamwork for our people.
Continuing to promote
PHP’s culture and
commitment to high levels
of ethics and a workplace
culture of inclusion, diversity
and equal opportunity.
Conducting an independent
annual staff survey to
inform and monitor
continued improvement.
We increased our efforts to guard against modern
slavery in our supply chain, engaging with our supply
partners and conducting third-party audits on two
sites.
We provided enhanced maternity and paternity
benefits to staff and continued to promote volunteering
opportunities, with members of staff.
Continue to engage our supply chain
on ethical labour and sourcing and make
use of targeted audits as part of our
due diligence process.
Continue to support staff with individual
training and development plans.
Continue to monitor levels of employee
satisfaction and implement targeted
action plan for identified areas for
improvement. This is particularly important
following the merger with Assura and
integration of the two teams.
Governing an
ethical business.
Being transparent and compliant in all
our operations.
Policies Business Ethics; Equality, Diversity and
Inclusion; Anti-bribery and Corruption.
Responsible business continued
Our approach continued
Primary Health Properties PLC Annual Report 2025
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Introduction
PHP invests in flexible, modern properties for the delivery of
primary healthcare to the communities they are located in. The
buildings are let on long term leases where the NHS, the HSE, GPs
and other healthcare operators are our principal occupiers. As at 31
December 2025, the Group owned over 1,100 properties valued at
£6.0 billion which are located across the UK and Ireland.
Responsible business reflects PHP’s strong commitment to ESG
matters and addresses the key areas of ESG that are embedded
into our investment, development, asset and property management,
and corporate activities. We are committed to acting responsibly,
having a positive impact on our communities, improving our responsible
business disclosures, mitigating sustainability risks and capturing
environmental opportunities for the benefit of all our stakeholders.
We realise the importance of our assets for the local healthcare
community, making it easier for our GP, NHS and HSE occupiers
to deliver effective services. We are committed to creating great
primary care centres by focusing on the future needs of our
occupiers and thereby ensuring we are creating long term
sustainable buildings.
PHP is committed to helping the NHS achieve its target to become
the world’s first net zero carbon national health system by 2045
and to delivering against the aims of the NHS Net Zero Carbon
Buildings Standard. PHP’s Net Zero Carbon Framework sets out its
own plan to transition the Company’s activities to net zero by 2030
and help its occupiers achieve this for their activities by 2040,
ahead of the NHS and UK and Irish governments’ net zero target
dates. PHP will continue to proactively engage and work with its
various healthcare occupiers to help them achieve this.
This Responsible Business Report sets out our commitment and
approach to environmental and social sustainability. It is reviewed
annually and approved by the Board and sets the framework for
establishing objectives and targets against which we monitor and
report publicly on our performance.
Croft, West Sussex
• PHP’s first net zero carbon development
• Achieved BREEAM Excellent
The development of Eastergate Medical Centre in Croft, West
Sussex, completed in 2025, represents the future of sustainable
primary care in the UK. PHP was appointed to develop the
modern health premises to consolidate and expand services
locally and cater for an expected significant growth in patient
numbers over the next few years.
The premises support the national and local NHS strategies
to move services away from over-stretched hospitals, providing
a greater range of primary and community care services,
including general practice, mental health assessments,
occupational and physiotherapy, social prescribing and
training for GPs, nurses and pharmacists.
The building has an EPC A rating and is PHP’s first net zero
carbon development, with an all-electric energy solution,
enhanced insulation and use of air source heat pumps.
The building was being delivered in a highly sustainable way, with
materials from certified responsible sources, low carbon
products, low waste and water and enhanced ecology on site.
During construction, PHP has also carried out ethical labour
audits and engaged with the main contractor to raise awareness
of modern slavery risks.
Read more about how we are
investing in and developing
sustainable buildings in section 1.
Premises – Built environment
on pages 38 to 44
Read more about how we are
engaging and enhancing the
right stakeholders to drive
effective decision making in
section 2. Health – Community
impact on page 42
Read more about how we are
conducting our business with
integrity and investing in human
capital in section 3. People –
Responsible business on pages
43 to 47
Responsible business continued
Our approach continued
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1. Premises – Built environment
Relationship-based approach in the
South West
PHP’s long track record as a primary care landlord and long
term approach to relationships means we work collaboratively
with health authorities to identify ways to improve the estate.
A good example of this is in the South West, across Devon and
Somerset, where have delivered building upgrades to our
properties at Poole (see page 39), Peacemarsh and South
Petherton, are on site with works at Yeovil and have several
schemes in the pipeline. All schemes were developed in
collaboration and full support from the local Integrated Care
Board (“ICB”).
Each of these schemes deliver positive social impact to the
local community in the form of enhanced healthcare space –
either through full refurbishment, fit out of vacant units
or reconfiguration of space to increase clinical capacity for
new services.
PHP’s approach to sustainability improvements ensures the
environmental impact of the buildings is reduced – with each
scheme designed specifically to the building characteristics
and resulting in an improved EPC rating.
For example at South Petherton in Somerset, the fit out of
space saw an upgrade of the lighting to LED with PIR sensor
controls, and the enhanced car park was upgraded with a
sustainable drainage system to manage surface water run off.
Responsible investment
Key commitments: Minimum EPC rating of C
and capable of being improved to B or better.
Environmental and sustainability performance are integral elements
of PHP’s approach to the acquisition of existing and funding of new
primary healthcare buildings. We use detailed assessments of each
location, looking at building efficiency and performance, enhanced
service provision for the community and support for wider
healthcare infrastructure.
We undertake detailed environmental and building surveys to
assess physical environmental risks for each investment, including
flooding, to ensure the risk is avoided or appropriate prevention
measures are developed (see our TCFD disclosures on pages 48
to 54).
During 2025 we continued applying our net zero and ESG commitments
to investment activities, engaging with developers and asset
owners to challenge standards and leverage our influence.
The acquisition of Laya Healthcare facility, Cork in 2025
demonstrates this with good environmental performance including
an EPC rating of B.
Responsible development
Key commitments: All new developments to be NZC
by 2025, BREEAM Excellent and Very Good for fit-outs
in the UK, and nearly nZEB and BER A3 in Ireland.
PHP, together with its development partners, is committed to
promoting the highest possible standards of environmental and
social sustainability when designing and constructing new assets.
Our Sustainable Development and Refurbishment policy outlines
our minimum requirements for BREEAM Excellent and a range of
environmental issues, including energy and carbon, waste and
resources, biodiversity, climate adaptation and health and wellbeing.
Our development partners are also required to work to the
same standards.
We aim to develop new buildings to be net zero carbon in construction
(minimising embodied carbon and offsetting residual emissions)
and ready to operate with net zero emissions. All developments
aim to be fossil fuel free and we are working towards setting
specific energy intensity benchmarks and targets.
During the year, PHP completed two net zero carbon developments
at Croft, West Sussex and South Kilburn, London. Assura completed
three schemes in 2025 including a net zero carbon development of
an NHS children’s therapy centre at Fareham, Hampshire, a GP
medical centre development in Winchester, Hampshire and a primary
care centre in Ballybay, Ireland.
The enlarged Group has an improved development capability at a
time the sector needs new buildings and is currently on site with
six developments.
Responsible asset and property management
Key commitments: Improve EPC ratings to B,
procure 100% renewable energy, achieve BREEAM
Very Good for refurbishments and extensions over
£1 million and engage tenants on, and improve,
the visibility of energy and carbon performance.
We are committed to creating best-in-class primary care centres,
focusing on the future needs of our occupiers and thereby ensuring
we are creating sustainable buildings for the long term. We invest
in the portfolio of properties to generate enduring occupier and
patient appeal, which provides opportunities to improve rental
values, the security and longevity of income, and the quality of
assets. This is a key route for PHP to deliver energy efficiency
improvements and to introduce low or zero carbon measures for
our occupiers and their patients.
Asset and property management will play a key role in achieving
our NZC target of having an NZC portfolio by 2040, with interim
commitments for all properties to have an EPC rating of at least B
and NZC asset management by 2030 and an 80% reduction in
portfolio emissions by 2035 via targeted improvements to buildings
and occupier engagement.
Responsible business continued
Primary Health Properties PLC Annual Report 2025
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Strategic report Governance Financial statements Shareholder information
Responsible asset and property
management continued
During 2025 we completed nine (2024: six) asset management
refurbishment projects, with all achieving an EPC B rating. We have
a further eight (2024: ten) refurbishment projects on site or
committed, which include energy efficiency upgrades, installation
of roof-mounted solar panels and air source heat pumps and
thermal efficiency upgrades. We have continued to use BREEAM
for refurbishments but several projects during the year could not
be certified due to their scope and size. We agreed 41 (2024: 21)
new leases and regears during the year, with all including Green
Lease clauses.
In addition, we carried out targeted reassessment of building EPC
ratings to better reflect their current performance. Combined with
annual renewals, we now have 63% of properties by value at an
EPC rating of B or better (2024: 47%) and 93% at A–C (2024: 88%).
The successful completion of PHP’s first net zero ready refurbishment
in 2024 enabled us to provide benchmarks for target setting
on future projects and we are assessing embodied carbon for
a number of these which, along with net zero audits of buildings
in operation, will pave the way for future NZC asset management
projects as we aim to accelerate progress ahead of our current
2030 commitment.
Working with our occupiers is essential to improving the performance
of buildings and during 2025 our property management and
facilities management teams engaged with all of our tenants,
carrying out over 2,800 (2024: over 830) site visits at which issues,
including energy and utilities, were discussed. During 2025 we have
continued to review ways to improve the performance of the
portfolio outside of our asset management programme. This includes
93 (2024: 283) facilities management plant and equipment
replacements and upgrades, including LED lighting, more efficient
heating systems and building management systems. We also
supported tenants to make their own building improvements,
including energy efficiency upgrades and solar PV installations.
Poole, Dorset
The GP practice at our medical centre in Poole had strong
demand for additional space to accommodate their growing
patient list size.
With a lack of suitable land for a new development locally, this
was hampering the range of services that could be provided
to the local community.
We developed a solution to add a new build extension onto
the property, as well as converting part of the underutilised
retail unit into additional clinical space.
As well as delivering vital additional medical space for the
local community to help the GP practice serve their patients,
this offered the opportunity to enhance the environmental
performance of the property.
We upgraded the building heating system to an air source
heat pump, installed solar panels, replaced lighting throughout
the building with LEDs and installed 5 electric vehicle charging
points. The scheme is on track to achieve a BREEAM rating
of Very Good.
The works completed in September 2025 at which point a new
25 year lease term was put in place, securing the community
building for the long term.
To build on this, we are planning to roll out larger solar PV
installations to sites where PHP will facilitate this for tenants where
they procure their own energy. This approach offers the potential
to reduce costs for tenants in the long term as well as reducing
carbon emissions.
Progress on energy and carbon performance
As outlined above, during 2025 our investment, development and
asset and property management activities continued to deliver
against targets and to support our net zero carbon commitments.
During 2025 all building electricity supplies procured by PHP
were from renewable energy. We also continued to offset residual
emissions using high quality nature-based carbon offset projects.
Our operational Scope 1, 2 and 3 emissions are provided on pages
40 and 41 in our SECR disclosure.
We have continued to improve our methodology for estimating
whole portfolio emissions and now have data points for 79% of the
portfolio by area (2024: 77%). To move towards 100% coverage and
better data quality and to enable future engagement with tenants
to help improve their performance, we continue to partner with
ARBNCO. This is a cost effective and scalable software solution
providing a direct route to access tenant energy data for our UK
property portfolio and a reporting platform.
As part of our ongoing efforts to improve our approach, during
2025 we were successfully certified, for the third year in succession,
by Toitu Carbon Reduce and ISO 14064 for carbon measurement
and management. We also enhanced our Scope 3 measurement,
carrying out a screening of all 15 Greenhouse Gas Protocol
(“GHGP”) Scope 3 categories. Further details are provided on page
41. We will undergo recertification and assurance of 2025
disclosures in March 2026.
Our most significant and consistent source of Scope 3 emissions
is downstream leased assets (tenants’ use of our buildings), as
previously reported, where we aim to achieve net zero by 2040.
Responsible business continued
1. Premises – Built environment continued
Primary Health Properties PLC Annual Report 2025
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Strategic report Governance Financial statements Shareholder information
Progress on energy and carbon
performance continued
SECR disclosures
PHP measures its emissions in line with the GHGP and takes an
operational control approach. Emissions are based on verified
data currently reviewed by a third party, Sustainable Energy First
(previously called Inenco), and assured by Achilles via the Toitu
Carbon Reduce certification programme (2024 limited assurance
and 2025 pending limited assurance following audit in March 2026).
Our emissions are calculated using activity data, i.e. metered
energy use, with minimal estimates used, e.g. for miles driven by
employees. Scope 1 and 2 emissions are normalised by revenue and
full-time employees as these relate to our direct operations and by
kWh/m² for energy supplied to or procured by tenants. In August
2025, PHP acquired Assura, and we have included emissions that
relate to Assura’s operations arising from the date of acquisition.
PHP’s direct operations result in very limited greenhouse gas
emissions. The table overleaf shows our operational Scope 1, 2
and 3 emissions. Scope 1 relates to gas used in our London office,
business travel by car and diesel used in vans by Axis. The
Stratford-upon-Avon, Altrincham and Cork offices are all electric.
Scope 2 relates to grid electricity used at PHP, Assura and Axis
offices. Scope 3 relates to partial emissions from downstream
leased assets, for properties where PHP supplies energy to
occupiers, which they hold operational control over. We view
these as “operational Scope 3 emissions”.
We have reported Scope 3 emissions from tenant procured
energy separately along with purchased goods and services.
A detailed breakdown of portfolio emissions is provided in our
EPRA sustainability disclosure, which is available on our website.
100% of reported Scope 1, 2 and 3 emissions in the year were
based in the UK and Ireland.
Operational Scope 1, 2 and 3 emissions
2025 2024
Source tCO
2
e MWh tCO
2
e MWh
Scope 1
Business travel (car) 54.8 240 35.9 149
Diesel (vans) 16.0 67 20.7 86
Gas (offices) 10.6 58 12.1 66
Scope 2
Electricity (offices) 14.5 79 14.8 68
Market based
1
— — — —
Total Scope 1 and 2 95.9 444 83.5 369
Market based
1
81.4 — 68.7 —
Operational Scope 3
Landlord supplied electricity 1,750 9,388 1,190 5,440
Market based
1
— — — —
Landlord supplied gas 1,465 8,014 997 5,450
Total operational Scope 3 3,215 17,4 02 2,187 10,890
Market based
1
1,465 — 997 —
Total operational Scope 1, 2 and 3 3,311 17,8 46 2,272 11,259
Market based
1
1,546 — 1,066 —
Upfront embodied carbon from completed development project 1,830 — 184 —
Nature-based carbon credits purchased (3,426) — (1,250) —
Net tCO
2
e — — — —
Intensity metrics
Scope 1 and 2 tCO
2
e per full-time employee 0.9 — 1.0 —
Scope 1 and 2 tCO
2
e per £m revenue 0.4 — 0.5 —
Scope 3 kgCO
2
/m
2
and kWh/m
2
15.9 86.8 13.8 68.8
Market based
1
7.3 — 6.3 —
1 Market-based reporting reflects the emissions from the electricity being purchased, whereas location-based uses national grid average emissions for the reporting year.
Responsible business continued
1. Premises – Built environment continued
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Progress on energy and carbon
performance continued
Operational Scope 1, 2 and 3 emissions continued
During 2025 absolute Scope 1 and 2 emissions have increased
by 15% (2024: -23%) and intensity reduced by 12% (2024: -23%). This
is primarily due to the merger with Assura as well as greater
accuracy of readings. The emissions intensity of grid sourced
electricity also decreased by 15% in 2025 (2024: +5%).
Like-for-like business mileage has increased in the year as a result
of a higher number of business travel. Employees are encouraged
to use
public transport where possible and during the year employees
continued to use the Train Hugger platform, which supports UK
reforestation through every journey. Staff continue to take up our
electric and hybrid vehicle benefit, with 20 (2024: seven) members
of staff across the enlarged Group taking up the option to date.
Our office energy use has remained broadly static during 2025 and
2024, with additional space as a result of the Assura merger offset
by lower consumption in the PHP offices.
We will continue to reduce energy demand from our offices
where possible and emissions from transport; however, our wider
portfolio is where we aim to focus our attention. As shown in
the table below, Scope 3 emissions from landlord supplied energy
(downstream leased assets) have increased on an absolute and
normalised basis. This is primarily due to the merger with Assura
offset by the continued transition to all electric buildings.
Electricity and gas consumption have increased by 47% and 47%
(2024: -5% and -20%) respectively. We have continued to support
tenants to reduce their use of energy and resulting emissions,
including through our asset management programme. We expect to
see results of these and new initiatives over time.
We have now switched all electricity supply to 100% renewable
energy (2024: 100%). Therefore, on a market-based reporting basis,
there has been a 45% reduction (2024: 22% reduction) in absolute
and 16% reduction (2024: 10% reduction) in normalised emissions.
We have offset all residual 2025, 2024 and 2023 emissions, including
the energy we procure on behalf of our tenants, through purchasing
high quality nature-based carbon credits from independently
certified projects.
Wider Scope 3 emissions
During 2025 we have continued to expand our measurement of wider Scope 3 emissions against the 15 categories of the GHGP
Scope 3 Standard.
As part of our certification to Toitu Carbon Reduce, we have determined the most material categories. Categories 3, 8, 9, 10, 11, 12, 14 and
15 are not relevant for PHP’s business. Categories 5, 6 and 7 have been assessed and are de minimis at under 10 tCO
2
e. We will continue to
track emissions from business travel. Category 4, upstream transportation, is included within the calculation for Category 1, purchased
goods and services. Embodied carbon is relevant under Category 2, capital goods. This is being measured for developments and some
refurbishments and will be reported when projects are completed (including associated transport emissions).
2025
2024
Scope 3 source tCO
2
e MWh £m tCO
2
e MWh £m
Purchased goods and services 8,527 — 102 6,659 — 36
Downstream leased assets
Electricity 13,743 76,392 — 11,230 53,029 —
Gas 16,095 87,758 — 11,763 64,419 —
Total wider Scope 3 38,365 164,150 102 29,652 117,4 48 36
Intensity metrics 33kgCO
2
e/m
2
143kWh/m
2
84tCO
2
e/£m 36kgCO
2
e/m
2
143kWh/m
2
185tCO
2
e/£m
Responsible business continued
1. Premises – Built environment continued
Solar panel solution
As part of PHP’s commitment to enhancing our buildings
for tenants, 2025 saw the trial launch of our solar panel
offering for customers.
The initial scheme of nine sites, at locations throughout
the UK, saw a total investment of £0.9 million. These
installations are expected to generate approximately
650,000 kWh per year, more than 70% of which will be
consumed on site. Customers are charged for their usage
at a rate that is at a discount to grid rates.
The scheme offers benefits for tenants in the form of
reduced electricity costs, reduction of energy consumed
from the grid (being renewably generated on site),
improvements in the EPC ratings for the buildings, as well
as offering a good return on investment for shareholders.
Primary Health Properties PLC Annual Report 2025
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Strategic report Governance Financial statements Shareholder information
2. Health – Community impact
Social – health and wellbeing
PHP seeks to have a positive impact on the health and wellbeing of
the communities where its assets are located and has set policies
and targets to improve this through the Group’s asset and property
management activities.
PHP is committed to supporting both the NHS and HSE in tackling
the major underinvestment in primary care facilities in the UK and
Ireland. PHP’s aim is to provide modern, purpose-built properties
let to the NHS, the HSE, GPs and other healthcare operators which
enable them to provide the highest standards of modern healthcare.
The facilities are predominantly located within residential
communities and enable the UK and Irish population to access
better health services locally. This is central to the Group’s
purpose, strategic objectives and business planning processes.
PHP’s portfolio serves around 11 million patients or 15% (2024:
6.3 million or 9.3%) of the UK population and our portfolio is their first
point of contact with the NHS when they start their patient journey.
Our interventions, when we acquire, refurbish or develop new
healthcare facilities, have a significant positive social impact,
whether through enhancement of experience for people using our
facilities, expansion of healthcare provision locally or making
healthcare more accessible to those that need it most.
Modern, high quality primary healthcare facilities also help to
reduce pressure and costs for the secondary care system. Our
active management of the property portfolio seeks to maintain the
centres as fit for purpose and enables PHP to identify and manage
opportunities and risks associated with the provision of its properties.
Occupier engagement and support
PHP is committed to ensuring that the properties it develops and
owns continue to meet its GP, NHS and HSE occupiers’ requirements
and provide flexibility for future change, update and expansion.
Our dedicated teams of asset and property managers look after
our occupiers’ requirements, with a policy of regular communication
and a supportive approach. Our in-house facilities management
(“FM”) team engages with and supports occupiers, carrying out
reactive and planned maintenance to optimise building performance.
Social trends of a growing and ageing population continue
to highlight the need for purpose-built primary care premises
to provide modern healthcare to the UK and Irish populations.
This further reinforces our objectives to continue to invest in
existing and new premises for the benefit of all our stakeholders.
It is crucial that we continually update our understanding of what
issues matter to our occupiers. To support this, we regularly engage
with them and carry out a tenant feedback survey. Throughout
2025 and 2024, we have continued to gather tenant feedback,
conducting surveys directly as part of site visits. In 2025 coverage
of our survey was 39% (2024: 28%) of the PHP portfolio (by number
of buildings). We continue to generate a positive Net Promoter
Score for both 2025 and 2024. While positive feedback is helpful,
where tenants feel more negatively about an issue, it allows us
to work with them on solutions, such as engagement by our asset
management team to discuss building refurbishment options.
A summary of our engagement with and support for tenants is
provided in the tables opposite.
Community Impact Fund
PHP continues to support social and charitable activities and
services linked to the patients and communities of our occupiers,
which cannot be readily accessed elsewhere. In total, the enlarged
group provided £6,000 during 2025 (2024: £12,000). This, and the
numbers in the following paragraphs in this section, represents
information from Assura post merger.
During 2025 we continued with our social impact programme which
is focused around and directly linked with the Group’s asset
management projects, working directly with tenants to provide
support for their chosen local initiatives. Grants have been committed
totalling £33,000 (2024: £13,000) and we are engaging with
practices at a number of projects whose buildings are at varying
stages of refurbishment. Through this work we are delivering much
needed support through social prescribing, and we plan to continue
to offer grants in this way. We continue to monitor the positive
impact of these awards.
Our experience, and that of our award recipients, continues to
demonstrate the important role social prescribing has to play
in addressing direct and indirect health impacts.
PHP has also continued to support a number of charities from the
Community Impact Fund during the year, including The Academy
of Real Assets, Children with Cancer UK, Welsh Air Ambulance,
Children in Need and Insulate Ukraine and charity matched
funding for employees’ chosen charities.
Volunteering
PHP staff benefit from five paid days per annum for volunteering
activities that are personal and meaningful to them, delivering
support to local communities and benefiting from the personal
development that these activities provide. 7 members of staff
have taken up the opportunity to volunteer during 2025.
Responsible business continued
Engaging and supporting tenants…
2,896
property visits by PM, FM
and AM teams
90%
of the portfolio inspected
by PM and/or FM
52,236
help desk jobs processed
93
FM plant upgrades
and replacements
Primary Health Properties PLC Annual Report 2025
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Strategic report Governance Financial statements Shareholder information
3. People – Responsible business
People
PHP recognises the importance of the welfare of the employees
who work on behalf of the Group and are critical to its success.
Their experience and contribution to the business are essential
to the delivery of our business strategy and ESG commitments.
Following the combination with Assura, the enlarged Group now
comprises a highly focused team with 129 (2024: 60) UK employees
at the year end, with a further 27 (2024: 27) employees in the Axis
team in Ireland and six Non-executive Directors, which allows for
a flexible and individual approach. PHP’s Board has a strong
commitment to maintaining, improving and promoting the highest
levels of ethics and conduct and promoting a workplace culture of:
Inclusion and communication We have a flat management structure with clear responsibilities. We strongly encourage input on
decision making from all staff and wide participation in Committee and team meetings. There is
strong collaboration across teams which enables good sharing of information and ideas. Regular
strategy and performance updates are provided to employees from the Executive Directors and
senior management team.
Modern, flexible working practices We have flexible working arrangements allowing employees to work from home one day per week,
ongoing flexibility around start and finish times and a flexible dress code.
Fair remuneration Employee remuneration is aligned to personal, Company and ESG performance with Long Term
Incentive Plans in place for senior employees that replicate arrangements for Executive Directors.
All employees receive a variety of benefits which are noted later in this section.
Diversity and
equal opportunity
We promote diversity across knowledge, experience, gender, age and ethnicity with a published
Equality, Diversity and Inclusion policy in place. Whilst overall female employee representation is good,
we recognised that we needed to specifically promote greater gender diversity in the senior team.
Our female Board representation is now 38% (2024: 43%) as a result of the Board increasing to
eight following the merger and, in the year, we continued to support the training and professional
development of several female members of the property and finance teams.
Recognising the significant diversity imbalance in the real estate sector, we continue to support the
promotion of diversity, both internally and externally.
Employee development and training An appraisal process is undertaken twice a year where career progression, training needs and
performance are discussed. We actively encourage training and we continue to monitor our staff
training each year focusing on professional, including ESG and cyber risk awareness, and
personal development.
Health and safety Health and safety remains central to the execution of PHP’s business strategy and we take our
responsibilities very seriously and are committed to continued improvement but have an excellent
record. See pages 45 and 46 for further details on health and safety.
Wellbeing and
employee satisfaction
During 2025 we continued to make improvements to the IT infrastructure at our offices in London,
Stratford-upon-Avon and Cork, Ireland. Following the combination with Assura we decided to
postpone the annual employee survey until 2026 and the integration of the two business has
been completed.
Laure Duhot, the Company’s designated workforce Non-executive Director, continues to be closely
involved in monitoring employee satisfaction and met the teams based at London, Stratford-upon-
Avon and Cork, Ireland, in 2025 with plan to visit the Assura offices in 2026.
Responsible business continued
Feedback from our tenants…
88%
89%
73%
32%
92%
are happy with PHP’s level
of communication
feel net zero is important
or very important
feel their building meets
their needs
Net Promoter Score
would recommend PHP
as a landlord
– +
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People continued
Laure Duhot is the designated workforce Non-executive Director. In
the year she held meetings in the London, Stratford-upon-Avon and
Cork (Axis) offices, which were open to all employees. The sessions
aimed to gather feedback and ideas from different areas of the
Company, to discuss how people feel and their experiences of
working at PHP, with feedback reported back to the Board.
This resulted in areas for continuing focus through 2026, including
continued development and understanding of PHP’s culture;
continuing to enhance understanding of personal objectives
and remuneration outcomes flowing from them; and cross-team
working to further progress the Company’s people agenda by
acting on employee feedback received.
During 2025 eight (2024: eight) employees left the PHP business
in the year reflecting a staff turnover rate of 13% (2024: 14%).
Following completion of the combination with Assura in August
2025, a further fifteen employees left the enlarged business.
Employee benefits
In addition to fair remuneration which is aligned to personal and
Company performance, including ESG related targets, and as part
of our ongoing commitment to supporting employees and
attracting and retaining talent, the Company offers the following
benefits to all staff:
• Company pension contributions of 6% of salary;
• 25 days of annual leave plus an additional day of annual leave for
each year of continuous service up to a maximum of five days;
• private medical insurance, health cash benefit, income protection
and critical illness insurance;
• a green car salary sacrifice benefit to help individuals move to
low carbon electric and hybrid personal vehicles;
• life assurance given to all employees at four times salary;
• cycle to work and season ticket loan schemes;
• all employees are eligible to participate in the PHP Sharesave
plan; and
• enhanced maternity and paternity pay providing 25 weeks
of leave on full pay for women and four weeks for men.
The Company also has a good balance of flexible working while
retaining the collaboration benefits of in-office working. Overall,
we believe there are significant benefits from working collaboratively
in person and we are stronger together, but people are empowered
to work from home for one day per week.
Employee development
PHP’s human capital is essential to the success of the business and
delivery of outstanding services to our occupiers in the healthcare
sector. Attracting, retaining and developing employees is therefore
a key commitment for the business.
The training programme for 2025 has continued to focus on needs
identified through the appraisal process.
In 2025 we continued to roll out a compulsory online cyber threat
awareness course for all employees who are required to complete a
number of modules regarding online security essentials, email and
instant messaging security and defence against phishing and spear
phishing attacks.
We continued with the sustainability e-learning pathways that
covered net zero and embodied carbon, and a range of
environmental and social impact issues specific to roles.
The enlarged Group supported funding and facilitation of
professional qualification
s for seven (2024: six) employees, and two
(2024: three) employees achieved their professional qualifications
during the year.
The supportive culture of PHP means those training for qualifications
are also mentored and assisted by more experienced colleagues.
Training has been promoted to all employees, on subjects
including sustainable development, business ethics, modern
slavery, climate change and net zero, social value, circular economy
and sustainable procurement.
A total of 1,535 personal development training hours have been
delivered across the enlarged Group during 2025 (2024: 420 hours)
and the Company invested a total of £40,000 (2024: £38,000) or
an average of £300 per employee on professional and personal
development (2024: £635).
Diversity and equal opportunity
We promote diversity across knowledge, experience, gender,
age and ethnicity.
Whilst overall female employee representation is good, we recognised
that we needed to specifically promote greater gender diversity,
particularly in the senior team.
Recognising the significant diversity imbalance in the real estate
sector, we continue to support and promote diversity, both
internally and externally.
UK employee gender diversity at 31 December 2025
Number of employees Male Female
Board of Directors 5/63% 3/37%
Executive Committee 3/75% 1/25%
Directors/Head of Department 13/72% 5/28%
Associate Directors 4/40% 6/60%
Associates and Senior Surveyors 17/50% 17/50%
Other 23/38% 38/62%
Total 65/48% 70/52%
The Irish employee gender diversity at 31 December 2025 for the
Axis team showed 20 of the 27 employees as male, with 7 female
employees. All 7 of the senior management are male.
UK employee ethnicity at 31 December 2025
2025
Ethnic origin No. % ONS
1
White – British, English, Welsh,
Irish, Other 110 82% 82%
Asian – Indian, Pakistani, Other 6 4% 9%
Black – African, Caribbean, Other
4 3% 4%
Mixed heritage 4 3% 3%
Other/prefer not to say 11 8% 2%
Total 135 100% 100%
1 Office for National Statistics: Census 2021 data for England and Wales
published June 2022.
The Irish employee ethnicity at 31 December 2025 for the Axis
team showed 25 of the 27 employees identify as white, with
2 employees from other backgrounds.
Responsible business continued
3. People – Responsible business continued
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People continued
Diversity and equal opportunity continued
Board gender identity or sex as at 31 December 2025
Number
of Board
members
Percentage
of the Board
Number
of senior
positions on
the Board
(CEO, CFO,
SID and Chair)
Number in
executive
management
Percentage
of executive
management
Men 5 63% 4 5 83%
Women 3 37% — 1 17%
Board ethnic background as at 31 December 2025
Number
of Board
members
Percentage
of the Board
Number
of senior
positions on
the Board
(CEO, CFO,
SID and Chair)
Number in
executive
management
Percentage
of executive
management
White British or other White
(including minority White groups) 6 75% 4 6 100%
Mixed/multiple ethnic groups — — — — —
Asian/Asian British 1 13% — — —
Black/African Caribbean/Black British
— — — — —
Other ethnic group, including Arab 1 13% — — —
Not specified/prefer not to say — — — — —
1 The Executive Committee, as set out on page 68, is considered to be the Company’s executive management as defined in
the Listing Rules.
The above data is drawn from internal information supplied by our staff. Refer to page 76 for further
details on required Board diversity disclosures and the Equality, Diversity and Inclusion policy.
UK gender pay gap at 31 December 2025
PHP pays employees equally for doing equivalent jobs across the business and any pay gaps are the
result of our employee profile and do not represent pay discrimination. PHP is not required to publish
details of gender pay gaps; however, we view this as an important metric to ensure equal and fair
treatment regardless of gender.
Gender pay gap Bonus pay gap
Male Female Pay gap Male Female Pay gap
Board – NEDs 61% 39% 37% 75% 25% 67%
Board – Executive 100% — 100% 100% — 100%
Executive Committee 60% 40% 32% 81% 19% 76%
Directors/Head of
Department 53% 47% 12% 61% 39% 36%
Associate Directors 50% 50% 2% 60% 40% 32%
Associates and Senior
Surveyors 52% 48% 7% 57% 43% 26%
Other 51% 49% 4% 55% 45% 14%
Total 66% 34% 48% 90% 10% 89%
Gender pay is the individual average pay divided by the sum of the averages. The Irish gender pay gap
at 31 December 2025 showed 56% weighted to male, 44% to female, and an overall pay gap of 22%.
Health and safety
Health and safety remains central to the execution of PHP’s business strategy and we take our
responsibilities very seriously and are committed to continued improvement but have an excellent
record. The Board is responsible for ensuring appropriate health and safety procedures are in place,
and during 2025 we maintained a regime of inspections utilising both third-party agents, including two
risk management solutions providers, and in-house resources to support the portfolio.
Responsible business continued
3. People – Responsible business continued
Primary Health Properties PLC Annual Report 2025
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Strategic report Governance Financial statements Shareholder information
Responsible business continued
3. People – Responsible business continued
People continued
Health and safety continued
Where risks need to be assessed under a specific duty or regulation,
we ensure that an assessment is carried out and that all actions
are implemented on a priority basis. The key health and safety risk
areas PHP faces are:
1. Managed properties – where there are multiple occupiers in
the same property, a combination of third-party advisers and
internal resources is used to carry out a health and safety
assessment and audits relating to the common parts.
2. Asset management projects, developments and forward funded
developments – all our partners are required to uphold our high
standards. Procedures and processes have been developed to
ensure compliance with current legislation and requirements. A
Project Monitor is also appointed to oversee, manage and
monitor health and safety.
3. Employees are required to uphold our high standards and
separate procedures and processes are in place to ensure
compliance with current legislation and requirements.
During 2025 there were no reported major accidents nor any health
and safety prosecutions or enforcements (2024: no incidents) across
the Group. 18 out of 21 members of the PHP property and facilities
management team hold the Institute of Occupational Safety and
Health (“IOSH”) accreditation, with no training required during the
year. Our Board approved Health and Safety policy is available on
the Company’s website.
Other stakeholders
While our investment, asset management and development activities
focus on the sustainability risks and opportunities that are most
material to our business, there are a number of additional issues
that are of lower material impact but are of interest to specific
stakeholder groups:
• we are transparent and our policies are available on our website
and we expect our principal advisers, suppliers and occupiers to
follow them;
• we expect organisations we employ to meet the standards
we set ourselves; and
• we engage with stakeholders to ensure we are aware of,
and are able to respond to, their expectations.
Contractors and suppliers
Delivering developments, asset management projects and property
services on time, on budget and in adherence with our high standards
is a key priority. Our supply chain is checked (accredited by the
SafeContractor scheme) to ensure it is high quality, has a proven
track record and applies appropriate standards on areas such as
labour, human rights, modern slavery, health and safety and
environmental management. During 2025 we have continued to
engage with all our suppliers to make them aware of our ESG
policies (available on our website) and in particular have focused on
the issue of modern slavery. Our Modern Slavery Statement is
available on our website and no human rights concerns arose within
the year.
We have approximately 1,450 (2024: 820) suppliers across the
enlarged Group ranging from small local businesses to large
multi-national companies. We also acknowledge the importance of
our suppliers, which are often small businesses and sole traders,
especially those involved with the upkeep and maintenance of our
Lenders
Future generations
Investors
NHS
Suppliers
HMRC
Occupiers
People Patients
assets. We aim to pay all invoices and amounts due promptly and
well within stated payment terms in an effort to preserve the cash
flows of these small businesses.
Tax
The Group is committed to complying with tax laws in a responsible
manner and has open and constructive relationships with the UK
and Irish tax authorities. Whilst the Group enjoys REIT status and
therefore is not directly assessable for corporation or capital gains
tax on property investments, the dividends the Group pays are
assessed for income tax when they reach investors. During 2025
the Group has directly paid £53.0 million (2024: £31.3 million) of
taxes in the form of VAT, income tax, stamp duty land tax, stamp
duty and National Insurance contributions to the UK and Irish
governments. The Company has also published a tax strategy
which is available on its website.
Investors and lenders
The support of our shareholders, banking partners and lenders is
crucial to sustaining our investment in the health infrastructure of
the UK and Ireland and we continue to enjoy strong relationships
with these partners.
During 2025 we have successfully continued to value existing and
potential relationships with our investors with a significant number
of investor meetings during the year totalling approximately 350
(2024: c.200).
The majority of the meetings during 2025 focused on the proposed
combination with Assura, with over 99% of PHP shareholders who
voted supporting the transaction and just under 63% of Assura
shareholders accepting the offer on the 12 August 2025 deadline
with a further 35% subsequently accepting the offer before it
closed on 10 September. The final 2% dissenting shareholders
were squeezed out and legally acquired on 15 October 2025.
Shareholders and analysts are regularly updated about our
performance and are given the opportunity to meet management
throughout the year, attend presentations, both physical and
virtual, including a Capital Markets Day held in July 2025, and
attend site visits to gain a better understanding of our business
and strategy.
Governance and business ethics
We conduct our business with integrity and require that our
Directors, employees and other businesses engaged by us, including
developers, contractors, suppliers and agents, do the same.
Primary Health Properties PLC Annual Report 2025
46
Strategic report Governance Financial statements Shareholder information
Responsible business continued
3. People – Responsible business continued
Other stakeholders continued
Governance and business ethics continued
We believe that good governance practices are essential to a
successful and sustainable business and therefore we ensure that
they are integral to us. We are compliant with the provisions of the
UK Corporate Governance Code except one instance where we
have not met criteria, and we have explained why on page 66 in our
Corporate Governance Statement.
We believe in transparency of our business to stakeholders, ensuring
we report comprehensively and fairly in our Annual and Interim
Reports and engage with our stakeholders throughout the year.
Responsibility for business ethics lies with the PHP Board and Chief
Executive Officer and is overseen by the ESG Committee.
We will:
• be honest, open, transparent, helpful and polite;
• obey all relevant laws and regulations;
• be prepared to admit and correct mistakes without delay and
facilitate ‘‘whistleblowing’’ by employees and other stakeholders;
• declare any potential conflicts of interest which may compromise
our business dealings;
• not give or receive illegal or inappropriate inducements in order
to retain or bestow business or financial advantages; and
• at all times promote the ethical conduct of business.
These principles are supported by policies which address anti-bribery
and corruption, business ethics, equality, diversity and inclusion,
sustainability, sustainable development and refurbishment,
whistleblowing, money laundering, prompt payment and management
of the supply chain and which are available on our website.
We provide training to staff on these key issues and communicate
our policies to key stakeholders and our supply chain and expect
them to uphold the same standards in their operations and with
their own supply chains.
Anti-corruption and anti-bribery
The Group’s policy is to conduct all of its business in an honest
and ethical manner. The Group takes a zero-tolerance approach to
bribery and corruption and is committed to acting professionally,
fairly and with integrity in all business dealings and relationships
wherever it operates and implements and enforces effective
systems to counter bribery. There were no reported incidents of
non-compliance during 2025 (2024: no incidents).
Enhanced disclosure and benchmarking
We have published our fifth disclosure against the guidance and
requirements of the Task Force on Climate-related Financial
Disclosures (“TCFD”) which are provided on pages 48 to 54.
GRESB – During 2025, PHP completed its sixth submission to the
Global Real Estate Sustainability Benchmark (“GRESB”). We scored
88% (2024: 95%) for development and 59% (2024: 66%) for standing
assets and maintained our one-star GRESB rating. The decline in
scores is primarily attributed to the updated methodology, which
now applies weighting based on the age of certifications, meaning
older certifications are weighted less than newer ones. This impacted
several of our legacy BREEAM-certified assets completed before
2020. The completion of two NZC developments in 2025, rated
BREEAM Excellent, will position us well for future assessments.
However, circa 30% of the available score is very difficult to
achieve for a portfolio like PHP’s, made up of mainly smaller
healthcare buildings which are largely tenant controlled.
MSCI – In February 2026, MSCI rated PHP as A for the 2025 Annual
Report, retaining our 2024 rating. We will continue to engage with
MSCI to ensure our rating best reflects the actions we are taking,
although the current methodology restricts us in some areas. For
example, a large proportion of our environmental score relies on
having a high proportion of BREEAM certified assets, which is not
an area that we can influence quickly.
CDP – We responded in full for the fourth time to the CDP climate
questionnaire in 2025, retaining our 2024 rating in receiving a B
rating and achieving A levels of performance for several aspects. We
see CDP as a key tool to disclose our performance and approach
and to help us improve over time. Our rating of B demonstrates we
have a high quality approach to managing climate related risks and
being transparent in our disclosures and we believe we will achieve
an A rating as we deliver on our strategy in the coming years.
EPRA – PHP disclosures are in line with EPRA Sustainability Best
Practices Recommendations (“sBPR”). In 2025, 2024 and 2023 PHP
achieved a Gold award in recognition of our enhanced disclosures
and performance.
Our latest disclosures are available in the standalone version
of this Responsible Business Report, on our website.
PHP also received an EPRA Best Practices Recommendations Gold
award for the 2024, 2023 and 2022 Annual Reports.
During 2025, PHP continued to be rated as “Prime” in the
Institutional Shareholder Services Inc. (“ISS”) in its Corporate
Rating Report. ISS considers “Prime” rated companies are industry
leaders which are well equipped to mitigate the most prevalent
ESG risks. This is a testament to our efforts fulfilling ISS ESG’s
requirements regarding sustainability performance.
Non-financial information statement
Following best practice, the Group has included certain non-financial
information within the Strategic Report. This can be found as follows:
The Group’s business model is on pages 20 and 21.
Information regarding the following matters, including policies, the
due diligence process implemented in pursuance of the policies and
the outcomes of those policies, can be found on the following pages:
• environmental matters on pages 32 to 41;
• social matters on page 42;
• health and safety matters on pages 45 and 46;
• respect for human rights on page 47; and
• anti-corruption and anti-bribery matters on this page 47.
Responsible business and ESG matters have been identified as a
principal risk and further details can be found on page 60.
All key performance indicators of the Group are on pages 24 and 25.
The Business Review section on pages 14 to 17 includes, where
appropriate, references to, and additional explanations of, amounts
included in the entity’s annual accounts.
Laure Duhot
Chair of the ESG Committee
16 March 2026
Primary Health Properties PLC Annual Report 2025
47
Strategic report Governance Financial statements Shareholder information
Task Force on Climate-related Financial Disclosures
Task Force on Climate-related
Financial Disclosures
PHP TCFD disclosure for 2025 Annual Report
and Accounts
This year, we are making our fifth disclosure against TCFD guidelines
and reporting in line with the TCFD reporting requirements for UK
commercial companies. We have outlined how climate change is
incorporated into our governance processes, its impact on our
business strategy and planning, our approach to risk management
and the climate related metrics, targets and commitments we use.
Governance
Board oversight
The Board is responsible for the Group’s risk management framework,
including the consideration of climate related risks and opportunities
as part of its wider oversight of responsible business. The Board
reviews climate related risks and opportunities within our existing
reporting and governance structure (as detailed on page 60) and
established a specific ESG Committee, which was made up of all
members of the Board and relevant members of the Executive team
to review, plan, approve and act on climate related issues in
previous years. Following the Assura merger the Board re-
evaluated the Board’s inclusion in the ESG Committee and
determined that going forward, whilst the ESG agenda remains
embedded within the organisation, authority should be delegated
to the Executive Committee who then report directly to the Board,
with the Risk Committee reporting into the Audit Committee.
The Board and members of the Executive team consider climate
related issues when setting objectives, in budget setting and
through the Board’s annual strategic review of the business.
The ESG Committee monitors progress against the business’
responsible business objectives and key strategic climate related
workstreams, including progress towards PHP’s NZC commitment
(see page 32) at all meetings of the ESG Committee (which meets
at least three times a year) and at the annual Strategy Day, held in
October.
Climate related issues are also considered by the Board and
Executive team in key investment, development, asset and property
management decision making.
The ESG Committee oversaw and approved PHP’s Net Zero Carbon
Framework in 2022 and subsequent plans and actions to deliver
against it. The Committee reviews and approves the ESG budget
each year, with specific allowances in 2024 and 2025 made for
climate related work, including energy performance measurement
of the portfolio and delivering net zero (operational and embodied)
carbon projects for developments and asset management. The
Board regularly reviews and approves acquisitions made by the
Group and takes into consideration ESG and climate related
commitments, specifically minimum EPC ratings and progress
towards net zero carbon ready buildings.
Management team’s role
The ESG Committee monitors progress on responsible business
matters, including climate risks. Implementation and management
of responsible business are delegated to the Executive team, with
its members leading the ESG working group; other members consist
of a representative from each of the investment, development,
asset management, property and facilities management teams. The
ESG working group met two times during 2025 (2024: five times) to
consider progress against commitments and proposals for
improvement. Climate related action points included a commitment
to apply science-based targets across the Group’s activities,
embodied carbon measurement for asset management and
development projects, EPC improvement, operational energy and
carbon assessments of buildings. Outside of these meetings, the
Executive team ensures that responsible business and ESG targets
are delivered or re-evaluated where not achieved and engages
throughout the year regarding progress against planned actions.
The Executive and management teams make it clear to relevant
employees what is expected and required. Where relevant, specific
actions or targets form part of both team and individual personal
objectives for each year, for example the improvement of EPC
ratings. The Executive team also leads engagement and training
across the Group on responsible business and ESG matters,
including climate related risks.
The Executive and management teams have specific ESG and
climate related performance objectives relevant to their roles
and area of the business along with other personal performance
objectives which are linked to bonuses to incentivise performance.
Strategy
PHP’s NZC Framework (see page 32) details the five key steps
it is taking to achieve an ambitious target of being NZC by 2030
for all of PHP’s operational, development and asset management
activities and to help its occupiers achieve NZC by 2040, five years
ahead of the NHS’s target of becoming the world’s first net zero
carbon national health system by 2045 and ten years ahead of
the UK and Irish governments’ targets of 2050. The Responsible
Business Report on pages 32 to 47 provides further detail on our
strategy, actions taken and progress made in 2025 and objectives
for future years to address climate risks, such as improving EPC