Primary Health Properties reported a 3% rise in its covered dividend per share for the full year 2025 and a 4% decline in net asset value to 99 pence, the healthcare-focused real estate investment trust said on Tuesday.
Earnings and dividend
The company, with a market value of approximately £6 billion, delivered earnings per share of 7.3 pence for the period, an increase of 4% from the prior year. Dividend per share was 7.1 pence, up 3%, and the dividend remained fully covered at a ratio of 1.12 times.
Rental income and portfolio metrics
Primary Health Properties reported a contracted rent roll that rose to £342 million, with 76% of that income backed by government sources. Rent reviews and active asset management contributed an additional £9 million of income annually, an uplift of around 7% relative to the comparator period. The portfolio's valuation implied a net initial yield of 5.4%, which is 20 basis points higher than in the prior period, and occupancy across the portfolio remained high at 99%.
Private hospitals now account for 13% of the portfolio by value, while assets in Ireland represent 6%.
Cost savings, partnerships and operating efficiency
Following its merger with Assura Growth REIT, Primary Health Properties set an annual cost saving target of £9 million. The company has achieved £7.5 million of those savings so far, representing 83% of the target. Management also reported progress in expanding a primary care joint venture and the creation of a strategic partnership for the private hospital portfolio. The EPRA cost ratio was reported at 9.8%, noted as one of the lowest among UK REITs.
Balance sheet and liquidity
Net debt stood at £3.4 billion at the period end, corresponding to a loan-to-value ratio of 57%, which remains above the company’s stated target of 40%. The company said the cost of debt increased to 3.7% from 3.4% in the prior period. Available liquidity was £571 million, and management indicated plans to reduce that liquidity level.
The statements reflect a mix of income growth, operational efficiency gains and elevated leverage and borrowing costs, with management continuing to execute on post-merger synergies and portfolio partnerships.