Primary Health Properties Share Discussion Threads

[epo001] 18/4/2024 13:52

??? Most of their tenants are NHS. 89% of revenue is Government funded.

[r9505571] 16/4/2024 19:02

I like this share because private treatments are on the increase. My Dad is 87 and getting an operation to resolve a cataract. £200 for the consultation and £2.5k per eye! I'm waiting on a scan but even going private the wait is still a month where it used to be a couple of days. Also huge problems trying to get a referral from my GP but got there in the end!

[essentialinvestor] 16/4/2024 14:24

Bought a small amount. Appreciate the depth of knowledge here. Interesting board to read, as with Assura.
Will add, if available lower down.

[rongetsrich] 16/4/2024 07:03

Is there a downside here?!!

[rongetsrich] 15/4/2024 13:07

Looking good here.

[blueclyde] 13/4/2024 14:07

It is the same thing because the problem the UK has with its government debt is that so much of it is inflation linked. That's what caused the spike in borrowing costs. When inflation is brought back sub 2% that will roll out of the bond prices also. That is why the long end of the UK bond market has not fallen yet whilst a 10 year German bond is 2.3% inflation was the problem.

[chucko1] 13/4/2024 12:48

Not really - it's based on a discount rate that relies much more upon long term rates, typically 10yr Gilts plus some spread.

Even if base rates fell by 200bps over the coming 18 months, I suspect 10yr Gilts would fall by a maximum of 100bps. Nevertheless, there is a correlation of course.

[blueclyde] 13/4/2024 00:02

You are forgetting the NAV is based on the current base rate interest amount. As the base rate falls the NAV will rise again.

[paulboz] 12/4/2024 22:55

With the current dividends, an share price of 180 would give a yield of only 3.83%. The current NAV is about 110p so I can't see 180p anytime soon.

[blueclyde] 12/4/2024 19:50

I can easily see this going back to 180p as rates start to come down. I think next weeks inflation figures may be the start of the catalyst, electricity prices are going to come down all this year. At the same time you are getting an 8% yield to wait to double your money. No wonder the insiders are buying shed loads.

[skinny] 12/4/2024 12:46

FWIW :- Jefferies raises Primary Health Properties target to 120 (110) pence - 'buy'

[hope1815] 10/4/2024 17:10

I added it to my Portfolio recently with the outlook toward 2025 being positive.

[warranty] 08/4/2024 11:22

Nice buy by Harry H but share price still not responding much.☹️

[ygor705] 21/3/2024 09:00

Looks like we might be starting to move back up to the £1 mark here. A recent post was talking about this being a decent hedge with 10 gilts. If that is the case and PHP is trending like a gilt, last night's Fed announcement should push the share price better.

[blueclyde] 20/3/2024 14:37

Yet another big director buy today.

[williamcooper104] 20/3/2024 10:29

It's strange in that PHP has long had notable shorts of c4-5 percent That's not that high but it's higher than its peers The leverage is if not toxic still quite high; and once it did trade at very high multiples, so perhaps that was the attraction

[chucko1] 20/3/2024 09:58

That inflation number is mixed, in that the services component was not as encouraging as the core headline. Nevertheless, it was instructive to listen to Lagarde talking in Frankfurt, citing services (hence wage) inflation as being a key determinant of future policy. I suspect the BoE are similarly positioned and we will hear more from Bailey very soon.

The bullish argument is that wage inflation is severely lagging, and that monetary policy will eventually and significantly transmit through to wages etc. Countering this are European demographics, likely less so in the UK but "illness/disability - [ha-ha]" might equalise this.

In terms of the short positions on PHP, none are particularly aggressive, and do not appear to be questioning the business viability. A key hedge fund trade with respect to REITS has been the spread against government bonds, which had narrowed significantly leading up to the turning point in the IR cycle. At that point, I totally agreed and sold heavily, but I think it is far less clear now that REITs remain expensive to Gilts. If you look at the way in which, for example, GLG alter their position on a micro basis, it does suggest a relative value trade rather than something more toxic.

I bought a few this morning, the first position for a couple of years. It is by far from being a short term trade, and I expect to buy quite a few more as and when.

[blueclyde] 20/3/2024 07:03

Huge fall in the inflation figures. This is set up for a rip higher at some point.

[blueclyde] 19/3/2024 20:58

Why worry about the shorts? They could simply be hedges against long positions somewhere else. This share is a bond proxy. Pull up a chart you can clearly see where the Truss budget blew up the share price which was an added discount onto the moron discount applied for Brexit. I think this bounces back to 105p on soft CPI data then trends towards the highs as rate cuts start to priced in. At the same time you are printing cash in dividends.

[aimloser1] 19/3/2024 19:42

So why is it a target for the shorters then? I like you only see positive’s here

[blueclyde] 19/3/2024 18:21

UK inflation data tomorrow. No idea what the number will be but if it comes in soft I am expecting this to move back to 170p a share. Looks like the easiest double your money if you believe rates will fall. Surprised a lot more equity funds not locking in the yield considering the dividend has went up every year for nearly 30 years. Directors seem to be buying big too. The fact it also pays a dividend quarterly too is attractive as you can compound it nicely.

[masurenguy] 18/3/2024 08:37

Primary Health Properties
Shares Magazine: March 2024

This real estate investment trust invests in the “modern, purpose-built primary care facilities” that the NHS needs to deal with the challenge of an ageing population. Long-term leases to government-backed bodies make for a highly reliable income stream and near-100% occupancy rates; 28 consecutive years of payout growth put PHP among the FTSE’s “dividend royalty”. On a 21% discount to net asset value and on a 7.7% yield, the stock seems cheap. 90p

[linton5] 15/3/2024 10:40

Noticed real estate shares doing quite well this morning hopefully the ship is starting to turn