Primary Health Properties Share Discussion Threads

[3800] 09/7/2020 09:22

"The Placing will only be made available to invited eligible institutional investors in certain specified jurisdictions"
well that's us shafted then.
3800

[skinny] 09/7/2020 07:27

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Highlights

- Proposed Placing to raise approximately £120 million of gross proceeds

- The tragic associated impact of COVID-19 brings the ongoing requirement to cater for NHS surge capacity ever more starkly into focus. The Board believe this, combined with the demands of an ageing and growing population for healthcare, strongly underpins the need for modern, integrated and local primary healthcare facilities to continue to help relieve pressures placed on hospitals and A&E departments.

- Proceeds will be used to fund continued portfolio growth through acquisition and forward funded developments and to finance asset management projects totalling c.£128m

o Short-term estimated pipeline of £92 million of active acquisition and development opportunities across UK and Ireland

o Active management of existing assets to create additional value with estimated capex on projects in FY20 and FY21 of c.£36m

- Proposed Placing helps to maintain an appropriate loan to value % (LTV) in the short-term reducing the 30 June 2020 ratio by around 5.0% from 45.8% to c.41% on a pro-forma basis

- Placing Shares will not rank for the third quarterly interim dividend of 1.475p per share declared on 25 June 2020 and payable on 21 August 2020 to shareholders on the register on 3 July 2020 but will rank for all future dividends declared. The Company intends to make a further interim dividend payment in November 2020 and maintain its strategy of paying a progressive dividend, in equal quarterly instalments, covered by underlying earnings in each financial year

Investors should read this announcement in conjunction with the Company's trading update also released today.

[skinny] 09/7/2020 07:25

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H1 2020 Trading Update and Notice of Interim Results

Primary Health Properties PLC, the UK's leading investor in modern primary healthcare facilities, today publishes a trading update for the six months ended 30 June 2020, alongside the announcement released this morning regarding a proposed equity raise.

The Group's operational and financial performance to date remains strong, and its portfolio continues to demonstrate good resilience despite the uncertainty caused by the COVID-19 pandemic. During the pandemic, PHP has been actively working with the NHS, HSE in the Republic of Ireland, and its GP tenants to help them better utilise the Group's properties for deployment in the front line of the current global health crisis.

Highlights of the Group's unaudited results for the six months ended 30 June 2020 are outlined below:

Earnings and dividend growth

· Adjusted EPRA earnings per share increased by 7.1% to 3.0 pence (30 June 2019: 2.8 pence)

· Average uplift of 2.2% per annum on rent reviews completed in the period, continuing the positive trend in rental growth (FY 2019: 1.9%; FY 2018: 1.4%)

· Additional annualised rental income of £0.9 million or 0.7%, on a like-for-like basis, from rent reviews and asset management projects (FY 2019: £1.9 million or 1.5%; FY 2018: £1.3 million or 1.8%)

· Contracted annualised rent roll increased by 4.4% to £133.3 million (31 December 2019: £127.7 million)

· Portfolio of 22 purpose-built medical centres acquired for £54 million with good asset management opportunities

· Four forward funded developments acquired in the period with a net development cost of £27 million at Arklow, Ireland, Banagher, Ireland, Epsom, Surrey and Llanbradach, Wales

· Two quarterly dividends totalling 2.95p per share distributed in the period and third quarterly dividend of 1.475p per share declared, payable on 21 August 2020, equivalent to 5.9p on an annualised basis and a 5.4% increase over the 2019 dividend per share representing the Company's 24th consecutive year of dividend growth

· The Company intends to make a further dividend payment in November 2020 and maintain its strategy of paying a progressive dividend, in equal quarterly instalments, covered by underlying earnings in each financial year

Net asset value growth

· Adjusted EPRA Net Asset Value increased by 1.1% to 109.1 pence (31 December 2019: 107.9 pence)

· Property portfolio at 30 June 2020 valued at £2.514 billion (31 December 2019: £2.347 billion) reflecting a net initial yield of 4.86% (31 December 2019: 4.86%). A revaluation surplus was generated in the period of £10.5 million (30 June 2019: £17.7 million), representing growth of 0.4% (30 June 2019: 0.9%)

· Portfolio in Ireland now comprising of 17 assets, valued at £194 million (€214 million), including two forward funded developments currently under construction which, if valued as complete, increases the total asset value to approximately £211 million (€233 million) in Ireland

· The Group completed the forward funded developments at Athy, Bray and Rialto in Ireland during the period and has six developments currently on site with a net development cost of £41 million. All sites in the UK and Ireland remain open and construction continues to progress

· Strong pipeline of targeted acquisitions and asset management projects with a value of approximately £128 million, of which £44 million is currently under offer

· Progression of asset management projects with 12 either completed or currently on-site, investing £4.1 million, creating additional rental income £0.12 million per annum and extending the weighted average unexpired lease term (WAULT) back to 21 years

· The Group has a strong pipeline of over 80 incremental asset management projects which have either been approved by the Board or are in advanced negotiations. The pipeline of projects equates to investing approximately £36 million in 2020 and 2021 generating £1.1 million of additional income and extending the WAULT on those leases back to 21 years

· Only £3.0 million or 2.3% of annualised rent roll expiring in the next three years of which £2.6 million is subject to either a planned asset management initiative or terms having been agreed to renew the lease

· The portfolio's metrics continue to reflect the secure, long-term and predictable income stream with occupancy at 99.5% (31 December 2019: 99.5%) and a WAULT of 12.5 years (31 December 2019: 12.8 years)

Financing

· At 30 June 2020 the Group's net debt stood at £1,150.3 million (31 December 2019: £1,067.3 million) and the Loan to Value ("LTV") ratio was 45.8% (31 December 2019: 44.2%).

· After capital commitments the Group has undrawn loan facilities and cash on deposit totalling £266 million (31 December 2019: £356.6 million) providing significant liquidity headroom. Cash on deposit totals £64.0 million

· Significant headroom in LTV covenants with the Group's portfolio needing to fall in value by around £1.0 billion or 40% for the Group's borrowing arrangements to come under risk of being breached

· The Group's income would need to fall by approximately £76 million or 57% for the interest cover covenants in the Group's borrowing arrangements to come under risk of being breached

· Following the proposed Placing, the Company has lowered the upper range for its LTV ratio from 55% to 50%



Rental collection

· Of PHP's contracted rental income, 90% is paid either directly or indirectly by the UK and Irish governments, with the balance mainly coming from pharmacies co-located at our properties

· Rental collections continue to remain robust and as at 8 July 2020 91% and 88% had been collected in the UK and Ireland respectively for the third quarter of 2020 and ahead of the collection rates experienced for the second quarter of the year which now stand at over 99% for both countries. The balance of rent due for the third quarter of 2020 is expected to be received within the coming fortnight

· The Group has allowed £1.1 million of quarterly rents, predominantly pharmacies, to be paid by monthly instalments, given short-term rent deferrals of £0.3 million and concessions of £0.2 million

[mach100] 02/7/2020 10:30

Just what the Doctor ordered. An injection of more good news.

[skinny] 02/7/2020 07:08

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Primary Health Properties PLC ("PHP" or the "Group"), one of the UK's leading investors in modern primary healthcare facilities, announces that, further to its announcement on 11 May 2020 of the acquisition of a portfolio of medical centres, it has today completed on the acquisition of the last of the conditional purchases referred to in that announcement, for a price of £3.6 million. This completes the purchase of the entire portfolio of 22 properties.

[skinny] 22/6/2020 11:07

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Primary Health Properties PLC ("PHP" or the "Group"), one of the UK's leading investors in modern primary healthcare facilities, announces that, further to its announcement on 11 May 2020 of the acquisition of a portfolio of medical centres, it has today completed on the acquisition of one of the two conditional purchases referred to in that announcement, for a price of £3.3 million.

[winsome] 09/6/2020 10:50

What a great buying opportunity today. Just topped up again. These and AGR have grown to be a large part of my portfolio over recent years and have been a lifesaver this year. I expect with solid yield and reliable income they will continue to be so for years to come as interest rates stay low forever.

[thewheeliedealer] 08/6/2020 21:33

Hi all,

My mate Peter @Conkers3 and myself did a Twin Petes Investing Podcast a few days ago and part of our discussion covers PHP. We also chatted about the current situation in the Markets and covered loads of Stocks and as always a fair bit of general Portfolio Management educational stuff. Anyway, if you use Apple, Audioboom, Overcast or Spotify you can find it under the 'Conkers Corner' Channel (you want TPI Podcast 24) and you can find it on Soundcloud at the link below.

I hope you enjoy it and find it useful,

Cheers, WD
@wheeliedealer

[skinny] 28/5/2020 07:03

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Forward Funding Acquisition of New Primary Care Centre at Arklow, Co. Wicklow, Ireland

Primary Health Properties PLC ("PHP" or the "Group"), one of the UK's leading investors in modern primary healthcare facilities, announces that it has contracted to provide development funding for the construction and acquisition of a purpose-built primary care centre in Arklow, Co. Wicklow, Ireland for an anticipated total cost of €18.0 million.

Agreements for lease for an initial term of 30 years have been signed with the Health Service Executive ("HSE") and a local GP practice, which will relocate to the centre on practical completion. The lettings will be accretive to the overall WAULT of the PHP portfolio and will provide for approximately 90% of the income from strong government backed covenants. The building, which will comprise an area of 5,333m2, is to be constructed to the new Nearly Zero-Energy Buildings ("NZEB") regulations in Ireland.

This acquisition will increase PHP's portfolio to a total of 511 assets, of which 17 are in Ireland, with a gross value of just under £2.5 billion and a contracted rent roll of £132 million.

more.....

[lewseyfarm] 15/5/2020 18:11

I agree additional services,such as blood tests, health checks, inoculations,pharmacy.a one stop shop.

[sf5] 11/5/2020 10:47

I do wonder given that GPs have so successfully transitioned to remote consultations whether they'll need so much floor space going forward? Should be a much more efficient delivery model for many conditions. Probably more an issue for a few years down the line..........and practices may anyway find additional services to use any excess space.

[skinny] 11/5/2020 08:07

FWIW :- Liberum Capital Buy 0.00 157.00 185.00 - Reiterates

[skinny] 11/5/2020 07:13

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Portfolio acquisition

Primary Health Properties PLC ("PHP" or the "Company"), one of the UK's leading investors in modern primary healthcare facilities, announces that it has acquired a portfolio of 20 purpose-built medical centres, located across England and Wales, for a price of £47.1 million, before costs. As part of the same transaction, PHP has conditionally contracted to acquire a further two medical centres for £6.9 million, before costs.

The acquired properties are leased to GP practices, other NHS healthcare operators and pharmacies, with approximately 91% of the rental income being government backed and substantially all of the leases are reviewed to the open market on a three-yearly cycle.

This acquisition will increase PHP's portfolio in the UK and Ireland to a total of 510 assets with a gross value of just under £2.5 billion and a contracted rent roll of £131 million. Following completion of the portfolio acquisition and capital commitments PHP has undrawn loan facilities and cash totalling £289 million.

Rental collection continues to remain robust

In the UK, 98% of rents for the second quarter of the year have been collected with £0.7 million still outstanding, approximately half of this is now subject to an agreed monthly payment plan. Short-term rent concessions for the quarter have been given on rents totalling less than £0.1 million.

In Ireland, 97% of rents due by 1 April 2020 have been collected with less than €0.1 million still outstanding.

more.....

[skinny] 15/4/2020 11:00

Barclays Capital today reaffirms its overweight investment rating on Primary Health Properties Plc [LON:PHP] and raised its price target to 170p (from 168p).

[skinny] 15/4/2020 07:14

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Primary Health Properties PLC ("PHP"), one of the UK's leading investors in modern primary healthcare facilities, announces that it has taken delivery of two completed developments of large, modern primary care centres in Ireland; a 4,822m2 centre at Bray, Co. Wicklow, 12 miles south of Dublin and a 3,232m2 centre at Rialto, Dublin 8.


more.....

[sf5] 01/4/2020 10:45

Reasonably confident update this morning

[panshanger1] 01/4/2020 09:36

Approaching ATH Quality play in the sector but large premium

[panshanger1] 09/3/2020 14:33

Trading at a big premium too so this has knocked a bit of the froth off.In spite of recent events has had a great year. Long term holder here.DYOR

[schofip] 09/3/2020 12:45

Iam suprised in the fall in this stock considering we are in the middle of a medical emergency and healthcare is in big demand. I think the main risk is the fact that consultations are being done by FaceTime/skype etc into peoples homes and someone may take the view that this is the way forward and we actually don't need these expensive health centres.

[mirandaj] 28/2/2020 12:19

Hardman & Co Research: Final results show accelerating rental growth

2019 results were announced on 12 February. 90% of PHP's income is backed by the UK or RoI governments. Occupancy consistently exceeds 99%. We are confident investors will still seek out REITs with a strong focus on categories that provide security of rising income. PHP's DPS growth rate is accelerating, in contrast to the wider real estate market. 2019's complementary MedicX merger was transformational, driving improvements that continue strongly in the short term, as well as being strategically beneficial. PHP has reduced costs of borrowing and overhead ratios, benefiting 2019, but also impacting 2020 and 2021 onwards.

Please click on the link below for the full report:

[chucko1] 27/2/2020 20:01

It was asking for trouble at such a premium, but that was slightly harsh. But not overly.