Primary Health Properties Share Discussion Threads

[perfect choice] 06/1/2022 09:16

Quarterly dividend announced today and a decent 4.8% annual uplift in the dividend, (1.625p/share versus 1.55p previously).

[bathcoup] 05/1/2022 21:21

portfolio = 100%
fixed + indexed = 31%
OMV review = 69%

I'm not a holder, so don't closely follow PHP. In a inflation environment, those with fixed-rent will suffer(how much of the portfolio is on "fixed"). "OMV review" should offer some (delayed) protection, I'd think.

[makinbuks] 05/1/2022 09:40

The downside is the premium to NAV which is threatened by rising interest rates

[bathcoup] 04/1/2022 21:29

I'm surprise to see those short positions (Skinny5 Oct '21 - 08:55 - 1005 of 1017). Given the nature of PHP's business, the downside must be very limited. I doubt those are naked shorts.

[km18] 15/12/2021 12:41

Primary Health Properties is the leading investor in modern healthcare properties in the UK, with a concise objective to derive optimised returns to shareholders through a combination of earnings growth and capital appreciation. This evidence is supported by the EPS growth of 4.1%, higher than the real estate benchmark. The significant growth can be explained by the attractive profit rally recorded in the latest results, where operating profit surged to £129.6m from £68.8m in 2020. Subsequently, Primary Health Properties were able to enhance their net cashflow since it soared to £72.5m from £64m. As a result, it was incorporated into the P/FCF ratio of 16.0, which was higher than the real estate P/FCF ratio of 8.8. Consequently, it implies that Primary Health Properties can fund its operations and investments more effectively than its industry peers, enabling shareholders to yield optimised returns from profit hike.



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[makinbuks] 12/11/2021 10:19

True, I guess HL are just noting the demand for modern facilities isn't going to let up

[mirandaj] 11/11/2021 10:21

Another good looking practice:

[jph] 10/11/2021 22:13

Hargreaves Lansdown have got PHP as one of their 4 shares that will benefit from the ageing UK population- which, I suppose, explains the drop!I bought in for the dividend - but benefited from the uplift on amalgamation.

[skinny] 28/10/2021 06:06

.




Refinancing and first sustainability linked credit facilities

Primary Health Properties PLC ("PHP" or the "Group"), one of the UK's leading investors in modern primary healthcare facilities, is pleased to announces that it has refinanced a number of legacy loan facilities with Aviva Investors, with a new GBP200 million facility for a 15-year term at a fixed rate of 2.52% and renewed its existing GBP100 million facility with NatWest.

Aviva Investors refinancing

The Group has secured a new GBP200 million 15-year debt facility with Aviva Investors at a fixed rate of 2.52%.

Sustainability KPIs have been incorporated into the new loan based around PHP's existing built environment targets. These focus on the portfolio's EPC ratings and new developments being built to BREEAM standards. The Group will benefit from a margin reduction on the new GBP200 million facility, conditional on achieving these targets.

The proceeds of the loan have been used to repay a number of legacy facilities with Aviva Investors totalling GBP177 million at a blended fixed rate of 5.0% and weighted average term of just under six years. As part of the refinancing a termination cost of GBP24 million has been paid.

NatWest refinancing

The Group has renewed its existing GBP100 million revolving credit facility for a further three-year term with options to extend by a further year on the first and second anniversaries of the new facility.

Sustainability KPIs have also been incorporated into the new facility based around PHP's existing built environment targets and the Group will benefit from a margin reduction, conditional on achieving these targets.

In total, these arrangements reduce the Group's current average cost of debt from 3.4% to 2.9%, the marginal cost of debt remains at 1.7%, and results in interest cost savings of approximately GBP5 million p.a., extending the weighted average debt maturity to 7.0 years. The Group continues to have significant headroom, after capital commitments, with cash and undrawn loan facilities of GBP237 million.

Richard Howell, Chief Financial Officer of Primary Health Properties, commented:

"We are delighted to have continued and extended our long-standing relationships with both Aviva Investors and NatWest by refinancing our existing facilities.

"Furthermore, we are proud to have secured our first sustainability linked loan facilities, which will reward the Group via a margin reduction as we implement our Responsible Business plan and ESG initiatives which were published in February this year.

"With a robust balance sheet and strong pipeline of opportunities to expand our portfolio both in the UK and Ireland, PHP remains exceptionally well positioned to deliver low-risk sustainable shareholder returns."

[grahamg8] 07/10/2021 06:58

Perfect prediction Perfecto. I doubt however that it was your influence. More likely the dividend announcement goes out in the first week of October. Each year it moves forward by 1 day - 52 weeks x 7 days =364 add 1 day = 1 year. Last Thursday was 30 September so didn't qualify as an October announcement, so it has been put back to today.

Anyhow dividend retained and with a falling share price we could be entering top up territory.

[perfect choice] 06/10/2021 06:18

Have I missed something or are PHP late declaring their quarterly dividend this month? Last announcement was 1st July, last year is was 1st October 2020, so running late? Not an issue, just curious. Queue 7am RNS tomorrow as a result of posting this now!

[perfect choice] 05/10/2021 11:13

Thanks, interesting to see the 2 main short holders have actually been reducing their holdings since August, with Citadel Europe LLP being the largest to reduce. So only 1.47% in total now.

[skinny] 05/10/2021 08:55

Short positions ≥ 0.5%.

[paulboz] 05/10/2021 06:44

I think there are a few reasons for the drop e.g.1. Inflation fears meaning the dividend isn't so attractive 2. Apparently, the hedge fund, Citadel shorted PHP.3. The share price reached 170p, which did seemed a tad high

[dgwinterbottom] 04/10/2021 10:42

Anyone any idea for why the drop is so protracted!

[dgwinterbottom] 04/10/2021 10:42

Anyone any idea for why the drop is so protracted!

[deeker] 30/9/2021 11:13

Didn't take long to plummet from ATH. Is the launch of Community fund impacting on this or could there be another placing in the planning?

[mirandaj] 17/9/2021 07:14

Community Impact Fund launched

[gbh2] 07/9/2021 07:09

This company throws new shares about like confetti!

[panshanger1] 01/9/2021 13:50

New ATH @170Nice

[grahamg8] 31/8/2021 06:48

Possible synthetic interest rate hedge. If rates go up, yield on PHP needs to follow, only way is share price down, so a short position would make sense.

Counter argument is pressure on interest rates would be caused by higher inflation, PHP rent reviews would be higher in places where there is a link to RPI/CPI, income into PHP rises, drives share price higher. Go long on PHP.

Longs and shorts balance out, and hey presto we have a market.