Primary Health Properties Share Discussion Threads

[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

[mirandaj] 05/3/2024 12:29

Latest update from Edison:

[ygor705] 01/3/2024 13:27

Agree panshangar but shorters may be more sector than stock driven here. As long as sterling holds up in the face of some pretty dire looking uk politics, PHP should be ok at these levels.

[panshanger1] 01/3/2024 12:33

Have held for many years for the rock solid dividend and diversification What always surprises me here is the short positions Relentlessly between 2-3 % for years now - still is last time l checked Never saw this as an obvious candidate for shorting

[ygor705] 01/3/2024 11:31

Just been tidying up my ISA portfolios and decided to chuck out the non-performing dross and balance that with a bit of profit-taking. Had a bit of cash left over so decided to top up here. The one thing about PHP is that it is a rock solid performer and consistently high dividend payer. Its record is solid over decades and deserving of a better rating. Once interest rates start to turn down the share price will slowly pick up......just a matter of being patient.

[affemoose] 28/2/2024 12:43

Good results. SMall reduction in asset value has hit 'profitability' but that's not a cash loss, just a paper one. We're so far below NAV that it really doesn't matter! lol

Profit is Vanity, Cash is Sanity...and the Divi hike and coverage tells us that things are well.

[warranty] 28/2/2024 10:31

It can surely only be the property and asset valuation falls that are taking this down because the overall business looks sound and dividends well covered. Probably just one to accumulate at these levels, take the dividends and wait for the recovery property prices?

[petewy] 28/2/2024 10:16

Healthy results.

[skinny] 28/2/2024 07:06

Harry Hyman, Chief Executive, commented:

"We are encouraged by the organic rental growth achieved in 2023, resulting in another record year with an additional £4.3 million generated from our rent review and asset management activities. The strong rental growth in the year has been reflected in the positive total property return, significantly ahead of the wider property market.

"Furthermore, with over 97% of PHP's debt either fixed or hedged, a strong control on costs, significant liquidity headroom and just one development on site we have limited exposure to further cost increases and development risk.

"The high quality of PHP's portfolio reflects the security and longevity of our income with 89% government funded, near full occupancy and continued rental growth which are key drivers of our predictable cash-flows and underpin our progressive dividend policy with 28 years of continued growth. With a market leading portfolio across the UK, and increasingly in Ireland, we are well positioned for long-term success."

[skinny] 28/2/2024 07:01

EARNINGS AND DIVIDENDS

· Adjusted earnings per share increased by 3.0% to 6.8p (2022: 6.6p) marginally ahead of analyst consensus

· IFRS earnings per share decreased by 52.4% to 2.0p (2022: 4.2p) reflecting non-cashflow losses arising on the valuation of the Group's property portfolio, convertible bond and interest rate derivatives

· Contracted annualised rent roll increased by 3.8% to £150.8 million (31 December 2022: £145.3 million)

· Additional annualised rental income on a like-for-like basis of £4.3 million or 3.0% from rent reviews and asset management projects (2022: £3.3 million or 2.4%)

· EPRA cost ratio 10.7% (2022: 9.9%), representing one of the lowest in the UK REIT sector

· Quarterly dividends totalling 6.7 pence (2022: 6.5 pence) per share distributed in the year, a 3.1% increase

· First quarterly dividend of 1.725 pence per share declared and paid on 23 February 2024, equivalent to 6.9 pence on an annualised basis and a 3.0% increase over the 2023 dividend per share, marking the Company's 28th consecutive year of dividend growth

· The Company intends to maintain its strategy of paying a progressive, fully covered dividend

[panshanger1] 27/2/2024 11:13

A confidence boosting increase to the dividend would help

[warranty] 26/2/2024 22:39

I genuinely fear what’s going to be in the results Wednesday judging by the share price. I’d seen this as one of my safest stocks but clearly that’s not the case so I’m hoping it can reassure and start to recover.

[neilyb675] 26/2/2024 13:58

89.20 - 89.35 (GBX) at 13:56:17
on Market (LSE)

[warranty] 23/2/2024 21:55

Full year results next Wednesday, let’s hope there’s some positive information to settle the share price which is surely too low?

[ntv] 22/2/2024 21:36

Bought a few @90.3 today