Edison issues update on Primary Health Properties

RNS Number : 0228O

Primary Health Properties PLC

14 May 2018

 

London, UK, 14 May 2018

Edison issues update on Primary Health Properties (PHP)

With a successfully completed £115m (gross) equity raise behind it, PHP is well funded for continuing growth in its investment portfolio, targeting returns that are supportive the progressive dividend policy, now in its 22nd year. The prospects for cash deployment look positive, with a c £151m pipeline of investment prospects, of which more than a third are at a highly advanced stage of negotiation. Reduced gearing leaves Primary Health Properties (PHP) well placed to seize additional opportunities that may arise, with the NHS commissioning of primary healthcare investment finally showing signs of acceleration, and the Republic of Ireland (RoI) operation becoming established, with a fourth asset recently added.

Our DPS estimates are unchanged despite the increase in share count, and our forecasts show the FY18 DPS substantially (99%) covered for a yield of 4.7%. Revenues are supported by secure, long-term income, substantially subject to upwards-only review, with little exposure to the economic cycle, or fluctuations in occupancy. The reduction in gearing makes faster asset and income growth possible, should opportunities arise. 

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