Creating long term sustainable value
We invest in flexible, modern properties for local primary healthcare. The overall objective of the Group is to create progressive returns to shareholders through a combination of earnings growth and capital appreciation. To achieve this, PHP has invested in healthcare real estate let on long-term leases, backed by a secure underlying covenant where the majority of rental income is funded directly or indirectly by a government body.
Our key strengths
PHP aims to operate in a relatively low risk environment to generate progressive returns to shareholders through investment in the primary healthcare sector, which is less cyclical than other real estate sectors.
By providing additional space facilitating the provision of additional services or extending the term of underlying leases, PHP can increase and lengthen its income streams and create the opportunity to add capital value.
PHP's portfolio is managed by an experienced team within an efficient management structure, where operating costs are tightly controlled.
PHP funds its portfolio with a diversified mix of equity and debt, in order to optimise risk-adjusted returns to shareholders.
Key characteristics of the portfolio
Underpinned by our strategy
The Group looks to selectively grow its property portfolio by funding and acquiring high quality developments, newly developed facilities and investing in already completed, let properties.
PHP manages its portfolio effectively and efficiently, managing the risks faced by its business in order to achieve its strategic objectives.
The Group funds its portfolio with a diversified mix of equity and debt on a secured and unsecured basis, in order to optimise risk-adjusted returns to shareholders.
Positive yield gap between acquisition and funding with continued improvements in rental growth.
Wider outcomes
Social impact
PHP aims to provide modern premises located within residential communities to enable better access to an increasing range of services being delivered locally with greater accessibility than from hospitals.
Environmental impact
Environmental impact is an integral consideration in the development, design and construction of new PHP properties. When developing new premises, PHP and its development partners seek to achieve the highest BREEAM standards in the UK or a nearly zero energy building (“nZEB”) rating in Ireland, as well as improving our premises’ energy performance.
We have seen continued improvement in portfolio EPC ratings with 47% and 88% (2023: 42% and 85%) rated A–B and A–C respectively, driven by the asset management programme.
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Healthcare targets
The modern, flexible premises that PHP provides facilitate the provision of more wide ranging and integrated care services helping to realise the NHS’s target of 24/7 access to GP services and the HSE’s expansion of primary care infrastructure.
Investors
Winner of MSCI’s UK Highest 10-Year Risk Adjusted Total Return Award for the third consecutive year in 2023, 2022 and 2021, reflecting PHP’s market leading property performance.
Values
We employ sustainable design to develop, refurbish and upgrade our buildings to modern medical and environmental standards.
NHS/primary healthcare
Our flexible, modern properties benefit not only our shareholders but also our occupiers, patients, the NHS and HSE, suppliers and the wider communities in both the UK and Ireland.
Patients
PHP’s portfolio serves 6.3 million patients, which is expected to further increase as primary healthcare demands increase to assist with overstretched Accident & Emergency (A&E) departments, and with the ageing and growing population.
Communities
We support initiatives that further the health, wellbeing and education of our local communities.