DELIVERING OUR STRATEGIC PRIORITIES

The internalisation of the Group's management structure, further rental growth and reductions in the cost of finance will help maintain our strategy of paying a progressive dividend to our shareholders which is fully covered by earnings.

Business model   Investment case

Strategic objectives

The Group looks to selectively grow its property portfolio by funding and acquiring high quality developments and newly developed facilities and investing in already completed, let healthcare real estate.

Activity in 2024
  • Opportunistic acquisition of one standing let investment at Basingstoke for £4.5 million and commenced work on the Group’s second development at South Kilburn, London, for £3.3 million
  • Portfolio of 516, including 21 in Ireland at year end with one further acquisition of Laya Healthcare facility for €22.0 million/ £18.2 million in February 2025
  • Total property return in the year of 4.2%, with the income return remaining strong at 5.5% offset by unfavourable movements in valuation of -1.3%; however, we saw stabilisation of values in the second half of the year
Looking forward
  • Sector fundamentals of long leases and government backed income continue to drive demand in the sector
  • Continue to monitor a number of potential standing investments, direct and forward funded developments and asset management projects with an advanced pipeline across a number of opportunities in both the UK and Ireland but these will only be progressed if accretive to earnings

Content sourced from 2024 Annual Report.

PHP manages its portfolio effectively and efficiently, managing the risks faced by its business in order to achieve its strategic objectives.

Activity in 2024
  • £4.0 million, or 2.7% additional income from rent reviews and asset management projects
  • 10 new asset management projects legally exchanged during the year, 1 of which formed part of the 6 asset management projects physically completed in the year. A further 8 lease regears and 13 new lettings were delivered, delivering £0.8 million of rental growth and investing £13.0 million
  • EPRA cost ratio of 10.8% continues to be one of the lowest in the sector
Looking forward
  • Strong pipeline of over 13 advanced asset management projects and lease regears being progressed over the next two years, investing £6.7 million whilst extending the WAULT on these premises back to 16 years
  • Continued discussions with occupiers and the NHS to discuss requirements and opportunities as well as continue to negotiate rents in order to deliver an acceptable return

Content sourced from 2024 Annual Report.

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.

Activity in 2024
  • £270 million of term and revolving credit facilities refinanced for a new three-year term, with options to extend at the first and second anniversary
  • Exercised options to extend £150 million of revolving credit facilities for an additional one-year term out to 2027
  • Significant liquidity headroom with cash and collateralised undrawn loan facilities totalling £271 million (2023: £321 million) after taking into account capital commitments of £36 million
Looking forward
  • Convertible bond will be redeemed in July 2025, and is currently expected to be repaid using undrawn headroom on the existing revolving credit facilities given the current depressed share price
  • Liquidity of the Company’s secondary listing of PHP shares on the JSE has increased to 1% of the total share capital of PHP, and we look to increase the number of shares listed there to between 5% and 10%

Content sourced from 2024 Annual Report.

Positive yield gap between acquisition and funding remains for selective investments, despite the macroeconomic environment, along with continued improvements in rental growth, delivering progressive shareholder returns.

Activity in 2024
  • Adjusted earnings per share of 7.0 pence increased by 2.9% (2023: 6.8 pence)
  • Dividend per share increased by 3.0% to 6.9 pence
  • Total adjusted NTA return of 3.6% (2023: 1.9%)
  • Strong organic rental growth from rent reviews and asset management projects, offset by the selectively muted investment in the year
  • Acquisition of Axis continues to provide a critical strategic advantage in Ireland, the Group’s preferred area of future investment activity
Looking forward
  • Undrawn loan facilities continue to provide significant firepower to secure new investment opportunities
  • 100% of the Group’s net debt is fixed or hedged, protecting underlying earnings from potential future economic changes

Content sourced from 2024 Annual Report.