Primary Health Properties Shares: Investment Case is ‘Attractive’ Argues Analyst

Primary Health Properties (LON: PHP) delivered a strong set of full-year results, with analysts at Shore Capital highlighting an “attractive” investment case underpinned by scale, income growth and a resilient dividend profile.

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Shore Capital noted that the FTSE 250 group reported adjusted earnings per share of 7.3p for FY25, ahead of expectations, alongside a dividend of 7.1p. The payout marks 30 consecutive years of fully covered dividend growth, which the broker described as a “considerable and commendable achievement.”

The results also reflect the first full-year contribution from the Assura portfolio acquisition, which Shore Capital called a “transformational” move that has created a £6bn healthcare property platform spanning more than 1,100 assets.

Analyst Andrew Saunders said the enlarged business is well-positioned to benefit from structural demand in the healthcare sector, particularly as primary care infrastructure becomes a key focus within long-term healthcare planning.

Rental growth remained a standout feature, with like-for-like increases of 2.7% in FY25 and further acceleration into the new financial year. Shore Capital expects this trend to continue, supported by asset management initiatives and development activity across the portfolio.

Despite a temporary decline in net tangible assets due to acquisition-related costs, the broker highlighted strong earnings visibility, supported by a record rent roll and high levels of government-backed income.

Looking ahead, Shore Capital forecasts continued earnings growth and sees the shares offering “among the best risk-adjusted, total returns profiles in the sector,” supported by organic growth, synergies and disciplined capital management.