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.

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.

WELCOME BONUS - Free Share Bundle When You Invest £50! Get up to £500 cashback for investing with IG.

Invest in 15,000+ shares and ETFs. Open an account now, invest at least £50, and you’ll get a free share bundle worth between £40 and £200. T&Cs apply.

5.0

Open Account Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

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.