Primary Health Properties Shares (LON:PHP) to Benefit from Assura Acquisition

Primary Health Properties shares (LON: PHP) are poised to gain following the completion of its acquisition of Assura plc, a move that significantly expands its footprint in the UK healthcare property sector. The acquisition, finalized on September 11, 2025, is expected to yield substantial cost and operational efficiencies, ultimately boosting PHP’s earnings and solidifying its market leadership according to one analyst.

Stifel resumed coverage of PHP with a ‘Buy' rating and a price target of 105 GBp, reflecting confidence in the company's future performance. The firm anticipates that the merger will lead to cost and operational synergies, making the combination earnings accretive.

Furthermore, the cost of capital for the enlarged entity is projected to decrease, which will be advantageous for PHP shareholders. Market sentiment appears to be aligned, with the expectation that the combined entity will be more efficient and profitable.

The deal, valued at approximately £1.68 billion, involved a combination of shares and cash, with Assura shareholders receiving 0.3769 new PHP shares plus 12.5 pence in cash for each Assura share held. This strategic combination creates a leading UK REIT with a portfolio valued at £6 billion, enhancing PHP's market presence and providing greater value to its stakeholders. The enlarged company will now command a significant portion of the primary healthcare property market in the UK.

Prior to the acquisition, PHP demonstrated strong operational performance in the first half of 2025, with net rental income increasing by 3.1% to £78.6 million. The company also reported stabilizing property values and continued dividend growth, distributing a total of 3.55p per share in the first half of the year. These solid financial results, coupled with the strategic acquisition of Assura, have strengthened investor confidence in PHP's growth potential.

The successful acquisition of Assura is poised to deliver significant synergies, enhance earnings, and solidify Primary Health Properties' leadership in the healthcare property sector. With strong analyst endorsements and positive market sentiment, the strategic move is viewed as a value-creating step that could drive future growth, returns, and upward momentum for PHP's stock.