Overview of Financial Performance#
Primary Health Properties, a healthcare real estate investment trust (REIT), has announced a 3% increase in its covered dividend per share for the full year 2025. The company reported a decline in net asset value, which fell to 99 pence. This information was shared in a recent announcement.
Earnings and Dividend Details#
For the year, Primary Health Properties achieved earnings per share of 7.3 pence, reflecting a 4% increase from the previous year. The dividend per share reached 7.1 pence, fully covered at a ratio of 1.12 times, indicating that the earnings comfortably support the dividend payments.
Growth in Rent and Cost Savings#
The company’s contracted rent roll increased to £342 million, with 76% of this income backed by government sources. Additionally, rent reviews and asset management efforts contributed an extra £9 million annually, marking a 7% increase. Following its merger with Assura Growth REIT, Primary Health Properties achieved annual cost savings of £9 million, with £7.5 million already realized.
Portfolio and Financial Ratios#
The EPRA cost ratio, which measures the efficiency of a REIT’s operations, stood at 9.8%, one of the lowest among UK REITs. The portfolio is valued at a 5.4% net initial yield, which is a slight increase from the previous period. Occupancy rates remain high at 99%. However, net debt reached £3.4 billion, with a loan-to-value ratio of 57%, exceeding the company’s target of 40%. The cost of debt has also increased to 3.7% from 3.4%, while liquidity is reported at £571 million with plans for reduction underway.