London, UK, 16 May 2017
Edison issues update on Primary Health Properties (PHP)
Primary Health Properties' (PHP) 26 April trading update demonstrated several positive developments in the year to date: continued portfolio and rental growth, new long-term financing, a revision of the advisory agreement with Nexus and a higher quarterly dividend (5.25p annualised vs 5.125p in FY16). Long-term demographic trends and broad political will for healthcare reform continue to support the outlook for primary care property in both the UK and Ireland, and PHP's long and largely government-backed leases underpin an attractive and fully covered dividend, which we expect to continue its 20-year growth trend.
The primary care market in the UK and Ireland is inherently stable compared with other real estate subsectors; long leases, effectively full occupancy at all times and the presence of the NHS and HSE as major tenants mean that rents and valuations are less volatile than in other markets. The stable, long-term cash flows PHP's portfolio generates support an FY17e dividend yield of 4.7%, fully covered by EPRA earnings and which we expect to continue to grow, as it has for 20 years.
Click here to view the full report.
All reports published by Edison are available to download free of charge from its website
About Edison: Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.
Edison is authorised and regulated by the Financial Conduct Authority.
Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.
Contact details: Learn more at www.edisongroup.com and connect with Edison on:
Dissemination of a UK FINANCIAL NEWS, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.