Primary Health Properties reports solid progress with Assura integration
Primary Health Properties Plc , the healthcare facilities investor which merged with peer Assura in October, said it has made good progress integrating the two companies as benefits of the deal begin to be delivered for shareholders.
The tie-up of PHP and Assura, which has created a REIT with a combined portfolio worth £6bn, has already delivered 60% of the planned annualised synergies of £9m in just the two months since competition regulators approved the deal.
"Our immediate focus is now on delivering the post-transaction objectives of reducing leverage back to our targeted range of 40% to 50%; delivering the £9m of annualised synergies identified; and integrating the two businesses to achieve the best of both organisations," said PHP chief executive Mark Davies.
The firm is currently undertaking a full portfolio review to establish new joint ventures and deliver further disposals to meet its goal in cutting leverage.
"We continue to make good progress regarding opportunities for both existing joint ventures within primary care real estate and with several highly credible counterparties regarding options for a potential joint venture for the private hospital portfolio," the company said.
In its final trading update for the 2025 fiscal year, PHP said rent reviews during the year generated £8.4m, up 6.8% over the previous passing rent or 3.2% on an annualised basis, taking the total annualised contracted rent roll to £342m.
PHP shares were down 1.2% at 102.4p by 1041 GMT.
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.
