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Primary Health Properties PLC on Monday reported rental growth amid a ‘strong’ operational performance in the first half of 2025 and said it is engaged in joint-venture talks amid its proposed acquisition of peer Assura PLC. The London-based healthcare facility investor reported net rental income of £78.6 million for the six months that ended June 30, up 3.1% from £76.2 million a year before, thanks to organic growth from existing assets. Adjusted earnings per share for the first half was up 2.3% to 3.54 pence from 3.46p. Primary Health said it continues to see property values stabilise, with yield expansion continuing to moderate. ‘This continues the trend experienced in the second half of 2024 and we expect this to continue in the future,’ the company said. As at June 30, Primary Health’s portfolio was independently valued at £2.81 billion, up from £2.75 billion at December 31, 2024. Primary Health distributed a total of 3.55p per share in the first half of 2025, up 2.9% from 3.45p a year earlier. A third quarterly interim dividend of 1.775p per share was declared on June 16. PHP said it is positioned for secure income and valuation growth, supporting its progressive dividend policy. ‘At a pivotal time for our sector, PHP has delivered a strong operational and financial performance driven by rental growth across our portfolio, a value-accretive acquisition in Ireland, valuation gains and another period of dividend growth,’ Primary Health Chief Executive Officer Mark Davies said. Since Assura recommended the PHP’s takeover offer two weeks ago, PHP said it has been discussing forming a joint venture, which is expected to include the private hospital portfolio. It said conversations are taking place with a range of investors, and it remains confident of its ability to conclude a transaction in a ‘timely manner’ after taking over Assura. Primary Health also said it continues to believe in the compelling strategic and financial rationale for the combination with Assura. The transaction is expected to be earnings accretive for both sets of shareholders, it said. At a general meeting on Tuesday last week, over 99% Primary Health’s shareholders of backed the Assura takeover. Shares in Primary Health were up 0.1% at 96.58p in London on Monday morning. They were flat at R 23.00 in Johannesburg. Assura shares were up 0.3% to 50.14p in London. The cash-and-shares takeover offer from PHP values Assura shares about 55p Copyright 2025 Alliance News Ltd. All Rights Reserved.
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