Primary Health Properties: 1H26 Conf. Call: Synergies coming through, hospital JV next key milestone

Research evidence excerpt

Primary Health Properties: 1H26 Conf. Call: Synergies coming through, hospital JV next key milestone

C A Z E N O V E Europe Equity Research

30 July 2026

Primary Health Properties Neutral

PHP.L, PHP LN

1H26 Conf. Call: Synergies coming through, hospital JV Price (29 Jul 26):97p

next key milestone Price Target (Dec-27):105p

Strong execution against all key Assura merger objectives, with >90% of synergies European Property

ACdelivered, £1.2bn refinanced at ~40bps lower margins and bridge debt repayment Neil Green, CFA

imminent. The private hospital JV remains the key near-term catalyst, with (44-20) 7134-4478

management notably confident assets will transfer at or near book value despite the neil.d.green@jpmorgan.com

higher-rate backdrop. Successful execution and supportive transfer valuations J.P. Morgan Securities plc

would further validate portfolio values. Krishna Sathwik Beechu

(91-22) 6157 5847

• CEO: Operationally, rental growth remained robust with a 6% uplift on settled krishna.s.beechu@jpmchase.com

rent reviews (3.2% annualised), while 29 asset management transactions, J.P. Morgan India Private Limited

including developments, lease regears and new lettings, were completed at an

average ~6% yield on cost. Cost discipline and the Assura merger benefits

drove further efficiency gains, reducing the EPRA cost ratio to below 9%.

Portfolio valuations remained stable, with NIY unchanged at 5.4% and

adjusted NTA flat at 104p/share.

• Deleveraging remains on track through the planned £0.7bn private

hospital JV, where terms have been agreed with a global institutional investor

on a 50:50 basis, alongside £103m of PFP assets being transferred into the USS

JV and £8m of disposals completed.

• The financial results reinforced the benefits of the Assura merger, with