INVESTING FOR THE FUTURE

Primary Health Properties PLC

Half Year Results Presentation 2022

AGENDA

KEY HIGHLIGHTS DIVIDEND TRACK RECORD STRONG RELATIVE PERFORMANCE FINANCIAL REVIEW

PROPERTY REVIEW PIPELINE AND OUTLOOK APPENDICES

Primary Health Properties PLC Half Year Results Presentation 2022

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KEY HIGHLIGHTS

STRONG SECTOR FUNDAMENTALS

AND FOCUS ON INCOME DRIVE

EARNINGS AND DIVIDEND

GROWTH

Primary Health Properties PLC Half Year Results Presentation 2022

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(2021: 100%)

KEY HIGHLIGHTS

Strong sector fundamentals and focus on income drive earnings and dividend growth

Long-term demographic, macro and political trends supportive across UK and Ireland

  • Populations are growing, ageing and suffering more instances of chronic illness
  • Increasing patient demand for services affecting service provision, patient care and outcomes
  • Obsolete estate (c.40%) and COVID-19 added to increasing strain being put on healthcare systems
  • NHS strategic move of transferring services away from hospital settings to modern primary care premises
  • Impact of digital being outweighed by increasing demand for services

Disciplined approach to shareholder returns and capital deployment

  • 26 years of consecutive dividend growth: 6.5p per share +4.8% (2021: 6.2p +5.1%)
  • Dividend cover at 103% (FY 2021: 101%)
  • Total accounting return +6.3% (H1 2021: +5.0%)
  • Total property return +4.3% (H1 2021: +5.2%)
  • Disciplined investment in a robust investment market: three assets acquired for £49m (2021: £87m)
  • Disposal of 13 smaller assets for £27.7m, 13% above Dec.21 book values representing 60bps of yield compression
  • Attractive pipeline across investment, development and asset management opportunities to grow portfolio
    Focus on income growth
  • Firmer tone of rental growth driving strong property returns and earnings growth
  • L4L rental growth in H1 2022: £1.8m +1.3% (H1 2021: £1.3m +1.0%; FY 2021: £2.4m +1.8%)
  • Refinancing's in 2021 and 2022 delivering significant interest cost savings

26 years of consecutive dividend growth

Portfolio

£2.9 billion (2021: £2.8 billion)

Rent roll

£144 million (2021: £141 million)

Government backed income

89% (2021: 90%)

Index linked income

25% (2021: 25%)

Occupancy

99.7% (2021: 99.7%)

WAULT

11.4 years (2021: 11.6 years)

Net debt: fixed or hedged 95%

Primary Health Properties PLC Half Year Results Presentation 2022

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26 YEARS OF CONSECUTIVE DIVIDEND GROWTH

7.0

Historic dividend progression CAGR 8.7%1

E 6.50p

Implied PHP 2022 dividend yield2

6.20p

6.0

5.90p

Share price3

Yield

5.25p

5.40p

5.60p

5.125p

5.0

143.7p

4.5%

4.63p

4.75p

4.88p

5.00p

4.25p

4.38p

4.50p

4.13p

4.0

3.75p

3.38p

3.00p

3.0

2.75p

2.25p

2.50p

- Q3

2.00p

2.0

1.50p

1.75p

1.40p

Q1

  1. 0.80p

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

120%

100%

80%

60%

40%

20%

0%

1.

2.

3.

Historic dividend cover

98% 100% 100% 101% 101% 100% 101% 103%

84%

57%

2013

2014

2015

2016

2017

2018

2019

2020

2021

H1 2022

CAGR: 1997 to 2022

Based on Q1-Q3 2022 dividend of 1.625p paid or declared per share annualised and is illustrative only Share price is the closing mid market price on 26 July 2022

  • Q1 to Q3 2022 dividend of 1.625p per quarter paid or declared (equivalent to 6.5p annualised) a 4.8% increase and 26th year of growth
  • Improved dividend cover at 103%
  • Total dividends paid increased by 5.4% compared to H1 2021

Primary Health Properties PLC Half Year Results Presentation 2022

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Primary Health Properties plc published this content on 27 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 July 2022 06:11:07 UTC.