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 | 1 |
KEY HIGHLIGHTS
STRONG SECTOR FUNDAMENTALS
AND FOCUS ON INCOME DRIVE
EARNINGS AND DIVIDEND
GROWTH
Primary Health Properties PLC Half Year Results Presentation 2022 | 2 |
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 | 3 |
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 | |||||||||||||||||
- 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 | 4 |
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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.