# Primary Health Properties – sitting on solid ground

By Aarin Chiekrie — 2026-03-17

Aarin Chiekrie, equity analyst, Hargreaves Lansdown, said: “Primary Health Properties (PHP) delivered a clean bill of health at its full-year results, with net rental income jumping 49% higher to £230million, helped by last year’s £1.6billion acquisition of Assura. Both companies focus on primary healthcare sites across the UK and Ireland, where demand for high-quality facilities is expected to rise. PHP has historically been the stronger operator, suggesting scope for more cost savings and improvements to Assura’s portfolio.

“The Assura deal has stretched the balance sheet, pushing the loan-to-value ratio ahead of the group’s target range. Plans are afoot to shore up the balance sheet, with asset sales and trimming overlapping costs between the two businesses key to the plan, which should see debt levels return to the target range of 40-50% in 2026.

“Dividends are a key part of the investment case, and PHP has a strong track record, entering its 30th consecutive year of dividend growth. With a prospective dividend yield of 7.3% and an undemanding valuation, PHP looks like a solid long-term choice. However, the recent spike in oil prices has brought inflationary pressures, pushing expectations of rate cuts further down the road, which is unfavourable for the group’s property valuations. As a result, there could be near-term volatility.”

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