Primary Health Properties, a major investor in healthcare infrastructure in the UK and Ireland, has reported rental growth slightly ahead of its guidance for the third quarter ending September. The company stated it was encouraged by recent investment transactions in its sector at supportive valuations. This update comes as the company continues to focus on its portfolio of critical healthcare infrastructure assets.
In the first nine months of the year, Primary Health Properties generated an extra £5.8m of income, representing a total increase of 6.1% over the previous rent of £96m, equivalent to 3.1% on an annualised basis. The company's portfolio is performing well, with Primary Care UK up 2.8%, and both Private Hospitals and Ireland up 3.7%. All parts of the portfolio are reportedly doing "very well".
CEO Mark Davies highlighted the security and longevity of rental income from GPs, the UK's National Health Service, the Health Service Executive in Ireland, and proven private healthcare operators. The company's focus is on completing its previously announced deleveraging plan, with key transactions with joint venture partners on track. Davies expressed satisfaction with the progress of these transactions.
The company has made progress on asset management and risk-controlled development projects. Recent significant asset management projects in Wakefield and Yeovil have increased clinical space to enhance healthcare services and set a positive rental tone in the locality. The company continues to target further value-generating asset management projects.
One of the ongoing projects is the £6.5m extension to Tees Valley Hospital in Middlesborough, which has moved on-site in the quarter. Primary Health Properties currently has five new build development projects across the UK and Ireland, all of which remain on track for completion on time and on budget.
The company's enhanced development capability has resulted in a growing pipeline of risk-controlled development opportunities across the UK. This includes schemes meeting the criteria of Neighbourhood Health Centres and a strategic partnership with East of England Ambulance Service Trust for the delivery of new ambulance hubs. These projects are expected to be funded through the existing primary care joint venture.
Primary Health Properties completed the integration of Assura during the period and expects to deliver its financial synergies ahead of plan. The company completed its acquisition of Assura in a cash-and-share deal valued at £1.79bn in August 2025. The acquisition has expanded the company's presence in the healthcare infrastructure market.
Key points
- Primary Health Properties reports rental growth of 6.1% over the previous rent of £96m.
- The company's portfolio is performing well, with all parts seeing growth.
- Primary Health Properties has a growing pipeline of risk-controlled development opportunities across the UK.
