Broker Shore Capital highlights PHP’s progress on capital recycling and debt reduction as it evaluates offers for a £700M healthcare joint venture.
Primary Health Properties PLC (LSE:PHP) is in advanced talks to establish a joint venture for its £700 million private hospital portfolio, according to broker analysis. Offers are under evaluation, with a targeted completion by summer 2026, ahead of the previously outlined schedule.
The move aligns with PHP’s strategy to recycle capital through disposals and joint ventures, aiming to reduce portfolio leverage to 40%-50% and lower net debt to below 9.5 times earnings. The company has already delivered £7.8 million of £9 million in merger cost synergies and maintained 30 years of consecutive dividend growth.
Shore Capital forecasts an 8% dividend yield, supported by organic rental growth and earnings accretion in the current financial year. PHP also secured contracts for three NHS Neighbourhood Health Centres, reinforcing its position in the healthcare real estate sector.