Primary Health Properties (PHP)

[BullDog]

Mr Market seems happy enough today with PHP. Base rate held is good news too.

A good shareprice rise (7.5%) today following US inflation results and the hope/expectation that UK rates will also track downward. The shorters won't be happy! ( PHP is in the top 10).


https://www.shorttracker.co.uk/companies/?sort=2&d=desc

Couldn't happen to a nicer bunch of people.

[idpickering]

Notice of Interim Dividend

The Company announces that the first quarterly interim dividend in 2024 of 1.725 pence per ordinary share of 12.5 pence each will be paid as to 1.45 pence by way of a Property Income Distribution ("PID") and the remainder as an ordinary dividend on 23 February 2024 to shareholders on the register on 12 January 2024.

https://www.investegate.co.uk/announcem ... nd/7973963

Ian (I hold, and am topping up my PHP holdings tomorrow).

[monabri]

Link to PHP's Investor Page

https://www.phpgroup.co.uk/investors/re ... entations/

What caught my eye was the report linked on the PHP website which was produced by Avison Young titled

"Changing tides in primary healthcare: what does value for money look like today?"

[Avison Young is a global commercial real estate services firm, headquartered in Toronto, with more than 100 offices in 15 countries. Avison Young was founded in 1978.]

This (short) report is dated October 2023.



Did this report lead to the increased shorting?



I suspect PHP commissioned the report as a means to flag up :--

- PHP need to increase rents to continue to be viable.
- The facilities PHP provide are needed by the NHS.

Whether PHP can obtain higher rents from a cash strapped government is debatebale....the government seems unwilling to pay doctors more and is digging it's heels in so I think there will be less political pressure to provide more funds to " Big business and it's shareholders ".

[BullDog]

Link to PHP's Investor Page

https://www.phpgroup.co.uk/investors/re ... entations/

What caught my eye was the report linked on the PHP website which was produced by Avison Young titled

"Changing tides in primary healthcare: what does value for money look like today?"

[Avison Young is a global commercial real estate services firm, headquartered in Toronto, with more than 100 offices in 15 countries. Avison Young was founded in 1978.]

This (short) report is dated October 2023.



Did this report lead to the increased shorting?



I suspect PHP commissioned the report as a means to flag up :--

- PHP need to increase rents to continue to be viable.
- The facilities PHP provide are needed by the NHS.

Whether PHP can obtain higher rents from a cash strapped government is debatebale....the government seems unwilling to pay doctors more and is digging it's heels in so I think there will be less political pressure to provide more funds to " Big business and it's shareholders ".

Thanks for flagging that up. I suspect there's better prospects elsewhere in the REIT sector now that peak interest rates seem to be in for this cycle. I can't see a future labour government being too generous towards PHP and peers. The money that will inevitably be sprayed around the NHS by Starmer and friends will mostly end up in the doctor's pockets. I expect. It usually does.

[simoan]

Link to PHP's Investor Page

https://www.phpgroup.co.uk/investors/re ... entations/

What caught my eye was the report linked on the PHP website which was produced by Avison Young titled

"Changing tides in primary healthcare: what does value for money look like today?"

Did this report lead to the increased shorting?

I suspect PHP commissioned the report as a means to flag up :--

- PHP need to increase rents to continue to be viable.
- The facilities PHP provide are needed by the NHS.

Whether PHP can obtain higher rents from a cash strapped government is debatebale....the government seems unwilling to pay doctors more and is digging it's heels in so I think there will be less political pressure to provide more funds to " Big business and it's shareholders ".

IMO the short position is a red herring. I would ignore it. It is likely that shorting is being used by holders of the convertible bonds to protect the downside of their bond holdings which are well out of the money currently. I suspect the conversion price will be adjusted down again but not enough to compensate for the difference with the current share price. I believe we've discussed the dilutive nature of the convertible previously. As to the rest, it's beyond my pay grade, but what I do know is that the NHS is in a long term process of distributing health care services into local communities to reduce the overhead on main hospitals and that PHP health centres are a reasonable REIT play on this theme.

[monabri]

Link to PHP's Investor Page

https://www.phpgroup.co.uk/investors/re ... entations/

What caught my eye was the report linked on the PHP website which was produced by Avison Young titled

"Changing tides in primary healthcare: what does value for money look like today?"

Did this report lead to the increased shorting?

I suspect PHP commissioned the report as a means to flag up :--

- PHP need to increase rents to continue to be viable.
- The facilities PHP provide are needed by the NHS.

Whether PHP can obtain higher rents from a cash strapped government is debatebale....the government seems unwilling to pay doctors more and is digging it's heels in so I think there will be less political pressure to provide more funds to " Big business and it's shareholders ".

IMO the short position is a red herring. I would ignore it. It is likely that shorting is being used by holders of the convertible bonds to protect the downside of their bond holdings which are well out of the money currently. I suspect the conversion price will be adjusted down again but not enough to compensate for the difference with the current share price. I believe we've discussed the dilutive nature of the convertible previously. As to the rest, it's beyond my pay grade, but what I do know is that the NHS is in a long term process of distributing health care services into local communities to reduce the overhead on main hospitals and that PHP health centres are a reasonable REIT play on this theme.

Thank you for highlighting the discussion, Simoan. It was over on the REITS & Properties board (thus HYP P readers might not have seen the discussion).

viewtopic.php?p=623004#p623004

[simoan]

IMO the short position is a red herring. I would ignore it. It is likely that shorting is being used by holders of the convertible bonds to protect the downside of their bond holdings which are well out of the money currently. I suspect the conversion price will be adjusted down again but not enough to compensate for the difference with the current share price. I believe we've discussed the dilutive nature of the convertible previously. As to the rest, it's beyond my pay grade, but what I do know is that the NHS is in a long term process of distributing health care services into local communities to reduce the overhead on main hospitals and that PHP health centres are a reasonable REIT play on this theme.

Thank you for highlighting the discussion, Simoan. It was over on the REITS & Properties board (thus HYP P readers might not have seen the discussion).

viewtopic.php?p=623004#p623004

Thanks, I couldn't find it. Only 18 months to go before the convertible bond matures. I think the main thing to remember is that short positions are often used to hedge a long position; it does not necessarily mean the shorter is betting purely on the share price declining. I don't know who the major holders of the convertibles are so it could be worth doing research to see if the same institutions are those that are short.

[idpickering]

Notice of Preliminary Results

Primary Health Properties PLC (LSE: PHP), one of the UK's leading investors in modern primary healthcare facilities, will announce its preliminary results for the year ended 31 December 2023 on Wednesday, 28 February 2024.

A presentation for analysts will be held at Buchanan Communications on the day of results at 9.30am UK time (11.30am SAST) and will also be accessible via live video webcast and a live conference call facility. Following the presentation there will be a moderated Q&A session.

https://www.investegate.co.uk/announcem ... s-/7986523

Ian.

[idpickering]

Change of Time: Preliminary Results

As previously announced, Primary Health Properties PLC (LSE: PHP), one of the UK's leading investors in modern primary healthcare facilities, will announce its preliminary results for the year ended 31 December 2023 on Wednesday, 28 February 2024.

The presentation for analysts will be held at Buchanan Communications on the day of results at the later time of 10.30am UK time (12.30pm SAST) and will also be accessible via live video webcast and a live conference call facility. Following the presentation there will be a moderated Q&A session.

To access the briefing, please log on or dial in shortly before 10.30am UK time (12.30pm SAST) via the details below:

https://www.investegate.co.uk/announcem ... s-/7998951

Ian (I hold).

[Dod101]

So the results are due next week. If the share price is anything to go by they will not be very exciting. Now quoted under 90p.

Dod

[monabri]

So the results are due next week. If the share price is anything to go by they will not be very exciting. Now quoted under 90p.

Dod

That's the way I like it as the song goes! Boring is good. Interest rates being 'higher for longer' is providing a good entry point IMHO.

[Dod101]

So the results are due next week. If the share price is anything to go by they will not be very exciting. Now quoted under 90p.

Dod

That's the way I like it as the song goes! Boring is good. Interest rates being 'higher for longer' is providing a good entry point IMHO.

That is one way to look at it but we are spoilt for choice at the moment re ‘entry points’

Dod

[idpickering]

That's the way I like it as the song goes! Boring is good. Interest rates being 'higher for longer' is providing a good entry point IMHO.

Agreed on all points. In fact I topped up my PHP holdings recently.

Ian.

[idpickering]

Preliminary results for the year ended 31 December 2023

Primary Health Properties PLC ("PHP", the "Group" or the "Company"), a leading investor in modern primary health facilities, announces its audited preliminary results for the year ended 31 December 2023.

Harry Hyman, Chief Executive, commented:

"We are encouraged by the organic rental growth achieved in 2023, resulting in another record year with an additional £4.3 million generated from our rent review and asset management activities. The strong rental growth in the year has been reflected in the positive total property return, significantly ahead of the wider property market.

"Furthermore, with over 97% of PHP's debt either fixed or hedged, a strong control on costs, significant liquidity headroom and just one development on site we have limited exposure to further cost increases and development risk.

"The high quality of PHP's portfolio reflects the security and longevity of our income with 89% government funded, near full occupancy and continued rental growth which are key drivers of our predictable cash-flows and underpin our progressive dividend policy with 28 years of continued growth. With a market leading portfolio across the UK, and increasingly in Ireland, we are well positioned for long-term success."

And later;

Dividends

The Company distributed a total of 6.7 pence per share in 2023, an increase of 3.1% over the 2022 dividend of 6.5 pence per share. The total value of dividends distributed in the year increased by 3.2% to £89.5 million (2022: £86.7 million), which were fully covered by adjusted earnings. During 2023, the scrip dividend scheme continued to be suspended in light of the ongoing weakness in the share price and a dividend re-investment plan is being offered in its place.

The first interim dividend of 1.725 pence per share was declared on 4 January 2024, equivalent to 6.9 pence on an annualised basis, which represents an increase of 3.0% over the dividend distributed per share in 2023. The dividend was paid to shareholders on 23 February 2024 who were on the register at the close of business on 12 January 2024. The dividend will be paid by way of a property income distribution of 1.45 pence and normal dividend of 0.275 pence.

The Company intends to maintain its strategy of paying a progressive dividend, paid in equal quarterly instalments, that is covered by adjusted earnings in each financial year. Further dividend payments are planned to be made on a quarterly basis in May, August and November 2024 which are expected to comprise a mixture of both property income distribution and normal dividend.

https://www.investegate.co.uk/announcem ... s-/8059628

Ian (I hold).

[Dod101]

Nothing very interesting here. A modest increase in the dividend and continuing volatility in the valuation. Hopefully as and when interest rates start to fall we may see some recovery.

Dod

[idpickering]

Nothing very interesting here. A modest increase in the dividend and continuing volatility in the valuation. Hopefully as and when interest rates start to fall we may see some recovery.

Dod

Thanks for your input Dod. That's my thinking on this too. Either way, I'm not selling my PHP shares and intend holding them 'forever'.

Ian.

[simoan]

Interview with CEO and soon to be Chairman Harry Hyman on Sky Business news yesterday (starts 4 minutes in): https://m.youtube.com/watch?v=8MmG-Chm3Sw

[idpickering]

Notice of Interim Dividend.

The Company announces that the second quarterly interim dividend in 2024 of 1.725 pence per ordinary share of 12.5 pence each will be paid as to 1.45 pence by way of a Property Income Distribution ("PID") and the remainder as an ordinary dividend on 17 May 2024 to shareholders on the register on 2 April 2024.

https://www.investegate.co.uk/announcem ... nd/8098853

Ian.