Primary Health Properties rental growth continues in Q1

(Sharecast News) - Real estate investment firm Primary Health Properties said on Wednesday that rental growth had continued to improve in the first quarter, with £3m of additional income generated from 199 completed rent reviews.

Primary Health said the reviews delivered an average uplift of around 6% on £54m of passing rent, equivalent to 3.4% on an annualised basis, with gains seen across its enlarged portfolio - UK primary care up 2.9%, private hospitals 3.7% and Ireland 4.4%.

The FTSE 250-listed group, which now has an annualised contracted rent roll of £345m, said it had made "considerable progress" on establishing a new strategic vehicle for its privatehospital assets, aimed at reducing gearing and providing an alternative source of capital. It said a shortlist of potential partners was in place and that it expects to announce a transaction in the summer.

Costsaving plans also advanced, with £7.8m of annualised synergies delivered to date - 87% of its £9m target - as PHP begins a wider rationalisation programme.

Looking ahead, Primary Health reiterated its progressive dividend policy, noting that its secondquarter payout of 1.825p per share marked its 30th consecutive year of dividend growth.

Chief executive Mark Davies said: "The first quarter of 2026 was a strong start to the year, with a continued focus on asset management and risk-controlled development, with organic rental growth from the enlarged portfolio's rent reviews delivering an extra £3m of income, an increase of circa 6% or 3.4% on an annualised basis (up from 3.2% in 2025)."

As of 1010 BST, Primary Health shares were down 0.64% at 93p.

Reporting by Iain Gilbert at Sharecast.com

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