Primary Health – Preliminary Results

Primary Health Properties PLC

Preliminary results for the year ended 31 December 2025

30-year track record of dividend growth in a structurally growing sector

Primary Health Properties PLC (“PHP”, the “Group” or the “Company”), the UK’s leading investor in critical healthcare infrastructure, announces its audited preliminary results for the year ended 31 December 2025.

Mark Davies, Chief Executive Officer (“CEO”) of PHP, commented:

“2025 was a transformational year for PHP, obtaining overwhelming shareholder and wider stakeholder support for the combination with Assura plc (“Assura”) to create a £6 billion healthcare REIT invested in critical social infrastructure assets across the UK and Ireland which will deliver financial and strategic benefits to our stakeholders. Our immediate focus is on delivering the post-transaction objectives of reducing leverage back to our targeted range of 40% to 50%; delivering the £9 million of annualised synergies identified; and integrating the two businesses to achieve the best of both organisations.

“In a short space of time and ahead of schedule, we have delivered over 80% of the annualised transaction synergies and offers have been received from highly credible investors to establish a new strategic joint venture on our private hospital portfolio. Alongside this, we have agreed commercial terms with our existing joint venture partner on primary care assets to inject a portfolio of £103 million which will help to reduce leverage back to our targeted range.

“The NHS’s 10-year Health Plan published in July 2025 is clearly positive for PHP. We welcome the Government’s commitment to strengthening the NHS, particularly its emphasis on shifting more services to modern primary care facilities embedded in local communities, enhanced by the NHS Neighbourhood Rebuild programme announced in the Autumn Budget. This plays directly to our strengths and our long-standing partnerships across the NHS give us a strong foundation to support this transition and deliver value to our shareholders.

“We are encouraged by the improving rental growth outlook underpinned by the Group’s primary care assets along with the solid trading performance from the recently acquired private hospital portfolio. Rental growth of 3.2% in 2025 was ahead of previous guidance and this trend has continued into 2026, with an annualised growth rate of 3.4% on rent reviews settled in the first two months.

“We have now achieved PHP’s 30-year anniversary of consecutive dividend growth and approach the future with a dedicated determination to continue growing our dividend on a fully covered basis.”

FINANCIAL AND OPERATIONAL HIGHLIGHTS (which include only 4.5 months of the merged Group)

Income statement metrics	Year to 31 December 2025	Year to 31 December 2024	Annual change
Net rental income1	£230m	£154m	+49%
Adjusted earnings1,2	£131m	£93m	+41%
Adjusted earnings per share1,2	7.3p	7.0p	+4%
IFRS profit after tax for the year	£119m	£41m	+190%
IFRS earnings per share2	6.6p	3.1p	+113%
Dividends
Dividend per share4	7.1p	6.9p	+3%
Dividend cover1	112%	101%
Balance sheet and operational metrics	31 December 2025	31 December 2024	Annual change
Property portfolio
Investment portfolio valuation (including JVs at share)	£6.0bn	£2.8bn	+115%
Contracted rent roll (annualised)1	£342m	£154m	+122%
Government-backed income1	76%	89%
Weighted average unexpired lease term (“WAULT”)1	10.8 years	9.4 years	+1.4 years
Occupancy1	99%	99%
Net initial yield (“NIY”)1,6	5.4%	5.2%	+20bps
Balance sheet
EPRA NTA per share1,3	99p	103p	-4%
IFRS NTA per share1,3	98p	103p	-5%
Debt
Average cost of debt1	3.7%	3.4%	+30 bps
Loan to value ratio1	57%	48%
Weighted average debt maturity – drawn facilities	4.1 years	5.7 years	-1.6 years
Total undrawn loan facilities and cash5	£571m	£271m

¹ Items marked with this footnote are alternative performance measures. Refer to the Glossary of Terms for a description of these measures and a reconciliation to the nearest statutory metric where appropriate.

² See note 7, earnings per share, to the financial statements. Per share figures are presented on a basic basis.

³ See note 7, net asset value per share, to the financial statements. Adjusted net tangible assets (“NTA”), EPRA NTA, EPRA net disposal value (“NDV”) and EPRA net reinstatement value (“NRV”) are considered to be alternative performance measures.

⁴ See note 8, dividends, to the financial statements.

⁵ After deducting the remaining cost to complete contracted acquisitions, properties under development and committed asset management projects.

⁶ Increase in the net initial yield (“NIY”) reflects the acquisition of Assura and change in the portfolio composition including private hospitals.

TRANSFORMATIONAL ACQUISITION OF ASSURA

• Combination between PHP and Assura successfully delivered, creating a £6 billion healthcare REIT investing in critical healthcare infrastructure

• On track to deliver annualised synergies identified at the time of the merger of £9 million with £7.5 million or 83% of total annualised synergies already delivered since Competition and Markets Authority (“CMA”) clearance, as integration moves forward at pace and the benefits of the combination are delivered for shareholders

• Good progress is being made on expanding the existing primary care joint venture and establishing a strategic joint venture for our private hospital portfolio, where we see exciting growth opportunities

EARNINGS AND DIVIDENDS

• Adjusted earnings per share up 4% at 7.3 pence (2024: 7.0 pence)

• IFRS earnings per share increased to 6.6 pence (2024: 3.1 pence) reflecting non-cashflow gains arising on the valuation of the Group’s property portfolio and interest rate derivatives

• Annualised contracted rent roll now stands at £342 million (2024: £154 million) with rent reviews and asset management in the year generating an additional £9 million of annualised income, an increase of just under 7% over the previous passing rent or over 3% on an annualised basis, which supports our positive rental growth outlook

• EPRA cost ratio 9.8% (2024: 10.1%), excluding Axis overheads and direct vacancy costs, representing one of the lowest in the UK REIT sector

• Quarterly dividends totalling 7.1 pence (2024: 6.9 pence) per share distributed in the year, a 3% increase, and fully covered

• Second quarterly dividend of 1.825 pence per share declared and payable on 8 May 2026, equivalent to 7.3 pence on an annualised basis and a 3% increase over the 2025 dividend per share, marking the start of the Company’s 30th consecutive year of dividend growth

The Company intends to maintain its strategy of paying a progressive, fully covered dividend

NET ASSET VALUE AND PORTFOLIO MANAGEMENT

• EPRA Net Tangible Assets (“NTA”) per share decreased by 4% to 99 pence (31 December 2024: 103 pence), as a result of shares issued in relation to the combination with Assura and transaction costs. Adjusted NTA, including the MtM benefit of fixed rate debt, currently stands at 104 pence per share

• IFRS NTA per share decreased by 5% to 98 pence (31 December 2024: 103 pence)

• Property portfolio valued at £6.0 billion at 31 December 2025 (31 December 2024: £2.8 billion) reflecting a net initial yield of 5.4% (31 December 2024: 5.2%), increase in yield reflects the addition of the higher returning private hospital portfolio

• Revaluation surplus in the year of £48 million (2024: deficit £38 million), representing an increase of 0.8% (2024: decrease of 1.4%) driven by a £72 million gain from rental growth and asset management, offset by a small NIY movement of 3 bps equivalent to around £24 million

• The portfolio’s metrics continue to reflect the Group’s secure, long-term and predictable income stream characterised by high occupancy at 99% (31 December 2024: 99%); long WAULT of 10.8 years (31 December 2024: 9.4 years); and 76% (31 December 2024: 89%) of income funded by government bodies with strategy to increase this within 80% to 90% target range

• The reversionary potential of the enlarged Group’s primary care portfolio continues to remain strong with a current average rent of c.£200 psm (c.£20 psf) capable of being increased over time

• New asset management and development projects are starting to see rents being rebased to an average of £218 psm and £277 psm respectively, which make these schemes economically viable, providing crucial evidence to support our rent review activities across the wider portfolio in the future

• Private hospitals and Ireland now comprise 13% and 6% respectively of the enlarged Group’s portfolio with both markets offering strong and attractive growth opportunities together with the continued need for significant investment required into healthcare infrastructure to support the governments and NHS’s 10-year plan objectives.

FINANCIAL MANAGEMENT

• Strong support from the debt and credit markets for the combination with the refinancing of Assura debt facilities, subject to change of control clauses, now complete providing the enlarged Group with significant undrawn liquidity headroom, after capital commitments, of £571 million

• Weighted average cost of debt of 3.7% (2024: 3.4%) and debt maturities of just over four years

• Net debt drawn at 31 December 2025 of £3.4 billion out of total debt facilities of £4.0 billion comprising £1.5 billion (37%) of PHP secured facilities and £2.5 billion (63%) of unsecured facilities including the bridging loan provided to finance the combination with Assura

• LTV ratio 57% (31 December 2024: 48%), temporarily above the Group’s targeted range of between 40% to 50% because of the combination, with a clear plan to reduce this during 2026

• Well placed to continue delivering shareholder returns as combination has brought a deeper capability set, larger pipeline and more opportunities