Outlook

We have delivered greatly improved performance in 2014, through earnings and valuation growth, significantly rebuilding dividend cover. As we move into 2015, we have continued to grow the Group’s property portfolio through prudent acquisitions and development funding and to secure further enhancement and extension projects driving additional income and asset value from existing owned properties.

Property markets have thrived in the last 12 months with a weight of capital seeking quality assets and in particular longer dated income streams. We will seek to add further assets but will do so where the underlying fundamentals meet our exacting criteria and where properties offer the potential for both income and capital growth. Our acquisition pipeline includes a mix of investment and development opportunities which will generate rental surpluses that will increase Group earnings.

A full year’s impact of restructuring the basis of, and fee rates for, the provision of property management and administration services to the Group will be seen in 2015, helping to further improve earnings from effective cost management.

PHP is well placed to continue to be a major contributor to the ongoing development and modernisation of the primary care estate. The General Election will shift the focus of government in the periods immediately before and following 7 May 2015 and will further slow the pace of change within the NHS. We take comfort, however, from the statements from all of the political parties that underline that the GP will remain the gatekeeper to the NHS and that increased GP numbers and integration of care will see the demand for the modern premises that PHP provides will continue to grow.

Harry Hyman
Managing Director
18 Feburary 2015