Primary Health Properties Interims.

[idpickering]

DELIVERING EARNINGS AND DIVIDEND GROWTH

· Adjusted EPRA earnings per share increased by 7.1% to 3.0p (30 June 2019: 2.8p)

· Average uplift of 2.2% per annum on rent reviews completed in the period, continuing the positive trend in rental growth (FY 2019: 1.9%; FY 2018: 1.4%)

· Additional annualised rental income on a like-for-like basis of £0.9 million or 0.7%, from rent reviews and asset management projects (FY 2019: £1.9 million or 1.5%; FY 2018: £1.3 million or 1.8%)

· Contracted annualised rent roll increased by 4.4% to £133.3 million (31 December 2019: £127.7 million)

· Portfolio of 22 purpose-built medical centres acquired, one of which was acquired on 1 July 2020, for £54 million with good asset management opportunities

· Three forward funded developments acquired in the period with a net development cost of £23.0 million at Arklow, Ireland, Epsom, Surrey and Llanbradach, Wales

· Two quarterly dividends totalling 2.95p per share distributed in the period and third quarterly dividend of 1.475p per share declared, payable on 21 August 2020, equivalent to 5.9p on an annualised basis. This represents a 5.4% increase over the 2019 dividend per share and will mark the Company's 24th consecutive year of dividend growth

· The Company intends to make a further dividend payment in November 2020 and maintain its strategy of paying a progressive dividend, in equal quarterly instalments, covered by underlying earnings in each financial year

https://www.investegate.co.uk/primary-h ... 00073926U/

[Arborbridge]

An interesting one - I notice the SP has been broadly in a downtrend since the beginning of the year. Hopefully some of the froth is coming off, enabling HYPers to get a better yield for topups. At 3.7% it's still on my watch list!

Arb.

[idpickering]

An interesting one - I notice the SP has been broadly in a downtrend since the beginning of the year. Hopefully some of the froth is coming off, enabling HYPers to get a better yield for topups. At 3.7% it's still on my watch list!

Arb.

Agreed Arb. I'd love to top up my PHP holdings, but would like to buy it a bit cheaper. I'm torn between waiting for the unknowable variations, hopefully a downturn, in the PHP share price, or just bite the bullet, and accept the lower yield?

Ian.

[Dod101]

You may wait a while, although the price is off its peak. It annoys me that existing shareholders like me are always being diluted as they continue to place new shares to raise additional capital, but it is a very steady performer. You could look at Assura, another company in the same sector, although I know nothing of them.

Dod

[Arborbridge]

You may wait a while, although the price is off its peak. It annoys me that existing shareholders like me are always being diluted as they continue to place new shares to raise additional capital, but it is a very steady performer. You could look at Assura, another company in the same sector, although I know nothing of them.

Dod

Occupational hazard with this type of developer. The same caveat was given about Tritax BBox too, though I believe they have your preferred rights issue direction.

[Arborbridge]

An interesting one - I notice the SP has been broadly in a downtrend since the beginning of the year. Hopefully some of the froth is coming off, enabling HYPers to get a better yield for topups. At 3.7% it's still on my watch list!

Arb.

Agreed Arb. I'd love to top up my PHP holdings, but would like to buy it a bit cheaper. I'm torn between waiting for the unknowable variations, hopefully a downturn, in the PHP share price, or just bite the bullet, and accept the lower yield?

Ian.

I notice the next xd is around early October, so you has a little while to picker before then

[tjh290633]

Just a reminder that this was announced on 25th June, see https://www.investegate.co.uk/primary-h ... 00079960Q/, if you seek the XD details.

The Company announces that the third quarterly interim dividend in 2020 of 1.475 pence per ordinary share of 12.5 pence each will be paid on 21 August 2020 to shareholders on the register on 3 July 2020. The dividend will comprise a Property Income Distribution (PID) of 1.275 pence per share and an ordinary dividend of 0.2 pence per share. The Company will be offering a scrip alternative with this dividend.

TJH

[idpickering]

Just a reminder that this was announced on 25th June, see https://www.investegate.co.uk/primary-h ... 00079960Q/, if you seek the XD details.

The Company announces that the third quarterly interim dividend in 2020 of 1.475 pence per ordinary share of 12.5 pence each will be paid on 21 August 2020 to shareholders on the register on 3 July 2020. The dividend will comprise a Property Income Distribution (PID) of 1.275 pence per share and an ordinary dividend of 0.2 pence per share. The Company will be offering a scrip alternative with this dividend.

TJH

Thanks for that Terry. I hold these in my ISA, and haven't come across PID before. What's that entail for the likes of me please? ISA held with Halifax btw.

Thanks,

Ian.

[MDW1954]

An interesting one - I notice the SP has been broadly in a downtrend since the beginning of the year. Hopefully some of the froth is coming off, enabling HYPers to get a better yield for topups. At 3.7% it's still on my watch list!

Arb.

Agreed Arb. I'd love to top up my PHP holdings, but would like to buy it a bit cheaper. I'm torn between waiting for the unknowable variations, hopefully a downturn, in the PHP share price, or just bite the bullet, and accept the lower yield?

Ian.

There are plenty of other attractive-looking REITs and quasi-REITs out there, not priced at such a premium. See our earlier conversations. I didn't buy into WHR's recent rights issue, but continue to like the company. WHR, ASLI, LXI, BSIF, UKW, HICL, etc -- all have held up fairly well, and all HYPable within the remit of this board, if that's a concern.

MDW1954

[Dod101]

PID means Property Income Distribution, paid net of basic rate tax, but most ISA/SIPP managers will recover it for you and pay it about 6 weeks or so after the dividend is paid. Some REITS will also pay an ordinary dividend at the same time.

Dod

[MDW1954]

Just a reminder that this was announced on 25th June, see https://www.investegate.co.uk/primary-h ... 00079960Q/, if you seek the XD details.

The Company announces that the third quarterly interim dividend in 2020 of 1.475 pence per ordinary share of 12.5 pence each will be paid on 21 August 2020 to shareholders on the register on 3 July 2020. The dividend will comprise a Property Income Distribution (PID) of 1.275 pence per share and an ordinary dividend of 0.2 pence per share. The Company will be offering a scrip alternative with this dividend.

TJH

Thanks for that Terry. I hold these in my ISA, and haven't come across PID before. What's that entail for the likes of me please? ISA held with Halifax btw.

Thanks,

Ian.

Ian,

PIDs are what you've been getting from British Land for all these years, if I recollect your holdings correctly, and are also what you're now getting from PHP. Not exclusively -- there is a dividend element -- but PIDs make up most of your income from these.

MDW1954

[idpickering]

There are plenty of other attractive-looking REITs and quasi-REITs out there, not priced at such a premium. See our earlier conversations. I didn't buy into WHR's recent rights issue, but continue to like the company. WHR, ASLI, LXI, BSIF, UKW, HICL, etc -- all have held up fairly well, and all HYPable within the remit of this board, if that's a concern.

MDW1954

Thanks for that Malcolm. I have had a look at Tritax Big Box BBOX this morning already, mind you they're riding high too. I'll look at the others too.

Ian.

[Dod101]

An interesting one - I notice the SP has been broadly in a downtrend since the beginning of the year. Hopefully some of the froth is coming off, enabling HYPers to get a better yield for topups. At 3.7% it's still on my watch list!

Arb.

Agreed Arb. I'd love to top up my PHP holdings, but would like to buy it a bit cheaper. I'm torn between waiting for the unknowable variations, hopefully a downturn, in the PHP share price, or just bite the bullet, and accept the lower yield?

Ian.

There are plenty of other attractive-looking REITs and quasi-REITs out there, not priced at such a premium. See our earlier conversations. I didn't buy into WHR's recent rights issue, but continue to like the company. WHR, ASLI, LXI, BSIF, UKW, HICL, etc -- all have held up fairly well, and all HYPable within the remit of this board, if that's a concern.

MDW1954

It is priced at a premium for a reason, in this case because of the perceived security of the rent income, but you pays your money........

[idpickering]

Ian,

PIDs are what you've been getting from British Land for all these years, if I recollect your holdings correctly, and are also what you're now getting from PHP. Not exclusively -- there is a dividend element -- but PIDs make up most of your income from these.

MDW1954

Once again, thank you Malcolm. Yes I held BLND for a few years, and was unaware of this PID thing. I'm all for learning, so thank you.

Ian.

[idpickering]

It is priced at a premium for a reason, in this case because of the perceived security of the rent income, but you pays your money........

I hear you Dod. Thanks for your input.

Ian.

[dealtn]

Just a reminder that this was announced on 25th June, see https://www.investegate.co.uk/primary-h ... 00079960Q/, if you seek the XD details.

The Company announces that the third quarterly interim dividend in 2020 of 1.475 pence per ordinary share of 12.5 pence each will be paid on 21 August 2020 to shareholders on the register on 3 July 2020. The dividend will comprise a Property Income Distribution (PID) of 1.275 pence per share and an ordinary dividend of 0.2 pence per share. The Company will be offering a scrip alternative with this dividend.

TJH

Thanks for that Terry. I hold these in my ISA, and haven't come across PID before. What's that entail for the likes of me please? ISA held with Halifax btw.

Thanks,

Ian.

Not sure what you mean by "entail". PID is a distribution, not a dividend, and is taxed differently. In short though if you have them in an ISA then they will be paid gross of tax, and you aren't liable to pay tax (or declare on your tax return). PHP normally pays its "dividend" (sic) in this way, part PID, part non-PID. You will possibly receive 2 distributions, depending on how Halifax does its administration of the payment from PHP to it for ISA accounts.

I assume you are a recent holder as the same would have happened last quarter for you to refer back to (22nd May to be precise).

[idpickering]

Just a reminder that this was announced on 25th June, see https://www.investegate.co.uk/primary-h ... 00079960Q/, if you seek the XD details.

TJH

Thanks for that Terry. I hold these in my ISA, and haven't come across PID before. What's that entail for the likes of me please? ISA held with Halifax btw.

Thanks,

Ian.

Not sure what you mean by "entail". PID is a distribution, not a dividend, and is taxed differently. In short though if you have them in an ISA then they will be paid gross of tax, and you aren't liable to pay tax (or declare on your tax return). PHP normally pays its "dividend" (sic) in this way, part PID, part non-PID. You will possibly receive 2 distributions, depending on how Halifax does its administration of the payment from PHP to it for ISA accounts.

I assume you are a recent holder as the same would have happened last quarter for you to refer back to (22nd May to be precise).

Thanks for your input. I meant, do I have to do anything? I get it now, and am a recent new buyer of this share. We live and learn.

Ian.

[dealtn]

Thanks for that Terry. I hold these in my ISA, and haven't come across PID before. What's that entail for the likes of me please? ISA held with Halifax btw.

Thanks,

Ian.

Not sure what you mean by "entail". PID is a distribution, not a dividend, and is taxed differently. In short though if you have them in an ISA then they will be paid gross of tax, and you aren't liable to pay tax (or declare on your tax return). PHP normally pays its "dividend" (sic) in this way, part PID, part non-PID. You will possibly receive 2 distributions, depending on how Halifax does its administration of the payment from PHP to it for ISA accounts.

I assume you are a recent holder as the same would have happened last quarter for you to refer back to (22nd May to be precise).

Thanks for your input. I meant, do I have to do anything? I get it now, and am a recent new buyer of this share. We live and learn.

Ian.

It would be different were you to hold then outside a "wrapper" but that's not the case. Enjoy the money!

[MDW1954]

Thanks for that Terry. I hold these in my ISA, and haven't come across PID before. What's that entail for the likes of me please? ISA held with Halifax btw.

Thanks,

Ian.

Not sure what you mean by "entail". PID is a distribution, not a dividend, and is taxed differently. In short though if you have them in an ISA then they will be paid gross of tax, and you aren't liable to pay tax (or declare on your tax return). PHP normally pays its "dividend" (sic) in this way, part PID, part non-PID. You will possibly receive 2 distributions, depending on how Halifax does its administration of the payment from PHP to it for ISA accounts.

I assume you are a recent holder as the same would have happened last quarter for you to refer back to (22nd May to be precise).

Thanks for your input. I meant, do I have to do anything? I get it now, and am a recent new buyer of this share. We live and learn.

Ian.

REITs pay PIDS and sometimes dividends as well. With PHP you'll get both, with some REITs you might get PIDs every quarter and a dividend once or twice a year, as well. It varies. And no, inside an ISA you don't need to do anything.

MDW1954

[Dod101]

dealtn is not exactly correct as certainly with II and previously with ATS I receive my PIDs net of basic rate tax and as I said above, the manager then reclaims the tax from HMRC and pays it into my account about 6 weeks later. Whether some managers are able to pay them gross |I do not know. You need to do nothing if you hold PHP in an ISA.

AS MDW said, Ian will have been receiving PIDs from British Land and the PHP ones are no different.

Dod