Primary Health Properties remains a buy for the analysts at Jefferies, who see an improvement in rent reviews as an ongoing process given construction cost inflation.
Some £0.9mln of rent was added in the first three months of 2022 from rent reviews or asset management, with rent reviews equating to £0.6mln or +2.0% on an annualised basis.
The investment pipeline of healthcare properties equates to £482mln with £139mln in legal due diligence adding further near-term income and dividend growth potential as available financing is £270mln.
Loans to value were 43.3% on 31 March, at the lower end of management's 40%-50% guidance so Jefferies expects PHP to continue to gear up using available resources.
Interest rate risk is limited with 97% of PHP's debt fixed or hedged for an average 9 year period.
The broker's target price is 171p.