Primary Health Properties PLC
Primary Health Properties PLC
Annual Results Presentation 2018
Interim Results
2020
Modernising Primary Care infrastructure in a
sustainable way for the 21st Century
Our growing portfolio
Agenda
PHP at a glance Continued progress in 2020
Key financial highlights and results Property Portfolio overview Debt summary
Dividend track record and investment highlights
Appendices
PHP at a glance
- Leading investor in flexible, modern primary healthcare accommodation across UK and Ireland
- Leading portfolio of 510 properties valued at £2.5 billion
- FTSE 250 UK Real Estate Investment Trust ("REIT") with c.£2.0 billion market capitalisation
- 90% of income funded by government bodies (GPs, NHS or HSE); WAULT of 12.5 years
- 24 consecutive years of dividend growth; dividend fully covered by earnings
- Strong capital base with a prudent balance of shareholder equity and debt finance
- Continued improving rent review growth outlook; H1 20: £0.8m or 2.2% per annum (FY19: £1.6m or 1.9% per annum)
- All share merger with MedicX completed March 2019 and businesses successfully integrated creating significant shareholder value and synergies
1 Based on a share price at 150 pence, the closing mid market price as at 27 July 2020
Primary Health Properties Interim Results Presentation 2020 | 3 |
Continued progress in 2020
- £100m proceeds from September 2019 equity raise successfully deployed across 23 standing investments, 6 forward funded developments and 12 asset management projects totalling c. £107m
- Acquisitions in Q4 2019 and H1 2020
- Portfolio of 22 purpose built medical centres for £54.0m with good asset management opportunities
- Bolton purpose built medical centre for £8.0m
- Ireland forward funded developments at Arklow £16.9m (€18.7m) and Banagher £4.5m (€5.1m)
- UK forward funded developments at Eastbourne £8.4m, Mountain Ash, Wales £4.9m, Epsom, Surrey £4.0m and Llanbradach, Wales £2.8m
- Development projects successfully delivered at Athy, Bray and Rialto in Ireland with a total development cost of £43.8m (€48.3m) substantially de-risking forward funded development exposure
- Rental collections continue to remain robust with 96% collected in both the UK and Ireland for the third quarter of 2020 (Q2 2020: over 99% collected in both UK and Ireland) with the balance expected to be received shortly. We have allowed a £1.1m of quarterly rents to be paid by monthly instalments, given short-term rent deferrals of £0.3m and concessions of £0.2m
- Successful, oversubscribed £140m equity raise
- Maximum targeted loan to value (LTV) ratio lowered from 55% to 50%
- Headroom/liquidity: Over £400m of undrawn loan facilities and cash post all capital commitments
- Rental growth from rent reviews continuing positive trend: H1 20: £0.8m/2.2% added to rent roll (FY19: £1.6m/1.9%; FY18: £1.1m/1.4%)
- Covid -19 update: technology and digital driving digital consulting and triage in the future and realisation at the NHS that primary care can be used for many more things e.g. diagnostics, minor operations and treatments. More investment in healthcare likely across UK, Ireland and Western Europe.
- Dedicated PHP team of over 50 staff all working well from home with site visits recommencing and offices re-open
Primary Health Properties Interim Results Presentation 2020 | 4 |
Key financial highlights
Performance | 30 June 2020 | 30 June 2019 | Change | ||
Net rental income (£m) | 64.8 | 53.8 | +20.4% | ||
Adjusted EPRA earnings (£m) | 36.0 | 27.9 | +29.0% | ||
Adjusted EPRA earnings per share (pence) | 3.0p | 2.8p | +7.1% | ||
Dividends paid (£m) | 35.9 | 26.7 | +34.5% | ||
Dividend cover | 100% | 104% | - | ||
Dividend per share (pence) | 2.95p | 2.8p | +5.4% | ||
Position | 30 June 2020 | 31 December 2019 | Change | ||
Investment property (£bn) | 2.5 | 2.4 | +0.4% | ||
Adjusted EPRA NTA per share (pence) | 109.1p | 107.9p | +1.1% | ||
Loan to value1 | 40.3% | 44.2% | -3.9% | ||
Management | 30 June 2020 | 31 December 2019 | Change | ||
Average cost of debt | 3.5% | 3.5% | - | ||
Growth on rent reviews | 2.2% p.a. | 1.9% p.a. | +0.3% | ||
WAULT | 12.5 years | 12.8 years | -0.3 years | ||
EPRA cost ratio | 11.6% | 12.0% | -0.4% | ||
1. 30 June 2020 includes impact of £140m (£136.9m net of expenses) equity raise in July 2020
Primary Health Properties Interim Results Presentation 2020 | 5 |
Income Statement
30 June | 30 June | Change | |
2020 | 2019 | % | |
£m | £m | ||
Net rental income | 64.8 | 53.8 | +20.4% |
Administrative expenses | (5.7) | (5.0) | |
Performance incentive fee | (0.8) | (0.9) | |
Operating profit before financing costs | 58.3 | 47.9 | +21.7% |
Net financing costs | (22.3) | (20.0) | |
Adjusted EPRA earnings | 36.0 | 27.9 | +29.0% |
Revaluation surplus and profit on sales | 10.5 | 17.7 | -40.7% |
Fair value loss on derivatives and convertible bond | (8.4) | (4.1) | |
Adjusted IFRS profit excluding MedicX exceptional adjustments | 38.1 | 41.5 | -8.2% |
Amortisation of MedicX debt MtM at acquisition | 1.5 | 1.0 | |
Exceptional revaluation adjustment arising on merger with MedicX | - | (138.4) | |
Exceptional administrative costs arising on merger with MedicX | - | (10.2) | |
IFRS profit/(loss) before tax | 39.6 | (106.1) | |
Adjusted EPRA earnings per share | 3.0p | 2.8p | +7.1% |
IFRS earnings/(loss) per share | 3.2p | (10.7p) | |
Primary Health Properties Interim Results Presentation 2020 | 6 |
Balance Sheet strengthened
Adjusted EPRA NTA per share (pence)
115.0 | 107.9 | 3.0 | (2.95) | 0.2 | 109.1 | ||||||||
110.0 | 0.9 | ||||||||||||
105.0 | |||||||||||||
100.0 | |||||||||||||
95.0 | |||||||||||||
90.0 | |||||||||||||
85.0 | |||||||||||||
Opening | Adjusted | Dividends | Portfolio | Shares | Closing | ||||||||
NTA per | EPRA | paid | revaluation | issued | NTA per | ||||||||
share | earnings | share | |||||||||||
30 June 2020 | 31 December 2019 | Change | |||||||||||
Adjusted EPRA net tangible assets | £1,329m | £1,313m | +1.2% | ||||||||||
Adjusted EPRA net tangible asset value per share | 109.1 p | 107.9p | +1.1% | ||||||||||
Primary Health Properties Interim Results Presentation 2020 | 7 |
Property portfolio overview
Key Figures1 | 30 June 2020 |
Total number of properties | 510 |
Including properties in Ireland | 17 |
Investment portfolio value (£bn) | 2.51 |
Floor area (000's sqm) | 674 |
Capital value (£ per sqm) | 3,725 |
Contracted rent roll (£m) | 133.3 |
Net initial yield (NIY) | 4.86% |
Average lot size (£m) | 4.9 |
Average WAULT (years) | 12.5 |
Occupancy | 99.5% |
Government backed rent | 90% |
Capital Value 1 | Number | Value (£m) | % | |
> £10m | 48 | 705 | 28% | |
£5m | - £10m | 108 | 758 | 30% |
£3m | - £5m | 161 | 623 | 25% |
£1m | - £3m | 186 | 416 | 17% |
< £1m (incl. land £1.6m) | 7 | 8 | 0% | |
Total | 510 | 2,510 | 100% | |
1. All data as at 30 June 2020
Primary Health Properties Interim Results Presentation 2020 | 8 |
Development pipeline
- Six schemes currently on site with a net development cost of £41.5m
Eastbourne Primary Care Centre, East Sussex
Tenants
✓ GP Practices x 2
✓ Pharmacy
Purchase date: | December 2019 |
PC date: | Q2 2021 |
Acquisition cost: | £8.4m |
Size: | 1,976 sqm |
Number of GPs: | 11 |
Patients: | 19,000 |
WAULT: | 25 years |
Rent review: | OMV |
BREEAM rating: | Excellent |
Arklow Primary Care Centre, Co. Wicklow, Ireland
Tenants
✓ Health Service Executive (HSE) ✓ GP Practice
✓ Pharmacy
✓ TUSLA (Irish government)
Purchase date: | May 2020 |
PC date: | Q4 2021 |
Acquisition cost: | £16.2m (€18.0m) |
Size: | 5,333 sqm |
WAULT: | 28.8 years |
Rent review: | Irish CPI |
BER rating : | A3 |
Llanbradach Primary Care Centre, Wales | Banagher Primary Care Centre, Co. Offaly, Ireland | |
Tenants
✓ GP Practices x 2
Purchase date: | January 2020 |
PC date: | Q1 2021 |
Acquisition cost: | £2.8m |
Size: | 664 sqm |
Patients: | tba |
No of GPs: | tba |
WAULT: | 25 years |
Rent review: | OMV |
BREEAM rating: | Very Good |
Tenants
- Health Service Executive (HSE)
- GP Practice
- Pharmacy
Purchase date: | December 2019 |
PC date: | Q4 2020 |
Acquisition cost: | £4.2m (€5.0m) |
Size: | 1,736 sqm |
WAULT: | 27 years |
Rent review: | Irish CPI |
BER rating: | A3 |
Primary Health Properties Interim Results Presentation 2020 | 9 |
Investment
- 23 assets acquired for £62m with good asset management opportunities
- Strong active pipeline in UK and Ireland totalling £92m including £44m under offer
Lagan & Saltscar Surgery, Redcar
Tenants
✓ GP Practices x 2
Purchase date: | May 2020 |
Acquisition cost: | £2.6m |
Size: | 785 sqm |
Number of GPs: | 8 |
WAULT: | 6.1 years |
Rent review: | OMV |
Newmarket Medical Practice, Lincolnshire
Tenants
✓ GP Practice x 1
Purchase date: | May 2020 |
Acquisition cost: | £2.2m |
Size: | 633 sqm |
Number of GPs: | 6 |
WAULT: | 6.3 years |
Rent review: | OMV |
Waters Meeting Health Centre, Bolton | Crumlin Medical Centre, Wales | |
Tenants
- NHS
- GP Practices x 2
- Pharmacy
Purchase date: | Dec. 2019 |
Acquisition cost: | £8.0m |
Size: | 2,295 sqm |
Number of GPs: | 8 |
WAULT: | 9.7 years |
Rent review: | OMV & RPI |
Tenants
- GP Practice x 1
- Welsh Local Health Board
Purchase date: | May 2020 |
Acquisition cost: | £1.9m |
Size: | 602 sqm |
Number of GPs: | 3 |
WAULT: | 11.6 years |
Rent review: | OMV |
Primary Health Properties Interim Results Presentation 2020 | 10 |
Asset Management - enhancing existing portfolio
- 12 projects completed or on-site investing £4.1m, £0.12m additional rent and WAULT extended back to 21 years
- Strong pipeline of over 80 projects either Board approved or advanced negotiations investing c. £36m, £1.1m of additional rent and WAULT extended back to 21 years
Derby Road, Nottingham | Buckley Medical Centre, Buckley, North Wales | |
Extension to provide 7 new consulting rooms increasing floor space by 20% to meet local demand. Energy efficiency improvements being made to the enlarged building.
Completion date: March 2021
Capex: | £0.8m |
Additional Rent: | £42,000 pa |
New Lease: | 21 years |
Size: | 1,016 sqm |
Patients: | 12,000 Number |
of GPs: | 7 |
Void space fitted out to provide further clinical space for the GPs and additional rental income for PHP. LED light fittings utilised throughout the refurbishment
Completion date: May 2020
Capex: | £0.1m |
Additional Rent: | £5,000 pa |
New Lease: | 15 years |
Size: | 2,544 sqm |
Patients: | 10,500 |
Number of GPs: | 7 |
Prospect Medical Group, Newcastle | Stokewood Surgery, Eastleigh | |
Refurbishment to include a first floor extension to increase the usable floorspace and provide 3 additional consulting rooms. Work includes the installation of LED energy efficient lights.
Completion date: October 2020
Capex: | £0.38m |
Additional Rent: | £3,000 pa |
New Lease: | 25 years |
Size: | 907 sqm |
Patients: | 16,000 |
Number of GPs: | 11 |
Surgery extended to meet local population growth. The energy performance has been improved through investment in green initiatives.
Completion date: April 2020
Capex: £0.1m
Additional Rent: £5,000 pa
New Lease: | 19 years |
Size: | 620 sqm |
Patients: | 18,000 |
Number of GPs: | 13 |
Primary Health Properties Interim Results Presentation 2020 | 11 |
High quality recurring income
Key characteristics of the portfolio
Weighted average | Strong tenant | UK leases have | 31% of portfolio | |||||
Occupancy | covenant - 90% of | effectively upward | on fixed or | |||||
unexpired lease | rent roll paid | indexed uplifts. | ||||||
rate of | only rent reviews | |||||||
length of | directly/indirectly | 69% OMV review, | ||||||
99.5% | Irish leases linked | |||||||
12.5 years | by Government | typically every | ||||||
to Irish CPI | ||||||||
bodies | three years | |||||||
...these characteristics result in highly visible cash flows and stable valuation yields
- Contracted rent roll of over £133.3m p.a.
- H1 20 - L4L rental growth from rent reviews and asset management projects of £0.9m or 0.7% (FY19: £1.9m or 1.5%) accounting for the majority of the revaluation surplus in the UK
- Management expect rate of rental growth to improve in future years
- Peers also reporting positive rental growth outlook
- Only £3.0m or 2.3% of rent roll expiring in next three years: of which £2.6m is subject to a planned asset management initiative or terms have been agreed to renew the lease
Analysis of leases unexpired by rent roll
<3 years | 12.7% | 2.3% | 7.4% |
3-5 years | |||
5-10 years | 15.4% | ||
30.4% | |||
10-15 years | |||
15-20 years | |||
> 20 years | 31.8% |
Primary Health Properties Interim Results Presentation 2020 | 12 |
Long leases with rental growth potential
- Effectively upward only rent roll in UK
- Total weighted average rental growth 2.2% p.a.
- 69% reviewed to open market (ave. 1.6% p.a.)
- 25% index linked (ave. 2.7% p.a.)
- 6% on fixed uplift (ave 2.9% p.a.)
Drivers of rental growth
- Increased development activity
- Building cost inflation
- Reducing the NHS carbon footprint
- Building regulations and specification creep
- Replacement cost
Rental growth history
4.5% | ||||||||||||||||
3.9% | 4.0% | |||||||||||||||
4.0% | ||||||||||||||||
3.4% | 3.4% | |||||||||||||||
3.5% | 3.1% | 3.2% | 3.0% | |||||||||||||
3.0% | ||||||||||||||||
2.4% | ||||||||||||||||
2.5% | 2.2% | 1.8% | 1.9% | 2.2% | ||||||||||||
2.0% | ||||||||||||||||
1.4% | ||||||||||||||||
1.5% | ||||||||||||||||
0.9% | 0.9% | 1.1% | ||||||||||||||
1.0% | ||||||||||||||||
0.5% | ||||||||||||||||
0.0% | ||||||||||||||||
2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | H1 2020 | |
Primary Health Properties Interim Results Presentation 2020 | 13 |
Debt summary
- Broad and diverse range of lending partners
- Long weighted average debt maturity of 6.7 years
- 99.5% of debt fixed or hedged for a weighted average maturity of 7.7 years
- Total debt facilities of £1.46bn (90% secured/10% unsecured)
- Drawn net debt £1.0bn post July 2020 equity raise
- £403m of undrawn headroom after capital commitments
- Group LTV 40.3% (34.3% excluding £150m convertible bond)
- Average cost of debt 3.5% reduced from 4.0% on completion of MedicX merger
- Marginal cost of debt 2.2%
Euro private placements £109m/€121m (8%)
Convertible bond | |
£150m (10%) | Aviva £519m (36%) |
Sterling bonds and private placements £298m (20%)
RCFs £380m (26%)
Debt maturity profile | |||||||||||||||||
£'m 300 | 281.7 | ||||||||||||||||
250 | 231.9 | 227.7 | |||||||||||||||
200 | 182.0 | 196.9 | |||||||||||||||
150 | 111.5 | ||||||||||||||||
100 | 72.3 | ||||||||||||||||
57.8 | |||||||||||||||||
46.4 | |||||||||||||||||
50 | |||||||||||||||||
15.9 | |||||||||||||||||
3.1 | 7.0 | 8.4 | 4.3 | 0.3 | 4.2 | ||||||||||||
0 | |||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | 2032 | 2033 | 2034 | 2035 | ||
Primary Health Properties Interim Results Presentation 2020 | 14 |
Strong track record of dividend growth
7.0 | |||||||||||||||||||||
Implied PHP 2020 dividend yield2 | 5.90p | ||||||||||||||||||||
6.0 | Share Price3 | Yield | 5.00p 5.125p 5.25p | 5.40p | 5.60p | ||||||||||||||||
5.0 | 150p | 3.9% | 4.25p | 4.38p | 4.50p | 4.63p | 4.75p | 4.88p | Q4 | ||||||||||||
4.13p | |||||||||||||||||||||
4.0 | 3.75p | ||||||||||||||||||||
3.38p | |||||||||||||||||||||
3.0 | 2.25p | 2.50p | 2.75p | 3.00p | Q3 | ||||||||||||||||
2.00p | |||||||||||||||||||||
2.0 | 1.75p | ||||||||||||||||||||
1.40p 1.50p | Q1- | ||||||||||||||||||||
- 0.80p
1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 |
Historic dividend cover
150% | ||||||||||
100% | 101% | 100% | 101% | 101% | 100% | |||||
100% | ||||||||||
82% | 56% | 57% | 84% | |||||||
50% | ||||||||||
0% | ||||||||||
2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | H1 2020 | |
Dividend cover
- Q1-Q3,2020 dividend of 1.475p per quarter paid or declared (equivalent to 5.9p annualised) a 5.4% increase and 24th year of growth
- H1 2020 dividend cover at 100%
- Total dividends paid increased by 34.5% in H1 2020
- CAGR: 1997 to Q3 2020
- Based on Q1-Q3 2020 dividend of 1.475p declared per share annualised and is illustrative only
- Share price is the closing mid market price on 27 July 2020
Primary Health Properties Interim Results Presentation 2020 | 15 |
Investment highlights
One of the UK's largest primary
health property investors
- One of the UK's largest listed primary health property investors with 510 properties valued at £2.5 billion
- FTSE 250 UK REIT with market capitalisation of c. £2.0 billion and improved share liquidity
- Underlying investment characteristics and strong portfolio metrics continue to reflect the secure, long-term predictable income stream
Low risk, long-term, | • Continued disciplined approach to acquisitions and asset management initiatives avoiding asset obsolescence | ||
• | Continued opportunities in the UK and Ireland | ||
low volatility market | |||
• | 90% of income funded by government bodies (NHS or HSE) on long lease terms - WAULT of 12.5 years | ||
• Positive yield gap between acquisition yield and funding costs | |||
Strong, high-quality | • | Effectively upward-only or indexed rent reviews in UK with improving outlook | |
and growing cash flows | • | Rent reviews in Ireland indexed linked to Irish CPI | |
• Simple and transparent cost structure enhancing earnings | |||
• Continued organic rental growth from rent reviews and asset management projects | |||
Adding value and | • | Proactive approach to refinancing to access lower cost of funds over the medium term with 50bp of savings delivered post MedicX | |
reducing costs | merger | ||
• EPRA cost ratio the lowest in the UK REIT sector | |||
• Healthcare demand increasing due to ageing and growing populations in the UK and Ireland | |||
Sector demand factors dictate | • | Unwavering political support in UK and Ireland and promotion of integrated care | |
continued development of | • | Historic underinvestment in primary care estate - in need of replacement and modernisation | |
healthcare premises | • | Covid-19 - will create more opportunities in the future, more investment in health care with more procedures and consultations | |
taking place in primary care facilities | |||
Proven business model with | • Proven track record of successfully identifying and investing in new assets on attractive terms to grow the portfolio | ||
• | Consistently maintained high level of occupancy - currently 99.5% | ||
strong management | |||
• | Experienced management team with corporate, financial, property, investment and NHS experience | ||
Primary Health Properties Interim Results Presentation 2020 | 16 |
Our growing portfolio
Further background
on PHP
Positive yield gap
Illustrative yield gap on property investment
UK acquisitions
6.0% | |||||
5.0% | 4.8% | ||||
4.0% | 0.275% | 0.25% | |||
3.0% | 2.6% | ||||
2.0% | 1.7% | ||||
1.0% | |||||
0.0% | |||||
Valuation | Incremental | 10 year Euribor | Average debt | Income return | |
yield* | mgt Fee | Swap Rate** | margin*** | after costs |
Ireland acquisitions
6.0% | +0.26% | |
5.1% | ||
5.0% | ||
0.275% | ||
4.0% | 3.5% | |
3.0% | 1.6% | |
2.0% | ||
1.0% | ||
0.0% |
Valuation | Incremental | 10 yr Euribor | Average debt | Income return |
yield* | mgt Fee | Swap Rate** | margin*** | after costs |
- PHP portfolio valuation yield 30 June 2020 (used as proxy for market purchases)
- Sourced from Chatham Financial - 27 July 2020
- Company incremental margin on debt facilities
Primary Health Properties Interim Results Presentation 2020 | 18 |
Primary health care opportunity in the UK
- The UK population has been steadily getting older and this trend is projected to continue in the future.
- By 2066, it is estimated there will be a further 8.6 million UK residents aged 65 years and over, an increase broadly equivalent to the size of the population of London today, taking the total number in this group to 20.4 million and making up 26% of the total population.
- Meanwhile, the NHS is adopting a new service model where, amongst other targets, patients get joined-up care, including the right to online digital GP consultations.
- At the same time, GP practices have been encouraged to form Primary Care Networks ("PCN's"), typically covering 30-50,000 people, to deliver integrated services at scale.
- To encourage this, Practices will be funded to work together and create genuinely integrated teams of GPs, community health and social care staff.
- Over the next five years, investment in primary medical and community services will grow faster than the overall NHS budget, with a ringfenced local fund worth at least an extra £4.5 billion a year in real terms by 2023/24
- However many GP Premises in the UK remain unfit for their current purpose, let alone this expanded role.
Primary Health Properties Interim Results Presentation 2020 | 19 |
Primary health care opportunity in the UK
- Common challenges include lack of space in waiting rooms and consultation rooms, growing list sizes and lack of disabled access.
- The Covid-19 crisis undoubtedly accelerated the intended transition away from face to face GP consultations, with various estimates suggesting c. 85% are currently being conducted remotely.
- Nonetheless, PHP does not believe this level is sustainable for long periods of time. For example, it is estimated that c.10m people could be waiting for treatment by the end of the year.
- PHP believes that primary health premises have a vital short term role to play in alleviating some of the immediate consequences of Covid-19.
- This includes the delivery of some of the backlog of treatments, testing and, potentially, vaccination in due course as well as the resumption of more, but not all, consultations in a face to face format.
- Over the medium to longer term, PHP believes its modern, purpose built premises and its program of active asset management, means its assets are well placed to benefit from the shift of services away from acute hospitals into the community setting.
- This is in line with fundamental demographic trends and NHS plans, including funding, for primary care to deliver integrated services and 'operate at scale'.
Primary Health Properties Interim Results Presentation 2020 | 20 |
£140m Equity raise - use of proceeds
- £100m proceeds from September 2019 equity raise successfully deployed
1 | Funds deployed | Region | Number | Acq'n/dev't cost | |
across 23 standing | UK | 27 | £82m | ||
£100m proceeds | investments, 6 | ||||
successfully | forward funded | Ireland | 2 | £21m | |
deployed | developments and 12 | (€23m) | |||
asset management | |||||
projects | Asset management | 12 | £4m | ||
Total funds deployed since September 2019
c. £107m
Total funding requirement of c.£128m over the next 18 months to fund a mix of future acquisition pipeline and asset management projects
2 | Region | Number | Est. acq'n/dev't cost | |||
Pipeline | Short-term pipeline of | UK | 8 | £48m | ||
active opportunities, | ||||||
include: | Ireland | 3 | £44m | |||
(€49m) | ||||||
3 | Property | Number | Asset Management cost | |||
Active management | ||||||
Board approved | 21 | £11m | ||||
Asset management | of existing assets to | |||||
projects | create additional | |||||
Advanced pipeline | 61 | £25m | ||||
value | ||||||
Funding requirement Estimated pipeline of c.£92m (including £44m
under offer)
Estimated capex on projects in FY20 and FY21
of c.£36m
- Positive outlook of further medium-term pipeline opportunities
Primary Health Properties Interim Results Presentation 2020 | 21 |
Strong track record of relative performance
- IRR over period since inception of 13.4%1 (Average annual inflation (RPI) over period: 2.7%)
CAGR total shareholder returns | PHP TSR (absolute change) - 1yr / 3yr/ 5yr | |
PHP | Assura | EPRA UK | |
1 year | 20.2% | 26.4% | (10.1%) |
3 years | 16.1% | 12.0% | (2.3%) |
5 years | 15.1% | 13.1% | (1.6%) |
10 years | 13.9% | 11.6% | 8.2% |
20 years | 14.8% | - | 5.2% |
PHP 5 year relative TSR performance
PHP TPR vs MSCI UK Monthly Property Index
10% | 7.7% | 8.8% | 8.8% | ||||
8% | 6.8% | 7.3% | |||||
6% | |||||||
4% | 2.2% | ||||||
2% | |||||||
0% | |||||||
1 year to Dec.19 | 3 years to Dec.19 | 5 years to Dec.19 | |||||
PHP | MSCI UK Monthly Property Index | ||||||
Source: all data sourced from Thomson Reuters EIKON as at close 1 July 2020; IMSCI UK Monthly Property Index
1 IRR includes total dividends paid to 21 August 2020 of 87.38 pence and assumes the sale of the underlying ordinary shares at 155.6 pence, the closing mid market price as at 1 July 2020, having been issued at 25 pence (dividend and share issue price data adjusted where required to reflect four for one share sub-division in November 2015)
Primary Health Properties Interim Results Presentation 2020 | 22 |
Balance sheet
£m | 30 Jun. 20 | 31 Dec.19 |
Investment properties | 2,514.3 | 2,413.1 |
Cash | 64.0 | 143.1 |
Debt | (1,214.3) | (1,210.4) |
Net debt | (1,150.3) | (1,067.3) |
Other net current liabilities | (35.5) | (33.0) |
Adjusted EPRA net tangible assets (NAV) | 1,328.5 | 1,312.8 |
Convertible bond fair value adjustment | (23.0) | (22.7) |
Fixed rate debt and swap MtM | (63.2) | (58.5) |
Deferred tax | (3.3) | (3.1) |
IFRS net assets | 1,239.0 | 1,228.5 |
Fixed rate debt MtM adjustment | (92.0) | (49.0) |
EPRA NDV (NNNAV) | 1,147.0 | 1,179.5 |
Loan to value | 45.8% | 44.2% |
Adjusted EPRA NTA per share (pence) | 109.1p | 107.9p |
IFRS NAV per share (pence) | 101.8p | 101.0p |
EPRA NDV per share (pence) | 94.2p | 97.0p |
Number of shares (millions) | 1,217.7 | 1,216.3 |
Primary Health Properties Interim Results Presentation 2020 | 23 |
Spread of funding sources
Secured facilities 3 | ||||||||||
Provider | Barclays/ | Santander | Lloyds | RBS | HSBC | Aviva | Secured | Aviva | Secured | |
AIB | bond | One Medical | bond | |||||||
Tenor | Bullet | Bullet | Bullet | Bullet | Bullet | Bullet | Bullet | Amortising | Bullet | |
Expiry | Jan-2021 | Jul-2021 | Dec-2021 | Mar-2022 | Dec-2022 | Dec-2022 | Dec-2025 | Nov-2028 | Mar-2027 | |
Facility | £115m | £31m | £30m | £100m | £100m | £25m | £70m | £25m | £100m | |
Drawn | £55m | £nil | £30m | £53m | £nil | £25m | £70m | £25m | £100m | |
Collateral2 | £224m | £66m | £59m | £230m | £180m | £45m | £133m | £53m | £190m | |
Contracted rent | £11m | £3m | £3m | £12m | £9m | £3m | £7m | £3m | £10m | |
LTV Max | 60% | 65% | 65% | 55% | 67.5% | 70% | 74% | 65% | 70% | |
LTV actual | 25% | n/a | 51% | 23% | n/a | 55% | 53% | 48% | 53% | |
ICR Min | 1.5x | 1.75x | 1.75x | 1.5x | 2.0x | 1.6x | 1.15x | 1.1x | 1.15x | |
ICR actual | 5.6x | n/a | 7.2x | 6.2x | n/a | 2.7x | 3.1x | 1.8x | 3.3x | |
Valuation fall to breach | £132m | £66m | £13m | £133m | £180m | £10m | £39m | £14m | £47m | |
Income fall to breach | £7m | £3m | £2m | £9m | £9m | £1m | £5m | £1m | £5m | |
1. Excludes unsecured £5m overdraft facility
- Includes only assets mortgaged to the applicable facility
- All data as at 30 June 2020
Primary Health Properties Interim Results Presentation 2020 | 24 |
Spread of funding sources (continued)
Secured facilities 3 | Unsecured | Cash4/ | Total | ||||||||
Unfettered | |||||||||||
facilities 1 | |||||||||||
assets | |||||||||||
Provider | Aviva | Ignis | Standard | Aviva | Euro PP (€) | Euro PP (€) | Aviva | Aviva | Convertible | ||
Life | bond | ||||||||||
Tenor | Bullet | Bullet | Bullet | Bullet | Bullet | Bullet | Amortising | Amortising | Bullet | ||
Expiry | Nov-2028 | Dec-2028 | Sept-2028 | Aug-2024 | Dec-2028 | Sept 2031 | Jan-2032 | Sept-2033 | Jul-2025 | ||
Aug-2029 | Dec-2030 | ||||||||||
Facility | £75m | £50m | £78m | £111m | £46m | £63m | £21m | £261m | £150m | - | £1,451m |
(€51m) | (€70m) | ||||||||||
Drawn | £75m | £50m | £78m | £111m | £46m | £63m | £21m | £261m | £150m | (£200m) | £1,013m |
(€51m) | (€70m) | ||||||||||
Collateral2 | £141m | £91m | £135m | £202m | £79m | £111m | £49m | £433m | - | £93m | £2,514m |
Contracted rent | £7m | £5m | £7m | £11m | £4m | £6m | £3m | £23m | - | £6m | £133m |
(€5m) | (€7m) | ||||||||||
LTV Max | 70% | 74% | 74% | 65% | 70% | 70% | 70% | 75% | - | - | |
LTV actual | 53% | 55% | 58% | 55% | 59% | 57% | 44% | 60% | - | - | |
ICR Min | 1.6x | 1.15x | 1.65x | 1.2x | 1.15x | 1.15x | 1.6x | 1.4x | - | - | |
ICR actual | 3.2x | 2.4x | 2.3x | 1.9x | 3.8x | 3.8x | 2.0x | 2.4x | - | - | |
Valuation fall to breach | £34m | £24m | £30m | £31m | £13m | £23m | £18m | £84m | - | £293m | £1,184m |
Income fall to breach | £4m | £3m | £2m | £4m | £3m | £5m | £1m | £6m | - | £6m | £76m |
1. Excludes unsecured £5m overdraft facility
2. Includes only assets mortgaged to the applicable facility
- All data as at 30 June 2020
- Cash includes £140m (£136.9m net of expenses) equity raise proceeds completed post period end
Primary Health Properties Interim Results Presentation 2020 | 25 |
EPRA cost ratio
Six months ended | Year ended | |
30 June 2020 | 31 December 2019 | |
£m | £m | |
Gross rent less ground rent and service charge income | 66.2 | 118.3 |
Direct property expense | 3.2 | 5.6 |
Administrative expenses | 5.7 | 10.5 |
Performance incentive fee ("PIF") | 0.8 | 1.8 |
Less: service charge costs | (1.7) | (2.8) |
Less: ground rent | (0.1) | (0.2) |
Less: other operating income | (0.2) | (0.7) |
EPRA costs (including direct vacancy costs) | 7.7 | 14.2 |
EPRA cost ratio | 11.6% | 12.0% |
EPRA cost ratio excluding PIF | 10.4% | 10.5% |
Administrative expenses as a percentage of gross asset value (annualised) | 0.5% | 0.4% |
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
Primary Health Properties Interim Results Presentation 2020 | 26 |
Rent review results
- £0.8m (2.2% p.a) increase from 127 rent reviews completed
- 1.6% p.a. achieved on 44 open market value reviews
- 2.7% p.a. achieved on 74 indexed linked reviews
- 2.9% achieved on 9 fixed reviews
- 708 open market value reviews outstanding with ERV £95.1m or uplift of £2.2m equivalent to 0.8% p.a.
Outstanding reviews focused by region | |
London and South East | 34% |
North | 24% |
Midlands | 18% |
South West | 5% |
Wales | 13% |
Scotland | 5% |
Ireland | 1% |
100% |
OMV | Number of outstanding | |||
6 months to 30 June 2020 | Rent reviews | |||
reviews (current rent) | ||||
completed | ||||
No | % | No | £m | |
Reviews relating to calendar years: | ||||
2012 | - | - | 3 | 0.4 |
2013 | 2 | 0.6% | 7 | 1.1 |
2014 | 2 | 2.7% | 6 | 0.8 |
2015 | 3 | 6.7% | 40 | 4.9 |
2016 | 5 | 1.3% | 66 | 8.8 |
2017 | 8 | 1.6% | 73 | 11.7 |
2018 | 3 | 2.2% | 165 | 22.1 |
2019 | 1 | 3.6% | 218 | 28.7 |
H1 2020 | - | - | 130 | 16.6 |
24 | 2.4% | 708 | 95.1 | |
Nil increases | 20 | 0.0% | ||
Total OMV reviews | 44 | 1.6% |
Primary Health Properties Interim Results Presentation 2020 | 27 |
ESG 2020 Targets and Actions
- Joined GRESb, a leading ESG benchmark for real assets, and undertaken major exercise collecting baseline data ahead of submission this year
- In the UK, all new developments to have a BREEAM rating of 'Very good' or 'Excellent'
- In Ireland, all new developments to have a BER(1) rating of A3 or better.
- All future asset management to be assessed in line with BREEAM, with a focus on undertaking measures to mitigate energy usage and improve the EPC rating (80% of portfolio rated C or better)
- Green lease clauses to be standard in all new lettings and lease renewals
- Installation of EV charging points at 10 pilot sites which, if successful, can be rolled out more widely in the portfolio
- ESG Policy published setting out our commitment and approach to responsible business
- Manager culture statement also published and endorsed by the Board of PHP
- Joined Real Estate Balance, an association that seeks to address gender imbalance in the real estate sector
- Good governance practices adopted including transparency of our business to all stakeholders
1 Building energy rating
Portfolio EPC ratings
-
A
4% 6%
D
16%
B
24%
C
50%
Primary Health Properties Interim Results Presentation 2020 | 28 |
Contact details
Harry Hyman | Richard Howell | Chris Santer |
Managing Director | Finance Director | Chief Investment Officer |
harry.hyman@ | richard.howell@ | chris.santer@ |
nexusgroup.co.uk | nexusgroup.co.uk | nexusgroup.co.uk |
www.phpgroup.co.uk
Primary Health Properties Interim Results Presentation 2020 | 29 |
Disclaimer
Disclaimer
The information contained in this presentation in respect of Primary Health Properties PLC (the "Company") and communicated during any delivery of the presentation, including the talks given by the presenters, any question and answer session and any document or material distributed at or in connection with the presentation (together, the "Presentation") is only being made, supplied or directed in the United Kingdom and the Netherlands at persons who are qualified investors (within the meaning of Article 2(e) of the Prospectus Regulation (Regulation (EU) 2017/1129)) and, in the United Kingdom, (a) who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 ("Order") (investment professionals), (b) who fall within Article 49(2)(a) to (d) of the Order (high net worth companies, unincorporated associations etc.) or (c) to those persons to whom it may otherwise be lawfully communicated (all such persons referred to above being "Relevant Persons"). Any investment or investment activity to which the Presentation relates is available only to Relevant Persons and will be engaged in only with Relevant Persons. Each recipient is deemed to confirm, represent and warrant to the Company that they are a Relevant Person. Persons who are not Relevant Persons must not attend or receive this Presentation. No person may rely on or act upon the matters communicated in this Presentation. Any person who is not a Relevant Person who has received any document forming part of this Presentation must return it immediately.
This Presentation may contain unpublished inside information with regard to the Company and/or its securities. Recipients of this Presentation should not deal or encourage any other person to deal in the securities of the Company whilst they remain in possession of such inside information and until the transaction described in this Presentation is announced. Dealing in securities of the Company when in possession of inside information could result in liability under the insider dealing restrictions set out in the Criminal Justice Act 1993 or the Market Abuse Regulation ("MAR"). This Presentation may contain information which is not generally available, but which, if available, would or would be likely to be regarded as relevant when deciding the terms on which transactions in the securities of the Company should be effected. Unreasonable behaviour based on such information could result in liability under the market abuse provisions of MAR.
This Presentation is not a prospectus or prospectus equivalent document and does not constitute, or form part of, nor is it intended to communicate, any offer, invitation or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company, nor shall it (or any part of it) or the fact of its distribution, form the basis of, or be relied on in connection with, any contract for any such sale, issue, purchase or subscription. This Presentation does not constitute a recommendation regarding the Company's securities. Recipients of the Presentation should conduct their own investigation, evaluation and analysis of the business, data and property described in the Presentation.
The contents of the Presentation have not been examined or approved by the Financial Conduct Authority ("FCA") or London Stock Exchange plc (the "London Stock Exchange"), nor is it intended that the Presentation will be so examined or approved. The information and opinions contained in the Presentation are subject to updating, completion, revision, further verification and amendment in any way without liability or notice to any party. The contents of this Presentation have not been independently verified and accordingly, no reliance may be placed for any purpose whatsoever on the information or opinions contained or expressed in the Presentation or on the completeness, accuracy or fairness of such information and opinions. No undertaking, representation or warranty or other assurance, express or implied, is made or given as to the accuracy, completeness or fairness of the information or opinions contained or expressed in the Presentation and, save in the case of fraud, no responsibility or liability is accepted by any person for any loss, cost or damage suffered or incurred as a result of the reliance on such information or opinions. In addition, no duty of care or otherwise is owed by any such person to recipients of the Presentation or any other person in relation to the Presentation.
Primary Health Properties Interim Results Presentation 2020 | 30 |
Disclaimer (continued)
Past performance cannot be relied on as a guide for future performance. Certain statements, beliefs and opinions contained in this Presentation, particularly those regarding the possible or assumed future financial or other performance of the Company, industry growth or other trend projections are or may be forward looking statements, including the Company's expectations in relation to the unaudited financial results for the six months ended 30 June 2020. Forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "expects", "intends", "plans", "goal", "target", "aim", "may", "will", "would", "could" or "should" or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future and may be beyond the Company's ability to control or predict. Forward-looking statements are not guarantees of future performance. Any forward-looking statements made by or on behalf of the Company speak only as of the date they are made and no representation or warranty is given as to their completeness or accuracy or the basis on which they were prepared or that any of these statements or forward-looking statements will come to pass or that any forecast result will be achieved. Neither the Company, nor any of its associates or directors, officers or advisers, provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this Presentation will actually occur. You are cautioned not to place undue reliance on these forward-looking statements. The Company is not under any obligation (except as required by the Listing Rules, the Disclosure Guidance and Transparency Rules, MAR and the rules of the London Stock Exchange) and expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. No statement in this Presentation is intended as a profit forecast or a profit estimate and no statement in this Presentation should be interpreted to mean that earnings per Company share for the current or future financial years would necessarily match or exceed the historical published earnings per Company share.
The Presentation is confidential and should not be distributed, copied, published or reproduced (in whole or in part) or disclosed or passed by its recipients in any way to any other person for any purpose, other than with the consent of the Company. By accepting receipt of, attending any presentation or delivery of or electronically accessing the Presentation, you undertake to keep this Presentation and the information contained herein confidential and not to forward the Presentation to any other person, or to distribute a copy, reproduce or publish the Presentation, in whole or in part, for any purpose.
The content of this Presentation is exclusively the responsibility of the Company and neither Numis Securities Limited nor Peel Hunt LLP (the "Banks") shall have any liability whatsoever for any information, representation or statement contained in this Presentation. The Banks, which are authorised and regulated by the FCA, are acting exclusively for the Company in connection with the placing (the "Capital Raising") and no one else and will not be responsible to anyone other than the Company for providing the protections afforded to clients of the Banks nor for providing advice in relation to the Capital Raising or any other matter or arrangement referred to in this Presentation.
All data is sourced by the Company unless identified as otherwise. Numbers presented have been rounded up to the nearest one or two decimal places as appropriate.
Primary Health Properties Interim Results Presentation 2020 | 31 |
Disclaimer (continued)
United States
This document is for information purposes only. This document may not be, in whole or in part, by any medium or any form, distributed, copied, reproduced, published, disclosed or passed in any way to any other person without the consent of the Company. Any securities discussed herein have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, (the "US Securities Act"), or with any securities regulatory authority of any state or other jurisdiction of the United States, and any such securities may not be offered or sold, exercised, resold, transferred or delivered, directly or indirectly, in or into the United States unless registered under the US Securities Act or offered in a transaction exempt from, or not subject to, the registration requirements of the US Securities Act and in compliance with any applicable securities laws of any state or other jurisdiction of the United States. This document is not and does not contain or constitute an offer to issue or sell, or the solicitation of an offer to subscribe for or purchase, any securities in the United States, and there will be no public offer of securities in the United States. Any securities described herein have not been approved or disapproved by the US Securities and Exchange Commission, or any other securities commission or regulatory authority of the United States, nor have any of the foregoing authorities passed upon or endorsed the merits of the offering of securities nor have they approved this document or confirmed the accuracy or adequacy of the information contained in this document. Any representation to the contrary is a criminal offence in the United States.
Subject to certain exceptions, neither this document nor any copy of it may be taken, transmitted or distributed, directly or indirectly, into the United States of America, its territories or possessions. Any failure to comply with this restriction may constitute a violation of U.S. securities laws. By accepting receipt of or electronically accessing this Presentation or attending any presentation or delivery of this Presentation you agree to be bound by the foregoing limitations and conditions and, in particular, will be taken to have represented, warranted and undertaken that: (i) you are a "qualified institutional buyer" as defined in Rule 144A under the US Securities Act; and (ii) you have read and agree to comply with the contents of this notice.
Australia
This Presentation does not constitute an offer of securities for sale in Australia and does not constitute a Disclosure Document under Part 6D.2 of the Corporations Act 2001 of the Commonwealth of Australia (the "Corporations Act"). It does not and is not required to contain all the information which would be required under the Corporations Act to be included in such a Disclosure Document, and has not been lodged with the Australian Securities and Investments Commission.
This Presentation is intended solely for use by persons who are (i) either a "sophisticated investor" within the meaning of Section 708(8) of the Corporations Act or a "professional investor" within the meaning of Section 9 and Section 708(11) of the Corporations Act; and (ii) a "wholesale client" for the purposes of Section 761G(7) of the Corporations Act (and related regulations) who has complied with all relevant requirements in this respect, and has been prepared on that basis. No offer of securities may be made in Australia except to a person who is a sophisticated investor, a professional investor or a wholesale client (each as defined in the Corporations Act).
No financial product advice is provided in the documentation related to this offer and nothing in the documentation should be taken to constitute a recommendation or statement of opinion that it intended to influence you in making a decision to participate in the offer. Any information contained in the documentation should be seen as general information only and does not take into account the objectives, financial situation or needs of any particular person. The Banks are not licensed to provide financial product advice in relation to the offer of securities, in marketing and providing financial services to eligible Australian wholesale clients pursuant to this documentation.
Primary Health Properties Interim Results Presentation 2020 | 32 |
Disclaimer (continued)
Before acting on the information contained in this documentation, or making a decision to participate in the offer, you should read the documentation in full and consider seeking professional financial product advice from an independent person licensed by the Australian Securities and Investments Commission to give such advice.
Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. Neither a prospectus nor Product Disclosure Statement has been or will be issued in relation to this offer. No cooling-off regime applies to the financial products offered to you pursuant to this Presentation or any accompanying documentation.
Other jurisdictions
The distribution of this Presentation or any information contained in it may be restricted by law in certain jurisdictions, and any person into whose possession any document containing this Presentation or any part of it comes should inform themselves about, and observe, any such restrictions. The Presentation does not constitute or form part of, nor is it intended to communicate, any offer, invitation or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities to any person in any jurisdiction to whom or in which such offer or solicitation is unlawful nor shall it (or any part of it), or the fact of its distribution, form the basis of, or be relied on in connection with or act as any inducement to enter into, any contract whatsoever relating to any securities.
This Presentation is not for publication, release or distribution, directly or indirectly, in whole or in part, in or into the United States of America, Australia, Canada, Japan, the Republic of South Africa or any jurisdiction where it would be unlawful to do so.
The relevant clearances have not been, and will not be, obtained from and the securities will not be registered under the applicable securities laws of Canada, Australia, Japan or the Republic of South Africa or any of their respective states, provinces or territories. Accordingly, the Company's securities will not, directly or indirectly, be offered or sold within Canada, Australia, Japan, the Republic of South Africa or any other country outside the United Kingdom where it would be unlawful to do so or offered or sold to any resident, national or citizen of Canada, Australia, Japan, the Republic of South Africa or any other country outside the United Kingdom where it would be unlawful to do so.
By accepting receipt of or electronically accessing this Presentation or attending any presentation or delivery of this Presentation you agree to be bound by the foregoing limitations and conditions and, in particular, will be taken to have represented, warranted and undertaken that: (i) you are a Relevant Person (as defined above); (ii) if you are in Canada, you are both an "accredited investor" within the meaning of section 1.1 of National Instrument 45-106 of the Canadian Securities Administrators or subsection 73.3(1) of the Securities Act (Ontario), as applicable, and also a "permitted client" within the meaning of section 1.1 of National Instrument 31-103 of the Canadian Securities Administrators; and (iii) you have read and agree to comply with the contents of this notice.
Securities legislation in certain provinces or territories of Canada may provide a Canadian purchaser with remedies for rescission or damages if any "offering memorandum" within the meaning of such legislation (including any amendment thereto) contains a misrepresentation, provided that the remedies for rescission or damages are exercised by the purchaser within the time limit prescribed by the securities legislation of the purchaser's province or territory. The purchaser should refer to any applicable provisions of the securities legislation of the purchaser's province or territory for the particulars of these rights or consult with a legal advisor.
Primary Health Properties Interim Results Presentation 2020 | 33 |
Disclaimer (continued)
Information to Distributors
Solely for the purposes of the product governance requirements contained within: (a) EU Directive 2014/65/EU on markets in financial instruments, as amended ("MiFID II"); (b) Articles 9 and 10 of Commission Delegated Directive (EU) 2017/593 supplementing MiFID II; and (c) local implementing measures (together, the "Product Governance Requirements"), and disclaiming all and any liability, whether arising in tort, contract or otherwise, which any "manufacturer" (for the purposes of the Product Governance Requirements) may otherwise have with respect thereto, the securities referred to in this Presentation will be subject to a product approval process, which is expected to determine that the securities are: (i) compatible with an end target market of retail investors and investors who meet the criteria of professional clients and eligible counterparties, each as defined in MiFID II; and (ii) eligible for distribution through all distribution channels as are permitted by MiFID II (the "Target Market Assessment").
Notwithstanding the Target Market Assessment, recipients of this Presentation should note that: the price of the securities may decline and investors could lose all or part of their investment; the securities offer no guaranteed income and no capital protection; and an investment in the securities is compatible only with investors who do not need a guaranteed income or capital protection, who (either alone or in conjunction with an appropriate financial or other adviser) are capable of evaluating the merits and risks of such an investment and who have sufficient resources to be able to bear any losses that may result therefrom.
The Target Market Assessment is without prejudice to the requirements of any contractual, legal or regulatory selling restrictions in relation to the Capital Raising. Furthermore it is noted that, notwithstanding the Target Market Assessment, the Banks will only procure investors who meet the criteria of professional clients and eligible counterparties. For the avoidance of doubt, the Target Market Assessment does not constitute: (a) an assessment of suitability or appropriateness for the purposes of MiFID II; or (b) a recommendation to any investor or group of investors to invest in, or purchase, or take any other action whatsoever with respect to the securities.
Each distributor is responsible for undertaking its own target market assessment in respect of the securities and for determining appropriate distribution channels.
July 2020
Primary Health Properties Interim Results Presentation 2020 | 34 |
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Primary Health Properties plc published this content on 28 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 July 2020 09:05:09 UTC