Primary Health Properties — A specialist REIT of scale

Primary Health Properties’ (PHP’s) £1.6bn accretive acquisition of Assura creates a sector specialist REIT of scale, strongly positioned to profitably deliver the investment that primary healthcare systems in both the UK and Ireland require. While UK market rental growth accelerates, the acquisition synergies provide a new driver of earnings and dividend growth. Yet the shares are yielding a highly attractive c 8%, more than 300 basis points above 10-year gilts, with a strong outlook for DPS growth.