Primary Health Properties PLC (LSE:PHP, OTC:PHPRF), the UK and Ireland healthcare property investor, has agreed financial terms and completed due diligence on its joint venture transactions, with proceeds from asset sales set to pay down debt.
PHP has made further progress on its joint venture transactions since July, with financial terms agreed and due diligence complete, and will provide a further update shortly.
The company aims to bring net debt to EBITDA below 9.5 times and its loan-to-value ratio, which compares debt with asset values, below 50%.
Rent reviews added £5.8 million of income in the first nine months of the year from 480 completed reviews, a 6.1% rise on the previous rent of £96 million.
That is equivalent to 3.1% annualised, ahead of the company's target of above 3%, with UK primary care up 2.8%, private hospitals up 3.7% and Ireland up 3.7%.
PHP is on site with five new build developments across the UK and Ireland, all on track for completion on time and on budget.
It has also completed asset management projects at Wakefield and Yeovil, while a £6.5 million extension to Tees Valley Hospital in Middlesbrough has moved on site.
Future schemes include Neighbourhood Health Centres and ambulance hubs with East of England Ambulance Service Trust, with the latter expected to be funded through the existing primary care joint venture.
PHP has completed the integration of Assura during the period and expects to deliver financial synergies ahead of plan.
