Primary Health Properties Plc , the healthcare facilities investor which merged with peer Assura in October, said it has made good progress integrating the two companies as benefits of the deal begin to be delivered for shareholders.
The tie-up of PHP and Assura, which has created a REIT with a combined portfolio worth £6bn, has already delivered 60% of the planned annualised synergies of £9m in just the two months since competition regulators approved the deal.
"Our immediate focus is now on delivering the post-transaction objectives of reducing leverage back to our targeted range of 40% to 50%; delivering the £9m of annualised synergies identified; and integrating the two businesses to achieve the best of both organisations," said PHP chief executive Mark Davies.
The firm is currently undertaking a full portfolio review to establish new joint ventures and deliver further disposals to meet its goal in cutting leverage.
"We continue to make good progress regarding opportunities for both existing joint ventures within primary care real estate and with several highly credible counterparties regarding options for a potential joint venture for the private hospital portfolio," the company said.
In its final trading update for the 2025 fiscal year, PHP said rent reviews during the year generated £8.4m, up 6.8% over the previous passing rent or 3.2% on an annualised basis, taking the total annualised contracted rent roll to £342m.
PHP shares were down 1.2% at 102.4p by 1041 GMT.