Primary Health Properties (PHP) is one of the UK market’s best-known income stocks.

With a record of 30 consecutive annual dividend increases and the strongest tenant base in the real estate sector, it has long been a favourite of investors looking for a secure, growing yield.

Since chief executive Mark Davies took over from founder and chair Harry Hyman in 2024, the story has been more dramatic. Last year, in a high-profile contest, Davies saw off KKR in its bid for Assura and combined with its major listed peer to form a Reit with £6bn of assets.

We discuss the logic of the deal, the landlord’s relationship with the NHS, debt, politics, why John believes PHP is a “no brainer” investment and the appropriate yield he, Davies and Hyman believe the stock warrants.

Let us know your thoughts, or if you have any questions or any suggestions for future guests, by emailing alex.newman@ft.com

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Timestamps:

00:00 Intro

02:42 What is PHP?

05:29 Becoming a growth stock

08:20 Being a REIT

14:49 Maintaining dividend growth

18:60 How new opportunities arise

22:37 How lease negotiation works

26:33 Assura acquisition

34:54 Move to unsecured loans

37:15 The challenge of the political landscape

40:41 Potential for a buyout

45:23 Goodwins update

49:55 Small cap stock update

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