The UK-based Primary Health Properties (PHP), led by CEO Harry Hyman, plans a secondary listing on the JSE as it diversifies its shareholder base.
PHP, which is listed on the London Stock Exchange (LSE) with a market capitalisation of £1.22 billion (R28bn), is a Real Estate Investment Trust (REIT) and a leading investor in modern primary health-care premises across the UK and Ireland.
Yesterday, its shares were trading at about £90.85 up 1.79% on the LSE.
It said in a Stock Exchange News Statement that the JSE had granted approval to PHP for a secondary listing, by way of the fast-track listing process, of all its issued ordinary shares being 1336 493 786 ordinary shares with a nominal value of 12.5 pence each on the main board of the JSE in the "Health Care REIT" sector, under the abbreviated name PHP with effect from the commencement of trading on October 24.
PHP invests in health care real estate let on long-term leases, backed by secure underlying covenants funded mostly by government bodies in the UK and Ireland, in terms of which approximately 89% of the rental income is attributable, directly or indirectly, to such government bodies.
PHP aims to operate in a relatively low-risk environment to generate progressive returns for shareholders through a combination of earnings growth and capital appreciation by investment in the primary health-care real estate sector in the UK and Ireland, which is traditionally less cyclical than other real estate sectors.
PHP's property portfolio comprises 514 properties let to National Health Service organisations in the UK, the Health Service Executive in Ireland, General Practitioner surgeries, pharmacies, dentists and other health-care service providers.
PHP said it also looked to selectively grow its property portfolio by funding and acquiring high quality developments, newly developed facilities and investing in already completed, let health-care assets.
The company said it had grown its dividend for 27 consecutive years.
Its property portfolio was valued at £2.783 billion on June 30 ( December 31, 2022: £2.796bn) across 514 assets.
Looking ahead, it said growth in the immediate future would be focused on increasing income from PHP's existing real estate portfolio and PHP was encouraged by the increasingly firmer tone of rental growth seen in recent years.
PHP said it believed the favourable dynamics of higher inflation and increased build costs combined with a demand for new primary care facilities and the need to modernise the estate will continue to increase future rental settlements.
The company said it wanted to list on the JSE to establish a positive relationship and reliable track record with the South African market; increase the liquidity and tradability in the company's shares through a robust exchange; introduce a first-of-its-kind primary health-care-focused REIT to the JSE investor community; provide investors on the JSE with an opportunity to participate in the company's income and capital growth potential; and subject to market conditions, raise capital in a new market to fund further acquisitions in due course albeit no new capital raise was anticipated at present.
It also aimed to further diversify the company's shareholder base.