OREANDA-NEWS. The first half of FY16 saw Primary Health Properties (PHP) continuing to grow on all key metrics. The low-cost operating model should see ongoing portfolio growth translate into rising earnings and dividend paying capacity. Consensus is that PHP will pay 5.125p in earnings in FY16, which would be the 20th year of unbroken dividend growth. Our increased estimates indicate that dividends will remain fully covered despite an increased share count from the April capital increase. PHP offers an attractive, growing and secure dividend, supported by predictable long-term cash flows from mainly government-backed revenues.

PHP's progressive dividend is attractive and secure with c 91% of current rents derived directly or indirectly from the UK government, with no material linkage to the economic cycle. As a result, healthcare property values have shown much less volatility than the broad commercial sector. 

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