Positive 2017 results (dated 15th February) illustrate continuing good momentum. Currently, UK acquisitions achieve average 4.9% net initial yields and thus generate a 1.4% average yield pick-up after operating and interest costs. Investment in Republic of Ireland (RoI) yields a 3.0% pick-up in the net income yield versus cost of debt. Once again, PHP lowered its cost of debt. Also, one example of several, Aviva renewed a £75m loan facility to November 2028 at a fixed interest rate of 3.1%; this renewal results in interest savings of £675,000 p.a. to PHP (beginning November 2017). PHP has excellent assets and a ‘following wind’.
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