Assura’s half-year pre-tax profit up 58%

Assura Cinderford Medical Centre
Assura Cinderford Medical Centre in Gloucestershire

Primary care property investor and developer Assura today announced its interim results for the six months ending 30 September 2021.

Profit before tax increased by 58% to £69.4 million (2020: £43.8 million), with earnings per share 2.6p (2020: 1.7p).

The real estate investment trust’s passing rent roll was up 5% to £127.5 million (March 2021: £121.7 million), and the weighted average unexpired lease term is 11.7 years (March 2021: 11.9 years).

Adjusted European Public Real Estate (EPRA) earnings increased by 7% to £40.9 million (2020: £35.8 million); EPRA EPS was 1.5p (2020: 1.4p).

Assura’s portfolio increased by 6% to £2,595 million as at 30 September 2021 (March 2021: £2,453 million).

The REIT now has a portfolio of 625 properties (March 2021: 609), catering to 6.3 million people across the UK. It has a development pipeline of £480 million of which on site accounts for £72 million.

Total contracted rental income increased to £1.61 billion (March 2021: £1.57 billion).

Assura also announcing a placing, by way of up to 267,554,740 new ordinary shares representing up to approximately 10% of the company’s existing issued share capital. The placing is expected to raise gross proceeds of approximately £190 million.

Assura’s chief executive Jonathan Murphy said: “Assura has continued to make strong progress over the past six months. We expanded our high-quality portfolio with 27 new additions and grew Assura’s market-leading development pipeline to a record £480 million, building upon our acquisition of Apollo in February. Our financial platform remains robust, with a conservative LTV of 39% and our lowest ever cost of debt of 2.3% down 17 bps from last year. This is Assura’s eighth year of dividend growth ‒ a testament to our successful strategy, which continues to drive resilient cash flows, strong growth and a positive outlook for the company.

“The pandemic has shone a light like never before on Assura’s role as the NHS’s partner of choice, supported by our financial strength, sector expertise and mutually beneficial relationships with GPs. With capacity constraints and health inequalities having been exacerbated significantly in the last 18 months, the provision of the high-quality community healthcare that Assura delivers has become more important than ever. With our leadership position we are also well-positioned to adapt to emerging trends within the sector such as the growing digitalisation at our sites and remote diagnosis. Most recently, more than 87,000 people benefited from our social impact strategy, SixbySix, from improvements to and through our healthcare buildings in the half-year period and as COP26 draws to a close we continue to play a key role in supporting the NHS’s commitment to become the world’s first net zero healthcare system.

“Today, we are also proposing an equity raise of approximately £190 million, to fund additional investment in our development pipeline, acquisitions and asset enhancements. This will help us to further build on our strong track record of delivering growth, supporting the NHS and increasing shareholder value.”

Date published: November 11, 2021

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