Annual results 2022- statement

Delivering continued growth 
 
Assura plc ("Assura"), the leading primary care property investor and developer, today announces its results for the year ended 31 March 2022.

Jonathan Murphy, CEO, said: 

“Assura has delivered another year of significant progress, maintaining its strong financial performance and making a positive contribution to the local communities in which it operates. 

“We have grown our high-quality portfolio to £2.8 billion, progressed our ambitious development pipeline which stands at over £500 million and expanded our offering through working with NHS Trusts, independent providers and making our first investment in Ireland. Supported by our successful bond and equity raises ‒ with accelerated use of proceeds ‒ we have continued to deliver critical new capacity for community healthcare and fulfil the ambitions of our extensive SixBySix social impact strategy. 

“With the UK’s healthcare estate lacking the critical buildings and facilities to tackle the growing backlog of treatments following the pandemic, we know the development of modern, integrated, and high-quality primary care space is a key enabler in reducing this pressure. This area benefits from cross-party political support and Assura is committed to making a significant contribution – all the while accommodating for key emerging trends, including hybrid GP appointments, the requirement for mental health support, and digitalisation.

“As the NHS seeks to become the world’s first net-zero carbon health system, Assura has continued to roll out initiatives to deliver its strong sustainability plans that support all stakeholders over the year.

“Against an uncertain economic backdrop, Assura’s steady and reliable business model, strong balance sheet and differentiated market position means it is extremely well positioned to continue growing and delivering shareholder value. We remain confident in Assura’s outlook for the coming year and beyond”.

Another strong year delivering portfolio, earnings and dividend growth

• Passing rent roll increased 12% to £135.7 million (2021: £121.7 million) with WAULT maintained at 11.8 years
• Profit before tax grew 44% to £155.8 million (2021: £108.3 million) with EPS up 37% at 5.6p (2021: 4.1p)
• EPRA earnings up 14% to £86.2 million (2021: £75.4 million1) and EPRA EPS of 3.1p (2021: 2.8p1)
• Portfolio value rose 12% to £2,752 million (2021: £2,453 million) and Net Initial Yield (“NIY”) at 4.48% (2021: 4.58%)
• Proposed 5.4% increase in the quarterly dividend to 0.78 pence per share

Continuing to provide critical new capacity for community healthcare

• Growing portfolio of 645 high-quality properties (2021: 609) serving 6.8 million people across the UK 
• Added 47 properties at a cost of £271 million (yield on cost 4.6%, WAULT 19 years) and completed four asset enhancement capital projects (£2.7 million) 
• Total development pipeline of £522 million2 with a further 23 asset enhancement projects (£18 million)
• 11 properties sold for above book value proceeds of £15 million; £76m of assets held for sale
• Lease re-gears completed on £1.3 million existing rent roll with further £6.9 million in the pipeline 
• Rent reviews generated weighted average annual rent increase of 1.9%3 (absolute increase of 5.1% on rent roll reviewed)
• Acquisition pipeline of 20 properties at cost of £119 million4
• Total contracted rental income increased 15% to £1.81 billion (2021: £1.57 billion)

Strategic expansion into emerging opportunities

• On site developments include scale projects for NHS Trusts and independent providers 
• Acquisitions supporting delivery of mental health services in a community setting
• Strategic partnerships with two primary care at scale operators
• First acquisition completed in Ireland and currently exploring several opportunities for developments

We Build for Health; sustainability and social impact at the heart of all decision-making

• Further progress on our SixBySix social impact and sustainability strategy 
• Assura Community Fund distributed over £550,000 for health improving projects around our buildings
• EPC improvement programme commenced with 42 existing buildings upgraded to EPC B
• All development completions rated BREEAM Very Good or Excellent and EPC B and above
• Net Zero Carbon Development Design Guide launched and being rolled out into development pipeline
• Sustainability Bond issued under our Sustainable Finance Framework

Strong and diverse financial position 

• LTV of 36%, net debt of £1,006 million on a fully unsecured basis 
• All drawn debt on fixed rate basis - weighted average interest rate reduced to 2.30% (2021: 2.47%) with weighted average debt maturity unchanged at 8 years
• Issued 12-year £300 million Sustainability Bond with coupon of 1.625%
• Cash and undrawn facilities of £369 million
• A- (stable outlook) rating from Fitch Ratings Ltd reaffirmed in January 2022

Summary results

1 Comparator is Adjusted EPRA earnings per share, adjusted to remove the £2.5 million contribution to the Assura Community Fund in the year to March 2021
2 Development pipeline £522 million: £166 million on site, immediate pipeline £158 million, extended pipeline £198 million
Immediate development pipeline: schemes expected to be onsite within 12 months
Extended development pipeline: Assura appointed exclusive development partner, awaiting NHS approval
3 Weighted average annual uplift on all settled reviews
4 Acquisition pipeline in legal hands and expected to complete within 3-6 months

Alternative Performance Measures (“APMs”)
The highlights page and summary results table above include a number of financial measures to describe the financial performance of the Group, some of which are considered APMs as they are not defined under IFRS. Further details are provided in the CFO Review, notes to the accounts and glossary.

For further information, please contact: 

Assura plc:
Jayne Cottam, CFO
David Purcell, Investor Relations Director
Tel: 01925 945354
Email: [email protected]

Finsbury:
Gordon Simpson
James Thompson
Tel: 0207 251 3801 
Email: [email protected]

A presentation for investors and analysts, followed by live Q&A, will be streamed at the link below on 24 May 2022 at 11.00am BST. 

Webcast link: https://webcasting.brrmedia.co.uk/broadcast/625e82ca841dd838fd0be3a3 

In addition, the company will host a presentation with Q&A for retail investors on the Investor Meet Company platform on Thursday 9 June 2022 at 11.30am BST. Investors can sign up to Investor Meet Company for free and add to meet 

Assura plc via: https://www.investormeetcompany.com/assura-plc/register-investor

 
Notes to Editors

Assura plc is a national healthcare premises specialist and UK REIT based in Warrington, UK - caring for more than 600 primary healthcare buildings, from which almost seven million patients are served. 

A constituent of the FTSE 250 and the EPRA* indices, as at 31 March 2022, Assura’s portfolio was valued at £2,752 million.

At Assura, we BUILD for health. Assura builds better spaces for people and places, invests in skills and inspires new ways of working, and unlocks the power of design and innovation to deliver lasting impact for communities – aiming for six million people to have benefitted from improvements to and through its healthcare buildings by 2026.
Assura is leading for a sustainable future, targeting net zero carbon across its portfolio by 2040.

Further information is available at www.assuraplc.com

*EPRA is a registered trademark of the European Public Real Estate Association.