Continued growth driving income returns
Assura plc (“Assura”), the UK’s leading healthcare REIT, announces its full year results for the year ended 31 March 2017:
Continued growth of portfolio, rents, profit and dividend
- 21.2% increase in investment property, to £1.3 billion (2016: £1.1 billion)
- 7.6% growth in diluted EPRA NAV per share to 49.3 pence (2016: 45.8 pence)
- 16.6% increase in rent roll to £74.4 million (2016: £63.8 million)
- 20.0% increase in EPRA EPS to 2.4 pence (2016: 2.0 pence)
- £95.2 million profit before tax (2016: £28.8 million)
- Fully covered dividend increased by 9.8% to 2.25 pence (2016: 2.05 pence)
Strong balance sheet and cost of debt reducing
- £250 million unsecured revolving credit facility signed at initial margin of 150bps
- £100 million notes US private placement agreed at 2.65% fixed for 10 years
- Weighted average cost of debt reduced by 78bps to 4.06% (2016: 4.84%)
Well positioned to grow portfolio and drive further platform efficiencies
- Strong pipeline with £153 million of acquisition and development opportunities
- Current LTV of 37% provides over £190 million of investment capacity before reaching the mid-point of our medium-term LTV range of 40-50%, allowing Assura to move quickly as the right investment opportunities arise
- Scalable, internally managed operating model, with in-house development capability
- Group operates in fragmented market: portfolio of 398 medical centres compares to a total UK market of circa 9,000 buildings
Sector leader in a market that is in critical need of investment
- There is cross party support for investment in the primary care sector to relieve pressure on secondary care
- There is broad policy consensus that investment in the primary care estate is key to the transformation and sustainability of the NHS
- In March of this year, Sir Robert Naylor released his landmark review of the NHS estate highlighting the crucial role for primary care premises
- Assura is well placed to provide the NHS with cost effective and convenient premises
- The overwhelming need in this country for improved primary care premises underpins the future of Assura
Jonathan Murphy, CEO, said:
“During a period of political and economic uncertainty, Assura has continued to deliver significant growth built on a secure and long-term income stream. Following the Naylor review, it is clear that mainstream thinking is strongly in favour of further investment in primary care premises. That's why it is encouraging to see both the Conservatives and Labour making commitments to improve NHS buildings in the next parliament. Further to this, it is encouraging to see focus right across the political spectrum on providing better access to General Practice and innovative services in the community that better meet patients' needs. We now need firm timetables and funding to create the required space, and if we have this Assura is well placed to help primary care plans become reality.”