Assura Group Limited1, the UK’s leading primary care property investor and developer, today announces its interim results for the six months ended 30 September 2012.
Strong interim results
- 3.4% property return over 6 months vs IPD monthly index of 0.9%
- £2.2 million valuation uplift (2011: £8.4 million)
- 10.5% uplift in gross profit from continuing operations to £16.9 million (2011: £15.3 million)
- 46% increase in underlying2 profit from continuing operations to £5.7 million (2011: £3.9 million)
- Profit for the period of £6.2 million (2011: loss £9.3 million)
- 3.6% increase in adjusted NAV3 to 37.6 pence per share (March 2012: 36.3 pence per share.) Total return on EPRA net assets over 6 months of 4.2%
- £563 million total property assets (March 2012: £549 million)4
- 3.7% uplift in rent roll to £36.2 million from £34.9 million
- 2.35% annualised uplift on rent reviews settled in period (on 21.9% of portfolio by rental value)
- Long weighted average lease length on core portfolio of 15.5 years (March 2012: 15.8 years)
- Progressive dividend policy in place. Quarterly payments of 0.285 pence per share
Assura operates in a growing market
- Health spending is non-discretionary
- Ever increasing pressure on primary care infrastructure from ageing and more demanding population
- Two thirds of GP premises are not suitable for future needs
- Regulation of GPs by Care Quality Commission starts in 2013
- GPs to be engaged in commissioning decisions from April 2013
Assura is well positioned to continue outperformance
- Deep understanding of GP issues and specialist building requirements
- Strong track record and reputation for delivery
- Strong development capability
- 4 new developments completed for a 6.9% yield on cost. 11 projects on site or about to commence and a further 40 potential schemes identified with an aggregate value exceeding £100 million
- Conversion to REIT status planned for 1 April 2013
Graham Roberts, CEO, said:
“The stability of our valuations, our secure and growing income stream, and our progressive dividend policy have together enabled both a 3.6% increase in NAV and a 3.4% property return. This is despite the tough economic environment and falling property values elsewhere, demonstrating the robust characteristics of the primary care sector together with the quality of this business.”
1“Assura”, or “the Group” or “the Company”
2See note 5
3Net Asset Value – note 9
4Includes property assets held for sale
Presentation and Webcast:
A presentation will be held for analysts and investors on 28 November 2012 at 9.30am London time, with a webcast accessible via the following link from 2pm:
http://www1.axisto.co.uk/webcasting/investis/assura/interim-results-2012/