Interim results statement 2019

Assura’s strong performance enhanced by growing development and asset enhancement pipelines

Assura remains a key partner to the NHS

Assura plc ("Assura"), the leading primary care property investor and developer, today announces its interim results for the 6 months to 30 September 2019.

Jonathan Murphy, CEO, said: “Assura has today delivered another strong performance, driven by new developments and carefully selected acquisitions. We have again made good progress with our key operational metrics, reporting 10% growth in net rental income, maintaining our focus on asset enhancement, selective strategic acquisitions and disposals. Our pipeline is the strongest it has been in 10 years, enhanced by the acquisition of GPI, which has created fresh opportunities for Assura. 

“The UK’s primary care infrastructure continues to be in immediate need of modernisation which will ease the significant strain on NHS services. We remain well-positioned to be the NHS’s partner of choice, bringing a long-term approach to both investing and developing with an unrivalled team, capital strength and quality of service.”

A growing portfolio driving performance

• Net rental income up 10% to £50.6 million, rent roll growth of 2% to £104.4 million,
• 148 rent reviews settled in six months
• 2.04% of rental growth secured through settled rent reviews, 1.15% relating to open market reviews
• EPRA cost ratio at 12.8%, one of the lowest in the real estate sector
• EPRA EPS up 8% to 1.4p reflecting contribution from completed developments and acquisitions
• Dividend paid in period rise of 8% to 1.4p per share
• Profit before tax down 3% to £36.4 million, due to lower revaluation gains
• Portfolio value up 3% to £2,039 million driven by acquisitions and developments, EPRA NAV increased 0.2p to 53.5p
• Portfolio NIY now 4.72% and WAULT of 11.6 years demonstrates attractiveness of sector and Assura as a business

Strongest on-site and pipeline position in 10 years, bolstered by GPI acquisition

• £43 million of additions to completed property in the period; purchase of nine high quality properties and completion of two state-of-the-art developments
• 14 developments currently on-site and immediate pipeline of 15 further schemes
• Pipeline of properties on site or in legal hands at £206 million, up from £142 million at year end
• Immediate and extended development pipeline boosted by acquisition of pipeline and team of primary care developer GPI, announced in May
• 15 disposals for total proceeds of £18 million, above book value

Strong balance sheet ensures a platform for growth

• LTV of 36% provides good headroom to create value and build portfolio, weighted average interest rate of 3.16%
• Completed private placement of £107 million notes in August
• Undrawn committed facilities at £310 million
• A- (stable outlook) rating from Fitch providing us with a broadened access to debt capital markets and lenders

Committed to delivering a positive social impact in the communities we operate in

• Sustainability a core priority for all new developments
• Focus on supporting climate change targets, sustainable investor returns and customer running costs
• Signing up to be a member of the UK Green Building Council
• Awarded Bronze Award for compliance with EPRA Sustainability Best Practice Recommendations

Maintaining focus on being the NHS partner of choice

• Best-placed to support NHS given people, capital strength, quality of service, long-term relationships and market understanding
• Long-term approach to investing with collaboration across investment, development and portfolio teams
• Primary care remains an integral part of reducing pressure on the NHS’s services
• Assura’s buildings sit at the heart of communities across the UK, supporting 5.6 million patients: 8.5% of the UK population
• Strong pipeline of properties in legal hands at £206 million reinforces Assura’s position as partner of choice

Summary Results

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 and the notes to the interim review. 

For further information, please contact:

This announcement contains inside information as defined in Article 7 of the EU Market Abuse Regulation No 596/2014 and has been announced in accordance with the Company’s obligations under Article 17 of that Regulation.

Presentation and webcast:

A presentation will be held for analysts and investors on 12 November 2019 at 10.30am London time, with a webcast available from our website or via the following link:

https://webcasting.brrmedia.co.uk/broadcast/5d3577b448a6d52f84f6a945

Notes to Editors

Assura plc, a constituent of the FTSE 250 and the EPRA* indices, is a UK REIT and long-term investor in and developer of primary care property. The company, headquartered in Warrington, works with GPs, health professionals and the NHS to create outstanding spaces for health services in our communities. At 30 September 2019, Assura’s property portfolio was valued at £2,039 million.

Further information is available at www.assuraplc.com

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