Unaudited interim results for the six months ended 30 September 2014
21% increase in assets; 17% increase in underlying profit
A period of significant growth
- Completed acquisitions of MP Realty Holdings Group (£107 million) and One Life (£12.3 million)
- Completed £4.2 million development at 6.6% yield on cost with a lease length of 20 years
- 17.2% increase in total rent roll to £49.0 million (March 2014: £41.8 million)
- 21.1% increase in total property assets1 to £809 million (March 2014: £668 million)
Continued progress since the period end
- Share issue completed on 15 October 2014, raising £175 million net of expenses
- Three further development completions at a 7.3% yield on cost with an average lease length of 23 years
- Acquired Metro portfolio of 11 medical centres on 6 November 2014 for £63.1 million and reached agreement in principle to fund a further four developments for £21 million
- Net loan to value ratio 47% at 24 November 2014 and discussions ongoing with lenders to reduce gross debt
Increase in underlying profit and net asset value
- 24.0% increase in net rental income to £22.2 million (2013: £17.9 million)
- 16.7% increase in underlying profit from continuing operations to £6.3 million (2013: £5.4 million)
- 35.2% increase in profit before tax to £16.5 million (2013: £12.2 million)
- 13.2% increase in adjusted net assets and 4.4% increase in adjusted EPRA NAV2 per share to 45.3 pence (March 2014: 43.4 pence)
11% increase in dividend announced
- 11% increase in next quarterly dividend to 0.5 pence per share, equivalent to 2.0 pence per share on an annual basis, following the 49% increase announced last year
- Dividend fully covered and progressive dividend policy maintained
Assura is a leading operator in a large, growing market
- Ever increasing demands on health service from an ageing population, rising public expectation and medical advances
- Investment in primary care will be key to addressing this demand, despite the recent slowdown in the rate of approvals for new developments from the NHS
- Sector provides low volatility of returns with low default risk and a link with cost inflation
Assura is well positioned to continue outperforming the market
- Deep understanding of primary care real estate with proven skills in medical investment and development
- Scalable internal management model
- Re-capitalised business has lower gearing profile and capacity for future growth
- Strong development and acquisitions pipeline
Graham Roberts, Chief Executive, said:
“The strong results reflect the quality of our portfolio and the high level of activity at the Group. We have come a long way in the last three years, and in October we took a further transformative step raising £175 million through a share issue. This has allowed us to execute further value enhancing acquisitions since then. It has also strengthened our balance sheet, putting us in an excellent position to build on our leading position in the market and to continue to provide the modern primary care medical centres this country needs so much.”
For further information, please contact:
| Assura Group Limited: Graham Roberts Jonathan Murphy Carolyn Jones |
Tel: 01925 420660 |
| RLM Finsbury: Gordon Simpson |
Tel: 0207 251 3801 |
Presentation and Webcast:
A presentation will be held for analysts and investors on 25 November 2014 at 11am London time, with a webcast available from our website or via the following link:
Alternatively to listen to the audio of the presentation live, dial: +44 (0)20 3003 2666 – Standard International Access
0808 109 0700 – UK Toll Free
Password: Assura