TIDMAGR
RNS Number : 6942N
Assura PLC
22 January 2019
22 January 2019
Assura plc
Trading Update
For the third quarter to 31 December 2018
A further GBP67m invested in the third quarter
Assura plc ("Assura"), the UK's leading primary care property
investor and developer, today publishes a trading update for the
third quarter to 31 December 2018.
Value enhancing investment and development activity
Assura has continued to grow during the three-month period,
completing the acquisition of eight medical centres at a combined
cost of GBP67 million.
This takes the cumulative investment in the year to GBP175
million, through the acquisition of 45 medical centres and
completion of two developments, with a combined passing rent roll
of GBP8.5 million and a weighted average unexpired lease length of
14.6 years.
We have continued to replenish the pipeline of acquisition
opportunities and developments either on site or in legal hands,
which currently stand at GBP86 million and GBP84 million
respectively.
The Company continues to see an improvement in the approval
process for developments with work starting on site in Tonbridge,
Kent on a new medical centre to create more space and modern
facilities to meet the demands of the area's growing population.
Work continues to progress well on the four other schemes currently
on site, including a new primary care centre to serve 20,000
patients in South Woodham Ferrers, Essex, and we expect work to
start early in 2019 on site at Newtown, Birmingham, creating a new
building for an 11,000 patient practice.
We have also disposed of 11 assets that do not meet our
investment criteria, having acquired them as part of recent
portfolio acquisitions. Gross proceeds were GBP6 million.
Rental income increased to GBP99.8m
Assura now owns 553 medical centres with a total annualised rent
roll of GBP99.8 million (30 September 2018: GBP97.0 million).
Secure and growing dividend
In line with our policy to provide a secure, fully covered and
growing dividend stream for investors, and as announced on 22
November 2018, the quarterly dividend was increased by 5% for the
January 2019 payment to 0.685 pence per share, equivalent to 2.74
pence per share on an annualised basis.
Strong financial position
As at 31 December 2018, Assura's gross borrowings stood at
GBP660 million, with a weighted average cost of debt of 3.28% and a
weighted average debt maturity of 7.8 years. Assura, which has been
assigned an investment grade rating of A- by Fitch Ratings Ltd, has
in place committed undrawn facilities of GBP300 million to fund the
pipeline of acquisitions and developments.
Market update
Primary care remains at the core of government health policy,
with investment in this area designed to reduce pressure on other
NHS services. This has been repeatedly highlighted by the health
secretary and in the NHS's Long Term Plan, announced this month,
which puts primary medical and community health services at the
heart of plans.
A national 'call for solutions' to a range of challenges for GP
premises is due to report this year, which is likely to highlight
the ongoing difficulties faced by practices without the space,
layout or facilities they need to best serve their patients.
The formal end of PFI and PF2 was announced in November's
budget, with the Chancellor committing to the continued use of
public-private partnership where it "delivers value for the
taxpayer and genuinely transfers risk to the private sector". The
third-party development model, employed by Assura, remains
well-placed to help deliver the significant infrastructure
investment needed for the NHS and we await more detail of
government's next steps in the spending review and NHS capital
planning work.
Jonathan Murphy, CEO, commented:
"We are pleased to provide another positive trading update on
our business, with GBP67 million of additions to the portfolio in
the last three months helping grow our rent roll to GBP99.8
million. Meanwhile we continue to replenish our pipeline of
acquisitions and developments which currently stands at GBP170
million.
Our successful growth and the secure nature of our income has
enabled us to increase our dividend by 5% to 0.685 pence per
quarter, with effect from the January 2019 payment."
- Ends -
For more information, please contact:
Assura plc Tel: 01925 420660
Jonathan Murphy
Jayne Cottam
Orla Ball
Edelman Tel: 0203 047 2546
John Kiely
Brett Jacobs
Rob Yates
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 innovative property
solutions in order to facilitate delivery of high quality patient
care in the community. At 30 September 2018, Assura's property
portfolio was valued at GBP1,843 million.
Further information is available at www.assuraplc.com
*EPRA is a registered trademark of the European Public Real
Estate Association
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END
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