Assura profits surge as pipeline remains 'strong'

Primary care property investor Assura announced its half year results for the six months to 30 September on Wednesday, reporting a 76% increase in profit before tax to £73.4m.

The FTSE 250 company said EPRA earnings per share grew 8.3% to 1.3p, while its investment property portfolio was ahead 16.0% at £1.6bn.

Its diluted EPRA net asset value per share rose 7.7% to 53.1p, and its rent roll improved 11.7% to £83.1m.

The board reported a “strong” balance sheet, enabling it to reduce the cost of its debt, with £98m, gross of expenses, raised from an equity placing in June.

Its unsecured revolving credit facility was increased to £250m at initial margin of 150 basis points, with the company’s weighted average cost of debt reduced by 28 basis points to 3.78%.

The board said further facilities were secured post-period end.

On the operational front, Assura asserted it was the sector leader in a market that was in “significant” need of investment, asserting it remained “well-positioned” to help alleviate pressures on primary care infrastructure.

It reported a strong pipeline, with £209m of acquisitions and developments, as well as a current loan-to-value ratio of 36%.

“Our unique business model and strong, diversified funding structure has allowed us to accelerate investment, grow our property portfolio and deliver a strong financial performance with growth in profit before tax, EPRA NAV and dividends,” said CEO Jonathan Murphy.

“Primary care remains at the heart of the NHS agenda and this, together with our acquisitions and development pipeline, means Assura is well placed to continue improving and providing the primary health care estate of the future.”

In a separate announcement on Thursday, Assura also announced it was seeking to raise up to £330m to fund developments and further refinancing.