Assura ramps up third-quarter investment, makes 'strong progress'

Assura hailed strong progress in the third quarter on Monday, after it secured a spate of acquisitions and completed three developments.

In the three months to 31 December, the real estate investment trust – which specialises in primary healthcare properties – completed three developments, moved three schemes on site and completed 16 acquisitions for a combined consideration of £89m.

In the year-to-date, nine developments have been completed and 36 centres acquired. Assura now has a portfolio of 593 properties, with annualised rent roll of £118.0m, up 12% on the same period a year previously.

Chief executive Jonathan Murphy said: "Assura has delivered another quarter of strong progress, as we accelerated investment spend to enhance our portfolio further and drive additional growth.

"Our experienced internal investment and development teams have continued to successfully replenish our acquisition and development pipelines, and we have a significant number of attractive new opportunities.

"Following the £300m issue of our first social bond in September, we fully repaid the secured bond due in December 2021, which completed our long-standing ambition for all financing to be on an unsecured basis."

As at 31 December, net debt was £849m, with undrawn facilities of £225m.

Broker Peel Hunt, which has an ‘add’ recommendation on the stock and target price of 85p, said: "The company has an immediate acquisition pipeline of £80m, is on site with 15 developments totalling £71m, and has a further £60m of schemes due to start on site within 12 months.

"Assura’s 3.7% dividend yield continues to look attractive, despite the large 42% NAV premium. However, Primary Health Properties - upgraded to ‘buy’ this morning - looks slightly cheaper on most key metrics.”

As at 1030 GMT, shares in Assura were largely flat at 79.14p. Shares in rival REIT PHP were ahead a little under 1%, at 158.27p.