Assura rent roll grows as acquisition frenzy continues

Primary care property investor and developer Assura continued to make “good progress” in its first quarter, it reported on Tuesday, completing the acquisition of 24 medical centres for gross consideration of £48.9m, with an aggregate passing rent roll of £2.5m and a weighted average unexpired lease length of 13.1 years.

The FTSE 250 company said it has a further pipeline of individual asset acquisitions and developments currently in solicitors' hands worth approximately £146m, of which £76m represented acquisitions and £70m were developments.

Assura now owned 422 medical centres with a total annualised rent roll of £76.9m as at period end on 30 June, compared to £74.4m on 31 March, with growth in the financial year to date said to be driven primarily by acquisitions.

The weighted average annual rent increase was 2.07% based on 36 reviews settled in the period, of which the average annual rent increase derived from open market rent reviews was 1.25%.

On 20 June, the company raised £98m gross of expenses in an equity placing equivalent to approximately 9.9% of the pre-existing ordinary share capital.

Following that equity issuance, as at 30 June Assura's undrawn facilities were £160m and its pro forma net loan to value ratio was 33%.

“We were pleased with the investor support for our recent equity issue, which was significantly oversubscribed, and this allows us to build on our leading position in the sector by taking advantage of the opportunities in the market while also maintaining a strong balance sheet,” said CEO Jonathan Murphy.

“Despite the uncertain political landscape there remains support across the UK political spectrum for further investment in primary care premises, and Assura is well placed to help plans become reality in a market that is in critical need of investment.”