Plenty of headroom for more investment at Assura

Healthcare-focussed real estate investment trust Assura announced its full year results for the year to 31 March on Tuesday, with the board reporting a year of “continued growth” in its portfolio, rents, profit and dividend.

The FTSE 250 firm said there was a 21.2% increase in investment property to £1.3bn, as well as 7.6% growth in diluted EPRA net asset value per share to 49.3p.

Its rent roll improved 16.6% to £74.4m, alongside a 20.0% increase in EPRA earnings per share to 2.4p.

Profit before tax surged more than three times to £95.2m, from £28.8m in 2016, with the board declaring its fully covered dividend was increasing by 9.8% to 2.25p.

The board also pointed to its “strong” balance sheet and reduced cost of debt, with its £250m unsecured revolving credit facility signed at an initial margin of 150 basis points.

It also announced that a £100m notes US private placement had been agreed at 2.65% fixed for 10 years, and confirmed its weighted average cost of debt had reduced by 78 basis points to 4.06%.

It said it was “well-positioned” to grow its portfolio and drive further platform efficiencies, with a strong pipeline of £153m of acquisition and development opportunities.

The board claimed that its current loan-to-value ratio of 37% provided more than £190m of investment capacity before reaching the midpoint of its medium-term LTV range of 40-50%, allowing the company to “move quickly” as the right investment opportunities arose.

“During a period of political and economic uncertainty, Assura has continued to deliver significant growth built on a secure and long-term income stream,” said CEO Jonathan Murphy.

“Following the Naylor review, it is clear that mainstream thinking is strongly in favour of further investment in primary care premises.”

Murphy said that was why it was encouraging to see both the Conservatives and Labour making commitments to improve NHS buildings in the next parliament.

“Further to this, it is encouraging to see focus right across the political spectrum on providing better access to general practice and innovative services in the community that better meet patients' needs.

“We now need firm timetables and funding to create the required space, and if we have this Assura is well placed to help primary care plans become reality.”