Assura appoints interim CEO after solid first half
Healthcare property investor Assura has appointed finance director Jonathan Murphy as interim chief executive after a half-year in which it acquired more than 40 medical centres and strengthened its balance sheet.
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In a trading up date for the six months to 30 September, the FTSE 250-listed company's 41 purchases cost £81m with annual rent of £4.9m and a lease of 13.5 years, and were accompanied by a pair of developments for a combined £13m with annual rent of £700,000.
The company has a further pipeline of asset acquisitions and developments currently with solicitors worth £114m.
With the acquisitions, Assura now owns 363 medical centers which have a total yearly rent of £70m, a 9.7% increase from last year, and secured £400,000 of new lettings in the last six months.
In its first US private placing, Assura signed agreements with Pricoa Capital Group and MetLife to issue £100m worth of unsecured ten-year notes at a fixed rate of 2.65%, to be drawn on 13 October.
The company also agreed to a £200m new debt facility to replace the previous one, with an initial margin of 150 basis points, a reduction of 20 basis points. Undrawn facilities, excluding the notes, currently stand at £75m.
At the end of September, borrowings stood at £447.2m, with a weighted average cost of debt of 4.3% and a weighted average debt maturity of 8.6 years.
The pro forma net loan-to-value ratio was 36%, up from 30% last year, but below the medium term loan-to-value range between 40% and 50%.
Current finance director Murphy has been appointed interim chief executive, as the search for the company’s new boss continues.
The company has been searching for a new CEO since previous incumbent Graham Roberts stepped down in June and died from cancer in July.
Assura’s property director, Andrew Drake, was also appointed to the board and executive chairman Simon Laffin will now revert back to his non-executive position.
Laffin said: "In the first half of the year Assura has continued its strong growth. The group also has a good pipeline of opportunities, and is well positioned to provide the high quality space that is so necessary for the primary care sector and the wider NHS.
He added: "We are focused on appointing the right person as CEO. I am delighted that Jonathan Murphy has agreed to take on the role on an interim basis and that Andrew Drake is joining the board. These appointments reflect the great work that they have both done over this transitional period.”
Shares in Assura were up 0.64% to 58.67p at 0807 BST.