Assura PLC Trading Update (4402O)
February 09 2016 - 2:05AM
UK Regulatory
TIDMAGR
RNS Number : 4402O
Assura PLC
09 February 2016
9 February 2016
Assura plc
Trading Update
For the period to 8 February 2016
Period of significant growth
Assura plc ("Assura"), the UK's leading healthcare REIT, today
publishes a trading update for the period from 1 October to 8
February 2016.
Step change following successful equity raise
On 11 October 2015 Assura completed an equity raise of GBP300
million, net of expenses, to fund further acquisitions and
developments and significantly strengthens the balance sheet. This
strengthened financial position improves Assura's standing with its
primary customers in the NHS and GPs, greatly increases its ability
to take advantage of the considerable ongoing opportunities in the
sector and provides scope for negotiating better terms and pricing
on future debt facilities.
Since the equity raise, the proceeds have been applied in a
reduction of long-term debt by GBP181 million (with additional
early prepayment costs as set out below), the temporary repayment
of the revolving credit facility of GBP35 million and 12 property
additions with a gross value on completion of GBP39 million. The
property additions consist of ten property acquisitions, one
completed development and one completed forward funding agreement
and increases the rent roll by GBP2.3 million with a weighted
average unexpired lease term of 21.9 years.
New acquisition and development opportunities continue to be
identified at a faster pace than the conversion of heads of terms
into contractual completion. As a result the immediate pipeline of
such opportunities has risen to GBP135 million from the GBP125
million announced in October.
Further rental growth achieved
The annualised rent roll is now GBP61.8 million (September 2015:
GBP59.6 million) with growth driven primarily from
acquisitions.
The weighted average annual rent increase was 1.40% on the basis
of 111 reviews settled in the financial year to date, which
includes an average annual rental growth of 0.89% arising from
settled open market rent reviews. 85 of the reviews settled in the
period related to 2015 review dates with an annualised increase of
1.51%, mostly driven by stepped uplifts in a small number of rent
review clauses and RPI based reviews.
Strong financial position
As outlined to investors at the time of the recent fundraise a
key objective was to strengthen the financial position of Assura
and a new medium term target loan to value range of 40% to 50% was
announced. Currently the loan to value ratio is below 30%, allowing
for significant further investment.
In the period Assura successfully negotiated the redemption of
GBP181 million of long term debt held by Aviva Commercial Finance,
which had associated early repayment costs of GBP34 million.
Assura currently has GBP120 million of undrawn facilities and is
well placed to take advantage of the opportunities for further
consolidation in our sector.
Secure and growing dividend
A key part of Assura's strategy is providing a secure and
growing dividend stream for investors. The quarterly dividend was
increased by 10% for the January 2016 payment to 0.55 pence per
share or 2.2 pence per share on an annualised basis. At this time
Assura also introduced a scrip alternative for shareholders to
provide greater flexibility on how dividends are received.
Graham Roberts, Chief Executive, commented:
"There has been a renewed emphasis from the NHS and politicians
recently on addressing the chronic shortage of primary care space
in the UK. Assura is ideally placed with the expertise, scale and
financial flexibility to support this essential investment in our
nation's primary care infrastructure."
-ENDS-
For more information, please contact:
Assura plc Tel: 01925 420660
Jonathan Murphy
Orla Ball
Carolyn Jones
Finsbury Tel: 0207 251 3801
Gordon Simpson
Notes to Editors
Assura plc, a constituent of the FTSE 250, is a UK REIT and
long-term investor in and developer of primary care property. The
company, headquartered in Warrington, works with GPs, health
professionals and the NHS to create innovative property solutions
in order to facilitate delivery of high quality patient care in the
community. It owns 305 medical centres nationwide, serving over 3
million patients. At 30 September 2015, Assura's property portfolio
was valued at GBP1,030 million.
Further information is available at www.assuraplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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