Assura PLC Trading Update (4490L)
October 03 2016 - 2:00AM
UK Regulatory
TIDMAGR
RNS Number : 4490L
Assura PLC
03 October 2016
Assura plc
Trading Update
For the first half to 30 September 2016
Continued portfolio growth and new unsecured long-term
facilities agreed
Assura plc ("Assura"), the UK's leading primary care property
investor and developer, today publishes a trading update for the
first half to 30 September 2016.
Value enhancing investment activity
Assura has made further progress in the first half of the year
acquiring and developing assets in line with the plan outlined at
the time of its October 2015 equity fundraising. During the period,
Assura completed the acquisition of 41 medical centres for a gross
consideration of GBP81 million with a passing rent roll of GBP4.9
million and a weighted average unexpired lease length of 13.5
years. In addition, two developments were completed with a
valuation of GBP13.8 million and a passing rent roll of GBP0.7
million.
Assura has a further pipeline of individual asset acquisitions
and developments currently in solicitors' hands worth GBP114
million.
Rental income increased
Assura now owns 363 medical centres with a total annualised rent
roll of GBP70.0 million (31 March 2016: GBP63.8 million), with
growth in the financial year to date driven primarily by
acquisitions. Furthermore, Assura is maximising income through
active asset management; the letting of vacant space has been a
particular focus in the first half with GBP0.4 million in new
lettings secured in the period.
The weighted average annual rent increase was 1.60% on the basis
of 64 reviews settled in the first half, of which open market rent
reviews were 1.11%.
New long-term unsecured facilities agreed
Assura has signed agreements with Pricoa Capital Group and
MetLife to issue unsecured ten-year notes for a total of GBP100
million. The issue will be Assura's first in the US private
placement market and enhances the company's capacity for further
investment through a new source of long-term funding at an
attractive rate. The notes are at a fixed rate of 2.65% and the
unsecured funding increases operational flexibility and reduces
transaction costs associated with financing properties. The funds
will be drawn on 13 October 2016.
On 18 May 2016 Assura agreed a new GBP200 million revolving
credit facility on an unsecured basis to replace the previous
facility. The initial margin was 150 basis points, which was a
reduction of 20 basis points from the previous facility. Undrawn
facilities, excluding the new notes referred to above, currently
stand at GBP75 million.
At 30 September 2016, Assura's borrowings stood at GBP447.2
million, with a weighted average cost of debt of 4.30% (31 March
2016: 4.84%) and a weighted average debt maturity of 8.6 years. At
the same date, Assura's proforma net loan to value ratio was 36%
(31 March 2016: 30%), below the medium term LTV range of 40% to
50%.
Simon Laffin commented:
"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."
- Ends -
For more information, please contact:
Assura plc Tel: 01925 420660
Simon Laffin
Jonathan Murphy
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. At 31 March 2016, Assura's property portfolio was valued
at GBP1,111 million.
Further information is available at www.assuraplc.com
Pricoa Capital Group is a trading name of PGIM, Inc., the
principal asset management business of Prudential Financial, Inc.
Prudential Financial, Inc of the United States is not affiliated
with Prudential plc, a company incorporated in the United
Kingdom
This information is provided by RNS
The company news service from the London Stock Exchange
END
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