Assura PLC Trading Update (6622V)
February 01 2017 - 2:00AM
UK Regulatory
TIDMAGR
RNS Number : 6622V
Assura PLC
01 February 2017
Assura plc
Trading Update
For the third quarter to 31 December 2016
Continued strong growth
Assura plc ("Assura"), the UK's leading primary care property
investor and developer, today publishes a trading update for the
third quarter to 31 December 2016.
Value enhancing investment activity
Assura continued to make good progress in the third quarter,
completing the acquisition of 22 medical centres for a gross
consideration of GBP48.8 million with a passing rent roll of GBP2.5
million and a weighted average unexpired lease length of 13.8
years.
Assura has a further pipeline of individual asset acquisitions
and developments currently in solicitors' hands worth approximately
GBP103 million.
Rental income increased
Assura now owns 385 medical centres with a total annualised rent
roll of GBP72.7 million (30 September 2016: GBP70.1 million), with
growth in the financial year to date driven primarily by
acquisitions.
The weighted average annual rent increase was 1.72% on the basis
of 84 reviews settled in the nine months to 31 December 2016, of
which open market rent reviews were 1.15%.
Secure and growing dividend
A key part of Assura's strategy is providing a secure, fully
covered and growing dividend stream for investors. The quarterly
dividend was increased by 9% for the January 2017 payment to 0.6
pence per share equivalent to 2.4 pence per share on an annualised
basis.
Strong financing and debt position
As highlighted in the interim results, in October Assura issued
GBP100 million of unsecured ten-year notes at a fixed rate of
2.65%. This was Assura's first issue in the US private placement
market and demonstrates the Company's ability to attract a new
source of long-term funding at an attractive rate. This unsecured
funding increases operational flexibility and reduces transaction
costs associated with financing the expanding property
portfolio.
At 31 December 2016 Assura's undrawn facilities were GBP130
million.
Market Background
The NHS has identified over 200 new build primary care schemes
for investment under the Estates and Technology Transformation Fund
("ETTF") as part of its plans to support the increase in services
available in the primary care setting. This investment will be a
very positive step as the NHS looks to relieve the pressures in the
secondary care healthcare system, although the timescale is
uncertain and the funding announced to date is insufficient for
full implementation of all of the schemes identified.
Jonathan Murphy, Interim CEO, commented:
"Assura made good progress in the third quarter, completing
further investment activity and delivering improved primary care
space into the market. The long-term solution to the challenges
facing the NHS is widely agreed to include more healthcare being
provided in the primary care sector, by GPs. This in turn will
require investment in GP premises. We are pleased that the
Government has shown its support for this by the ETTF. Firm
timetables and funding to turn these plans into reality are now
essential if the benefits to the NHS are to be achieved within the
five-year timeframe of the GP Forward View."
- Ends -
For more information, please contact:
Assura plc Tel: 01925 420660
Jonathan Murphy
Finsbury Tel: 0207 251 3801
Gordon Simpson
Notes to Editors
Assura plc, a constituent of the FTSE 250 and the EPRA* indices,
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 30 September 2016, Assura's property
portfolio was valued at GBP1,227 million.
Further information is available at www.assuraplc.com
*EPRA is a registered trademark of the European Public Real
Estate Association
This information is provided by RNS
The company news service from the London Stock Exchange
END
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