Assura reports ‘good progress’ and a strong portfolio

Primary care property developer Assura is upbeat about its prospects, but is mindful of its investment pipeline amid the current economic climate, it told investors on Wednesday.  

The Warrington-based group said the first half of the year to 30 September was ‘another period of good progress’, adding that it remained well-placed to meet the UK’s demand for ‘quality’ primary care and community health buildings as a partner of choice for the NHS.

Assura said its portfolio currently stood at 603 properties, with an annualised rent roll of £139.3million. 

The company has invested £141million on additions during the period, at an average yield on cost of 5 per cent, it said.

Assura also completed the disposal of a portfolio of 61 properties for £73million over the period, at a small premium to book value.

It added: ‘At 30 September 2022 net debt stood at £1,092million with cash and undrawn facilities of £284million.’

Boss Jonathan Murphy said: ‘Our financial position remains very strong. Our debt book is fixed at an average interest rate of 2.3 per cent with a long-term average maturity of 7.5 years, and we have cash and committed undrawn facilities totalling £284million.

‘Together with the strength of our portfolio and expertise of our teams, we are well placed to take advantage of the opportunities ahead. 

‘That said, we recognise the current macro-economic uncertainty and industry-wide inflationary pressure and will continue to monitor and take a cautious approach to capital investment to ensure long-term success.’

Assura shares fell today and were down 4.32 per cent or 2.32p to 51.48p this afternoon. The group’s share price has fallen by nearly 30 per cent in the past year.