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Trading statements

Assura makes good progress

19 July 2016 07:07

Assura (AGR) continued to make good progress in the first quarter to 30 June 2016.

The company completed the acquisition of 30 medical centres for a gross consideration of £65.4 million with a passing rent roll of £4.1 million and a weighted average unexpired lease length of 14.1 years.

Assura said it has a further pipeline of individual asset acquisitions and developments currently in solicitors' hands worth £105 million.

Assura said it now owns 351 medical centres with a total annualised rent roll of £68.4 million (31 March 2016: £63.8 million), with growth in the financial year to date driven primarily by acquisitions.

In addition, we are maximising income through active asset management: the letting of vacant space has been a particular focus in the first quarter with £0.3 million in new lettings secured in the period.

The weighted average annual rent increase was 1.43% on the basis of 32 reviews settled in the quarter, of which open market rents reviews were 1.3%.

STRONG FINANCING AND DEBT POSITION

On 18 May 2016, the company secured a new £200 million revolving credit facility on an unsecured basis to replace the existing facility.

The initial margin is 150 basis points, which is a reduction of 20 basis points from the previous facility, and the facility increases operational flexibility and reduces transaction costs associated with financing properties. Undrawn facilities currently stand in excess of £115 million.

At 30 June 2016, Assura's loans stood at £411.9m, with a weighted average cost of debt of 4.55% (31 March 2016: 4.84%) and a weighted average debt maturity of 10.2 years.

At the same date, Assura's proforma net loan to value ratio was 33% (31 March 2016: 30%).

EU REFERENDUM

The company said it saw no direct impact to date from the recent EU referendum, although we realise that the result may create political and economic uncertainty, which could affect investment in primary care infrastructure.

However, the need for investment in primary care premises is recognised by the NHS as a priority, as more services are being provided by the primary care sector and there is also an increasing need to meet the health needs of a growing and ageing population.

Executive chairman Simon Laffin said: "We have had another active quarter as we continue our strong growth.

"Our greater financial flexibility positions us well, while our investment strategy is continuing to generate value.

"Assura is increasingly well positioned to help the NHS develop the modern and effective primary care infrastructure that is so necessary for this country."

Story provided by StockMarketWire.com

Related Company: AGR

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