Assura portfolio expands as it raises funds for pipeline
By Josh White
Date: Tuesday 06 Jul 2021
(Sharecast News) - Primary care property investor Assura updated the market on its first quarter on Tuesday, reporting a portfolio of 610 properties at period end, with a current annualised rent roll of £123.5m.
The FTSE 250 company said it made 12 property additions in the three months ended 30 June, made up of one development completion and 11 acquisitions, for a total cost of £53m.
Two development schemes moved onto site in the quarter, including the West Midlands Ambulance Hub, announced in June.
A total of 11 disposals were completed in the period, raising proceeds of £15m, above the book value in March.
Three lease regears were also completed on £0.1m of existing rent.
Assura said it was currently on site with four capital asset enhancement projects, for a total spend of £2.7m.
The board said the firm's development and acquisition pipeline provided it with "significant" growth opportunities, as it was on site with 17 developments with a total cost of £99m, up from 16 sites and £72m at the end of March.
Its immediate development pipeline totalled 19 schemes, where it expected to be on site within 12 months, totalling a further £121m, compared to 17 schemes and £111m at the start of the quarter.
The company said its immediate acquisitions pipeline stood at £58m, which it would normally expect to complete in three to six months, rising from £46m at the end of March.
It reported 37 lease re-gears covering £4.5m of existing rent roll in the current pipeline, anda pipeline of 19 capital asset enhancement projects with a projected spend of £16m over the next two years.
On the financial front, Assura issued a 12-year, 1.625%, £300m sustainability bond in June, and following that, net debt stood at £954m at period end, with undrawn facilities of £205m and a weighted average interest rate of 2.3%.
"I am pleased to report that Assura has completed another successful quarter," said chief executive officer Jonathan Murphy.
"We have continued to manage our portfolio actively by adding 12 attractive assets to our portfolio for a total of £53m, and disposing of 11 mature assets for £15m.
"At the same time, our development activity is at record levels and we are currently on site at 17 locations with a total cost of £99m."
Murphy noted that towards the end of the quarter, the company issued its first sustainability bond, raising £300m, which followed on from its first social bond last year.
"This is a further clear demonstration of the commitment to our communities and the wider environment across everything we do.
"We can increasingly see new ways to support the NHS in meeting its infrastructure challenges and the current development of the West Midlands Ambulance Hub is an excellent example of this.
"We continue to engage closely with the NHS to identify ever more innovative solutions for its needs."
At 0831 BST, shares in Assura were up 0.27% at 75.4p.
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