Profits fall by 2.7% at health property firm

An Assura building

Profits have fallen slightly at property healthcare firm Assura.

The Warrington based business released its half-year figures this morning.

And profits have fallen by 2.7% to £36.4m on the previous 12 months.

The fall in profits is largely due to the drop in property prices in the last 12 months.

The value of Assura’s property portfolio has increased by three per cent over the last year to £2,039m largely driven by acquisitions.

However chief executive Jonathan Murphy said the business had performed well.

He said: “Assura has today delivered another strong performance, driven by new developments and carefully selected acquisitions.

“We have again made good progress with our key operational metrics, reporting 10% growth in net rental income, maintaining our focus on asset enhancement, selective strategic acquisitions and disposals.

“Our pipeline is the strongest it has been in 10 years, enhanced by the acquisition of GPI, which has created fresh opportunities for Assura.

“The UK’s primary care infrastructure continues to be in immediate need of modernisation which will ease the significant strain on NHS services. We remain well-positioned to be the NHS’s partner of choice, bringing a long-term approach to both investing and developing with an unrivalled team, capital strength and quality of service.”

Net rental income was up 10% to £50.6 million reflecting a rent roll growth of 2% to £104.4m.

There were 148 rent reviews settled in six months and 2.04% of rental growth secured through settled rent reviews.

Strongest on-site and pipeline position in 10 years, bolstered by the GPI acquisition.

There were £43m of additions to completed property in the period including the purchase of nine high quality properties and completion of two state-of-the-art developments.

The firm has 14 developments currently on-site and immediate pipeline of 15 further schemes.

 

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