Assura’s property conversion continues

HEALTHCARE properties group Assura saw rental growth of its property portfolio increase by over 5%, or over £200,000 after completing  24 rent reviews in the period since April 1.

The firm said that the weighted average lease period is currently around 16.5 years with more than 85% of its annual rent roll of around £32.3m reimbursed by the NHS.

The total value of its property assets at the beginning of this year stood at £519.6m, and the company’s net asset value is £220.1m, or 54p a share.

Since the start of its new financial year, it has also sold off its pharmacy business in a  £39.3m deal, which has allowed it to focus solely on its property portfolio.

It has also completerd three developments with an end value of £21.1m and started work on three more sites with an end value of £5.9m.

The company said that although there was some uncertainty around potential reorganisation of the NHS, it does not expect this to have an impact on its long term growth and expects further developments to get under way this year.

The company also said that it would seek to refinance loans agreed with National Australia Bank if current low interest rates persist. Derivatives taken out to protect itself against interest rate rises saw their mark-to-market deficit increase since the start of the financial year by £300,000 to £17.6m.

Nigel Rawlings, CEO of Assura, said “We continue to make good progress in our strategy of becoming a pure play property company.

“Following the disposal of the pharmacy business, the group has attracted new property investors as shareholders and there has been increased interest from real estate research analysts.

“With a robust property portfolio and healthy development pipeline, the group is well positioned for future growth.”