Healthcare property group Assura hails strong first half, and refinancing deal
Altrincham-based healthcare property group, Assura, said it has delivered another period of strong financial performance and refinanced its revolving credit facility, it announced today (October 9).
In the interim period to September 30, 2023, its portfolio comprised 612 properties with an annualised rent roll of £146.9m.
Two developments were completed in the period – Kettering and Wolverhampton – and one acquisition in Ireland that includes opportunity for a significant asset enhancement project.
It completed five asset enhancement capital projects – total spend £3.3m – and there were 152 rent reviews settled in the quarter, covering £19m of existing rent and generating an uplift of £1.5m.
The quarterly dividend increased by five per cent to 0.82p per share, as announced at the full year results, with effect from the July 2023 payment.
Assura is currently on site with 10 developments. These have a remaining spend over the next 12 months of £55m of a total cost of £114m (March 2023: 11 on site, £129m total cost).
There is an immediate development pipeline of four schemes, where the group would normally expect to be on site within 12 months, with a total cost of £25m (March 2023: five, £37m). However, Assura said it continues to experience delays on pipeline schemes as it negotiates to ensure rents appropriately reflect the current cost of construction.
There are 42 lease re-gears covering £8.2m of existing rent roll in the current pipeline.
And the group is on site with seven asset enhancement capital projects – total spend of £6.9m over the next 12 months – with a pipeline of 15 asset enhancement capital projects (projected spend £10m) over the next two years.
The group said it has a strong and sustainable financial position.
It has net debt of £1.195bn on a fully unsecured basis with cash and undrawn facilities of £259m, including the refinanced rolling credit facility which provides Assura with improved terms and flexibility compared with the existing agreement.
It has increased from £125m to £200m and matures in October 2026. It has reduced margin and overall cost, reflecting the strength of the business, offers the ability to draw facility in both GBP and EUR and an option to extend the facility by two additional one-year terms, to October 2028, subject to lender approval.
The facility is provided by Barclays Bank, HSBC UK Bank, National Westminster Bank and Santander UK. Assura was advised by Rothschild & Co and Addleshaw Goddard.
Assura CEO, Jonathan Murphy, said: “Assura has delivered another period of strong financial performance and disciplined activity.
“We have continued our focus on areas of strategic expansion to unlock value through several attractive portfolio additions. This includes the completion of our state-of-the-art day case hospital in Kettering for Ramsay Healthcare, moving on site with an ambulance hub for the local NHS Trust in Bury St Edmunds which is designed to be net zero carbon in operation, and the acquisition of another high quality asset in Ireland with a significant asset enhancement opportunity.
“In addition, we made good operational progress in the period. We settled 152 rent reviews to generate an uplift of £1.5m, and – as separately announced today – we have refinanced our revolving credit facility, increasing the facility size, reducing the costs as a reflection of the strength of the business and adding sustainability-linked KPIs.
“We continue to see growing and consistent demand for high-quality healthcare buildings in a community setting. Our leading market position, strong and sustainable balance sheet and pipeline of growth opportunities will allow us to continue to deliver against our proven strategy.”
