REG - Assura plc - Trading Update

AssuraAnnouncement

10/01/2024 07:00

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RNS Number : 1490Z  Assura PLC  10 January 2024

10 January 2024

Assura plc

 

Trading Update

For the third quarter ending 31 December 2023

 

Assura plc ("Assura"), the leading primary care property investor and
developer, today announces its Trading Update for the third quarter to 31
December 2023.

 

Jonathan Murphy, CEO, said:

"Assura has delivered another quarter of disciplined activity to further
enhance our growing portfolio, with our market-leading position and strong
balance sheet seeing us well-placed for the long-term.

"Alongside completing two asset enhancement projects in the period, we
continued to leverage our proven track record and market expertise to respond
to distinct challenges and provide quality capacity for services in a
community setting. We see opportunities to respond to this healthcare
challenge by developing for private providers, working directly with NHS
Trusts and mental health services as well as bringing our expertise to the
Irish market.

"We completed a state-of-the-art cancer treatment centre in Guildford which
will provide highly advanced oncology treatments to both NHS and private
patients; and moved on site to double the size of our community care centre in
Castlebar, Ireland - a market for which we have three schemes in our immediate
development pipeline.

"The need for high-quality, sustainable healthcare buildings in a community
setting is unabated, and Assura remains best-placed to meet the demands of an
ageing population and growing pressures on the health system at a time when
one-third of the UK's current GP estate is in need of replacement."

 

Disciplined investment activity further enhancing our attractive and resilient
portfolio

·    Portfolio of 612 properties across the UK and Ireland with an
annualised rent roll of £148.6 million

·    Successful completion of £30 million state-of-the-art cancer care
facility in Guildford, increasing capacity for treatment of NHS and private
patients in the area

·    Moved on site with significant development project in Castlebar,
Ireland doubling the size of the facility to create an Enhanced Community Care
Centre as well as substantially improving sustainability performance targeting
operational energy usage intensity of 55 kWh/m(2)

·    Disposed of one property for £1.2 million

·    Completed two asset enhancement capital projects (total spend £4.9
million), including large extension project at Wantage Health Centre
(increasing capacity, refurbishing the existing space and upgrading the
building to EPC B)

·    46 rent reviews settled in the quarter, covering £3.8 million of
existing rent and generating an uplift of £0.6 million

·    EPC improvement programme continues: 17 properties upgraded to EPC B
in the quarter, 58% of portfolio now at EPC B or better

 

Pipeline of emerging opportunities for strategic expansion and further growth

·    Currently on site with nine developments; these have a remaining
spend over the next 18 months of £36 million of a total cost of £91 million
(September 2023: 10 on site, £114 million total cost)

·    Immediate development pipeline of four schemes (UK: one, Ireland:
three), where we would normally expect to be on site within 12 months; total
cost of £28 million (September 2023: four, £25 million). We continue to
experience delays on pipeline schemes in the UK as we negotiate to ensure
rents appropriately reflect the current cost of construction.

·    On site with five asset enhancement capital projects (total spend of
£2.7 million over the next 12 months); pipeline of 17 asset enhancement
capital projects (projected spend £10.6 million) over the next two years

·    43 lease re-gears covering £8.1 million of existing rent roll in the
current pipeline

 

Robust financial position and strong balance sheet

·    A- (stable outlook) credit rating from Fitch Ratings affirmed in
January 2024

·    Weighted average interest rate unchanged at 2.30% (September 2023:
2.30%); all drawn debt on fixed rate basis

·    Weighted average debt maturity of 6.25 years, no refinancing on drawn
debt due until October 2025. Over 50% of drawn debt matures beyond 2030, with
our longest maturity debt at our lowest rates

·    Revolving credit facility refinanced as previously announced,
increasing to £200 million, reducing the overall cost and adding
sustainability-linked KPIs

·    Net debt of £1,214 million on a fully unsecured basis with cash and
undrawn facilities of £238 million

 

 

 

- ENDS -

 

 

 Assura plc                                   Tel: 0161 515 2043
 Jayne Cottam, CFO                            Email: Investor@assura.co.uk
 David Purcell, Investor Relations Director

 FGS Global                                   Tel: 0207 251 3801

                                            Email: Assura@fgsglobal.com
 Gordon Simpson

Grace Whelan

 

 

Notes to Editors

Assura plc is a national healthcare premises specialist and UK REIT based in
Altrincham, UK - caring for more than 600 primary healthcare buildings, from
which over six million patients are served.

 

A constituent of the FTSE 250 and the EPRA* indices, as at 30 September 2023,
Assura's portfolio was valued at £2.7 billion.

 

At Assura, we BUILD for health. Assura builds better spaces for people and
places, invests in skills and inspires new ways of working, and unlocks the
power of design and innovation to deliver lasting impact for communities -
aiming for six million people to have benefitted from improvements to and
through its healthcare buildings by 2026.

 

Assura is leading for a sustainable future, targeting net zero carbon across
its portfolio by 2040.

 

Further information is available at www.assuraplc.com
(http://www.assuraplc.com)

 

Assura plc LEI code: 21380026T19N2Y52XF72

 

*EPRA is a registered trademark of the European Public Real Estate
Association.

 

 

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