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Assura Rental Income Rises; Pipeline At 10-Year High On GPI Boost

12th Nov 2019 09:08

(Alliance News) - Care property developer Assura PLC on Tuesday upped its interim dividend and recorded a rise in gross rental income, though its profit fell on on lower revaluation gains.

In the six months to September 30, pretax profit fell by 2.7% year-on-year to GBP36.4 million from GBP37.4 million.

The FTSE 250 firm recorded revaluation gains of GBP1.9 million, down 67% from GBP5.7 million last year. Assura's portfolio value grew 3.0% to GBP2.04 billion from GBP1.98 billion last year.

Gross rental income was up 11% year-on-year to GBP54.7 million from GBP49.4 million. The company added that its EPRA net asset value per share edged 0.4% higher to 53.5 pence from 53.3p in March.

Assura raised its interim dividend by 7.7% to 1.4p per share from 1.3p last year.

The company said it has also been boosted by the acquisition of GPI, a primary care provider which Assura bought for an initial GBP92 million in May.

Chief Executive Jonathan Murphy explained: "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 Cheshire-based firm supplies care properties to healthcare providers, like GPs and the UK's National Health Service. The company's contracted annual rent at September 30 stood at GBP104.4 million, up 1.7% from GBP102.7 million from March.

Assura said 85% of its annual rent "is underpinned by the NHS".

Murphy added: "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

Looking ahead, Assura said it has a pipeline of GBP65 million targeted acquisitions and GBP72 million worth of "development opportunities".

Assura shares were 0.4% lower at 72.29p apiece in London on Tuesday morning.

By Eric Cunha; [email protected]

Copyright 2019 Alliance News Limited. All Rights Reserved.


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