Assura secures pipeline of opportunities for strategic expansion

In the quarter to June 30 2024, it had a portfolio of 612 properties with an annualised rent roll of £149.2m.

Three developments were completed with a total combined spend of £46m; a GP surgery in Shirley in the West Midlands, an ambulance hub at Bury St Edmunds in Suffolk and the company’s largest in-house development project to date at the Northumbria Health & Care Academy at Cramlington.

Jonathan Murphy, the company’s chief executive, said: "Over the first three months of our financial year we have continued to deliver on our strategic objectives, and remain extremely well-placed to help support the NHS and wider healthcare market: we deliver an exceptional product, have a strong financial position, and have a culture that focuses on all of our stakeholders to ensure we build strong relationships for the long-term.

He added: "At our results in May, we announced we had entered into a £250m joint venture with USS, the largest private pension scheme in this country.

"This represents a significant and exciting step for Assura, providing further diversity of funding for future growth.

"It also allows us to recycle capital into our pipeline of opportunities across broader healthcare markets including with NHS Trusts, private hospitals, mental health and in Ireland.

"We continue to look at further emerging opportunities which could be funded through a variety of sources, including third party capital, whilst operating within our stated LTV policy range of 40-50 per cent.

"The UK healthcare crisis is getting more severe by the year, which in turn is driving increased demand for healthcare infrastructure.

"The requirement for investment in this space has received cross-party political support, and we look forward to working with whichever party is in Government following today's election."

The group’s quarterly dividend increased by 2.4 per cent to 0.84 pence per share.

In the trading update, it said its weighted average interest rate was unchanged at 2.30 per cent.

It is currently on site with five developments and has an immediate development pipeline of five schemes.

The group also has a pipeline of 15 capital asset enhancement projects, with a projected spend of £9m, over the next two years.

Assura has a portfolio of more than 600 healthcare buildings which provide services to around six million patients.

As of March 31 2024, Assura's portfolio was valued at £2.7bn. The company said it “has a strong track record of growing financial returns and dividends for shareholders”.

Based in Altrincham, Assura is a constituent of the FTSE 250 and the EPRA indices.