Despite the continued delay in NHS approval of new developments following the coalition government's abolition of primary care trusts, Assura 's (AGR) capital investment held up last year. The GP landlord completed two developments during the period, at a cost of £13.8m. This added £0.7m to the annual rent roll and generated a 5 per cent yield on cost. However, it is currently on site with six schemes, and management expects work to start on a further eight within the next 12 months.
A £57m revaluation uplift in the portfolio was an increase on the £36m added during 2016. This was predominately due to the £156m in acquisitions of fully completed medical centres made during the period. This also meant the group's annual rental income grew 16 per cent to £67.9m. Owning just 398 medical centres out of a 9,000-strong UK market, management intends to continue buying up practices. It has a pipeline of acquisition and development opportunities wroth £153m.
Management has also worked to reduce costs, with the weighted average cost of debt reduced by 78 basis points to 4.06 per cent. A £250m unsecured revolving credit facility was also signed, while a US private placement of £100m notes was agreed at a fixed 2.65 per cent for 10 years.
Analysts at Peel Hunt expect adjusted net assets of 51p a share at March 2018, up from 49.3p in the previous year.
ASSURA (AGR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 60p | MARKET VALUE: | £993m | |
| TOUCH: | 59.85-59.95p | 12-MONTH HIGH: | 62p | LOW: 48p |
| DIVIDEND YIELD: | 3.8% | TRADING PROP: | £0.9m | |
| PREMIUM TO NAV: | 21% | |||
| INVESTMENT PROP: | £1.34bn | NET DEBT: | 61% | |
| Year to 31 Mar | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 37.4 | 14.3 | 2.7 | 1.16 |
| 2014 | 42.8 | 24.2 | 4.5 | 1.51 |
| 2015 | 44.9 | 36.6 | 4.9 | 1.9 |
| 2016 | 46.1 | 28.8 | 2.2 | 2.05 |
| 2017 | 49.4 | 95.2 | 5.8 | 2.25 |
| % change | +7 | +231 | +164 | +10 |
Ex-div: * Payment: * *Dividends paid quarterly, 0.6p to be paid on 19 July | ||||
