The value of Assura’s (AGR) property portfolio increased by 28.8 per cent for its March year-end, but any revaluation gains for the GP landlord were wiped out by early repayment costs of £56.4m payable to Aviva. However, the general diagnosis remains positive, reflected in an 18 per cent hike in net rental income and a fall in the EPRA cost ratio to 13 per cent.
The rent roll was up 22.3 per cent, with six developments completed at a cost of £31.3m. The group completed £314m of property additions, the largest contributor to the increase in investment property, although the total property return was static at 9.7 per cent.
The steep rise in the rent roll will garner headlines, but the rationalisation of the balance sheet shouldn’t go unnoticed. Assura has altered the basis of its debt refinancing, with new arrangements that have reduced the average cost of debt by 94 basis points to 3.12 per cent, and accelerated the deliberate switch from secured to unsecured (and non-amortised) facilities. Around £410m was raised through placings/share issues through to December 2017, which facilitated a £211m repayment to Aviva at the beginning of 2018.
Stifel guides for adjusted NAV of 55p for the March 2019 year-end, up from 52.4p in FY2018.
| ASSURA (AGR) | ||||
| ORD PRICE: | 59p | MARKET VALUE: | £1.41bn | |
| TOUCH: | 58.9-59p | 12-MONTH HIGH: | 67p | LOW: 56.6 |
| DIVIDEND YIELD: | 4.2% | TRADING PROP: | £8.4m | |
| PREMIUM TO NAV: | 12% | |||
| INVESTMENT PROP: | £1.73bn | NET DEBT: | 37% | |
| Year to 31 Mar | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend * per share (p) |
| 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 |
| 2018 | 52.5 | 71.8 | 3.7 | 2.455 |
| % change | +6 | -25 | -36 | +9 |
| Ex-div: | * | |||
| Payment: | * | |||
| * Dividends paid quarterly. The July dividend for 2018-19 of 0.655p will be paid on 18 July 2018 (ex-div on 14 June 2018) | ||||
