Given its commitment to primary healthcare centres, Assura (AGR) provides a welcome relief from Brexit because, whatever the outcome, it will not stop people getting older or anyone seeking medical advice. In fact, we could all probably do with a tonic.
Headline profits were a needless distraction because the fall reflected a more modest valuation uplift of £5.7m against £50.4m a year earlier. Net rental income in the half-year grew by 21 per cent to £46.2m, boosted by the addition of 39 medical centres at a cost of £108m and with a combined passing rent of £5.5m per year. A further three properties costing £50m were added just after the half year end. There are also deals in the acquisition pipeline worth £107m which are expected to complete in the next six months. A total of 107 rent reviews were completed, securing a 1.79 per cent rental increase.
Finances were strengthened with the issue of £300m of unsecured listed bonds at three per cent with a 10-year maturity. This pushed the loan-to-value ratio up to 30 per cent, from 26 per cent at the March year-end, but Assura is comfortable to allow the rate to creep up to around 40 per cent, still leaving plenty of room to finance further acquisitions.
Analysts at Peel Hunt are forecasting adjusted net asset value at the March 2019 year end of 53.8p, from 52.4p in 2018.
| ASSURA (AGR) | ||||
| ORD PRICE: | 55.3p | MARKET VALUE: | £ 1.32bn | |
| TOUCH: | 55.2-55.4p | 12-MONTH HIGH: | 64p | LOW: 52p |
| DIVIDEND YIELD: | 4.6% | TRADING PROP: | £8.2m | |
| PREMIUM TO NAV: | 5% | |||
| INVESTMENT PROP: | £1.84bn | NET DEBT: | 44% | |
| Half-year to 30 Sep | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p)* |
| 2017 | 52.4 | 73.4 | 4.2 | 1.20 |
| 2018 | 52.7 | 37.4 | 1.6 | 1.31 |
| % change | +0.6 | -49 | -62 | +9 |
| Ex-div: | - | |||
| Payment: | - | |||
| *Dividends paid quarterly: 2nd quarter dividend of 0.655p per share paid on 18 July | ||||
