Assura posts first-half profit, secures cheaper debt facility

Primary care property investor and developer Assura reported a jump in first-half profit and announced a new cheaper debt facility.

In the six months to the end of September, pre-tax profit rose to £41.7m from £35.4m the year before, with underlying pre-tax profit up 75% to £19.8m.

Assura said the growth in underlying profits reflects the benefit of completed developments and acquisitions, reduced financing costs and efficiencies from its internally-managed model driving down its EPRA cost ratio.

Net rental income increased 17% to £32.9m in the period and diluted EPRA net asset value grew 3% to 47.2p per share at the period end.

The company said the value of its investment property is now £1.2bn after an increase of £118m since the end of March.

During the half-year period, it completed £95m of property additions, acquiring and developing assets in line with the plan outlined at the time of its equity fundraising a year ago.

In addition, it has reduced its financing costs and improved the financial structure to make it more appropriate to support the business. In May, it negotiated a new £200m unsecured revolving credit facility, with a lower initial margin than that of the facility it replaced.

Interim chief executive officer Jonathan Murphy said: “Assura has grown significantly in the first half of the year, reflecting the benefit of completed developments and acquisitions. The group is well positioned as a sector leader in a market that is in critical need of investment. There is a growing consensus that primary care must play a bigger role in health provision and the group is ideally placed with the expertise, scale and financial flexibility to help the NHS develop our nation's primary care infrastructure.”

At 0930 GMT, the shares were up 0.3% to 59.75p.