Assura boosts dividend after healthy first half
Healthcare property investor Assura said it had made “significant progress” in the first half, allowing it to up its dividend payout, as it looked to cash in on a renewed focus on preventative health.
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The group grew its portfolio by £110m in the six months to 30 September, after buying 37 properties for £96m and spending £13m on completed developments. Assura now has 556 medical centres, valued at £1.8bn, making it the largest listed owner of primary care properties.
Net rental income increased 21% to £46.2m and underling earnings were ahead 36% at £31.7m or 1.3p per share. The loan-to-value ratio is 30%.
The firm said: “This strong financial performance has enabled us to announce an intended increase of 5% in our dividend from January 2019 to 0.685p per share on quarterly basis.”
Chief executive Johnathan Murphy said Assura had made “significant progress” in the first half, adding: “We have continued to deliver on our investment plan, which has seen us grow our portfolio, refresh our pipeline of acquisition and development opportunities, strengthen our balance sheet and achieve an investment grade rating of A-.”
Looking ahead, Assura said it was well-positioned to benefit from a renewed focus on preventative healthcare announced by new Health Secretary Matt Hancock, who replaced Jeremy Hunt in July.
“The NHS is planning the allocation of its additional funding with a renewed focus on illness prevention,” it told investors. “This focus leans to investment in primary care, partnership working with community healthcare services and social prescribing.
“Further detail with come with next year’s Spending Review, but with private finance initiatives ruled out by the Chancellor, good value public private partnership options for investment in community healthcare buildings, such as third party development, can play an important role.
“Assura maintains an open dialogue with the key stakeholders within the NHS and government.”