Primary care property investor and developer Assura has issued a trading update for the third quarter of its fiscal year ending 31 December 2020.
The company has a portfolio of 593 properties and a current annualised rent roll of £118 million. Three developments were completed in the third quarter, taking the total to nine in the year-to-date with an overall combined cost of £57.2 million. Three schemes moved onto site in the quarter.
In Q3, 16 acquisitions were completed for a total consideration of £89 million, taking year-to-date totals to 36 and £169 million. Two disposals were completed raising proceeds of £2 million, taking the year-to-date total to 28 assets disposed of for £25 million. Two lease re-gears were completed during the period, taking the total to 15 completed in the year-to-date (accounting for £1.2 million of existing rent).
Three capital asset enhancement projects were completed, making it four in the year-to-date, for a total spend £1.2 million). Rent collections continued to be in line with normal patterns.
Assura stated that its developments and acquisition pipeline is providing it with significant growth opportunities. The company is currently on-site with 15 developments with a total cost of £71 million and its immediate development pipeline totals a further £60 million, schemes which it expects to be on site within 12 months. Its immediate acquisitions pipeline stands at £80 million, which it would normally expect to complete in three-to-six months. Assura has 53 lease re-gears covering £6.8 million of existing rent roll in the current pipeline and a pipeline of 19 capital asset enhancement projects (with a projected spend £14 million) over the next two years.
At 31 December 2020 Assura’s net debt stood at £849 million with undrawn facilities of £225 million. As previously announced and following the 1.5% £300 million social bond issue in September, in October the company’s revolving credit facility was reduced from £300 million to £225 million, and the 4.75% £110 million secured bond due December 2021 was repaid in full.
Assura chief executive Jonathan Murphy said: “Assura has delivered another quarter of strong progress, as we accelerated investment spend to enhance our portfolio further and drive additional growth. We completed three developments, moved an additional three schemes on site, and completed 16 acquisitions for a total consideration of £89 million. Construction on all our new developments continues, despite the third national lockdown, to deliver new capacity for primary care around the country.
“Our experienced internal investment and development teams have continued to successfully replenish our acquisition and development pipelines, and we have a significant number of attractive new opportunities.
“Following the £300 million issue of our first social bond in September, we fully repaid the secured bond due in December 2021 which completed our long-standing ambition for all financing to be on an unsecured basis.”
Date published: January 11, 2021