Assura has posted a 4.4% uplift in net asset value to 40.3p a share in its interim results, as it sets it sights on expansion.
The primary care property investor and developer said its performance had been driven by “intensive management actions” over the six months to the end of September, during which time its total rent roll rose from £35.9m to £40.7m.
Underlying profit increased by more than 10% to £5.4m, while its profit before tax more than doubled to £12.2m.
The firm, led by Graham Roberts, has increased its proposed dividend by 49% to 1.8p a share.
This follows the purchase of the £62.9m Trinity portfolio, which has a rent roll of £4m pa. Roberts said the deal “allowed us to make a step change increase in our quarterly dividend of 49%, and retain out progressive dividend policy”.
Yesterday the company announced it is selling its joint venture LIFT assets for £22.4m, which it called a “pivotal decision… because we believe we can deploy that capital and earn higher returns by investing in wholly owned properties”.
The group’s development pipeline includes eight developments on site and a further 31 potential schemes, with an aggregate value of more than £80m.
It completed four developments for a 6.9% yield on costs during the half year, in addition to its core investment portfolio of 197 medical centres.
Roberts added: “We are looking to expand even faster. The recent acquisition of the Trinity portfolio highlights the benefits to shareholders from future growth, with only marginal additional costs from managing this portfolio.
“In addition, by developing properties ourselves we consistently achieve 7% yield on cost, earning a development profit. We also apply rigorous asset management discipline to ensure we are screening for value enhancing opportunities such as extensions and lease renewals.”
bridget.o’connell@estatesgazette.com
