TIDMAGR
RNS Number : 5950T
Assura PLC
16 November 2023
16 November 2023
Assura plc
Good strategic progress and tenth consecutive year of dividend
growth
Assura plc ("Assura"), the leading primary care property
investor and developer, today announces its results for the six
months ended 30 September 2023.
Jonathan Murphy, CEO, said:
"Assura has successfully delivered another period of growth by
maximising returns on our existing portfolio and maintaining a
disciplined approach to developments and asset enhancement
opportunities as we proactively responded to the evolving economic
backdrop. This approach extended to our portfolio and balance sheet
management, as we successfully completed our 100th development
project and delivered dependable cash flows while also refinancing
our revolving credit facility to lock in flexible financing to
drive future growth.
"As we ready for our next phase of growth, we are focused on
leveraging our proven track record and market expertise to further
expand our efforts in areas of emerging opportunities. Each of
these areas respond to a distinct healthcare challenge to provide
additional, quality capacity for services in a community setting.
These include developing for private providers, working directly
with NHS Trusts and mental health services as well as bringing our
expertise to the Irish market.
"The need for high-quality healthcare buildings in a community
setting is more pronounced than ever, with one third of the UK's
current GP estate in need of replacement, an ageing population and
growing pressures on the health system. Our market-leading position
and strong balance sheet see us well-placed for long-term future
growth."
Attractive and resilient assets with another period of EPRA
earnings and dividend growth
-- Passing rent roll increased 2% to GBP146.9 million (March
2023: GBP143.4 million) with WAULT of 11 years
-- Net rental income up 1% to GBP70.8 million (2022: GBP70.0 million)
-- Investment property value GBP2,725 million (March 2023: GBP2,738 million)
-- Net Initial Yield ("NIY") widened 16 basis points to 5.03% (March 2023: 4.87%)
-- EPRA earnings up 4% to GBP50.8 million (2022: GBP49.0
million) and EPRA EPS of 1.71p (2022: 1.66p)
-- IFRS loss before tax GBP17.8 million (2022: profit of GBP30.9
million) and EPS (0.6)p (2022: 1.0p), reflecting a 2% like-for-like
valuation decline driven by outward yield shift
-- 5% increase in the quarterly dividend to 0.82 pence per share
(3.28 pence on an annual basis) with effect from the July 2023
payment
Answering critical need for new health care capacity in a
community setting
-- Portfolio of 612 high-quality primary care properties serving
6.3 million people across the UK
-- Two developments completed in the period (Kettering and
Wolverhampton) and one acquisition in Ireland (Wicklow) that
includes opportunity for a significant asset enhancement
project
-- Completed five asset enhancement capital projects (total
spend GBP3.3 million) and on site with a further seven (total spend
GBP6.9 million)
-- Rent reviews generated a like-for-like increase of 7.8% on
rent roll reviewed (weighted average annual rent increase of
4.2%(1) )
-- Total contracted rental income stands at GBP1.76 billion (March 2023: GBP1.77 billion)
Good momentum from strategic expansion into emerging
opportunities
-- Areas of strategic expansion becoming meaningful contributors
to portfolio and cash flow stream - each closely aligned with
existing portfolio to relieve pressure on the health system with a
strong underlying tenant covenant, and offer opportunities for
future growth:
o Private health: Completion of newly built state-of-the-art day
case hospital for Ramsay Health Care UK in Kettering; on site with
Genesis Cancer Care facility in Guildford
o NHS Trusts: On site developments include four schemes directly
with NHS Trusts including Northumbria Training Academy in
Cramlington and GBP11 million net zero carbon in operation
Ambulance Hub in Bury St Edmunds
o Mental health: Current properties in portfolio are direct with
NHS, but opportunity for future work with other operators
o Ireland: Three standing investments in Ireland - one with a
significant development opportunity; on site with two forward
funding projects and a further three in the immediate pipeline
Disciplined investment activity with pipeline of attractive
opportunities
-- On site with 10 developments; total cost of GBP114 million
(March 2023: 11, GBP129 million) of which GBP55 million is
remaining to be spent
-- Immediate development pipeline of four schemes (total cost
GBP25 million), where we would normally expect to be on site within
12 months notwithstanding delays currently being experienced in
construction timetables and start dates
-- Pipeline of 15 asset enhancement capital projects (projected
spend of GBP10 million) over the next two years
We BUILD for Health; sustainability and social impact at the
heart of all decision-making
-- Heavy emphasis in these areas helps overall health system
while making us a more attractive, long-term partner
-- Currently on site with our first two net zero carbon
developments at Fareham and Winchester, and net zero carbon in
operation scheme at Bury St Edmunds
-- Development completions hit BREEAM targets (Very Good or better) and EPC B or above
-- Assura Community Fund has deployed over GBP1.9 million since
2020 to community-health related projects
-- On track for EPC B ratings across our portfolio by March 2026, currently 55% at this level
Robust financial position and balance sheet
-- Weighted average interest rate unchanged at 2.30% (March
2023: 2.30%); all drawn debt on fixed rate basis
-- Weighted average debt maturity of 6.5 years, no refinancing
on drawn debt due until October 2025. Over 50% of drawn debt
matures beyond 2030, with our longest maturity debt at our lowest
rates
-- Revolving credit facilities refinanced in October 2023,
increased to GBP200 million, reduced overall cost and adding
sustainability-linked KPIs
-- Net debt of GBP1,195 million on a fully unsecured basis with
cash and undrawn facilities of GBP259 million (including refinanced
RCF)
Summary results
Financial performance September 2023 September 2022 Change
Net rental income GBP70.8m GBP70.0m 1.1%
--------------- --------------- ----------
IFRS (loss)/profit before GBP(17.8)m GBP30.9m
tax
--------------- --------------- ----------
IFRS (loss)/earnings per share (0.6)p 1.0p
--------------- --------------- ----------
EPRA earnings per share 1.71p 1.66p 3.0%
--------------- --------------- ----------
Dividend per share 1.60p 1.52p 5.3%
--------------- --------------- ----------
Property valuation and performance September 2023 March 2023 Change
--------------- --------------- ----------
Investment property GBP2,725m GBP2,738m (0.5)%
--------------- --------------- ----------
Diluted EPRA NTA per share 51.4p 53.6p (4.1)%
--------------- --------------- ----------
Rent roll GBP146.9m GBP143.4m 2.4%
--------------- --------------- ----------
Financing September 2023 March 2023 Change
--------------- --------------- ----------
Net debt to EBITDA 9.3x 9.1x
--------------- --------------- ----------
Undrawn facilities and cash GBP259m GBP243m 6.6%
--------------- --------------- ----------
Weighted average cost of debt 2.30% 2.30% No change
--------------- --------------- ----------
(1) Weighted average annual uplift on all settled reviews
Alternative Performance Measures ("APMs")
The highlights page and summary results table above include a
number of financial measures to describe the financial performance
of the Group, some of which are considered APMs as they are not
defined under IFRS. Further details are provided in the CFO Review,
notes to the accounts and glossary.
For further information, please contact:
Assura plc Tel: 016 1 515 2043
Jayne Cottam, CFO E mail: Investor@assura.co.uk
David Purcell, Investor Relations
Director
FGS Global Tel: 0207 251 3801
Gordon Simpson Email: Assura@fgsglobal.com
Grace Whelan
Anna Tabor
A presentation for investors and analysts followed by live
Q&A will be hosted at the offices of CMS on 16 November 2023 at
10.00am GMT. The event will also be streamed live at the following
link, and shortly after the event a full recording will be
available.
Webcast link: https://brrmedia.news/AGR_IR23
Notes to Editors
Assura plc is a national healthcare premises specialist and UK
REIT based in Altrincham, UK - caring for more than 600 primary
healthcare buildings, from which over six million patients are
served.
A constituent of the FTSE 250 and the EPRA* indices, as at 30
September 2023, Assura's portfolio was valued at GBP2.7
billion.
At Assura, we BUILD for health. Assura builds better spaces for
people and places, invests in skills and inspires new ways of
working, and unlocks the power of design and innovation to deliver
lasting impact for communities - aiming for six million people to
have benefitted from improvements to and through its healthcare
buildings by 2026.
Assura is leading for a sustainable future, targeting net zero
carbon across its portfolio by 2040.
Further information is available at www.assuraplc.com
Assura plc LEI code: 21380026T19N2Y52XF72
*EPRA is a registered trademark of the European Public Real
Estate Association.
CEO statement
Assura is a business built for the long-term. We have again
demonstrated this with another successful period of progress,
against a challenging macro-economic backdrop, and I am proud of
how our team has delivered against our strategy.
We operate in a market that offers a significant opportunity,
notably with one third of the current GP estate in need of
replacement, and substantial investment is required in the primary
care estate for both NHS and private providers. The market offers
attractive investment characteristics, with long leases and a
secure cash flow stream.
Our portfolio has strong fundamentals, carefully constructed
through selective acquisition and development projects. As the
largest developer in this market we have delivered 101 new
developments in our 20-year history. Geographically spread through
the UK and now Ireland, it has a long remaining lease term of 11
years, 81% benefitting from an NHS-backed occupier covenant and
occupancy of 99%.
We have a strong financial position, with a secure balance
sheet, A- investment grade credit rating from Fitch and a debt book
that is fully fixed at a rate of 2.3% and with a maturity of over 6
years.
Our longest-dated debt, being our Social and Sustainability
Bonds, representing approximately 50% of our outstanding debt, also
have the lowest rates, at 1.5% and 1.625% respectively.
These characteristics mean we are well positioned for the
future, whilst we also invest in our capabilities to ensure we
remain best-placed to meet the needs of our customers for the
long-term. We place a heavy emphasis on social impact and
sustainability in everything we do, as areas that are intrinsic to
our business model. Our activities in these areas help the overall
health system, they make buildings cheaper to run and allow more
efficient service delivery - making us a more attractive, long-term
partner. Initiatives such as Design for Everyone, the activities of
the Assura Community Fund and the launch of our Net Zero Carbon
Pathway demonstrate this. Similarly, partnering with the right
suppliers that can help us deliver more social impact, building
greater requirements into our tenders, or a better technology-based
solution in our facilities management offering, demonstrates the
benefit of working collaboratively for the long term.
Financial and operational performance
Assura's business is built on the reliability and resilience of
the long-term, secure cash flows from our high-quality GBP2.7
billion portfolio of 612 properties and our efficient capital
structure.
We strive to grow the rental income generated from our
portfolio...
While remaining resilient, Assura has consistently demonstrated
an ability to identify and secure new opportunities for growth,
building on our market-leading capabilities to manage, invest in
and develop outstanding spaces for health services in our
communities.
We have continued our strong track record of investing with
capital discipline. During the period, this has meant closely
monitoring our on site developments to deliver them on budget, with
completions at Wolverhampton, the 100(th) development completion in
our history, and our scheme for Ramsay in Kettering. This enabled
us to deliver 1% growth in net rental income to GBP71 million, and
our passing rent roll stands at GBP146.9 million.
...whilst protecting the quality of our cash flows...
An essential part of our growth strategy is the careful review
of every asset for opportunities to increase its lifetime cash
flows and impact on the community. Our portfolio management team
seek to enhance the value of our assets through agreeing rent
reviews, completing lease re-gears, letting vacant space and
undertaking physical extensions.
In the first half, the team completed 155 rent reviews, four
lease re-gears, five new tenancies for our vacant space, five
capital projects and commenced our planned sustainability
improvements. Our total contracted rental income, which is a
combination of our passing rent roll and lease length, stands at
GBP1.76 billion, our weighted average unexpired lease term is 11
years and 81% of our income is backed by the NHS or HSE.
...and carefully controlling our balance sheet and cost
base...
Despite the decline in valuation in the period, which has
resulted in us recording an IFRS loss of GBP18 million or 0.6 pence
per share, our balance sheet remains strongly positioned with
robust debt metrics of net debt to EBITDA, interest cover and LTV.
Our investment grade rating of A- was re-affirmed by Fitch Ratings
Ltd in January 2023.
All of our drawn debt has fixed interest, at an average of 2.3%,
a weighted average maturity of 6.5 years and we have no significant
refinancings due in the next five years.
...to deliver earnings growth that supports our dividend
policy.
The combination of these elements has enabled us to continue our
track record of growth year on year. Our EPRA earnings have
increased by 4% to GBP50.8 million which translates to an EPRA EPS
of 1.7 pence per share.
The resilience of our income and the growth we have delivered is
reflected in our fully covered dividend payments, which we have now
increased for ten consecutive years. In May, we announced a 5%
increase in the quarterly dividend payment to 0.82 pence with
effect from the July 2023 payment, equivalent to 3.28 pence per
share on an annualised basis.
Assura outlook
The market to expand our portfolio through acquisition in the UK
has been muted over the months, since the bond market reaction to
the mini-budget in September 2022, and this remains the case today.
Looking ahead we would expect the majority of our growth in the
short-term to come from maximising the returns on our existing
portfolio, focusing on developments and asset enhancement
opportunities as the areas in which we can generate most
value-add.
We are on site with 10 developments, with a total cost of GBP114
million that will complete over the next 15 months. These have a
remaining spend of GBP55 million and are fully funded from
available cash.
The recent challenges in the construction industry, with
significant cost inflation and higher finance costs, continue to
impact rent negotiations on pipeline schemes. Generally these
negotiations remain slow, but we are starting to see positive
movement in some locations where the NHS need for investment in new
buildings is strongest. We only move on site when all aspects of a
scheme (NHS approval, fixed price construction contract, agreement
for lease in place) are agreed in full.
We are seeing progress in our areas of strategic expansion -
working directly with NHS Trusts, private providers and
stakeholders in Ireland. Each of these areas are closely aligned
with our existing portfolio, being buildings that deliver health
services in a community setting - aiming to relieve some of the
pressure on the NHS system - with a strong underlying occupier
covenant.
Our on-site developments include four schemes directly with NHS
Trusts (Shirley, Fareham, Cramlington and Bury St Edmunds), one
with a private provider (Guildford) and also our first two forward
funding projects in Ireland (Kilbeggan and Ballybay). Similarly,
our immediate pipeline of four schemes (total estimated cost of
GBP25 million) contains three schemes in Ireland, building on the
recent successes we have had in these areas becoming meaningful
contributors to our portfolio and cash flow stream.
Having completed five asset enhancement projects (GBP3.3
million) in the period, we are on site with seven more (total spend
GBP6.9 million). The nature of each of these projects is different
- for example, a significant extension and refurbishment of the
existing area at Wantage, a sustainability-linked improvement
alongside a lease regear at Doctors Lane in Darlington, and a
sustainability linked upgrade in Banbury (conversion to air source
heat pump) - but crucially responds to the needs of the customer
and patients at that particular location. Delivering opportunities
such as these helps us serve our customers best, as well as driving
long-term returns from the assets in our portfolio.
Market outlook
The critical need for investment in infrastructure to support
the services delivered by the NHS is as pronounced as it has ever
been. We have an ageing population, and it is cheaper for the NHS
to deliver health services in a primary care setting. Waiting lists
are longer than they have been for decades because hospitals are
overburdened, and appropriate space doesn't exist in a community
setting to deliver care where it is needed.
The existing NHS estate is not fit for purpose and requires
significant investment to meet this demand. Healthcare
professionals openly admit that the premises they work in are
constraining the services they can provide, hindering recruitment
of staff and holding back progress on tackling the care backlog.
The recent restructuring of the NHS into Integrated Care
Partnerships should provide a greater opportunity for stronger
collaboration across health professionals, services and the
property estate.
This all means there will be increasing numbers of diagnostic,
specialist treatment and mental health services moving out of
hospitals and into a community setting. It also means there is a
growing demand for health services from private providers - both
from patients electing to be treated privately and for NHS-referred
work being delivered by private providers.
Assura has a vital role as a partner to a range of health
providers to ease the pressures faced by the system. By investing
in our capabilities, we are strategically placing ourselves as the
partner of choice for the long-term. We are best placed to provide
high-quality, sustainable new premises for delivery of health
services, to retrofit existing buildings to meet the net zero
carbon challenge, partnering with our supply chain to maximise the
social value that we create for the communities we operate in and
continually evolving our offering through adopting the latest
technologies.
Focusing on enhancing our expertise and delivering this into our
buildings, both physically and through the customer service we aim
to deliver, means that our customers can focus on what they do best
- delivering essential health services.
Jonathan Murphy
CEO
15 November 2023
CFO review
For the six months ended 30 September 2023
The first six months of the year has seen us remain disciplined
in our approach to managing our portfolio and balance sheet.
With market conditions remaining unsettled due to the
inflationary environment and movements in long-term interest rates,
our focus has been on delivering our on site developments and
generating internal growth from rent reviews and asset enhancement
activities.
What has remained consistent is the resilience of our assets in
generating high-quality cash flows, highlighting the strength of
our business model. Our asset class benefits from increasing
demand, long leases and a primarily government-backed occupier
base, and so it remains attractive regardless of the political or
economic backdrop.
This is then enhanced by our disciplined balance sheet
management, with long-term, fixed and sustainable financing in
place meaning the growth in rental income can efficiently flow
through to EPRA earnings and the dividend we pay.
All of this means we continue to have high confidence in our
future prospects and our ability to deliver attractive returns that
benefit all of our stakeholders.
Alternative Performance Measures ("APMs")
The financial performance for the period is reported including a
number of APMs (financial measures not defined under IFRS). We
believe that including these alongside IFRS measures provides
additional information to help understand the financial performance
for the period, in particular in respect of EPRA performance
measures which are designed to aid comparability across real estate
companies. Explanations to define why the APM is used and
calculations of the measures, with reconciliations back to reported
IFRS measures normally in the Glossary, are included where
possible.
Portfolio as at 30 September 2023: GBP2,725.1 million (31 March
2023: GBP2,738.0 million)
Our business is based on our investment portfolio of 612
completed properties. This has a passing rent roll of GBP146.9
million (March 2023: GBP143.4 million), 81% (March 2023: 81%) of
which is underpinned by the NHS. The Weighted Average Unexpired
Lease Term ("WAULT") is 11.0 years (March 2023: 11.2 years) and we
have total contracted rental income of GBP1.76 billion (March 2023:
GBP1.77 billion).
At 30 September 2023, our portfolio of completed investment
properties was valued at GBP2,663.7 million (March 2023: GBP2,677.4
million), which produced a net initial yield ("NIY") of 5.03%
(March 2023: 4.87%).
Taking account of potential lettings of unoccupied space and any
uplift to current market rents on review, our valuers assess the
net equivalent yield to be 5.25% (March 2023: 5.09%). Adjusting
this Royal Institution of Chartered Surveyors ("RICS") standard
measure to reflect the advanced payment of rents, the true
equivalent yield is 5.27% (March 2023: 5.12%).
Our EPRA NIY, based on our passing rent roll and latest annual
direct property costs, was 4.93% (March 2023: 4.77%).
Six months ended Six months ended
30 Sep 2023 30 Sep 2022
GBPm GBPm
---------------------- ---------------- ----------------
Net rental income 70.8 70.0
Valuation movement (68.6) (19.0)
---------------------- ---------------- ----------------
Total Property Return 2.2 51.0
---------------------- ---------------- ----------------
Reflecting the recent unstable macro-economic backdrop and
movement in gilt yields, we, like most real estate companies,
recorded a loss on valuation of GBP68.6 million in the period. This
is consequently reflected in our Total Property Return (expressed
as a percentage of opening investment property plus additions)
which was 0.1% for the six months compared with 1.8% in the six
months to September 2022.
The net valuation loss represents a 2% movement on a
like-for-like basis. However, this was offset by the positive
actions we have taken in the period to improve the portfolio - with
four lease regears, 12 capital projects completed or onsite, and
GBP1.5 million additional rent from rent reviews settled in the
period.
As a comparison, the 10-year and 15-year UK gilts now stand at
4.44% and 4.75% respectively (2022: 4.09% and 4.21%
respectively).
Portfolio additions
We have continued to take a disciplined approach to investment
during the period, with primary spending relating to onsite
developments and asset enhancement capital projects. Expenditure in
the period can be split between investments in completed
properties, developments, forward funding projects, extensions and
fit-out costs enabling vacant space to be let as follows:
Six months ended
30 Sep 2023
Spend during the period GBPm
----------------------------------- ----------------
Acquisitions 13.4
Completed developments 30.8
----------------------------------- ----------------
Additions 44.2
Asset enhancement & sustainability 6.4
Net investment 50.6
----------------------------------- ----------------
During the first six months we completed one acquisition in
Ireland, two developments reached practical completion and
completed five asset enhancement capital projects. These activities
focused on completing outstanding commitments, and opportunities
for generating internal growth.
Development activity
We completed two developments in the first half of the year,
adding GBP1.2 million to our rent roll, including the 100(th) in
our 20-year history, Prestbury Medical Practice in
Wolverhampton.
Given the continued challenging environment for negotiating new
development schemes, we have moved on site with only one scheme in
the first half - our second ambulance hub, in Bury St Edmunds -
meaning that 10 are on site at 30 September 2023.
Of the 10, five are under forward funding arrangements
(including two schemes in Ireland) and five are in-house schemes.
These have a combined development cost of just over GBP114 million
of which GBP59 million had been spent at the half year date and
GBP55 million is therefore remaining.
We continue to source additional schemes for our development
pipeline, but the pressures of both rising construction costs and
higher costs of finance have led us to proceed with discipline
before committing to schemes, ensuring all aspects are fixed before
we commence.
We have an immediate pipeline of four properties (estimated cost
GBP25 million, which we would hope to be on site within 12 months)
and an extended pipeline of 50 properties (estimated cost GBP449
million, appointed exclusive partner and awaiting NHS
approval).
Live developments and forward funding arrangements
Estimated
Forward Estimated development Costs
fund/ in Principal completion costs to date Size
house occupier date GBPm GBPm m(2)
---------------- ---------- ----------------- ------------ ------------ -------- -----
Ballybay FF HSE Q2 24 4.4 0.9 1,695
Brighton FF GPs Q3 24 4.9 2.0 948
Bury St Edmunds In house NHS Trust Q3 24 11.1 1.6 2,901
Cramlington In house NHS Trust Q1 24 26.7 16.8 6,500
Fareham In house NHS Trust Q2 24 5.2 1.5 950
Guildford FF Private provider Q4 23 30.8 18.0 2,818
Kilbeggan FF HSE Q1 24 5.4 3.3 1,740
King's Lynn FF GPs Q2 24 10.1 5.7 1,702
Southampton In house GPs Q1 24 7.7 6.8 1,385
Winchester In house GPs Q3 24 8.4 2.6 1,353
Total 114.7 59.2
------------------------------------------------------------- ------------ -------- -----
Portfolio management
In the first half, our rent roll grew by GBP3.5 million (2.4%)
to GBP146.9 million, with GBP1.5 million of this growth from rent
reviews.
We successfully concluded 155 rent reviews during the six months
(year to March 2023: 352) to generate a weighted average annual
rent increase of 4.2% (year to March 2023: 3.8%) on those
properties. These 155 reviews covered GBP19.4 million or 14% of our
rent roll at the start of the year and the absolute increase of
GBP1.5 million is a 7.8% increase on this rent. Our portfolio
benefits from a 36% weighting in fixed, Retail Price Index ("RPI")
and other uplifts which generated an average uplift of 5.4% during
the period. The majority of our portfolio is subject to open market
reviews and these have generated an average uplift of 1.5% during
the period.
Our total contracted rental income, which is a function of
current rent roll and unexpired lease term on the existing
portfolio and on-site developments is GBP1.76 billion (March 2023:
GBP1.77 billion). We grow our total contracted rental income
through additions to the portfolio and getting developments on
site, but increasingly our focus has been extending the unexpired
term on the leases on our existing portfolio ("re-gears").
We delivered four lease re-gears in the six months covering
GBP0.2 million of current annual rent and adding 10 years to the
WAULT for those particular leases. We have also agreed terms on a
pipeline of 42 re-gears covering GBP8.2 million of rent roll and
these are currently in legal hands.
We have completed five asset enhancement capital projects in the
six months (total spend GBP3.3 million) and are currently on site
with a further seven (total spend of GBP6.9 million). These schemes
increase the WAULT on those properties by 15 years and improve the
sustainability performance of those buildings. In addition, we have
a further 15 asset enhancement projects we hope to complete in the
next two years with estimated spend of GBP10.2 million and
additional annual rent of GBP0.5 million.
Our EPRA Vacancy Rate was 1.2% (March 2023: 1.0%).
Our current contracted annual rent roll is GBP146.9 million and,
on a proforma basis, would increase to in excess of GBP159 million
once on site developments, asset enhancement projects and rent
reviews are completed.
Administrative expenses
Administrative expenses in the period remained at GBP6.6 million
(2022: GBP6.6 million).
The Group analyses cost performance by reference to our EPRA
Cost Ratios (including and excluding direct vacancy costs) which
were 12.2% and 11.0% respectively (2022: 12.5% and 11.6%
respectively).
We also measure our operating efficiency as the proportion of
administrative costs (as per the income statement) to the average
gross investment property value (average of opening and closing
balance sheet amounts). This ratio during the period was 0.24%
(2022: 0.23%).
Financing
Our balance sheet and financing position remains strong. We have
cash reserves and committed undrawn facilities totalling GBP259
million, and our long-term, drawn facilities have fixed rates in
place.
Growth during the period has been funded by cash reserves and we
currently hold a cash balance of GBP58.9 million, in addition to
the revolving credit facility we have available.
Immediately following the period end, in October, we completed
the refinancing of our revolving credit facility for a further
three years with the option of extending by a further two. We
increased the facility to GBP200 million, reduced the all-in cost
of the facility and added sustainability-linked KPI which, if
achieved, will result in a 5 basis-point reduction to the interest,
which will be paid to the Assura Community Fund.
Financing statistics 30 Sep 2023 31 Mar 2023
-------------------------------- ----------- -----------
Net debt (Note 11) GBP1,195m GBP1,135m
Weighted average debt maturity 6.5 yrs 7.0 yrs
Weighted average interest rate 2.3% 2.3%
% of debt at fixed/capped rates 100% 100%
EBITDA to net interest cover 4.8x 4.5x
Net debt to EBITDA 9.3x 9.1x
LTV (Note 11) 44% 41%
-------------------------------- ----------- -----------
Our LTV ratio currently stands at 44% and will increase in the
short term as we utilise cash to fund the pipeline of development
and asset enhancement opportunities. We generally operate with an
LTV in and around 40%, and our policy allows us to reach the range
of 40%-50% should the need arise.
100% of our drawn debt facilities are at fixed interest rates,
although this will change as and when we draw on the revolving
credit facility which is at a variable rate.
The weighted average debt maturity is 6.5 years, and our longest
dated facilities (the Social and Sustainability bonds which mature
in 2030 and 2033 respectively) are at our lowest rates (1.5% and
1.625% respectively).
Over the next five years, we have only GBP250 million of debt
that needs refinancing. Assuming these were to be refinanced at a
rate of 5.5%, this would only impact EPRA EPS by approximately 0.2
pence on an annualised basis.
Net finance costs presented through EPRA earnings in the
six-month period amounted to GBP13.2 million (2022: GBP14.0
million).
IFRS loss before tax
IFRS loss before tax for the period was GBP17.8 million (2022:
profit of GBP30.9 million).
This has reduced compared with the prior year due to revaluation
movements - which were positive in the first half of the prior
year.
EPRA earnings
The movement in EPRA earnings can be summarised as follows:
Six months Six months
ended 30 Sep ended 30 Sep
2023 2022
GBPm GBPm
------------------------------------------- ------------- -------------
Net rental income 70.8 70.0
Administrative expenses (6.6) (6.6)
Net finance costs (13.2) (14.0)
Share-based payments, share of investments
& tax (0.2) (0.4)
------------------------------------------- ------------- -------------
EPRA earnings 50.8 49.0
------------------------------------------- ------------- -------------
GBPm
-------------------------------- ----
Six months ended 30 Sep 2022 49.0
Net rental income 0.8
Administrative & other expenses 0.2
Net finance costs 0.8
-------------------------------- ----
Six months ended 30 Sep 2023 50.8
-------------------------------- ----
EPRA earnings has grown 3.7% to GBP50.8 million in the six
months to 30 September 2023, with growth in rent from additions and
rent reviews offset by the impact of disposals which occurred in
September 2022 and therefore were included in rent in the prior
year. Our administrative costs and finance costs remain closely
controlled and have both reduced in the period.
Earnings per share
The basic earnings per share ("EPS") on loss for the period was
(0.6) pence (2022: 1.0 pence).
EPRA EPS, which excludes the net impact of valuation movements
and gains on disposal, was 1.7 pence (2022: 1.7 pence).
Based on calculations completed in accordance with IAS 33,
share-based payment schemes are currently expected to be dilutive
to EPS, with 1.4 million new shares expected to be issued. The
dilution is not material, with no impact on the EPS figures.
Dividends
Total dividends settled in the six months to 30 September 2023
were GBP47.4 million or 1.6 pence per share (2022: 1.5 pence per
share). GBP2.1 million of this was satisfied through the issuance
of shares via scrip.
As a REIT with requirement to distribute 90% of taxable profits
(Property Income Distribution, "PID"), the Group expects to pay out
as dividends at least 90% of recurring cash profits. Both the April
and July dividends paid were PIDs. The October 2023 dividend has
subsequently been paid as a PID and future dividends will be a mix
of PID and normal dividends as required.
Cash flow movements
Six months
ended 30 Sep Six months ended
2023 30 Sep 2022
GBPm GBPm
------------------------------ ------------- ----------------
Opening cash 118.0 243.5
Net cash flow from operations 36.0 32.9
Dividends paid (42.5) (41.1)
Investment:
Property & other acquisitions (21.7) (121.3)
Development expenditure (31.8) (28.3)
Sale of properties 0.9 73.3
Closing cash 58.9 159.0
------------------------------ ------------- ----------------
Net cash flow from operations differs from EPRA earnings due to
movements in working capital balances primarily finance costs where
annual bond repayments fall in the first half of the year.
The investment activity in the period has been funded from cash
reserves and the disposals during the period.
Diluted EPRA NTA movement
GBPm Pence per share
----------------------------------------- ------- ---------------
Diluted EPRA NTA at 31 Mar 2023 (Note 8) 1,586.9 53.6
EPRA earnings 50.8 1.7
Capital (revaluations and capital gains) (68.6) (2.3)
Dividends (47.4) (1.6)
Other 2.3 -
----------------------------------------- ------- ---------------
Diluted EPRA NTA at 30 Sep 2023 (Note 8) 1,524.0 51.4
----------------------------------------- ------- ---------------
Our Total Accounting Return per share (dividends plus movement
in EPRA net tangible assets as a proportion of opening EPRA net
tangible assets) for the six months ended 30 September 2023 is
(1.1)% of which 1.6 pence per share (3.0%) has been distributed to
shareholders and (2.2) pence per share (4.1%) is the movement on
EPRA NTA.
Jayne Cottam
CFO
15 November 2023
The calculations below are in accordance with the EPRA Best
Practice Recommendations dated February 2022, and in line with the
calculations provided in our accounts for the March 2023 year
end.
6 months ended 6 months ended
30 Sep 2023 30 Sep 2022
------------------------------------------ -------------- --------------
EPRA EPS (p) 1.7 1.7
EPRA Cost Ratio (including direct vacancy
costs (%) 12.2 12.5
EPRA Cost Ratio (excluding direct vacancy
costs (%) 11.0 11.6
------------------------------------------ -------------- --------------
Sep 2023 Mar 2023
--------------------- -------- --------
EPRA NTA 51.4p 53.6p
EPRA NRV 57.2p 59.5p
EPRA NDV 60.0p 61.2p
EPRA NIY 4.93% 4.77%
EPRA "topped-up" NIY 4.94% 4.78%
EPRA LTV 45% 43%
EPRA Vacancy Rate 1.2% 1.0%
--------------------- -------- --------
Portfolio analysis by capital value
Number of properties Total value GBPm Total value %
--------- -------------------- ---------------- -------------
>GBP10m 51 842.8 32
--------- -------------------- ---------------- -------------
GBP5-10m 107 725.5 27
--------- -------------------- ---------------- -------------
GBP1-5m 413 1,065.7 40
--------- -------------------- ---------------- -------------
<GBP1m 41 29.7 1
--------- -------------------- ---------------- -------------
612 2,663.7 100
--------- -------------------- ---------------- -------------
Portfolio analysis by region
Number of properties Total value GBPm Total value %
------------------ -------------------- ---------------- -------------
South 248 985.2 37
------------------ -------------------- ---------------- -------------
North 187 898.5 34
------------------ -------------------- ---------------- -------------
Midlands 107 503.9 19
------------------ -------------------- ---------------- -------------
Scotland, Ireland
and NI 26 145.7 5
------------------ -------------------- ---------------- -------------
Wales 44 130.4 5
------------------ -------------------- ---------------- -------------
612 2,663.7 100
------------------ -------------------- ---------------- -------------
Portfolio analysis by tenant covenant
Total rent roll Total rent roll
GBPm %
------------------ --------------- ---------------
GPs 87.4 60
------------------ --------------- ---------------
NHS Body 31.1 21
------------------ --------------- ---------------
Pharmacy 11.4 8
------------------ --------------- ---------------
Private providers 8.7 6
------------------ --------------- ---------------
Other 8.3 5
------------------ --------------- ---------------
146.9 100
------------------ --------------- ---------------
Additional statements
Principal risks and uncertainties
The factors identified by the Board as having the potential to
affect the Group's operating results, financial control and/or the
trading price of its shares were set out in detail in the Annual
Report for the year ended 31 March 2023. These risks include
strategic items outside the control of the Group (such as political
risk or new entrants to the market), financial risks (relating to
financing available to the Group) and operational risks (relating
to internal matters and how assets are managed).
The Directors have reconsidered the principal risks and
uncertainties facing the Group. Whilst the macro-economic backdrop
has changed with gilt rates rising, the business continues to be
managed from a long-term perspective. The impact of rising gilt
rates is likely to impact the available rate for new borrowing or
refinancing, and yield movements are expected across the real
estate sector which may impact property valuations. However, the
Directors consider the Group to be well-positioned, having operated
the balance sheet in a conservative manner over recent years.
Going concern
The Directors continue to adopt the going concern basis of
accounting in preparing the financial statements.
The Group's properties are substantially let (1% vacancy) with
the majority of rent paid or reimbursed by the NHS and they benefit
from a weighted average lease length on the portfolio of 11.0
years. The Group has facilities from a variety of lenders, in
addition to the unsecured listed bonds, and has remained in
compliance with all covenants throughout the period. At the period
end, the cash balance is GBP58.9 million and the Group has a GBP200
million revolving credit facility ("RCF") which is currently
undrawn. The next maturity date on debt facilities is October
2025.
In making the assessment the Directors have reviewed the Group's
financial forecasts which cover a period of 12 months to 30
November 2024. The forecasts factor in committed cash flows of the
Group (including the committed elements of the acquisition and
development pipelines) and funding available for this based on
current resources.
Covenant compliance is assessed throughout the forecast period
and reverse stress tests are completed to estimate by how much
valuations and rental income would need to fall for covenants to be
breached. The directors consider the fall in valuations of reverse
stress test to be implausible as this includes assumptions, which
are more extreme than previously experienced economic events. As at
the period end, considerable headroom exists on all covenants.
There have been no material changes in assumptions in the
forecast from the basis adopted in making the assessment at the
previous year end. In reaching our conclusion, management have
referenced the ongoing situation in Ukraine and the Middle East and
the current macroeconomic background.
The forecasts prepared show that borrowing facilities are
adequate and the business can operate within these facilities to
meet its obligations as they fall due for the foreseeable
future.
Directors' responsibilities statement
The Board confirms to the best of their knowledge:
that the Interim Condensed Consolidated Financial Statements for
the six months to 30 September 2023 have been prepared in
accordance with UK adopted International Accounting Standard 34
Interim Financial Reporting and the Disclosure Guidance and
Transparency Rules of the UK's Financial Conduct Authority;
that the Interim Report comprising the CFO review and the
principal risks and uncertainties includes a fair review of the
information required by 4.2.7R of the Disclosure and Transparency
Rules ("DTR", indication of important events and their impact
during the first six months and description of principal risks and
uncertainties for the remaining six months of the year); and
the Interim Report includes a fair review of the information
required by DTR 4.2.8R (disclosure of related parties' transactions
and changes therein).
The above Directors' responsibilities statement was approved by
the Board on 15 November 2023.
Jonathan Murphy Jayne Cottam
CEO CFO
Interim condensed consolidated income statement
For the six months ended 30 September 2023
Six months ended Six months ended
30 Sep 2023 30 Sep 2022
Unaudited Unaudited
----------------------------- -----------------------------
Capital Capital
EPRA and non-EPRA Total EPRA and non-EPRA Total
Note GBPm GBPm GBPm GBPm GBPm GBPm
-------------------------------- ---- ------ ------------- ------ ------ ------------- ------
Gross rental and related
income 74.0 4.0 78.0 72.9 2.9 75.8
Property operating expenses (3.2) (4.0) (7.2) (2.9) (2.9) (5.8)
-------------------------------- ---- ------ ------------- ------ ------ ------------- ------
Net rental income 70.8 - 70.8 70.0 - 70.0
Administrative expenses (6.6) - (6.6) (6.6) - (6.6)
Revaluation loss - property 9 - (68.6) (68.6) - (19.0) (19.0)
Share-based payment charge (0.3) - (0.3) (0.4) - (0.4)
Gain/(loss) on sale of
property - 0.1 0.1 - (0.1) (0.1)
Share of gains from investments 0.1 (0.1) - - 0.6 0.6
Finance income 1.4 - 1.4 0.4 - 0.4
Finance costs 5 (14.6) - (14.6) (14.4) - (14.4)
Foreign exchange gain - - - - 0.4 0.4
-------------------------------- ---- ------ ------------- ------ ------ ------------- ------
Profit before taxation 50.8 (68.6) (17.8) 49.0 (18.1) 30.9
-------------------------------- ---- ------ ------------- ------ ------ ------------- ------
Taxation 6 - - - - - -
-------------------------------- ---- ------ ------------- ------ ------ ------------- ------
(Loss)/profit for the
period attributable to
equity holders of the
parent 50.8 (68.6) (17.8) 49.0 (18.1) 30.9
-------------------------------- ---- ------ ------------- ------ ------ ------------- ------
EPS - basic & diluted 7 (0.6)p 1.0p
EPRA EPS - basic & diluted 7 1.7p 1.7p
-------------------------------- ---- ------ ------------- ------ ------ ------------- ------
There were no items of other comprehensive income or expense and
therefore the profit for the period also represents the Group's
total comprehensive income. All income derives from continuing
operations.
Interim condensed consolidated balance sheet
As at 30 September 2023
30 Sep 2023 31 Mar 2023
Unaudited Audited
Note GBPm GBPm
----------------------------------------- ------ ----------- -----------
Non-current assets
Investment property 9 2,725.1 2,738.0
Property work in progress 13.7 13.9
Property, plant and equipment 0.6 0.3
Investments 19.8 18.3
Deferred tax asset 0.6 0.6
----------------------------------------- ------ ----------- -----------
2,759.8 2,771.1
----------------------------------------- ------ ----------- -----------
Current assets
Cash, cash equivalents and restricted
cash 58.9 118.0
Trade and other receivables 39.2 33.1
Property assets held for sale 9 0.4 0.4
----------------------------------------- ------ ----------- -----------
98.5 151.5
----------------------------------------- ------ ----------- -----------
Total assets 2,858.3 2,922.6
----------------------------------------- ------ ----------- -----------
Current liabilities
Trade and other payables 43.9 46.8
Head lease liabilities 0.3 0.4
Deferred revenue 10 31.9 30.6
----------------------------------------- ------ ----------- -----------
76.1 77.8
----------------------------------------- ------ ----------- -----------
Non-current liabilities
Borrowings 11 1,247.3 1,246.4
Head lease liabilities 5.8 5.8
Deferred revenue 10 4.5 5.1
----------------------------------------- ------ ----------- -----------
1,257.6 1,257.3
----------------------------------------- ------ ----------- -----------
Total liabilities 1,333.7 1,335.1
----------------------------------------- ------ ----------- -----------
Net assets 1,524.6 1,587.5
----------------------------------------- ------ ----------- -----------
Capital and reserves
Share capital 12 296.5 296.1
Share premium 926.2 924.5
Merger and other reserve 231.6 231.6
Reserves 70.3 135.3
----------------------------------------- ------ ----------- -----------
Total equity 1,524.6 1,587.5
----------------------------------------- ------ ----------- -----------
NAV per Ordinary Share - basic & diluted 8 51.4p 53.6p
EPRA NTA per Ordinary Share - basic
& diluted 8 51.4p 53.6p
----------------------------------------- ------ ----------- -----------
The Interim Condensed Consolidated Financial Statements were
approved at a meeting of the Board of Directors held on 15 November
2023 and signed on its behalf by:
Jonathan Murphy Jayne Cottam
CEO CFO
Interim condensed consolidated statement of changes in
equity
For the six months ended 30 September 2023
Merger
Share Share and other Total
capital premium reserve Reserves equity
Note GBPm GBPm GBPm GBPm GBPm
-------------------------------- ---- -------- -------- ---------- -------- -------
1 April 2022 294.8 918.5 231.2 345.1 1,789.6
-------------------------------- ---- -------- -------- ---------- -------- -------
Profit attributable to equity
holders - - - 30.9 30.9
-------------------------------- ---- -------- -------- ---------- -------- -------
Total comprehensive income - - - 30.9 30.9
Issue of Ordinary Shares 12 0.8 4.4 - - 5.2
12,
Dividend 13 0.2 1.1 - (44.8) (43.5)
Employee share-based incentives 0.1 - - 0.2 0.3
-------------------------------- ---- -------- -------- ---------- -------- -------
30 September 2022 (unaudited) 295.9 924.0 231.2 331.4 1,782.5
-------------------------------- ---- -------- -------- ---------- -------- -------
Loss attributable to equity
holders - - - (150.3) (150.3)
-------------------------------- ---- -------- -------- ---------- -------- -------
Other comprehensive income:
Exchange gain on translation
of foreign operations - - 0.4 - 0.4
Total comprehensive income - - 0.4 - 0.4
12,
Dividend 13 0.2 0.5 - (46.0) (45.3)
Employee share-based incentives - - - 0.2 0.2
-------------------------------- ---- -------- -------- ---------- -------- -------
31 March 2023 (audited) 296.1 924.5 231.6 135.3 1,587.5
-------------------------------- ---- -------- -------- ---------- -------- -------
Loss attributable to equity
holders - - - (17.8) (17.8)
-------------------------------- ---- -------- -------- ---------- -------- -------
Total comprehensive income - - - (17.8) (17.8)
12,
Dividend 13 0.4 1.7 - (47.4) (45.3)
Employee share-based incentives - - - 0.2 0.2
-------------------------------- ---- -------- -------- ---------- -------- -------
30 September 2023 (unaudited) 296.5 926.2 231.6 70.3 1,524.6
-------------------------------- ---- -------- -------- ---------- -------- -------
Interim condensed consolidated statement of cash flow
For the six months ended 30 September 2023
Six months Six months
ended ended
30 Sep 2023 30 Sep 2022
Unaudited Unaudited
GBPm GBPm
-------------------------------------------------- ------------ ------------
Operating activities
Rent received 68.2 68.5
Interest paid and similar charges (23.7) (23.7)
Fees received 0.8 0.7
Interest received 1.4 0.4
Cash paid to suppliers and employees (10.7) (13.0)
-------------------------------------------------- ------------ ------------
Net cash inflow from operating activities 36.0 32.9
-------------------------------------------------- ------------ ------------
Investing activities
Purchase of investment property (19.9) (106.4)
Development expenditure (31.8) (28.3)
Proceeds from sale of property 0.9 73.3
Other investments and property, plant and
equipment (1.8) (14.9)
-------------------------------------------------- ------------ ------------
Net cash outflow from investing activities (52.6) (76.3)
-------------------------------------------------- ------------ ------------
Financing activities
Dividends paid (42.5) (41.1)
Net cash outflow from financing activities (42.5) (41.1)
-------------------------------------------------- ------------ ------------
Decrease in cash, cash equivalents and restricted
cash (59.1) (84.5)
-------------------------------------------------- ------------ ------------
Opening cash, cash equivalents and restricted
cash 118.0 243.5
-------------------------------------------------- ------------ ------------
Closing cash, cash equivalents and restricted
cash 58.9 159.0
-------------------------------------------------- ------------ ------------
Notes to the interim condensed consolidated financial
statements
For the six months ended 30 September 2023
1. Corporate information
The Interim Condensed Consolidated Financial Statements of the
Group for the six months ended 30 September 2023 were authorised
for issue in accordance with a resolution of the Directors on 15
November 2023.
Assura plc ("Assura") is a public limited company, limited by
shares, incorporated and domiciled in England and Wales, and the
Company's Ordinary Shares are publicly traded on the main market of
the London Stock Exchange.
With effect from 1 April 2013, the Group has elected to be
treated as a UK REIT. See Note 6 for further details. Copies of
this statement are available from the website at www.assuraplc.com
.
2. Basis of preparation
The Interim Condensed Consolidated Financial Statements for the
six months ended 30 September 2023 have been prepared in accordance
with UK adopted International Accounting Standard 34 Interim
Financial Reporting and the Disclosure Guidance and Transparency
Rules of the UK's Financial Conduct Authority. These accounts cover
the six-month accounting period from 1 April 2023 to 30 September
2023 with comparatives for the six-month accounting period from 1
April 2022 to 30 September 2022, or 31 March 2023 for balance sheet
amounts.
The Interim Condensed Consolidated Financial Statements do not
include all the information and disclosures required in the Annual
Report, and should be read in conjunction with those in the Group's
Annual Report as at 31 March 2023 which were prepared in accordance
with UK-adopted international accounting standards.
The accounts are prepared on a going concern basis (see page 11
for further narrative) and presented in pounds sterling rounded to
the nearest 0.1 million unless specified otherwise.
3. Accounts
The results for the six months to 30 September 2023 and to 30
September 2022 are unaudited. The interim accounts do not
constitute statutory accounts. The financial information for the
year ended 31 March 2023 does not constitute the Company's
statutory accounts for that year, but is derived from those
accounts. Statutory accounts for the year ended 31 March 2023 have
been delivered to the Registrar of Companies. The auditor reported
on those accounts: their report was unqualified, did not draw
attention to any matters by way of emphasis and did not contain a
statement under section 498(2) or (3) of the Companies Act
2006.
4. New standards, interpretations and amendments thereof,
adopted by the Group
The accounting policies adopted in the preparation of the
Interim Condensed Consolidated Financial Statements are the same as
those followed in the preparation of the Group's Annual Report for
the year ended 31 March 2023.
The Group is not expecting any other new and proposed changes in
accounting standards to have a material impact on reported numbers
in future periods.
5. Finance costs
Six months ended Six months ended
30 Sep 2023 30 Sep 2022
GBPm GBPm
------------------------------------- ---------------- ----------------
Interest payable 14.9 14.9
Interest capitalised on developments (1.0) (1.2)
Amortisation of loan issue costs 0 .7 0.7
------------------------------------- ---------------- ----------------
Total finance costs 14.6 14.4
------------------------------------- ---------------- ----------------
6. Taxation on profit on ordinary activities
The Group elected to be treated as a UK REIT with effect from 1
April 2013. The UK REIT rules exempt the profits of the Group's
property rental business from corporation tax. Gains on properties
are also exempt from tax, provided the properties are not held for
trading or sold in the three years post completion of development.
The Group will otherwise be subject to corporation tax at 25% in
2023/24 (2022/23: 19%).
Any Group tax charge/(credit) relates to its non-property
income. As the Group has sufficient brought forward losses, no tax
is due in relation to the current or prior period.
As a REIT, the Group is required to pay Property Income
Distributions ("PIDs") equal to at least 90% of the Group's rental
profit calculated by reference to tax rules rather than accounting
standards. During the period, the Group paid a PID within the April
and July 2023 interim dividend. Future dividends will be a mix of
PID and normal dividends as required. To remain as a UK REIT there
are a number of conditions to be met in respect of the principal
company of the Group, the Group's qualifying activities and the
balance of business. The Group remains compliant at 30 September
2023.
7. Earnings per Ordinary Share
EPRA EPRA
Earnings earnings Earnings earnings
2023 2023 2022 2022
GBPm GBPm GBPm GBPm
--------------------------------------------- -------- ---------- -------- ----------
(Loss)/profit for the period from continuing
operations (17.8) (17.8) 3 0.9 30.9
--------------------------------------------- -------- ---------- -------- ----------
Revaluation & fair value adjustments 68.7 18.0
(Profit)/loss on sale of property (0.1) 0.1
--------------------------------------------- -------- ---------- -------- ----------
EPRA earnings 50.8 49.0
--------------------------------------------- -------- ---------- -------- ----------
EPS - basic & diluted
EPRA EPS - basic & diluted (0.6)p 1.7p 1.0p 1.7p
30 Sep 2023 30 Sep 2022
------------------------------------------- ------------- -------------
Weighted average number of shares in
issue 2,964,200,844 2,956,938,876
Potential dilutive impact of share options 1,353,389 1,220,518
------------------------------------------- ------------- -------------
Diluted weighted average number of shares
in issue 2,965,554,233 2,958,159,394
------------------------------------------- ------------- -------------
The current estimated number of potentially dilutive shares
relates to nil-cost options under the share-based payment
arrangements and is 1.4 million (Sep-22: 1.2 million; Mar-23: 1.1
million). These shares have been included in the calculation of
EPRA EPS, but excluded from the IFRS diluted earnings per share as
they would be anti-dilutive.
8. NAV per Ordinary Share
30 Sep 2023
GBPm IFRS EPRA NRV EPRA NTA EPRA NDV
--------------------------- ------- -------- -------- --------
IFRS net assets 1,524.6 1,524.6 1,524.6 1,524.6
--------------------------- ------- -------- -------- --------
Deferred tax - (0.6) (0.6) -
Fair value of debt - - - 256.3
Real estate transfer tax - 172.5 - -
--------------------------- ------- -------- -------- --------
EPRA adjusted NAV 1,524.6 1,696.5 1,524.0 1,780.9
--------------------------- ------- -------- -------- --------
per Ordinary Share - basic 51.4p 57.2p 51.4p 60.1p
- diluted 51.4p 57.2p 51.4p 60.0p
--------------------------- ------- -------- -------- --------
31 Mar 2023
GBPm IFRS EPRA NRV EPRA NTA EPRA NDV
--------------------------- ------- -------- -------- --------
IFRS net assets 1,587.5 1,587.5 1,587.5 1,587.5
--------------------------- ------- -------- -------- --------
Deferred tax - (0.6) (0.6) -
Fair value of debt - - - 226.5
Real estate transfer tax - 174.5 - -
--------------------------- ------- -------- -------- --------
EPRA adjusted NAV 1,587.5 1,761.4 1,586.9 1,814.0
--------------------------- ------- -------- -------- --------
per Ordinary Share - basic 53.6p 59.5p 53.6p 61.3p
- diluted 53.6p 59.5p 53.6p 61.2p
--------------------------- ------- -------- -------- --------
30 Sep 2023 31 Mar 2023
----------------------------------- ------------- -------------
Number of shares in issue 2,965,311,611 2,960,594,138
Potential dilutive impact of share
options (Note 7) 1,353,389 1,055,291
----------------------------------- ------------- -------------
Diluted number of shares in issue 2,966,665,000 2,961,649,429
----------------------------------- ------------- -------------
The EPRA measures set out above are in accordance with the Best
Practices Recommendations of the European Public Real Estate
Association dated February 2022.
Mark to market adjustments represent fair value and have been
provided by the counterparty as appropriate or by reference to the
quoted fair value of financial instruments.
9. Property assets
Properties are stated at fair value as at 30 September 2023. The
fair value has been determined by the Group's external valuers,
CBRE, Cushman & Wakefield and Jones Lang LaSalle. The
properties have been valued individually and on the basis of open
market value (which the Directors consider to be the fair value) in
accordance with RICS Valuation - Professional Standards 2020 ("the
Red Book"). Valuers are paid on the basis of a fixed fee
arrangement, subject to the number of properties valued.
Property assets comprises investment property and investment
property under construction ("IPUC").
30 Sep 2023 31 Mar 2023
---------------------------------- --------------------------- ---------------------------
Investment Investment
property IPUC Total property IPUC Total
GBPm GBPm GBPm GBPm GBPm GBPm
---------------------------------- ---------- ------ ------- ---------- ------ -------
Opening market value 2,685.0 53.0 2,738.0 2,682.8 69.1 2,751.9
Additions:
---------- ------ ------- ---------- ------ -------
- acquisitions 13.4 - 13.4 126.5 - 126.5
- improvements 6.4 - 6.4 15.0 - 15.0
---------- ------ ------- ---------- ------ -------
19.8 - 19.8 141.5 - 141.5
Development costs - 36.0 36.0 - 58.9 58.9
Transfers 30.8 (30.8) - 72.5 (72.5) -
Transfer to assets held for
sale - - - - - -
Capitalised interest - 1.0 1.0 - 2.3 2.3
Disposals (0.9) - (0.9) (1.8) - (1.8)
Foreign exchange gain (0.2) - (0.2) 0.5 - 0.5
Unrealised deficit on revaluation (63.6) (5.0) (68.6) (210.5) (4.8) (215.3)
---------------------------------- ---------- ------ ------- ---------- ------ -------
Closing fair value of investment
property 2,670.9 54.2 2,725.1 2,685.0 53.0 2,738.0
---------------------------------- ---------- ------ ------- ---------- ------ -------
Investment property includes a GBP6.1 million head lease asset
(Mar-23: GBP6.2 million).
30 Sep 2023 31 Mar 2023
GBPm GBPm
------------------------------------------------- ----------- -----------
Market value of investment property as estimated
by valuer 2,663.7 2,677.4
Add IPUC 54.2 53.0
Add capitalised lease premiums and rental
payments 1.1 1.4
Add head lease liabilities recognised separately 6.1 6.2
------------------------------------------------- ----------- -----------
Fair value for financial reporting purposes 2,725.1 2,738.0
------------------------------------------------- ----------- -----------
Land held for sale 0.4 0.4
------------------------------------------------- ----------- -----------
Total property assets 2,725.5 2,738.4
------------------------------------------------- ----------- -----------
30 Sep 2023 31 Mar 2023
GBPm GBPm
------------------------------------ ----------- -----------
Investment property 2,663.7 2,677.4
Investment property held for sale - -
------------------------------------ ----------- -----------
Total completed investment property 2,663.7 2,677.4
------------------------------------ ----------- -----------
30 Sep 2023
GBPm
------------------------------------------ -----------
Assets held for sale at 1 April 2023 0.4
Disposals during the period -
------------------------------------------ -----------
Assets held for sale at 30 September 2023 0.4
------------------------------------------ -----------
As at 30 September 2023, there is one asset held as available
for sale (Mar-23: one asset). These properties are either being
actively marketed for sale or have a negotiated sale agreed which
is currently in legal hands.
Fair value hierarchy
The fair value measurement hierarchy for all investment property
and investment property under construction ("IPUC") as at 30
September 2023 was Level 3 - significant unobservable inputs
(Mar-23: Level 3). There were no transfers between Level 1, 2 or 3
during the half year.
The key unobservable inputs in the property valuation are the
net initial yield, equivalent yield and the ERV. A decrease in
either the net initial yield or the equivalent yield applied to a
property would increase the market value. An increase in the ERV of
a property would increase the market value. The analysis for
unobservable inputs disclosed within Note 9 of the Annual Report
and Accounts for the year ended 31 March 2023 continues to apply to
the portfolio as at 30 September 2023.
10. Deferred revenue
30 Sep 2023 31 Mar 2023
GBPm GBPm
----------------------------------------------- ----------- -----------
Arising from rental income received in advance 31.2 30.1
Arising from pharmacy lease premiums received
in advance 5.2 5.6
----------------------------------------------- ----------- -----------
36.4 35.7
----------------------------------------------- ----------- -----------
Current 31.9 30.6
Non-current 4.5 5.1
----------------------------------------------- ----------- -----------
36.4 35.7
----------------------------------------------- ----------- -----------
11. Borrowings
30 Sep 2023 31 Mar 2023
GBPm GBPm
------------------------------------------- ----------- -----------
At beginning of the period/year 1,246.4 1,244.4
Amount issued or drawn down in period/year - -
Amount repaid in period/year - -
Loan issue costs (0.1) (0.1)
Amortisation of loan issue costs 1.0 2.1
------------------------------------------- ----------- -----------
At the end of the period/year 1,247.3 1,246.4
------------------------------------------- ----------- -----------
The Group has the following bank facilities:
1. 10-year senior unsecured bond of GBP300 million at a fixed
interest rate of 3.0% maturing July 2028, 10-year senior unsecured
Social Bond of GBP300 million at a fixed interest rate of 1.5%
maturing September 2030 and 12-year senior unsecured Sustainability
Bond of GBP300 million at a fixed rate of 1.625% maturing June
2033. The Social and Sustainability Bonds were launched in
accordance with Assura's Social & Sustainable Finance
Frameworks respectively to be used for eligible investment in the
acquisition, development and refurbishment of publicly accessible
primary care and community healthcare centres. The bonds are
subject to an interest cover requirement of at least 150%, maximum
LTV of 65% and priority debt not exceeding 0.25:1. In accordance
with pricing convention in the bond market, the coupon and quantum
of the facility are set to round figures with the proceeds adjusted
based on market rates on the day of pricing.
2. Three-year club unsecured revolving credit facility with
Barclays, HSBC, NatWest and Santander. In October 2023, this was
refinanced to October 2026, increasing the facility from GBP125
million to GBP200 million, and reducing the margin which starts at
1.35% above SONIA subject to LTV. The margin has a ratchet linked
to LTV, increasing up to 1.75% where the LTV is in excess of 45%.
The facility is subject to a historical interest cover requirement
of at least 175% and maximum LTV of 60%. As at 30 September 2023,
the facility was undrawn (31 March 2023: undrawn).
3. 10-year notes in the US private placement market for a total
of GBP100 million. The notes are unsecured, have a fixed interest
rate of 2.65% and were drawn in October 2016. An additional GBP107
million of notes were issued in two series, GBP47 million drawn in
August 2019 and GBP60 million drawn in October 2019. The notes have
maturities of 10 and 15 years respectively and a weighted average
interest rate fixed at 2.30%. The facilities are subject to a
historical interest cover requirement of at least 175%, maximum LTV
of 60% and a weighted average lease length of seven years.
4. GBP150 million of privately placed notes in two tranches with
maturities of eight and 10 years drawn in October 2017. The
weighted average coupon is 3.04%. The facility is subject to a
historical cost interest cover requirement of at least 175%,
maximum LTV of 60% and weighted average lease length of seven
years.
The Group has been in compliance with all financial covenants on
all of the above loans as applicable throughout the period.
30 Sep 2023 31 Mar 2023
Net debt and LTV GBPm GBPm
--------------------------------------- ----------- -----------
Investment property 2,670.9 2,685.0
Investment property under construction 54.2 53.0
Held for sale 0.4 0.4
--------------------------------------- ----------- -----------
Total property 2,725.5 2,738.4
--------------------------------------- ----------- -----------
Loans 1,247.3 1,246.4
Head lease liabilities 6.1 6.2
Cash (58.9) (118.0)
--------------------------------------- ----------- -----------
Net debt 1,194.5 1,134.6
--------------------------------------- ----------- -----------
LTV 44% 41%
--------------------------------------- ----------- -----------
12. Share capital
Number of Share capital Number of Share capital
shares 30 Sep 2023 shares 31 Mar 2023
30 Sep 2023 GBPm 31 Mar 2023 GBPm
------------------------- ------------- ------------- ------------- -------------
Ordinary Shares of 10
pence each issued and
fully paid
------------------------- ------------- ------------- ------------- -------------
At 1 April 2,960,594,138 296.1 2,948,359,637 294.8
Issued 7 April 2022 - - 3,331,539 0.3
Issued 13 April 2022 -
scrip - - 317,384 -
Issued 27 April 2022 - - 4,556,283 0.5
Issued 13 July 2022 - - 974,245 0.1
Issued 13 July 2022 -
scrip - - 1,659,620 0.2
Issued 12 October 2022
- scrip - - 52,001 -
Issued 11 January 2023
- scrip - - 1,343,429 0.2
Issued 12 April 2023 -
scrip 3,053,978 0.3 - -
Issued 12 July 2023 287,241 - - -
Issued 12 July 2023 -
scrip 1,376,254 0.1 - -
Total at 30 September/31
March 2,965,311,611 296.5 2,960,594,138 296.1
Own shares held - - - -
------------------------- ------------- ------------- ------------- -------------
Total share capital 2,965,311,611 296.5 2,960,594,138 296.1
------------------------- ------------- ------------- ------------- -------------
The Ordinary Shares issued in April 2022, July 2022, October
2022, January 2023, April 2023 and July 2023 were issued to
shareholders who elected to receive Ordinary Shares in lieu of a
cash dividend under the Company scrip dividend alternative. In the
six months to 30 September 2023, this increased share capital by
GBP0.4 million and share premium by GBP1.7 million.
The Ordinary Shares issued on 7 April 2022 and 27 April 2022
were issued as part consideration for the acquisition of medical
centres.
The Ordinary Shares issued in July 2022 and July 2023 relate to
employee share awards under the Performance Share Plan.
13. Dividends paid on Ordinary Shares
Six months
ended Six months ended
Number of Ordinary 30 Sep 2023 30 Sep 2022
Payment date Pence per share Shares GBPm GBPm
-------------- --------------- ------------------ ------------ ----------------
13 April 2022 0.74 2,948,359,637 - 21.8
13 July 2022 0.78 2,956,564,843 - 23.0
12 April 2023 0.78 2,960,594,138 23.1 -
12 July 2023 0.82 2,956,564,843 24.3 -
-------------- --------------- ------------------ ------------ ----------------
47.4 44.8
-------------- --------------- ------------------ ------------ ----------------
A dividend of 0.82 pence per share was paid to shareholders on
11 October 2023.
14. Commitments
At the period end the Group had 10 committed developments on
site (31 March 2023: 11) with a contracted total expenditure of
GBP114.7 million (31 March 2023: GBP129.0 million) of which GBP59.2
million (31 March 2023: GBP54.7 million) had been expended. The
remaining commitment is therefore GBP55.5 million (31 March 2023:
GBP73.4 million).
In addition, the Group is on site with seven asset enhancement
capital projects (31 March 2023: eight) with a contracted total
expenditure of GBP6.9 million (31 March 2023: GBP8.9 million) of
which GBP4.4 million (31 March 2023: GBP5.0 million) had been
expended. The remaining commitment is therefore GBP2.5 million (31
March 2023: GBP3.9 million).
Independent review report to Assura plc
For the six months ended 30 September 2023
Conclusion
We have been engaged by the Group to review the condensed set of
financial statements in the half-yearly financial report for the
six months ended 30 September 2023 which comprises the Interim
Condensed Consolidated Income Statement, the Interim Condensed
Consolidated Balance Sheet, the Interim Condensed Consolidated
Statement of Changes in Equity, the Interim Condensed Consolidated
Statement of Cash Flow and the related Notes 1 to 14. We have read
the other information contained in the half yearly financial report
and considered whether it contains any apparent misstatements or
material inconsistencies with the information in the condensed set
of financial statements.
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half-yearly financial report for the six months ended 30
September 2023 is not prepared, in all material respects, in
accordance with UK adopted International Accounting Standard 34 and
the Disclosure Guidance and Transparency Rules of the United
Kingdom's Financial Conduct Authority.
Basis for conclusion
We conducted our review in accordance with International
Standard on Review Engagements 2410 (UK) "Review of Interim
Financial Information Performed by the Independent Auditor of the
Entity" (ISRE) issued by the Financial Reporting Council. A review
of interim financial information consists of making enquiries,
primarily of persons responsible for financial and accounting
matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK) and
consequently does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in
an audit. Accordingly, we do not express an audit opinion.
As disclosed in note 2, the annual financial statements of the
group are prepared in accordance with UK adopted international
accounting standards. The condensed set of financial statements
included in this half-yearly financial report has been prepared in
accordance with UK adopted International Accounting Standard 34,
"Interim Financial Reporting".
Conclusions Relating to Going Concern
Based on our review procedures, which are less extensive than
those performed in an audit as described in the Basis of Conclusion
section of this report, nothing has come to our attention to
suggest that management have inappropriately adopted the going
concern basis of accounting or that management have identified
material uncertainties relating to going concern that are not
appropriately disclosed.
This conclusion is based on the review procedures performed in
accordance with this ISRE, however future events or conditions may
cause the entity to cease to continue as a going concern.
Responsibilities of the Directors
The directors are responsible for preparing the half-yearly
financial report in accordance with the Disclosure Guidance and
Transparency Rules of the United Kingdom's Financial Conduct
Authority.
In preparing the half-yearly financial report, the directors are
responsible for assessing the Group's ability to continue as a
going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the
directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor's Responsibilities for the review of the financial
information
In reviewing the half-yearly report, we are responsible for
expressing to the Group a conclusion on the condensed set of
financial statements in the half-yearly financial report. Our
conclusion, including our Conclusions Relating to Going Concern,
are based on procedures that are less extensive than audit
procedures, as described in the Basis for Conclusion paragraph of
this report.
Use of our report
This report is made solely to the Group in accordance with
guidance contained in International Standard on Review Engagements
2410 (UK) "Review of Interim Financial Information Performed by the
Independent Auditor of the Entity" issued by the Financial
Reporting Council. To the fullest extent permitted by law, we do
not accept or assume responsibility to anyone other than the Group,
for our work, for this report, or for the conclusions we have
formed.
Ernst & Young LLP, Leeds
15 November 2023
Glossary and calculations
AGM is the Annual General Meeting.
ASHP is air source heat pump.
Average Debt Maturity is each tranche of Group debt multiplied
by the remaining period to its maturity and the result divided by
total Group debt in issue at the year end.
Average Interest Rate is the Group loan interest and derivative
costs per annum at the year end, divided by total Group debt in
issue at the year end.
British Property Federation ("BPF") is the membership
organisation, the voice, of the real estate industry.
Building Research Establishment Environmental Assessment Method
("BREEAM") assess the sustainability of buildings against a range
of criteria.
Code or New Code is the UK Corporate Governance Code 2018, a
full copy of which can be found on the website of the Financial
Reporting Council.
Company is Assura plc.
Direct Property Costs comprise cost of repairs and maintenance,
void costs, other direct irrecoverable property expenses and rent
review fees.
District Valuer ("DV") is the commercial arm of the Valuation
Office Agency. It provides professional property advice across the
public sector and in respect of primary healthcare represents NHS
bodies on matters of valuations, rent reviews and initial rents on
new developments.
Earnings per Ordinary Share from Continuing Operations ("EPS")
is the profit attributable to equity holders of the parent divided
by the weighted average number of shares in issue during the
period.
EBITDA is EPRA earnings before tax and net finance costs. In the
current period this is GBP64.0 million, calculated as net rental
income (GBP70.8 million) plus income from investments (GBP0.1
million) less administrative expenses (GBP6.6 million) and
share-based payment charge (GBP0.3 million).
European Public Real Estate Association ("EPRA") is the industry
body for European REITs. EPRA is a registered trade mark of the
European Public Real Estate Association.
EPRA Cost Ratio is administrative and operating costs divided by
gross rental income. This is calculated both including and
excluding the direct costs of vacant space.
EPRA earnings is a measure of profit calculated in accordance
with EPRA guidelines, designed to give an indication of the
operating performance of the business, excluding one-off or
non-cash items such as revaluation movements and profit or loss on
disposal. See Note 7.
EPRA EPS is EPRA earnings, calculated on a per share basis. See
Note 7.
EPRA Loan to Value ("EPRA LTV") is debt divided by the market
value of property, differing from our usual LTV by the inclusion of
net current payables or receivables and the proportionate share of
co-investment arrangements.
EPRA Net Disposal Value ("EPRA NDV") is the balance sheet net
assets adjusted to reflect the fair value of debt and derivatives.
See Note 8. This replaces the previous EPRA NNNAV metric.
EPRA Net Reinstatement Value ("EPRA NRV") is the balance sheet
net assets excluding deferred tax and adjusted to add back
theoretical purchasers' costs that are deducted from the property
valuation. See Note 8.
EPRA Net Tangible Assets ("EPRA NTA") is the balance sheet net
assets excluding deferred taxation. See Note 8. This replaces the
previous EPRA NAV metric.
EPRA NIY is annualised rental income based on cash rents passing
at the balance sheet date, less non-recoverable property operating
expenses, divided by the market value of property, increased with
(estimated) purchasers' costs. The "topped up" yield adjusts this
for the expiration of rent-free periods or other unexpired lease
incentives.
EPRA Vacancy Rate is the ERV of vacant space divided by the ERV
of the whole portfolio.
Equivalent Yield is a weighted average of the Net Initial Yield
and Reversionary Yield and represents the return a property will
produce based upon the timing of the income received. The true
equivalent yield assumes rents are received quarterly in advance.
The nominal equivalent assumes rents are received annually in
arrears.
Estimated Rental Value ("ERV") is the external valuers' opinion
as to the open market rent which, on the date of valuation, could
reasonably be expected to be obtained on a new letting or rent
review of a property.
EUI is energy usage intensity, being a measure of how much
energy is used by a building per square metre per year.
GMS is General Medical Services.
Gross Rental Income is the gross accounting rent receivable.
Group is Assura plc and its subsidiaries.
IFRS is UK-adopted International Financial Reporting
Standards.
Interest Cover is the number of times net interest payable is
covered by EBITDA. In the current period net interest payable is
GBP13.2 million, EBITDA is GBP64.0 million, giving interest cover
of 4.85 times.
KPI is a Key Performance Indicator.
kWh is kilowatt-hour, being a unit of energy.
Like-for-like represents amounts calculated relative to
properties owned at the previous year end and start of the current
period.
Loan to Value ("LTV") is the ratio of net debt to the total
value of property assets. See Note 11.
Mark to Market is the difference between the book value of an
asset or liability and its market value.
MSCI is an organisation that provides performance analysis for
most types of real estate and produces an independent benchmark of
property returns.
NAV is Net Asset Value.
Net debt is total borrowings plus head lease liabilities less
cash. See Note 11.
Net Initial Yield ("NIY") is the annualised rents generated by
an asset, after the deduction of an estimate of annual recurring
irrecoverable property outgoings, expressed as a percentage of the
asset valuation (after notional purchasers' costs). Development
properties are not included.
Net Rental Income is the rental income receivable in the period
after payment of direct property costs. Net rental income is quoted
on an accounting basis.
Operating efficiency is the ratio of administrative costs to the
average gross investment property value. This ratio during the
period equated to 0.24%. This is calculated as administrative
expense of GBP6.6 million divided by the average property balance
of GBP2,732 million (opening GBP2,738 million plus closing GBP2,725
million, divided by two).
Primary Care Network ("PCN") is a GP practice working with local
community, mental health, social care, pharmacy, hospital and
voluntary services to build on existing primary care services and
enable greater provision of integrated health services within the
community they serve.
Primary Care Property is the property occupied by health
services providers who act as the principal point of consultation
for patients such as GP practices, dental practices, community
pharmacies and high street optometrists.
Property Income Distribution ("PID") is the required
distribution of income as dividends under the REIT regime. It is
calculated as 90% of exempted net income.
PSP is Performance Share Plan.
PV is photo-voltaic panels, commonly referred to as
solar-panels.
Real Estate Investment Trust ("REIT") is a listed property
company which qualifies for and has elected into a tax regime which
exempts qualifying UK profits, arising from property rental income
and gains on investment property disposals, from corporation tax,
but requires the distribution of a PID.
Rent Reviews take place at intervals agreed in the lease
(typically every three years) and their purpose is usually to
adjust the rent to the current market level at the review date.
Rent Roll is the passing rent (i.e. at a point in time) being
the total of all the contracted rents reserved under the leases, on
an annual basis. At September 2023 the rent roll was GBP146.9
million (March 2023: GBP143.4 million) and the growth in the six
months was GBP3.5 million.
Retail Price Index ("RPI") is an official measure of the general
level of inflation as reflected in the retail price of a basket of
goods and services such as energy, food, petrol, housing, household
goods, travelling fares, etc. RPI is commonly computed on a monthly
and annual basis.
RPI Linked Leases are those leases which have rent reviews which
are linked to changes in the RPI.
SBTi is Science Based Target initiative.
Total Accounting Return is the overall return generated by the
Group including the impact of debt. It is calculated as the
movement on EPRA NTA (see glossary definition and Note 8) for the
period plus the dividends paid, divided by the opening EPRA NTA.
Opening EPRA NTA (i.e. at 31 March 2023) was 53.6 pence per share,
closing EPRA NTA was 51.4 pence per share, and dividends paid total
1.60 pence per share giving a return of (1.1)% in the six
months.
Total Contracted Rent Roll or Total Contracted Rental Income is
the total amount of rent to be received over the remaining term of
leases currently contracted. For example, a lease with rent of
GBP100 and a remaining lease term of ten years would have total
contracted rental income of GBP1,000. At September 2023, the total
contracted rental income was GBP1.76 billion (March 2023: GBP1.77
billion).
Total Property Return is the overall return generated by
properties on a debt-free basis. It is calculated as the net rental
income generated by the portfolio plus the change in market values,
divided by opening property assets plus additions. In the period to
September 2023, the calculation is net rental income of GBP70.8
million less revaluation loss of GBP68.6 million giving a return of
GBP2.2 million, divided by GBP2,768.2 million (opening investment
property GBP2,677.4 million and IPUC GBP53.0 million plus additions
of GBP19.8 million and development costs of GBP36.0 million). This
gives a Total Property Return in the six months of 0.1%.
Total Shareholder Return ("TSR") is the combination of dividends
paid to shareholders and the net movement in the share price during
the period, divided by the opening share price. The share price at
31 March 2023 was 48.9 pence, at 30 September 2023 it was 42.3
pence, and dividends paid during the period were 1.60 pence per
share.
UK GBC is the UK Green Building Council.
Weighted Average Unexpired Lease Term ("WAULT") is the average
lease term remaining to first break, or expiry, across the
portfolio weighted by contracted rental income.
Yield on cost is the estimated annual rent of a completed
development divided by the total cost of development including site
value and finance costs expressed as a percentage return.
Yield shift is a movement (usually expressed in basis points) in
the yield of a property asset or like-for-like portfolio over a
given period.
Yield compression is a commonly used term for a reduction in
yields.
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IR BUBDBSBBDGXU
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