Assura reports 3.1% growth in diluted EPRA NAV per share to 47.2 pence over the six months ended 30 September 2016. EPRA EPS, which excludes the net impact of valuation movements and gains on disposal, was 1.2 pence (2015: 0.9 pence). The quarterly dividend will rise by 9% to 0.6p from January 2017.
They are reporting a 9.9% increase in rent roll to GBP70.1 million (March 2016: GBP63.8 million) from 363 properties, 86% of which is underpinned by the NHS. The WAULT is 13.5 years and 84% of the rent roll will still be contracted in 2026. At 30 September 2016 the portfolio of completed investment properties was valued at a total of GBP1,207.7 million which produced a net initial yield of 5.22%. 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 5.42% (March 2016: 5.52%). Adjusting this Royal Institution of Chartered Surveyors standard measure to reflect the advanced payment of rents, the true equivalent yield is 5.61%. (March 2016 5.72%). The valuation gain in the six months of GBP23.4 million represents a 2.56% uplift on a like-for-like basis and movements relating to properties acquired in the period. The uplift has arisen due to the downward pressure on yields with increased demand for assets in the sector.
Developments
The bulk of the growth in the investment portfolio has come from the acquisition of 41 properties, seeing us invest GBP81.2 million during the period. Despite the continued delay in NHS approval of new developments, we have completed two developments during the period (both under forward funding agreements) with a total development cost of GBP13.8 million. This has added GBP0.7 million to our annual rent roll and generated a 5.0% yield on cost. As at 30 September 2016, they had one development on site under a forward funding agreement, with a total committed investment value of GBP3.5 million, and a further eight which they hope to be on site shortly (estimated cost of GBP43.9 million).
AGR : Assura says valuation yield falls at end September