Net tangible assets (NTA) at GP surgery group Assura dipped in value in the first half of the year to the end of September.
Assura’s Benhill & Belmont GP Centre in Sutton, South London
NTA per share for the six months came in a 60.2p, compared to 60.7p at the end of March.
Pre-tax profit slumped 55.4% to £30.9m from £69.3m 12 months earlier, but net rental income was up 14.6% to £70m.
Passing rent roll increased 3% to £139.3m during the six months and the group has a weighted average unexpired lease term of 11.5 years.
IFRS Earnings per share, which takes account of valuation shifts, fell from 2.6p at the end of September 2021 to 1p, but EPRA earnings per share were up 13.3% to 1.7p.
Investors will benefit from a 4.8% rise in the interim dividend to 1.52p.
The group is on site with 13 developments, which will cost £154m, of which £65m has been spent.
Assura also has an immediate development pipeline of 10 schemes costing £83m, where it would normally expect to be on site within 12 months, notwithstanding current delays in construction timetables and start dates.
Assura has a portfolio of 603 primary care and GP properties serving 6.5m people across the UK.
The value of the portfolio rose 5% to £2.9bn from £2.8bn at the end of March, while net initial yield widened 4 basis points to 4.52% during the period.
Assura chief executive Jonathan Murphy said: “We have a strong balance sheet – characterised by long-term, fixed-rate debt at a weighted average rate of 2.3%. Given the current macro-economic uncertainty, we will proceed cautiously with deploying capital in the short term and continue to carefully manage our operating costs.
“More broadly, we see growing and consistent demand for high-quality community healthcare buildings that is not linked to the economic cycle. The need to invest in primary care has widespread cross-party political support – given it is cheaper for the NHS to deliver services in this setting and as pressure on hospital resources becomes increasingly unsustainable.
“Looking ahead, our proven strategy, specialist expertise, track record of delivery and a predictable, growing income stream – the majority underpinned by the NHS – means we are well placed to continue delivering attractive returns for shareholders over the long term.”