Assura (AGR) H1 2025 earnings summary

Executive summary

• Completed transformative £500m acquisition of 14 private hospitals, significantly increasing private tenant weighting and diversifying income streams.

• Launched a £250m joint venture with USS to fund NHS investments, recycle capital, and strengthen the balance sheet.

• Achieved 8% growth in net rental income, 4% growth in EPRA earnings, and a 4% dividend increase, with a 19% rise in passing rent roll to £179.1m.

• Maintained robust financial position with fixed long-term debt, A- Fitch rating, and a positive outlook supported by sector fundamentals and political support.

• Achieved B Corp accreditation, first in FTSE 250, reflecting ESG leadership.

Financial highlights

• Net rental income rose 8% to £76.7m, driven by rental growth and the private hospital acquisition.

• EPRA earnings increased 4% to £52.7m; EPRA EPS at 1.72p; dividend per share up 4% to 1.66p.

• NTA per share stable at 49.4p, with a £25m uplift in hospital portfolio value.

• LTV reduced to under 48% post-disposals, with a target of 45% within six months.

• Rent roll reached £179.1m; occupancy remained high at 98%.

Outlook and guidance

• Positive outlook supported by demographic trends, NHS investment plans, and robust private healthcare demand.

• Expect greater impact from private hospital acquisitions in H2 and into FY25/26.

• Ongoing asset disposals and JV transfers targeted to further reduce LTV and enhance investment capacity.

• Large pipeline of development and asset enhancement projects ready to proceed as rent agreements are reached.

• Consensus expects 3–4% earnings growth annually for the next three years.