Assura (AGR) Investor Presentation summary

Assura plc: unique portfolio and platform

• Portfolio exceeds £3bn with a 13-year WAULT and 99% occupancy, over 90% of rent from NHS or tier 1 healthcare operators.

• Delivers a 7.7% dividend yield and 7% dividend CAGR over 10 years, with an A- investment grade rating and >100% dividend cover.

• Rent roll has doubled since 2018, with substantial growth in private tenant weighting and a strong track record of quality portfolio additions.

• Active capital recycling, with £200m recycled this year and a focus on accretive opportunities and efficient portfolio management.

• Strong balance sheet with net debt to EBITDA below 9x, fixed average interest rate of 3%, and 80% of debt maturing beyond 2028.

Market opportunity and growth drivers

• UK healthcare faces rising demand due to an ageing population and increasing per capita costs, with 17% of the population over 70 by 2040.

• NHS maintenance backlog has more than doubled in a decade, requiring significant investment to ensure fit-for-purpose facilities.

• Community healthcare is key to affordable delivery, with a 6% CAGR in private market revenues and a push to move services out of hospitals.

• National imperative to reduce waiting times, as waiting lists and median wait times have risen sharply.

• Political environment supports private sector involvement, with NHS and independent sector partnerships and a forthcoming 10-year NHS plan.

Competitive advantages and financial performance

• Assura offers a strong return over gilts, with a current spread of c.440bps over UK 10-year gilts and c.800bps over index-linked gilts.

• Portfolio is uniquely diversified across GP medical centres, NHS facilities, and independent hospitals, each with 10% estimated market share.

• Long-term relationships, specialist market knowledge, and full property offering create barriers to entry and access to JV capital.

• Sustained growth in earnings (6.2% CAGR) and dividends (7.3% CAGR) since 2015, with 11 consecutive years of dividend increases.

• Efficient flow of rental growth to earnings and dividends, with a low EPRA cost ratio (12%) and scope for further efficiency.