Results for the year ended 31 March 2025
21 July 2025
Assura plc
Results for the year ended 31 March 2025
Assura plc ("Assura"), the specialist healthcare property investor and developer, today announces its results for the year ended 31 March 2025.
Jonathan Murphy, CEO, said:
"Assura's strong performance reflects the quality of our portfolio and our track record of delivery and consistent growth. I would like to express my gratitude to our talented and dedicated teams who continue to work tirelessly to support our local communities by providing modern, sustainable healthcare infrastructure that improves health outcomes across the UK and Ireland."
Strong financial results
· Investment property value £3,099 million (March 2024: £2,708 million)
· Valuation gain of £58 million recorded in period following uplift on independent hospital portfolio and from rent reviews delivered; net initial yield 5.21% (March 2024: 5.17%)
· Net rental income up 17% to £167.1 million (2024: £143.3 million)
· EPRA earnings up 9% to £111.8 million (2024: £102.3 million) and EPRA EPS of 3.5p (2024: 3.4p)
· IFRS profit before tax £166.0 million (2024: loss of £28.7 million) and EPS 5.3p (2024: (1.0)p)
· 3.34 pence per share paid in dividends during the year (2024: 3.24 pence)
Diverse healthcare portfolio with strong cash flows
· Portfolio of 603 high-quality healthcare assets serving over 6 million people with a passing rent roll of £177.9 million (2024: 150.6 million) and WAULT of 12.7 years (2024: 10.8 years)
· Strong tenant covenant; over 90% of rent roll from GPs, NHS bodies and tier 1 independent healthcare providers
· Following active portfolio management, portfolio rent reviews of: c.51% OMR, c.49% indexed, fixed or other
· Rent reviews generated a weighted average annual uplift of 3.2%
o Like-for-like increase of 6.1% on £79.9 million of rent roll reviewed
o Annual equivalent uplift of 2.2% on OMR reviews, 4.1% on RPI and 3.5% on other
Disciplined investment activity & active recycling to enhance portfolio
· Active recycling in the year saw:
o Acquisition of 14 independent hospitals for £500 million
o Completion of 5 development projects with a total spend of £61.5 million
o Establishment of £250 million joint venture with USS - seeded with 13 properties in FY25 for £159 million and one further property (£13 million) exchanged and subsequently completed during Q1 FY26
o Disposal of a further 16 properties for £28 million
ESG Strategy The Bigger Picture: Health at the heart of all decision-making
· Confirmed as first FTSE 250 B-Corp; giving strong external accreditation of approach to social responsibility
· Three pillars of Healthy Environment, Healthy Communities and Healthy Business. In the year to 31 March 2025:
o Healthy Environment: Completion of first two developments designed to be net zero carbon, at Winchester and Fareham; 66% of portfolio now EPC B or better; next phase of improvements focussing on solar panel installations prepared for launch in 2025/26
o Healthy Communities: £8.91 of social value generated from every £1 donated and team volunteering hours significantly increased year on year; Assura Community Fund has committed over £2.5 million since 2020 to community health related projects
o Healthy Business: 11th consecutive year of dividend growth and improvements in results from customer satisfaction and employee engagement surveys
Robust financial position and balance sheet
· Weighted average interest rate 2.90% (March 2024: 2.30%); weighted average maturity 4.6 years; all drawn debt at fixed rates
· Net debt of £1,487 million on a fully unsecured basis (cash £58.1 million) and undrawn facilities of £174 million, representing LTV of 46.9%
Summary results
|
Financial performance |
March 2025 |
March 2024 |
Change |
|
Net rental income |
£167.1m |
£143.3m |
16.6% |
|
IFRS profit/(loss) before tax |
£166.0m |
£(28.7)m |
|
|
IFRS profit/(loss) per share |
5.3p |
(1.0)p |
|
|
EPRA earnings |
£111.8m |
£102.3m |
9.3% |
|
EPRA earnings per share |
3.5p |
3.4p |
2.9% |
|
Dividend per share |
3.34p |
3.24p |
3.1% |
|
Property valuation and performance |
March 2025 |
March 2024 |
Change |
|
Investment property |
£3,099m |
£2,708m |
14.4% |
|
Diluted EPRA NTA per share |
50.4p |
49.3p |
2.2% |
|
Rent roll |
£177.9m |
£150.6m |
18.1% |
|
Financing |
March 2025 |
March 2024 |
Change |
|
Net debt to EBITDA |
9.8x |
9.4x |
|
|
Net debt to EBITDA (run rate)2 |
9.1x |
|
|
|
Weighted average cost of debt |
2.90% |
2.30% |
60bps |
1 Weighted average annual uplift on all settled reviews
2 Run rate calculation based on EBITDA in the second half of the year, i.e. accounting for a full year impact of the income from the independent hospitals acquired
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.
A results presentation has been published and is available on the Assura website at: https://www.assuraplc.com/investor-relations/reports-and-presentations
For further information, please contact:
|
Assura plc |
Tel: 0161 515 2043 |
|
FGS Global Gordon Simpson
|
Tel: 0207 251 3801 |
Notes to Editors
Assura plc is the UK's leading diversified healthcare REIT. Assura enables better health outcomes through its portfolio of more than 600 healthcare buildings, from which over six million patients are served.
A UK REIT based in Altrincham, Assura is a constituent of the FTSE 250 and the EPRA* indices and has a secondary listing on the Johannesburg Stock Exchange. As at 31 March 2025, Assura's portfolio was valued at £3.1 billion and has a strong track record of growing financial returns and dividends for shareholders.
At Assura we BUILD for health and as the first FTSE 250 certified B Corp we are committed to keeping ESG at the heart of our strategy, creating Healthy Environments (E) and Healthy Communities (S) and maintaining a Healthy Business (G).
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.
Forward looking statements
This Announcement and other information published by Assura contain statements about Assura and other members of the Assura Group that are or may be deemed to be forward looking statements. All statements other than statements of historical facts included in this Announcement may be forward looking statements. Such forward looking statements are prospective in nature and are not based on historical facts, but rather on current expectations and projections of the management of Assura about future events and are therefore subject to risks and uncertainties that could significantly affect expected results and are based on certain key assumptions.
Although Assura believes that the expectations reflected in such forward-looking statements are reasonable, neither Assura nor the Assura Group, nor any of their respective associates or directors, officers or advisers, provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this Announcement will actually occur. Due to such uncertainties and risks, readers are cautioned not to place any reliance on such forward-looking statements, which speak only as of the date hereof. All subsequent oral or written forward looking statements attributable to any member of the Assura Group, or any of their respective associates, directors, officers, employees or advisers, are expressly qualified in their entirety by the cautionary statement above.
Assura and the Assura Group expressly disclaim any obligation to update any forward looking or other statements contained herein, except as required by applicable law or by the rules of any competent regulatory authority, whether as a result of new information, future events or otherwise.
No profit forecasts, profit estimates or quantified financial benefits statements
No statement in this Announcement is intended as a profit forecast, profit estimate or quantified financial benefits statement for any period and no statement in this Announcement should be interpreted to mean that earnings or earnings per share for Assura for the current or future financial years would necessarily match or exceed the historical published earnings or earnings per Assura share.
Bases and sources
In this Announcement, unless otherwise stated or the context otherwise requires, the following key bases and sources have been used:
· financial information relating to March 2024 has been extracted from the audited consolidated financial statements of Assura for the financial year ended 31 March 2024, prepared in accordance with IFRS;
· references to diluted EPRA NTA per share has been calculated on the basis of a fully diluted share capital figure of 3,256,393,191 Assura shares, comprising: (i) 3,250,608,887 Assura shares currently in issue, and (ii) 5,784,304 (being the maximum number issued pursuant to the Assura performance share plan); and
· a reconciliation of EPRA NTA per Assura share as at 31 March 2025 against the valuations set out in the reports prepared by Assura for the purposes of Rule 29 of the Takeover Code is set out page 67 of the Revised Offer Document published on 27 June 2025 and available on Assura's website. The valuation of property assets as set out in this report of £3,117.2 million is consistent with the Rule 29 valuation, and consists of £3,099.1 million for the investment property portfolio (which is the investment property value figure referred to in this announcement) and £18.1 million for assets held for sale, as set out in Note 7.
Rule 26.1 information
In accordance with Rule 26.1 of the Takeover Code, a copy of this Announcement will be made available free of charge, subject to certain restrictions relating to persons resident in restricted jurisdictions, on Assura's website at www.assuraplc.com/investor-relations/shareholder-information/offer-from-php and www.assuraplc.com/investor-relations/shareholder-information/offer-from-kkr-and-stonepeak no later than 12 noon (London time) on the business day following the date of this Announcement. For the avoidance of doubt, the contents of the website referred to in this Announcement are not incorporated into, and do not form part of, this Announcement.
Rounding
Certain figures included in this Announcement have been subjected to rounding adjustments. Accordingly, figures shown for the same category presented in different tables may vary slightly and figures shown as totals in certain tables may not be an arithmetic aggregation of the figures that precede them.
Chair's statement
Delivering growth for our shareholders
I am pleased to be reporting on another year in which Assura has delivered for all stakeholders in the ways that only we can. Delivery of fantastic buildings that enable health providers to deliver amazing services across the UK and Ireland. Delivery of improvements to existing buildings to enhance the clinical space or improve energy efficiency. Generating social value through our bespoke community programmes and the amazing work of the Assura Community Fund. Delivery of opportunities for our people to improve their skills and volunteer in our community. Delivery of earnings and dividend growth for shareholders.
This year has been particularly significant for our long-term aspirations with the completion of two strategically important transactions. Both the joint venture with USS and the acquisition of the £500 million independent hospital portfolio offer diversity for the Group - either through adding additional funding sources for our long-term plans or enhancing our portfolio through increasing our presence in an exciting growth market.
The health service in the UK remains at centre of the political agenda and funding decisions, and the pressures that the NHS faces remain constant. Long waiting lists, an ageing population with increasingly complex health needs, budgetary pressures, ageing infrastructure and a wave of medical and technological innovations.
Whilst the NHS continues to be a system of which we, in the UK, are rightly proud, it is also a system that needs help to continue to adapt and deliver the changes a fit-for-purpose health service requires.
There are many improvements that can be made to achieve this. Moving services out of hospital into a community-setting. Shifting the focus to prevention from treatment. Investing in an estate which has a growing maintenance backlog. Training the staff needed to deliver the healthcare of the future. Harnessing the power of digital delivery and access. Thinking about sustainability as an investment for improved long-term cost efficiency. All areas that can be enabled through Assura's expertise and experience.
Increasingly, the NHS is supported by, or patients choose to be seen by, the private sector. Embracing the help of the private sector from capacity to expertise can enable the health system as a whole to become more efficient. What is most important is that patients get early diagnoses and then are treated promptly and efficiently - something that Assura enables by creating standout quality facilities that provide capacity to support high-quality patient care and improved patient outcomes.
Assura remains well placed to support the health system of the future, through the provision of high-quality buildings for the best healthcare providers.
Our ESG strategy, The Bigger Picture, offers us with a lens through which to frame our decision-making - aiming to ensure that everything we do benefits all of our stakeholders, working toward a Healthy Environment, Healthy Communities and a Healthy Business. We were delighted that this approach received a high level of validation, being certified as the first FTSE 250 B Corp - demonstrating the high value we place on positively contributing to society as a whole.
As in every year, and in particular one in which the business has made a huge stride forward in our long-term ambition, I am thankful for the staggering contribution from every one of our employees. We would not be where we are without them.
Offers for Company
This annual report has been written as far as possible on a 'business as usual' basis, reflecting our performance for the year ended 31 March 2025 and including some forward-looking statements as required to satisfy reporting requirements. The ongoing Offer situation has not been referred to unless absolutely necessary to describe each particular section of the report. The latest in respect of the Offer can be seen in regulatory announcements, on our website under the specific Offer pages and in the latest shareholder communications.
Ed Smith CBE
Non-Executive Chair
18 July 2025
CEO statement
This has been a transformational year for Assura
We have made significant progress against our long-term objectives completing two strategically important transactions: the first diversified our funding sources, and the second materially increased our participation in independent healthcare, a structurally supported growth market.
Following shareholder approval of over 99% at the AGM, our certification as the first FTSE 250 B Corp was confirmed, a true testament to the strength of our ESG strategy and how this is integral to our business model.
We delivered a strong operational performance over the period with improved rent review results, we reduced our EPRA Cost Ratio, and made good progress with our development programme. EPRA earnings are up 4% and we
have increased our dividend for the 11th consecutive year.
In the second half of the year, our focus was on executing our disposals programme, targeting net debt to EBITDA below nine times and LTV below 45%, and we have made strong progress.
These incredible achievements were only possible due to the substantial contributions from each and every one of our employees.
Market overview and outlook
The changes currently being seen in the UK healthcare market mean there are substantial and varied opportunities for Assura to take advantage of.
The NHS is in crisis. An ageing population, increasingly complex long-term medical conditions and cost inflation, all of which can be seen in the well-documented increase in waiting lists, mean the pressure and challenges faced by the NHS today are greater than ever. This has been highlighted extensively by senior politicians in the new Labour Government.
The report published by Lord Darzi painted a bleak picture of the NHS, and highlighted how the material underinvestment in NHS buildings and primary care in general had contributed to the problem. The Spending Review published in June 2025 saw a significant increase in revenue funding for the NHS and the infrastructure strategy published in June highlighted the role of private capital in supporting the development of new community health infrastructure.
New investment in modern primary care capacity can provide services that are more convenient for patients and more cost effective for the healthcare system. NHS data shows that primary care treatment can be up to ten times
less expensive than emergency hospital treatment. Assura has the skills and track record to deliver primary care buildings that meet these needs.
Meanwhile, the independent sector has continued to experience a surge in demand. The independent market in the UK has grown substantially to £6.8 billion per annum in revenue, following a 6.3% compound annual growth rate over the past 20 years. Growth prospects are particularly favourable at this time. The UK independent sector remains very small in proportion to the NHS budget, and in comparison to other European countries.
The sector creates additional capacity for the health system, with a payor mix split across three main strands: NHS referrals, private medical insurance ('PMI') and self-pay. Patients are increasingly turning to private providers given the delays to treatment resulting from NHS waiting lists. Each individual asset is bespoke to the local healthcare needs with some focusing on NHS-referred work, while others have a higher proportion of PMI or self-pay.
These independent providers generally offer specialisms that are well suited to specialist day-case and outpatient facilities. In particular ophthalmology and orthopaedics are well established, with a focus on efficient treatment for patients as well as high levels of customer service. It also means they are willing to invest in technology to improve operating metrics and seek a specialist healthcare landlord alongside whom they can develop their long-term plans.
Two strategically significant transactions
Against this healthcare market backdrop, we successfully executed two strategically important transactions in the first half of the year.
In May we announced a £250 million joint venture with the Universities Superannuation Scheme ('USS'). Seeded with an initial portfolio of seven assets valued at £107 million, the joint venture will invest in assets let to the NHS or GPs with fixed or index-linked rent reviews. The joint venture is seeking to reach £250 million within three years, with the option to extend the partnership to £400 million over time, and has already reached £159 million by year end.
We are delighted to have partnered with USS, a long-term investor looking to increase their exposure to inflation-linked assets like healthcare that align to their long-term pension promises, and that can also offer a positive social impact to the communities they serve. The joint venture will grow through a combination of acquiring existing Assura assets, new assets and developments.
For Assura, this arrangement provides a further a new source of funding for future growth and, with the retention of a 20% equity share and management role, maintains our strong relationships with tenants and enables us to explore further potential opportunities.
Then in August we completed the acquisition of 14 independent hospitals for £500 million from Northwest Healthcare Properties, funded through a combination of cash, newly issued shares and debt, including a new term loan.
The assets have a weighted average unexpired lease term of 26 years, and all leases are fully tenant repairing and insuring ('FRI'). The tenants are all major hospital operators in the UK, comprising mainly Nuffield Health, Spire Healthcare and Circle Group, and the assets benefit from a strong average rent cover of 2.3 times. The leases are reviewed annually by reference to either RPI or CPI, and we saw a 3.2% uplift to the rent in January.
As a result of the acquisition, some 25% of Assura's rent roll is now in independent healthcare, delivering on our stated strategy to diversify into targeted new healthcare sectors, by adding high-quality fully operational assets spread across the UK at attractive prices. We were pleased that our valuers have determined a 5% uplift in the asset value recorded in our books.
Financial and operational performance
Assura's business is built on reliability and resilience over the long term, with secure cash flows from our high-quality £3.1 billion portfolio of 603 properties all supported by our conservative and efficient capital structure.
We strive to grow the rental income generated from our portfolio…
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.
The independent hospital portfolio acquisition is a prime example of this. We demonstrated an ability to transact opportunistically to capture a high-quality portfolio in a sector where we have been keen to increase our weighting. This transaction was part-funded by the proceeds from the transfer of the first tranche of properties into our joint venture with USS, demonstrating our ability to recycle capital to improve shareholder returns.
Over the year we have disposed of £188 million of assets at an average yield of 5.1%, which has been recycled into the private hospitals at 5.9% (before taking into account leverage of debt used to finance the transaction).
We also benefitted from the continued focus on delivering on site development projects, completing five schemes in the year, adding £2.5 million to our rent roll. This included two GP medical centres in Shirley and Winchester and three projects for NHS Trusts, namely our largest in-house development project in Cramlington, our second ambulance hub, in Bury St Edmunds, and a children's therapy centre in Fareham. These projects are now providing crucial services to their communities and supporting their local healthcare systems. We were pleased that the Northumbria Health and Care Academy was awarded the Healthy Workplace Award at Healthy City Design 2024 and Healthcare Infrastructure Project of the Year at the HSJ Partnership Awards, as well as being the first healthcare building in the UK to achieve Gold Standard under the IWBI WELL Building Standard.
The two developments at Fareham and Winchester are the first completed using Assura's Net Zero Carbon Design Guide, being committed to achieving net zero carbon for both embodied and operational carbon. A significant achievement, and one that we aim to become standard on our future development projects.
These activities, including the first contribution from the acquired assets, are complementary to the revenue contribution from portfolio management. Overall, in the year we delivered 17% growth in net rental income to £167.1 million. Our passing rent roll stands at £177.9 million which is 18% higher than at March 2024.
…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 positively impact the local community. Our portfolio management team seeks to enhance the value
of our assets through agreeing rent reviews, completing lease re-gears, letting vacant space and undertaking physical property extensions.
We completed 348 rent reviews generating an 6.1% uplift on the rent reviewed (3.2% on an annual equivalent basis), 19 lease re-gears, and invested in eight capital projects. Collectively these added £4.9 million to our rent roll, offering attractive growth for modest capital outlay. Our total contracted rental income, which is a combination of our passing rent roll and lease length, stands at £2.5 billion, our weighted average unexpired lease term is 12.7 years and 97% of our income now comes from GPs, the NHS, the HSE, pharmacies and established independent sector healthcare operators.
…and carefully controlling our balance sheet and cost base…
Despite the impact of inflation and growth in our portfolio, we retained our focus on operational efficiency and reduced our EPRA Cost Ratio to 12%.
A positive valuation uplift of £57.9 million contributed to an IFRS profit of £166 million or 5.3 pence per share.
As a result of the independent hospital portfolio acquisition, our balance sheet metrics stand toward the higher end of our policy ranges, with LTV at 47%, which we are targeting bringing down to 45% through our disposal programme.
I am pleased to report we have made strong early progress with this programme, disposing of 29 assets for £188 million during the year at a slight premium to book value. These disposals were a combination of transfers into our newly established joint venture and disposals to third parties. We are in active discussions for disposal of a further £19 million of assets.
All of our long-term drawn debt is fixed, at an average interest rate of 2.9%, has a weighted average maturity of 4.6 years with only a small proportion having maturities in the next two years. Our investment grade rating of A- was
reaffirmed by Fitch Ratings Ltd in August 2024.
…to deliver earnings growth that supports our dividend policy.
We have maintained our track record of growth year-on-year. Our EPRA earnings have increased by 9% to £111.8 million which translates to an EPRA EPS of 3.5 pence per share.
The strength of our income and earnings growth is reflected in our fully covered dividend payments, which we have now increased for 11 consecutive years. In this latest period, we announced a 2% increase in the quarterly dividend to 0.84 pence with effect from the July 2024 payment, equivalent to 3.36 pence per share on an annualised basis.
Assura outlook
Growth in the year has been driven mainly by activity in independent healthcare, where we were able to take the opportunity to buy high-quality assets strengthening our relationships with the tier 1 private hospital providers. We are already discussing ways to assist our tenants with future developments, asset enhancement and sustainability
improvements. Prospects for the independent healthcare market remain strong.
In the GP and NHS space, new development opportunities have experienced delayed approvals over the past two years. However, the tone of the new Labour Government is encouraging and we are starting to see certain schemes unlocking. Their stated priorities of 'three big shifts in the focus of healthcare, from hospital to community, analogue to digital and sickness to prevention', all require investment in community healthcare buildings. Assura's track record in delivering cutting edge buildings, working with the local NHS entities to adapt space for their requirements and embracing technological advancements, means we are well-placed to provide support through our development and asset enhancement capabilities.
All of our current on site projects are in Ireland, and the clear plan that the HSE has to deliver enhanced community care centres in specific locations means that this remains an attractive growth market. Assura's skills in development and asset enhancement, and the growing presence that we have in Ireland, means we are well-placed to capture incremental opportunities in this market in both the short and long term.
At the date of this report, Assura is the subject of two potential takeover bids. Assura is a business with great people, an efficient operating platform, leadership positions in key growth healthcare markets, financial strength and excellent growth opportunities.
Jonathan Murphy
CEO
18 July 2025
CFO Review
A strong financial base delivering growing returns
The £500 million independent hospital portfolio acquisition saw us materially increase our weighting to a structurally supported growth market. These high-quality assets deliver much needed capacity to their local health systems for the benefit of patients. With long-term leases in place and annual, indexed-linked rent reviews, they are supportive to our cash flows and earnings trajectory.
Our £250 million joint venture with USS offers important diversity of funding sources, giving us more options to increase our portfolio. We have chosen a long-term capital partner who shares our values in seeking to invest in assets that positively contribute to our society.
Operationally we have performed strongly, adding £4.5 million to our rent roll from rent reviews settled, which has contributed, along with the acquisition and development completions, to a 17% growth in net rental income. We have achieved this whilst reducing our EPRA Cost Ratio to 12%, and allowing us, once again, to raise our dividend during the period. Our EPRA NTA has increased to 50.4 pence per share with the valuation gain recorded in the period more than offsetting the dilution from new shares issued.
Our short-term focus remains on reducing our leverage, targeting net debt to EBITDA below nine times and LTV of 45%, and made excellent progress on this plan in the second half of the year. We expect to achieve our goals within 6 - 12 months through a combination of disposals to both third parties and utilising our joint venture.
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 31 March 2025 £3,099.1 million (2024: £2,708.3 million)
Our business is based on our investment portfolio of 603 completed properties. This has a passing rent roll of £177.9 million (March 2024: £150.6 million), all of which is underpinned by strong and growing demand for healthcare services. The Weighted Average Unexpired Lease Term ('WAULT') is 12.7 years (March 2024: 10.8 years) and we have total contracted rental income of £2.5 billion (March 2024: £1.76 billion).
At 31 March 2025, our portfolio of completed investment properties was valued at £3,115.8 million (Investment properties £3,099.1 million plus investment property held for sale of £16.7 million, March 2024: £2,652.1 million), which produced a net initial yield ('NIY') of 5.21% (March 2024: 5.17%), with the movement reflecting the addition of the acquired independent hospital portfolio.
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 5.60% (March 2024: 5.41%). Adjusting this Royal Institution of Chartered Surveyors ('RICS') standard measure to reflect the advanced payment of rents, the true equivalent yield is 5.63% (March 2024: 5.43%).
Our EPRA NIY, based on our passing rent roll and latest annual direct property costs, was 5.23% (March 2024: 5.08%).
|
|
2025 |
2024 |
|
Net rental income |
167.1 |
143.3 |
|
Valuation movement |
57.9 |
(131.5) |
|
Total Property Return |
225.0 |
11.8 |
Following the global decline in property values over the past couple of years, we are pleased to report a valuation uplift in the period - which totalled £57.9 million (2024: loss of £131.5 million). This gain reflects the positive effect of rental growth in the period and an uplift on the newly acquired independent hospital portfolio, which more than offset the dilution in EPRA NTA from the new shares issued.
This gain is reflected in our Total Property Return (expressed as a percentage of opening investment property plus additions) which was 7.0% for the year compared with 0.4% in the year to March 2024.
Net investment
The main movements in our portfolio during the period were the addition of the independent hospital portfolio for £500 million, net of disposals during the year.
The 14 independent hospitals acquired offer attractive investment characteristics - with £29.4 million of rent roll at acquisition, that is reviewed each January by reference to the relevant index (a mix of RPI or CPI), and 26 years of weighted unexpired lease term remaining. These are impressive assets that provide essential health capacity for their locality, spread across both NHS-referred and private (PMI and self-pay) procedures. The tenants are tier 1 independent operators, including Nuffield, Circle and Spire, offering strong tenant covenants with an average rent cover of 2.3 times, and we now have relationships with these providers to explore future opportunities across acquisitions, developments and asset enhancement.
Our new strategic joint venture with USS offers us further diversity of funding for the long-term. Targeting a portfolio of £250 million (of which Assura will own 20%), this was initially seeded in May 2024 with a portfolio of seven assets for £107 million, and a further tranche of seven assets for £64 million was agreed in March 2025 (£13 million of which completed post year end). The net proceeds from these disposals are therefore £137 million, including the post year end completion. We provide property management services to the joint venture, calculated relative to the gross asset value, which boosts the return on our equity investment. The joint venture is fully equity funded currently.
We continue to focus on completing our on site developments in an efficient manner to benefit from the additional rent roll at completion, completing five schemes in the year. We have also continued to generate internal growth from asset enhancement capital projects, finalising eight upgrades to existing assets.
Our net investment in the period is summarised in the table below:
|
Spend during the year |
2025 |
|
Acquisitions |
505.6 |
|
Completed developments |
54.5 |
|
Additions |
560.1 |
|
Disposals |
(183.7) |
|
Asset enhancement and sustainability |
11.5 |
|
Net investment |
387.9 |
Development activity
We completed five developments in the year, adding £2.5 million to our rent roll, completing NHS schemes in Cramlington, Fareham and Bury St Edmunds and new GP medical centres in Shirley and Winchester.
The environment for new development projects remains challenging. This remains a legacy position from the difficult macroeconomic backdrop over the past two years, with increased rents required to make new projects viable based on current expected costs.
There remains a need for new healthcare buildings to support the growing demands of the health system, and we expect to see some schemes moving live in the 2025/26 financial year, most likely funded by our joint venture with USS.
Our on site schemes comprise three schemes in Ireland, with a combined total remaining spend of £20 million and will add £1.5 million to our rent roll when complete.
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.
Live developments and forward funding arrangements
|
|
Forward fund/ in house |
Principal occupier |
Estimated completion date |
Total development costs £m |
Costs £m |
Size sq.m |
|
Ballybay |
FF |
HSE |
Q2 25 |
4.3 |
2.7 |
1,695 |
|
Birr |
FF |
HSE |
Q1 26 |
12.4 |
3.7 |
5,000 |
|
Castlebar |
In house |
HSE |
Q1 26 |
12.9 |
3.2 |
4,200 |
|
Total |
|
|
|
29.6 |
9.6 |
|
Portfolio management
Our rent roll grew to £177.9 million (March 2024: £150.6 million) and we are pleased to have again increased the uplift from rent reviews, alongside the growth from the net additions. The reviews settled added £4.5 million to the rent roll.
We successfully concluded 348 rent reviews during the six months (year to March 2024: 307) to generate a weighted average annual rent increase of 3.2% (year to March 2024: 3.9%) on those properties. These 348 reviews covered
£79.9 million of rent roll (including properties held through joint ventures) and the absolute increase of £4.8 million (Assura share £4.5 million) is an 6.1% increase on this rent. Index-linked and fixed uplift reviews generated an equivalent annual uplift of 3.6% during the period (March 2024: 5.2%) and open market reviews generated 2.2% (March 2024: 1.7%).
The independent hospitals acquired have an initial rent roll of £29.4 million and are all subject to index-linked reviews. These reviews occur in January each year, with the January 2025 review generating an uplift of 3.2%.
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 £2.5 billion (March 2024: £1.76 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 19 lease re-gears in the year covering £2.7 million of current annual rent and adding nine years to the WAULT for those particular leases. We have also agreed terms on a pipeline of 39 re-gears covering £4.0 million of rent roll and these are currently in legal hands.
We have completed eight asset enhancement capital projects in the year (total spend £4.2 million) and are currently on site with a further two (total spend of £4.1 million), improving the sustainability and lease length on these assets.
In addition, we have a further 20 asset enhancement projects we hope to complete in the next two years with estimated spend of £11.6 million.
Our EPRA Vacancy Rate was 1.8% (March 2024: 1.0%).
Administrative expenses
Administrative expenses in the period were £14.4 million (2024: £13.2 million), although given the increase in our portfolio this represents a reduced EPRA cost ratio, which is how we analyse cost performance.
Our EPRA cost ratios (including and excluding direct vacancy costs) were 12.5% and 11.3% respectively (March 2024: 13.2% and 11.7% 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 0.50% (2024: 0.48%).
Financing
The strength of our balance sheet enabled us to complete the strategically important transactions in the first half of the year.
We finance our activities using the most appropriate option available to us based on market conditions, whether that be in the form of equity issuance, debt issuance, capital recycling or through the use of joint ventures.
In May we announced our £250 million joint venture with USS. The terms of this from an investment perspective have been explained above, and it is important to highlight that we view this as part of our long-term funding mix. This vehicle will allow us to explore development opportunities for the NHS that may otherwise not meet the required levels of return based on our current cost of capital, but remain important opportunities to build our relationship with the NHS.
We funded the £500 million independent hospital acquisition with a mixture of new equity shares issued (£100 million), new debt issued (£266 million term loan) and the remainder funded by cash and a drawdown on the revolving credit facility. This was the most appropriate mix to complete the transaction in a timely basis and provides flexibility of funding as we execute our disposals plan over the coming months.
The term loan is for an initial term of two years, although we have the option to extend for two additional one-year terms, subject to lender consent. The loan is variable rate (by reference to SONIA) with a margin of 110 basis points that reflects our strong credit rating. We put in place an interest rate swap for the two-year term of the loan at a fixed rate of 4.148%.
Our LTV ratio currently stands at 47%, having reduced from 49% at the point of the independent hospital acquisition, within our target range of 40-50%. We have always been clear that we would only move to the top end of the range for the right acquisition, and the transaction announced in August met these criteria.
Alongside the transaction we announced our intention to reduce the LTV ratio below 45% and net debt to EBITDA below nine times through capital recycling - both through outright disposals and transferring additional assets into the joint venture. We have made strong progress to date, completing £188 million of disposals, at a small premium to book value, through a combination of sales into the joint venture and a portfolio of £24 million to a third party. We are in active discussions for the disposal of a further £19 million of assets held for sale. The proceeds will initially be used to repay drawn amounts under the revolving credit facility. We remain on track to complete the disposals programme in line with the timescales targeted.
Following the completion of the transaction, Fitch reaffirmed our A- rating. They did, however, put the rating on a negative outlook, which is solely linked to their perceived execution risk on the disposal programme.
Net debt to EBITDA currently stands at 9.8 times which is inflated by the EBITDA figure only capturing a part year of income related to the private hospital acquisition. Based on our run rate of income in the second half of the year, net debt to EBITDA would stand at 9.1 times, and we expect this to reduce further as the disposal programme is completed.
With the exception of the revolving credit facility, 100% of our drawn debt facilities are at fixed interest rates.
Our weighted average interest rate is 2.9% (March 2024: 2.3%) and the weighted average debt maturity is 4.6 years. 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).
Net finance costs presented through EPRA earnings in the year amounted to £41.4 million (2024: £27.2 million).
|
Financing statistics |
2025 |
2024 |
|
Net debt (Note 11) |
£1,487m |
£1,217.4m |
|
ESG-linked financing |
62% |
55% |
|
Weighted average debt maturity |
4.6 years |
6.0 years |
|
Weighted average interest rate |
2.9% |
2.3% |
|
% of debt at fixed/capped rates |
98% |
100% |
|
EBITDA to net interest cover |
4.1x |
4.8x |
|
Net debt to EBITDA |
9.8x |
9.4x |
|
LTV (Note 11) |
49% |
45% |
IFRS loss before tax
IFRS profit before tax for the period was £166.0 million (2024: loss of £28.7 million), reflecting the difference in valuation movements recorded in each period.
EPRA earnings
The movement in EPRA earnings can be summarised as follows:
|
|
2025 £m |
2024 |
|
Net rental income |
167.1 |
143.4 |
|
Administrative expenses |
(14.4) |
(13.2) |
|
Net finance costs |
(41.4) |
(27.1) |
|
Share-based payments, share of investments and tax |
0.5 |
(0.7) |
|
EPRA earnings |
111.8 |
102.3 |
EPRA earnings has grown 9.3% to £111.8 million in the year to March 2025. The independent hospitals acquired have boosted our net rental income which has been partially offset by the finance cost associated with the change in net debt. Our administrative costs and finance costs remain closely controlled.
Earnings per share
The basic earnings per share ('EPS') for the period was 5.3 pence (2024: loss of (1.0) pence).
EPRA EPS, which excludes the net impact of valuation movements and gains on disposal, was 3.5 pence (2024: 3.4 pence).
Based on calculations completed in accordance with IAS 33, share-based payment schemes are currently expected to be dilutive to EPS, with 3.7 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 year were £104.1 million or 3.34 pence per share (2024: 3.24 pence per share). £7.7 million of this was satisfied through the issuance of shares via scrip.
As a REIT with a 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. The April, July and October dividends paid
were PIDs and future dividends will be a mix of PID and normal dividends as required.
Cash flow movements
|
|
2025 £m |
2024 £m |
|
Opening cash |
35.4 |
118.0 |
|
Net cash flow from operations |
110.5 |
102.4 |
|
Dividends paid |
(93.3) |
(85.5) |
|
Investment: |
|
|
|
Property and other acquisitions |
(449.3) |
(31.7) |
|
Development expenditure |
(18.5) |
(69.4) |
|
Sale of properties |
183.7 |
3.4 |
|
Financing: |
|
|
|
Loans drawn and issuance costs |
289.6 |
(1.8) |
|
Closing cash |
58.1 |
35.4 |
Our cash flows remain uncomplicated. Our EPRA earnings directly flow through to cash which is used to fund quarterly dividend payments.
The investment activity in the period has been funded through a mixture of new shares issued, loans drawn and the disposals during the period.
Diluted EPRA NTA movement
|
|
£m |
Pence per |
|
Diluted EPRA NTA at 31 March 2024 (Note 6) |
1,472.5 |
49.3 |
|
EPRA earnings |
111.8 |
3.5 |
|
Capital (revaluations and capital gains) |
54.5 |
1.6 |
|
Dividends |
(104.2) |
(3.3) |
|
Share issuance |
100.0 |
(0.7) |
|
Other |
7.4 |
- |
|
Diluted EPRA NTA at 31 March 2025 (Note 6) |
1,641.7 |
50.4 |
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 year is 9.0% of which 3.34 pence per share (6.8%) has been distributed to shareholders and 1.1 pence per share (2.2%) is the movement on EPRA NTA.
Jayne Cottam
CFO
18 July 2025
Consolidated income statement
For the year ended 31 March 202
|
|
|
2024 |
2024 |
|||||
|
|
Note |
EPRA |
Capital |
Total |
EPRA |
Capital |
Total |
|
|
Gross rental and related income |
|
175.0 |
8.8 |
183.8 |
150.2 |
7.6 |
157.8 |
|
|
Property operating expenses |
|
(7.9) |
(8.8) |
(16.7) |
(6.9) |
(7.6) |
(14.5) |
|
|
Net rental income |
3 |
167.1 |
- |
167.1 |
143.3 |
- |
143.3 |
|
|
|
|
|
|
|
|
|
|
|
|
Administrative expenses |
|
(14.4) |
- |
(14.4) |
(13.2) |
- |
(13.2) |
|
|
Revaluation gain/(deficit) |
7 |
- |
57.9 |
57.9 |
- |
(131.5) |
(131.5) |
|
|
Gain on sale of property |
|
- |
0.7 |
0.7 |
- |
1.0 |
1.0 |
|
|
Share-based payment charge |
|
(0.7) |
- |
(0.7) |
(0.8) |
- |
(0.8) |
|
|
Share of gains/(losses) from investments |
|
1.2 |
(3.7) |
(2.5) |
0.2 |
(0.5) |
(0.3) |
|
|
Finance income |
|
1.7 |
- |
1.7 |
2.1 |
- |
2.1 |
|
|
Finance costs |
|
(43.1) |
(0.7) |
(43.8) |
(29.2) |
(0.1) |
(29.3) |
|
|
Profit/(loss) before taxation |
|
111.8 |
54.2 |
166.0 |
102.4 |
(131.1) |
(28.7) |
|
|
Taxation |
|
- |
- |
- |
(0.1) |
- |
(0.1) |
|
|
Profit/(loss) for the year attributable to equity holders of the parent |
|
111.8 |
54.2 |
166.0 |
102.3 |
(131.1) |
(28.8) |
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income that may be reclassified to profit or loss in subsequent periods, net of tax: |
|
|
|
|
|
|
|
|
|
Exchange loss arising on translation of foreign operations |
|
- |
(0.7) |
(0.7) |
- |
(0.6) |
(0.6) |
|
|
Fair value loss on derivative interest rate swap |
|
- |
(0.1) |
(0.1) |
- |
- |
- |
|
|
Total comprehensive income/(loss) |
|
111.8 |
53.4 |
165.2 |
102.3 |
(131.7) |
(29.4) |
|
|
|
|
|
|
|
|
|
|
|
|
EPS |
- basic & diluted |
5 |
|
|
5.3p |
|
|
(1.0)p |
|
EPRA EPS |
- basic & diluted |
5 |
3.5p |
|
|
3.4p |
|
|
All income arises from continuing operations in the UK and Ireland.
Consolidated balance sheet
As at 31 March 2025
|
|
Note |
2025 £m |
2024 |
|
Non-current assets |
|
|
|
|
Investment property |
7 |
3,099.1 |
2,708.3 |
|
Property work in progress |
7 |
10.0 |
9.5 |
|
Property, plant and equipment |
|
1.1 |
1.0 |
|
Equity accounted and other investments |
|
53.4 |
19.7 |
|
Deferred tax asset |
|
0.7 |
0.6 |
|
|
|
3,164.3 |
2,739.1 |
|
Current assets |
|
|
|
|
Cash, cash equivalents and restricted cash |
|
58.1 |
35.4 |
|
Trade and other receivables |
|
40.9 |
37.3 |
|
Property assets held for sale |
7 |
18.1 |
0.4 |
|
|
|
117.1 |
73.1 |
|
Total assets |
|
3,281.4 |
2,812.2 |
|
Current liabilities |
|
|
|
|
Trade and other payables |
|
58.5 |
49.9 |
|
Head lease liabilities |
|
0.1 |
0.3 |
|
Deferred revenue |
|
31.7 |
32.2 |
|
Borrowings |
8 |
70.0 |
- |
|
|
|
160.3 |
82.4 |
|
Non-current liabilities |
|
|
|
|
Borrowings |
8 |
1,469.6 |
1,246.9 |
|
Head lease liabilities |
|
5.2 |
5.6 |
|
Deferred revenue |
|
3.8 |
4.2 |
|
Derivative interest rate swap |
8 |
0.1 |
- |
|
|
|
1,478.7 |
1,256.7 |
|
Total liabilities |
|
1,639.0 |
1,339.1 |
|
Net assets |
|
1,642.4 |
1,473.1 |
|
Capital and reserves |
|
|
|
|
Share capital |
9 |
325.1 |
298.5 |
|
Share premium |
|
1,013.6 |
932.7 |
|
Merger and other reserves |
9 |
230.2 |
231.0 |
|
Retained earnings |
|
73.5 |
10.9 |
|
Total equity |
|
1,642.4 |
1,473.1 |
|
|
|
|
|
|
NAV per Ordinary Share - basic - diluted |
6 6 |
50.5p 50.4p |
49.4p 49.3p |
|
EPRA NTA per Ordinary Share - basic & diluted |
6 |
50.4p |
49.3p |
The financial statements were approved at a meeting of the Board of Directors held on 18 July 2025 and signed on its behalf by:
Jonathan Murphy Jayne Cottam
CEO CFO
Consolidated statement of changes in equity
For the year ended 31 March 2025
|
|
Note |
Share |
Share |
Merger |
Retained |
Total |
|
1 April 2023 |
|
296.1 |
924.5 |
231.6 |
135.3 |
1,587.5 |
|
Loss attributable to equity holders |
|
- |
- |
- |
(28.8) |
(28.8) |
|
Other comprehensive income: |
|
|
|
|
|
|
|
Exchange gain on translation of foreign balances |
|
- |
- |
(0.6) |
- |
(0.6) |
|
Total comprehensive loss |
|
- |
- |
(0.6) |
(28.8) |
(29.4) |
|
Dividends |
9, 10 |
2.4 |
8.2 |
- |
(96.1) |
(85.5) |
|
Employee share-based incentives |
|
- |
- |
- |
0.5 |
0.5 |
|
31 March 2024 |
|
298.5 |
932.7 |
231.0 |
10.9 |
1,473.1 |
|
|
|
|
|
|
|
|
|
Profit attributable to equity holders |
|
- |
- |
- |
166.0 |
166.0 |
|
Other comprehensive loss: Exchange loss on translation of foreign balances |
|
- |
- |
(0.7) |
- |
(0.7) |
|
Fair value loss on derivative interest rate swap |
|
- |
- |
(0.1) |
- |
(0.1) |
|
Total comprehensive (loss)/income |
|
- |
- |
(0.8) |
166.0 |
165.2 |
|
Issue of Ordinary Shares |
9 |
24.5 |
75.3 |
- |
- |
99.8 |
|
Dividends |
9, 10 |
2.0 |
5.6 |
- |
(104.1) |
(96.5) |
|
Employee share-based incentives |
|
0.1 |
- |
- |
0.7 |
0.8 |
|
31 March 2025 |
|
325.1 |
1,013.6 |
230.2 |
73.5 |
1,642.4 |
Consolidated cash flow statement
For the year ended 31 March 2025
|
|
Note |
2025 £m |
2024 |
|
Operating activities |
|
|
|
|
Rent received |
|
165.4 |
147.0 |
|
Interest paid and similar charges |
|
(38.9) |
(29.3) |
|
Fees & dividends received |
|
1.8 |
1.6 |
|
Interest received |
|
1.7 |
2.1 |
|
Cash paid to suppliers and employees |
|
(19.5) |
(19.0) |
|
Net cash inflow from operating activities |
|
110.5 |
102.4 |
|
|
|
|
|
|
Investing activities |
|
|
|
|
Purchase of investment property |
|
(412.4) |
(28.9) |
|
Development expenditure |
|
(18.5) |
(69.4) |
|
Proceeds from sale of property |
|
183.7 |
3.4 |
|
Investment in joint ventures and other investments |
|
(36.6) |
(1.6) |
|
Purchase of property, plant and equipment |
|
(0.3) |
(1.2) |
|
Net cash outflow from investing activities |
|
(284.1) |
(97.7) |
|
|
|
|
|
|
Financing activities |
|
|
|
|
Dividends paid |
|
(93.3) |
(85.5) |
|
Repayment of loan |
|
(94.0) |
- |
|
Loans drawn |
|
386.0 |
- |
|
Share issue costs |
|
(0.5) |
- |
|
Interest on head lease liabilities |
|
(0.3) |
(0.2) |
|
Loan issue costs |
|
(1.6) |
(1.6) |
|
Net cash outflow from financing activities |
|
196.3 |
(87.3) |
|
|
|
|
|
|
Decrease in cash, cash equivalents and restricted cash |
|
22.7 |
(82.6) |
|
|
|
|
|
|
Opening cash, cash equivalents and restricted cash |
|
35.4 |
118.0 |
|
Closing cash, cash equivalents and restricted cash |
|
58.1 |
35.4 |
Notes to the accounts
For the year ended 31 March 2025
1. Corporate information and operations
The Company is a public limited company, limited by shares, incorporated and domiciled in England and Wales, whose shares are publicly traded on the main market of the London Stock Exchange with a secondary listing on the Johannesburg Stock Exchange.
With effect from 1 April 2013, the Group has elected to be treated as a UK REIT.
2. Basis of preparation
The financial information set out in this preliminary announcement is derived from but does not constitute the Group's statutory accounts for the years ended 31 March 2025 and 31 March 2024, and as such, does not contain all information required to be disclosed in the financial statements prepared in accordance with UK-adopted international accounting standards (IFRSs). The financial information has been extracted from the Group's audited consolidated statutory accounts. The auditor has reported on those accounts, their reports were unqualified, did not draw attention to any matters by way of emphasis, and did not contain statements under s498 (2) or (3) of the Companies Act 2006.
The consolidated financial statements have been prepared on a historical cost basis, except for investment properties, including investment properties under construction and land which are included at fair value. The financial statements have been prepared in accordance with UK-adopted international accounting standards ("IFRS").
The accounting policies have been applied consistently to the results, other gains and losses, liabilities and cash flows of entities included in the consolidated financial statements. All intragroup balances, transactions, income and expenses are eliminated on consolidation.
In preparing the financial statements, management has considered the impact of climate change, taking into account the relevant disclosures in the Strategic Report, including those made in accordance with TCFD, and considered the impact of the issues identified to be appropriately built into the financial statements. The impact of climate change is considered in the valuation of investment properties and future cash flows of the Group and so is appropriately considered in these financial statements. The impact of climate change on the values are expected to be immaterial.
Going concern
The Group's properties are substantially let with rent paid or reimbursed by the NHS or tier 1 independent healthcare providers and benefit from a WAULT of 12.7 years. They are diverse both geographically and by lot size, offering a strong and resilient cash flow profile.
In addition to unrestricted cash of £55.3 million at 31 March 2025 (2024: £33.2 million), the Group has undrawn facilities of £174 million at the balance sheet date, with commitments as at year end of £41.3 million (see Note 12). The Group has adequate headroom in its banking covenants. The Group has been in compliance with all financial covenants on its loans throughout the year and as at 31 March 2025.
The Group's primary care property developments and asset enhancement capital works in progress are all substantially pre-let and operate with fixed price construction contracts where possible.
The Directors believe that the business is well placed to manage its current and reasonably possible future risks successfully. This going concern assessment covers the period to 31 October 2026.
Upcoming maturing debt facilities
The Group has the following refinancing events over the next 18 months:
§ £70 million tranche of privately placed notes (maturity October 2025)
§ £266 million term loan (current maturity August 2026), option to extend by either one or two years subject to lender approval
§ £200 million revolving credit facility (current maturity October 2026), option to extend by either one or two years subject to lender approval
§ £100 million US privately placed notes (maturity October 2026)
The options available for these facilities include extension of the maturity date, refinancing with either the existing or a new lender, or repayment from the proceeds of disposals.
The Directors have concluded that it is not in the best interests of shareholders to refinance any of these facilities whilst there remains uncertainty with a potential change of control, due to the costs that would be incurred. Given the investment grade rating of the Group (A- rating from Fitch) as well as the strong cash flows of the property portfolio and credit profile of the Group in the debt markets, the Directors are confident that these facilities can be refinanced at competitive rates, or repaid from available cash funded by disposals, as appropriate when the current Offer situation has been resolved. However, until the required refinancing has been completed, there is a material uncertainty over the refinancing as facilities are subject to lender discretion, both in the event of a change of control or if Assura plc continues under the existing ownership structure.
Since April 2024, the Group has successfully disposed of £200 million of assets, in line with book value, which have been used to both part fund the acquisition of the 14 private hospitals in August 2024 and to repay the revolving credit facility which was drawn. The Directors are confident of completing further disposals as required to continue reducing the leverage of the Group in line with the announced short-term strategy to reduce leverage.
Potential change of control
The Directors note that shareholders are currently in receipt of two offers for their shares, both of which would result in a change of control over the entity. Both bidders have stated their intention to continue the operation of the Group, which is viewed as a long-term investment and being acquired to gain access to the strong cash flows generated by the property portfolio.
However, there can be no guarantee as to the intentions of either bidder post change of control. The Directors have been assured that both bidders have in place the financing required to meet their contractual obligations. The Directors further understand that the bidders also have plans to either repay existing Assura facilities that may become repayable due to change of control clauses, or to obtain waivers in respect of these clauses allowing the facilities to remain in place.
As such, the Directors believe there is a material uncertainty over the continuation of Assura plc as a standalone company, in the event of a change of control. This is because the intention of the acquiror with respect of the continuation of Assura plc as a standalone company will not become clear until the change of control has become unconditional.
Conclusion
The Directors have concluded that 1) completing the refinancing of maturing facilities and/or disposals to enable repayment of these facilities in the event of a change of control or if Assura plc continues under the existing ownership structure; and 2) the continuation of Assura plc as a standalone company in the event of a change of control, are outside the control of the Group. These are therefore material uncertainties that may cast significant doubt over the Group and Company's ability to operate as a going concern.
However, the Directors:
- are confident that refinancing and/or disposals can be completed once clarity over the potential change of control has been received; and
- have been assured that both potential bidders have in place adequate committed facilities to implement a change of control.
This is on the basis of the Group's resilient cash flows from its high-quality property portfolio (with strong tenant covenant and long remaining unexpired lease term), the strong standing and rating in the credit markets and recent track record of completing disposals in line with book value.
On this basis, the Board has concluded that it is appropriate to prepare the Financial Statements on a going concern basis. The Financial Statements do not include the adjustments that would result if the Group and the Company were unable to continue as a going concern.
3. Net rental income
|
|
2025 £m |
2024 |
|
Rental revenue |
173.1 |
148.7 |
|
Service charge income |
8.8 |
7.6 |
|
Other related income |
1.9 |
1.5 |
|
Gross rental and related income |
183.8 |
157.8 |
|
Finance income |
|
|
|
Bank and other interest |
1.7 |
2.1 |
|
Total revenue |
185.5 |
159.9 |
|
|
2025 £m |
2024 |
|
Gross rental and related income |
183.8 |
157.8 |
|
Direct property expenses |
(7.9) |
(6.9) |
|
Service charge expenses |
(8.8) |
(7.6) |
|
Net rental income |
167.1 |
143.3 |
During the year, £2.0 million of rental revenue was generated from operations in Ireland (2024: £1.5 million).
4. Finance costs
|
|
2025 £m |
2024 |
|
Interest payable |
42.2 |
28.9 |
|
Interest capitalised on developments |
(0.9) |
(2.0) |
|
Amortisation of loan issue costs |
2.34 |
2.1 |
|
Interest on head lease liability |
0.3 |
0.2 |
|
Amount received on interest rate swap |
(0.8) |
- |
|
Refinancing costs |
0.7 |
0.1 |
|
Total finance costs |
43.8 |
29.3 |
Interest was capitalised on property developments at the appropriate cost of finance at commencement. During the year this ranged from 4% to 5% (2024: 4% to 5%).
5. Earnings per Ordinary Share
|
|
Earnings |
EPRA |
Earnings |
EPRA |
|
Profit/(loss) for the year |
166.0 |
166.0 |
(28.8) |
(28.8) |
|
Revaluation (gain)/deficit |
|
(57.9) |
|
131.5 |
|
Share of revaluation deficit from investments |
|
3.7 |
|
0.5 |
|
Gain on sale of property |
|
(0.7) |
|
(1.0) |
|
Refinancing fees |
|
0.7 |
|
0.1 |
|
EPRA earnings |
|
111.8 |
|
102.3 |
|
EPS - basic & diluted |
5.3p |
|
(1.0)p |
|
|
EPRA EPS - basic & diluted |
|
3.5p |
|
3.4p |
|
|
2025 |
2024 |
|
Weighted average number of shares in issue |
3,156,050,202 |
2,970,682,182 |
|
Potential dilutive impact of share options |
3,742,461 |
1,292,891 |
|
Diluted weighted average number of shares in issue |
3,159,792,663 |
2,971,975,073 |
The current number of potentially dilutive shares relates to nil-cost options under the share-based payment arrangements and is 3.7 million (2024: 1.3 million).
The EPRA measures set out above are in accordance with the Best Practice Recommendations of the European Public Real Estate Association dated September 2024.
Headline earnings per share
The JSE Listings Requirements require disclosure of headline earnings, calculated in accordance with Circular 1/2023 - Headline Earnings as issued by the South African Institute of Chartered Accountants. The table below illustrates this figure, which is in line with EPRA earnings.
|
|
2025 |
2024 |
|
Basic earnings |
166.0 |
(28.8) |
|
Adjustments to calculate headline earnings: |
|
|
|
Revaluation (gain)/deficit |
(57.9) |
131.5 |
|
Share of revaluation losses from investments |
3.7 |
0.5 |
|
Gain on sale of property |
(0.7) |
(1.0) |
|
Headline earnings |
111.1 |
102.2 |
|
Basic & diluted earnings per share |
5.3p |
(1.0)p |
|
Headline basic & diluted earnings per share |
3.5p |
3.4p |
6. NAV per Ordinary Share
|
2025 £m |
IFRS |
EPRA NRV |
EPRA NTA |
EPRA NDV |
|
IFRS net assets |
1,642.4 |
1,642.4 |
1,642.4 |
1,642.4 |
|
Deferred tax |
|
(0.7) |
(0.7) |
- |
|
Fair value of debt |
|
- |
- |
168.8 |
|
Fair value of financial instruments |
|
0.1 |
0.1 |
- |
|
Real estate transfer tax |
|
205.4 |
- |
- |
|
EPRA adjusted NAV |
|
1,847.2 |
1,641.8 |
1,811.2 |
|
Per Ordinary Share - basic - diluted |
50.5p 50.5p |
56.8p 56.8p |
50.5p 50.4p |
55.7p 55.7p |
|
2024 £m |
IFRS |
EPRA NRV |
EPRA NTA |
EPRA NDV |
|
IFRS net assets |
1,473.1 |
1,473.1 |
1,473.1 |
1,473.1 |
|
Deferred tax |
|
(0.6) |
(0.6) |
- |
|
Fair value of debt |
|
- |
- |
176.7 |
|
Real estate transfer tax |
|
171.3 |
- |
- |
|
EPRA adjusted |
|
1,643.8 |
1,472.5 |
1,649.8 |
|
Per Ordinary Share - basic - diluted |
49.4p 49.3p |
55.1p 55.0p |
49.3p 49.3p |
55.3p 55.2p |
|
|
2025 |
2024 |
|
Number of shares in issue |
3,250,608,887 |
2,984,790,496 |
|
Potential dilutive impact of share options |
3,742,461 |
1,292,891 |
|
Diluted number of shares in issue |
3,254,351,348 |
2,986,083,387 |
For definitions of the above EPRA NAV metrics, see Glossary.
Mark to market adjustments have been provided by the counterparty or by reference to the quoted fair value of financial instruments.
7. Property assets
Investment property and investment property under construction ('IPUC').
Properties are stated at fair value as at 31 March 2025. The fair value has been determined by the Group's external valuers 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.
|
|
Investment 2025 |
IPUC |
Total |
Investment 2024 |
IPUC |
Total |
|
Opening market value |
2,658.6 |
49.7 |
2,708.3 |
2,685.0 |
53.0 |
2,738.0 |
|
Additions: |
|
|
|
|
|
|
|
- acquisitions |
505.5 |
- |
505.5 |
17.7 |
- |
17.7 |
|
- improvements |
11.4 |
- |
11.4 |
11.1 |
- |
11.1 |
|
|
516.9 |
- |
516.9 |
28.8 |
- |
28.8 |
|
Development costs |
- |
18.0 |
18.0 |
- |
73.8 |
73.8 |
|
Transfers |
54.5 |
(54.5) |
- |
71.8 |
(71.8) |
- |
|
Transfers to assets held for sale |
(17.7) |
- |
(17.7) |
|
|
|
|
Capitalised interest |
- |
0.9 |
0.9 |
- |
2.0 |
2.0 |
|
Disposals |
(182.8) |
(1.7) |
(184.5) |
(2.1) |
(0.3) |
(2.4) |
|
Foreign exchange gain |
(0.6) |
(0.1) |
(0.7) |
(0.4) |
- |
(0.4) |
|
Unrealised gain/(deficit) on revaluation |
60.4 |
(2.5) |
57.9 |
(124.5) |
(7.0) |
(131.5) |
|
Closing fair value of |
3,089.3 |
9.8 |
3,099.1 |
2,658.6 |
49.7 |
2,708.3 |
Investment property includes a £5.3 million head lease liability (2024: £5.8 million).
|
|
2025 |
2024 |
|
Market value of investment property as estimated by valuer |
3,083.9 |
2,652.1 |
|
Add IPUC |
9.8 |
49.7 |
|
Add capitalised lease premiums and rental payments |
0.1 |
0.7 |
|
Add head lease obligations recognised separately |
5.3 |
5.8 |
|
Fair value for financial reporting purposes |
3,099.1 |
2,708.3 |
|
Completed investment property held for sale |
16.8 |
- |
|
Land held for sale |
1.3 |
0.4 |
|
Total property assets |
3,117.2 |
2,708.7 |
|
|
2025 |
2024 |
|
Investment property |
3,083.9 |
2,652.1 |
|
Investment property held for sale |
16.8 |
- |
|
Total completed investment property |
3,100.7 |
2,652.1 |
At March 2025, there are five assets held as available for sale (2024: 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 IPUC as at 31 March 2025 was Level 3 - Significant unobservable inputs (2024: Level 3). There were no transfers between Levels 1, 2 or 3 during the year.
Descriptions and definitions relating to valuation techniques and key unobservable inputs made in determining fair values are as follows:
Valuation techniques used to derive Level 3 fair values
The valuations have been prepared on the basis of fair market value which is defined in the Red Book as "the estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arms-length transaction after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion".
Unobservable inputs
The key unobservable inputs in the property valuation are the net initial yield, the equivalent yield and the ERV, which are explained in more detail below. It is also worth noting that the properties are subject to physical inspection by the valuers on a rotational basis (at least once every three years).
In respect of 97% of the portfolio by value, the net initial yield ranges from 4.0% to 8.5% (2024: 3.8% to 8.5%) and for 98% of the portfolio by value, the equivalent yield ranges from 4.0% to 8.5% (2024: 3.9% to 8.5%). A decrease in the net initial or equivalent yield applied to a property would increase the market value. Factors that affect the yield applied to a property include the weighted average unexpired lease term, the estimated future increases in rent, the strength of the occupier covenant and the physical condition of the property. Lower yields generally represent properties with index-linked reviews, 100% NHS tenancies and longer unexpired lease terms, ranging from 4.0% to 4.5%. Higher yields (range 6.0% to 8.5%) are applied for a weaker occupier mix and leases approaching expiry. Our properties have a range of occupier mixes, rent review basis and unexpired terms. A 0.25% shift in either net initial or equivalent yield would have approximately a £133 million (2024: £116 million) impact on the investment property valuation.
The ERV ranges from £100 to £700 per sq.m (2024: £100 to £750 per sq.m), in respect of 96% of the portfolio by value. An increase in the ERV of a property would increase the market value. A 2% increase in the ERV would have approximately a £62 million (2024: £52 million) increase in the investment property valuation. The nature of the sector we operate in, with long unexpired lease terms, low void rates, low occupier turnover and upward only rent review clauses, means that a significant fall in the ERV is considered unlikely.
Property work in progress
|
|
2025 |
|
At 1 April |
9.5 |
|
Additions during the period |
2.8 |
|
Transfers |
(2.3) |
|
At 31 March |
10.0 |
8. Borrowings
|
|
2025 |
2024 |
|
At 1 April |
1,246.9 |
1,246.4 |
|
Amount drawn down in year |
386.0 |
- |
|
Amount repaid in year |
(94.0) |
- |
|
Loan issue costs |
(1.6) |
(1.6) |
|
Amortisation of loan issue costs |
2.3 |
2.1 |
|
At 31 March |
1,539.6 |
1,246.9 |
|
Due within one year |
70.0 |
- |
|
Due after more than one year |
1,469.6 |
1,246.9 |
|
At 31 March |
1,539.6 |
1,246.9 |
The Group has the following bank facilities:
1. Ten-year senior unsecured bond of £300 million at a fixed rate of 3% maturing July 2028, 10-year senior unsecured Social Bond of £300 million at a fixed interest rate of 1.5% maturing September 2030 and 12-year senior unsecured Sustainability Bond of £300 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, with an option to extend by two additional one-year periods. In October 2023, this was refinanced to October 2026, increasing the facility from £125 million to £200 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%, and a potential adjustment of five basis points linked to performance against sustainability targets. The facility is subject to a historical interest cover requirement of at least 175% and maximum LTV of 60%. As at 31 March 2025, £26 million of the facility was drawn (2024: undrawn).
3. Ten-year notes in the US private placement market for a total of £100 million. The notes are unsecured, have a fixed interest rate of 2.65% and were drawn on 13 October 2016. An additional £107 million of notes were issued in two series, £47 million in August 2019 and £60 million in October 2019, with maturities of 10 and 15 years respectively and a weighted average fixed interest rate of 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. All notes are denominated in GBP.
4. £150 million of unsecured privately placed notes in two tranches with maturities of eight and ten years drawn on 20 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 a weighted average lease length of seven years.
5. £266 million term loan was drawn in August 2024 with Barclays. This is a two-year loan, with an option to extend by two additional one-year periods, at a margin of 1.1% above SONIA, and a potential adjustment of five basis points linked to performance against sustainability targets. The loan matures in August 2026 with an option to extend by two additional one-year periods. An interest rate swap has been put in place for the full two-year term, replacing SONIA with a fixed rate of 4.148%. As at 31 March 2025, the fair value of this derivative financial instrument was a liability of £0.1 million (2024: n/a).
The Group has been in compliance with all financial covenants on all of the above loans as applicable throughout the year. Debt instruments held at year end have prepayment options that can be exercised at the sole discretion of the Group. As at the year end no prepayment option has been exercised. Borrowings are stated net of unamortised loan issue costs and unamortised bond pricing adjustments totalling £9.4 million (2024: £10.1 million).
9. Share capital and other reserves
|
|
Number |
Share capital |
Number |
Share capital |
|
Ordinary Shares of 10 pence each issued and fully paid |
|
|
|
|
|
At 1 April |
2,984,790,496 |
298.5 |
2,960,594,138 |
296.1 |
|
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 |
|
Issued 11 October 2023 - scrip |
- |
- |
6,281,654 |
0.7 |
|
Issued 10 January 2024 - scrip |
- |
- |
13,197,231 |
1.3 |
|
Issued 10 April 2024 - scrip |
4,663,894 |
0.5 |
- |
- |
|
Issued 10 July 2024 - scrip |
945,664 |
0.1 |
- |
- |
|
Issued 10 July 2024 |
1,252,928 |
0.1 |
- |
- |
|
Issued 8 August 2024 |
245,298,262 |
24.5 |
- |
- |
|
Issued 9 October 2024 |
13,657,643 |
1.4 |
- |
- |
|
Total share capital |
3,250,608,887 |
325.1 |
2,984,790,496 |
298.5 |
There is no difference between the number of Ordinary Shares issued and authorised. At the AGM each year, approval is sought from shareholders giving the Directors the ability to issue Ordinary Shares, up to 10% of the Ordinary Shares in issue at the time of the AGM.
The Ordinary Shares issued in April 2023, July 2023, October 2023, January 2024, April 2024, July 2024 and October 2024 were issued to shareholders who elected to receive Ordinary Shares in lieu of a cash dividend under the Company scrip dividend alternative. In the year to 31 March 2025 this increased share capital by £2.0 million and share premium by £5.6 million (2024: £2.4 million and £8.2 million respectively).
The Ordinary Shares issued on 8 August 2024 were issued as part consideration for the acquisition of 14 private hospitals. The shares have been recorded by reference to the fair value of the properties acquired, taking into account the other elements of the consideration (i.e. cash paid). The purchase price of the properties at the transaction date is deemed to be equal to the fair value as they were acquired in a competitive process.
The Ordinary Shares issued in July 2023 and July 2024 relate to employee share awards under the Performance Share Plan.
The share capital relates to the Group and Company.
Other reserves
The merger reserve £231.2 million (2024: £231.2 million) relates to the capital restructuring in January 2015 whereby Assura plc replaced Assura Group Limited as the top company in the Group and was accounted for under merger accounting principles.
The other reserve relates to the foreign exchange translation reserve £(0.9) million (2024: £(0.2) million) and hedge reserve £(0.1) million (2024: £nil).
10. Dividends paid on Ordinary Shares
|
Payment date |
Pence per |
Number of |
2025 |
2024 |
|
12 April 2023 |
0.78 |
2,960,594,138 |
- |
23.1 |
|
12 July 2023 |
0.82 |
2,963,935,357 |
- |
24.3 |
|
11 October 2023 |
0.82 |
2,965,311,611 |
- |
24.3 |
|
10 January 2024 |
0.82 |
2,971,593,265 |
- |
24.4 |
|
10 April 2024 |
0.82 |
2,984,790,496 |
24.5 |
- |
|
10 July 2024 |
0.84 |
2,989,454,390 |
25.1 |
- |
|
9 October 2024 |
0.84 |
3,236,951,244 |
27.2 |
- |
|
15 January 2025 |
0.84 |
3,250,608,887 |
27.3 |
- |
|
|
|
|
104.1 |
96.1 |
The April dividend for 2025/26 of 0.84 pence per share was paid on 9 April 2025 and the July dividend for 2025/26 of 0.84 pence per share was paid on 9 July 2025.
A scrip dividend alternative was introduced with effect from the January 2016 quarterly dividend. Details of shares issued in lieu of dividend payments can be found in Note 9.
The April 2023, July 2023, October 2023, April 2024, July 2024 and October 2024 dividends were PIDs as defined under the REIT regime. Future dividends will be a mix of PID and normal dividends as required.
The dividends paid disclosure relates to both the Group and Company.
11. Financial instruments
The Group monitors capital structure with reference to LTV, which is calculated as net debt divided by total property. The LTV percentage on this basis is 47% at 31 March 2025 (31 March 2024: 45%).
|
|
2025 |
2024 |
|
Investment property |
3,089.3 |
2,658.6 |
|
Investment property under construction |
9.7 |
49.7 |
|
Investments |
53.4 |
19.7 |
|
Held for sale |
18.1 |
0.4 |
|
Total property |
3,170.5 |
2,708.7 |
|
|
2025 |
2024 |
|
Borrowings |
1,539.6 |
1,246.9 |
|
Head lease liabilities |
5.3 |
5.9 |
|
Cash, cash equivalents and restricted cash |
(58.1) |
(35.4) |
|
Net debt |
1,486.8 |
1,217.4 |
|
LTV |
47% |
45% |
Financial liabilities, which comprise loans and head lease liabilities in the table above, have increased from £1,252.8 million to £1,544.9 million as at 31 March 2025.
12. Commitments
At the year end the Group had three (2024: eight) committed developments which were all on site with a contracted total expenditure of £29.6 million (2024: £91.2 million) of which £9.6 million (2024: £49.2 million) had been expended. The remaining commitment is therefore £19.9 million (2024: £42.0 million).
In addition, the Group is on site with one asset enhancement capital projects (2023: six) with a contracted total expenditure of £3.6 million (2024: £4.0 million) of which £2.1 million (2024: £2.1 million) had been expended. The remaining commitment is therefore £1.5 million (2024: £1.9 million).
The Group is committed to invest up to £5 million in PropTech investor PI Labs III LP, which can be requested on demand to cover investments that the fund makes in qualifying, selected PropTech businesses. £3.5 million had been invested as at 31 March 2025.
The Group has entered into a joint venture with USS which has an initial target size of £250 million. The Group has a 20% interest in this joint venture and is therefore committed to invest £50 million in qualifying identified assets. As at 31 March 2025, the fund has reached £159 million and therefore a further £91 million is required to reach the £250 million initial target. Assura's current commitment is therefore £18.2 million.
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 £153.3 million, calculated as net rental income (£167.1 million) plus income from investments (£1.2 million), less administrative expenses (£14.4 million) and share-based payment charge (£0.7 million).
ED&I is equality, diversity and inclusion.
European Public Real Estate Association ('EPRA') is the industry body for European REITs.
EPRA is a registered trademark 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 5.
EPRA EPS is EPRA earnings, calculated on a per share basis. See Note 5.
EPRA Loan to Value ('EPRA LTV') is debt divided by the market value of the 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 6. 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 6.
EPRA Net Tangible Assets ('EPRA NTA') is the balance sheet net assets excluding deferred taxation. See Note 6. 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 and other unexpired lease incentives.
EPRA Vacancy Rate is the ERV of vacant space divided by the ERV of the whole portfolio.
Equivalent Yield 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.
ESG is environmental, social and governance.
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.
GMS is General Medical Services.
Gross Rental Income is the gross accounting rent receivable.
Group is Assura plc and its subsidiaries.
Headline Earnings is an earnings measure required under JSE listing rules. See Note 5.
HSE is the Health Service Executive, the body which provides public health and social care services to everyone living in Ireland.
IFRS is UK-adopted international accounting standards.
Interest Cover is the number of times net interest payable is covered by EBITDA. In the current period net interest payable is £41.4 million, EBITDA is £153.3 million, giving interest cover of 3.7 times.
KPI is a Key Performance Indicator.
kWh is kilowatt-hour, being a unit of energy.
Like-for-like represents amounts calculated based on properties owned at the previous year end.
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 0.50%. This is calculated as administrative expenses of £14.4 million divided by the average property balance of £2,904 million (opening £2,708 million plus closing £3,099 million, divided by two).
Primary Care Network ('PCN') is GP practices 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 service 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 March 2025 the rent roll was £177.9 million (March 2024: £150.6 million) and the growth in the year was £27.3 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 Targets 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 6) for the period plus the dividends paid, divided by the opening EPRA NTA. Opening EPRA NTA (i.e. at 31 March 2024) was 49.3 pence per share, closing EPRA NTA was 50.4 pence per share, and dividends paid total 3.34 pence per share giving a return of 9.0% in the year.
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 £100 and a remaining lease term of ten years would have total contracted rental income of £1,000. At March 2025, the total contracted rental income was £2.50 billion (March 2024: £1.76 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 year to March 2025, the calculation is net rental income of £167.1 million plus revaluation gain of £57.9 million giving a return of £225.0 million, divided by £3,236.8 million (opening investment property £2,652.1 million and IPUC £49.7 million plus additions of £516.9 million and development costs of £18.0 million). This gives a Total Property Return in the year of 7.0%.
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 2024 was 42.6 pence, at 31 March 2025 it was 46.2 pence, and dividends paid during the period were 3.34 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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