Assura plc (“Assura” or the “Company”)
Assura achieves £200m disposal milestone
Assura plc, the UK’s leading diversified healthcare REIT, is pleased to announce it has exchanged on the disposal of seven assets for a gross consideration of £64 million.
The latest disposals mean that since the start of the financial year, the Company has sold 30 assets for gross proceeds of £200 million at a weighted average net initial yield of 4.8%.
The net proceeds have been deployed in reducing the acquisition debt used to finance the £500 million private hospital portfolio acquired in August 2024 at 5.9% yield on cost.
The disposal announced today marks further progress in Assura’s overall debt reduction plans and the Company’s proforma net LTV will reduce to 47%.
The sale also reinforces that the quality of the Company’s portfolio and the resilience of its underlying cash flows remain highly attractive to the investment market.
The disposal is immediately earnings enhancing as the cash receipts will be used to repay the revolving credit facility.
The seven assets disposed of today have been sold into Assura’s £250 million joint venture. Assura retains a 20% equity interest in the joint venture resulting in net proceeds of £51 million. Following this transaction, the joint venture has gross assets of £172 million. Assura continues to act as property and asset manager to the joint venture, receiving management fees linked to the valuation of the portfolio.
Jonathan Murphy, CEO, said:
“Reaching this £200 million milestone in our disposal programme means we are on track to achieve our target of net debt to EBITDA below 9 times and LTV below 45% well ahead of the previously outlined timetable. This accelerated delivery and our ability to achieve sales is testament to our operational excellence and the quality and attractiveness of our property portfolio.
“The disposal programme was announced at the time of our transformational acquisition of high-quality private hospital assets in August 2024. The acquisition has positioned Assura as a leader in a structurally supported market, and has cemented our position as the UK’s leading diversified healthcare REIT offering an attractive investment opportunity into favourable long-term trends.”