Assura Plc: history, ownership, mission, how it works & makes money

A Brief History of Assura Plc

Assura Plc, established in 2003, is a leading UK healthcare property developer and investor. The company's focus has been on creating high-quality, purpose-built healthcare facilities to meet the needs of the National Health Service (NHS) and private healthcare sectors. By 2021, Assura managed a portfolio of 573 properties nationwide.

In its initial public offering (IPO) on the London Stock Exchange in 2014, Assura raised approximately £100 million. This funding facilitated significant expansion through acquisitions and development projects, enhancing its position in the healthcare real estate market.

By March 2023, Assura reported a net asset value (NAV) of £1.5 billion, demonstrating a robust growth trajectory in its property investments. The company’s focus on high-demand health facilities has resulted in a strategic portfolio that includes primary care and community health properties.

The company’s financial performance has shown strong revenue growth, with revenues of £99.4 million in the year ending March 2023, up from £90.6 million in the previous year. Operating profit for the same period increased to £62.1 million, reflecting a solid operational performance amidst market fluctuations.

Assura has consistently returned value to its shareholders, with a dividend of 5.25 pence per share declared for the financial year 2022-2023, marking a 6.1% increase compared to the previous year.

Assura's strategic focus has also included sustainability initiatives. In 2023, the company announced a commitment to achieve net-zero carbon emissions for its operational portfolio by 2030, aligning its objectives with the growing emphasis on environmentally responsible investing.

The company’s market capitalization as of October 2023 stood at approximately £1.2 billion, reflecting solid investor confidence and a favorable market outlook for healthcare real estate. Assura’s shares have shown resilience, trading at around 80 pence, and exhibiting a gain of 15% year-to-date amid broader market challenges.

Assura PLC has continued to maintain a strategic pipeline, with over £500 million allocated for future property developments and acquisitions, focusing primarily on underserved regions and facilities critical to community health services.

A Who Owns Assura Plc

Assura Plc is a prominent player in the UK healthcare property market, focusing on the acquisition, development, and management of healthcare facilities. As of October 2023, ownership of Assura Plc is characterized by a mix of institutional and retail investors. The company operates on the London Stock Exchange under the ticker symbol "ASPI."

The following table illustrates the major shareholders of Assura Plc based on the most recent disclosures:

Additionally, Assura's shareholding structure demonstrates the influence of institutional investors on the company’s performance. As of the latest reports:

• Assura Plc's market capitalization stands around £1.5 billion.
• The share price of Assura Plc has shown a year-to-date increase of approximately 12%.
• The company reported an annual revenue of £78.3 million for the fiscal year ending March 2023.

Moreover, Assura's commitment to expanding its portfolio is reflected in its acquisition strategy, with over 600 healthcare properties under its management, generating stable rental income and providing growth opportunities. The company's focus on partnerships with NHS bodies further solidifies its standing within the healthcare sector.

In summary, Assura Plc has a diverse base of ownership with significant institutional involvement and a substantial portion of shares held by retail investors, positioning it as a solid investment option in the healthcare property space. This blend of ownership can contribute to its strategic decisions and financial stability moving forward.

Assura Plc Mission Statement

Assura Plc is a key player in providing primary care infrastructure across the United Kingdom. The company's mission centers around developing and maintaining high-quality, sustainable healthcare properties that enhance patient care. With a commitment to social responsibility, Assura aims to create environments that foster strong community ties and improve health outcomes.

In terms of operational performance, Assura reported a revenue of £92 million for the fiscal year ending March 2023, which represents a year-on-year increase of 8.5%. The company is focused on expanding its portfolio, which comprised over 600 healthcare buildings and a market capitalization of approximately £1.2 billion as of October 2023.

Assura emphasizes the importance of sustainable development in its mission statement. This includes a commitment to lower carbon emissions and the use of renewable energy sources across its properties. The company aims for all new developments to be net-zero carbon by 2025.

Key elements of Assura's mission statement can be further understood through the following components:

• Quality of Care: Focus on enhancing the healthcare delivery experience through state-of-the-art facilities.
• Community Engagement: Building strong connections within communities to understand local healthcare needs.
• Sustainability: Commitment to eco-friendly practices and minimizing environmental impact.
• Growth Strategy: Expansion through acquisitions and development of new properties.

To further illustrate Assura's strategic emphasis, the following table summarizes key financial metrics and growth targets:

Assura's mission is not just about financial success; it intertwines with the broader goal of improving healthcare accessibility and outcomes for communities throughout the UK. The company’s strategic focus showcases its dedication to building a healthier future, driven by solid financial performance and sustainable practices.

How Assura Plc Works

Assura Plc is a publicly traded real estate investment trust (REIT) based in the UK, specializing in the development and management of primary care properties. The company focuses on investing in high-quality healthcare real estate, primarily aimed at supporting the National Health Service (NHS) and enhancing community healthcare services.

As of the end of 2022, Assura's portfolio consisted of **700** properties located across the UK, totaling approximately **3.4 million** square feet of space. The portfolio is valued at around **£2.3 billion**. Approximately **89%** of these properties are leased to NHS entities, reflecting a strong alignment with public healthcare requirements.

Assura operates under a strategy that emphasizes long-term, sustainable income generation. It seeks to acquire and develop properties that offer stable rental income with growth potential. The average remaining lease length in their portfolio is approximately **11.5 years**, which provides revenue stability.

In the financial year ending March 2023, Assura reported a total revenue of **£100 million**, with a net operating income (NOI) of **£82 million**, indicative of their effective management of operational costs. The company's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) was **£73 million**, supporting a solid operational framework.

The financial metrics reflect strong performance, with the funds from operations (FFO) per share standing at **£0.078**. The dividend yield is robust, with the company declaring a dividend of **£0.045** per share, representing an annual dividend payout of approximately **£20 million** in 2023, maintaining a dividend coverage ratio of **1.73**.

Assura's funding strategy is predominantly based on a mix of equity and debt. As of March 2023, the company had a loan-to-value (LTV) ratio of **36%**, which is significantly less than the industry average of around **40%-50%** for similar REITs, showcasing a prudent financial approach. The weighted average cost of debt stands at **3.5%**, reflecting favorable borrowing conditions.

Table: Assura Plc Financial Overview

Assura's operational strategy also includes active asset management to enhance rental income. The company invests in refurbishment and redevelopment of existing facilities to ensure they remain fit for purpose and meet the evolving needs of healthcare providers. This ongoing investment approach allows Assura to retain existing tenants and attract new ones, further solidifying its market position.

In terms of market positioning, Assura's shares are traded under the ticker symbol "ASCN" on the London Stock Exchange. As of September 2023, the share price was hovering around **£0.70**, which reflects a market capitalization of approximately **£1.1 billion**. The company has shown resilience in the face of market fluctuations largely due to its focus on essential healthcare properties and secure long-term leases.

Looking forward, Assura aims to expand its footprint by targeting new acquisitions, particularly in underserved areas. The company is also exploring opportunities in partnerships and joint ventures to enhance its growth prospects. The ongoing governmental focus on healthcare infrastructure development further supports Assura's growth trajectory.

How Assura Plc Makes Money

Assura Plc, a leading healthcare property investor in the UK, generates revenue primarily through its extensive portfolio of primary care properties. The company focuses on acquiring, developing, and managing properties that are leased to medical practitioners and healthcare providers.

As of the fiscal year ending March 31, 2023, Assura reported a total revenue of £70.1 million, reflecting a 6.4% increase from the previous year. This revenue is largely derived from rental income generated by its properties.

Revenue Streams

• Rental Income: The cornerstone of Assura's business model, rental income accounts for approximately 98% of total revenue.
• Development Income: Revenue derived from property developments and enhancements, contributing about 2% to overall income.

Portfolio Overview

As of the end of March 2023, Assura owned and managed a portfolio of over 600 properties across the United Kingdom, with a total value of £1.5 billion. The properties typically involve long-term leases, providing stable income streams.

Market Position

Assura is strategically positioned within the healthcare real estate investment sector, focusing on properties that cater specifically to the UK's National Health Service (NHS). As of March 31, 2023, approximately 95% of Assura's tenants are NHS-related, which enhances the stability of its rental income due to government-backed funding.

Financial Performance

The company reported a profit before tax of £41.5 million for the fiscal year ending March 31, 2023. The net profit margin stands at approximately 59%, indicative of strong operational efficiency. Additionally, Assura's earnings before interest, taxes, depreciation, and amortization (EBITDA) was reported at £56 million, representing a solid EBITDA margin of 80%.

Investment Strategy

Assura's investment strategy is primarily focused on expanding its healthcare property portfolio through acquisitions and developments that meet the evolving needs of healthcare providers. The company has set a target to invest significantly in properties that encourage innovative healthcare solutions, aiming for sustainable growth.

In the 2022-2023 fiscal year, Assura invested approximately £100 million in property acquisitions, showcasing a commitment to expanding its footprint in the healthcare sector. This pipeline is supported by a robust financing framework, with a loan-to-value ratio of 40%.

Outlook

Looking ahead, Assura aims to further capitalize on the increasing demand for healthcare services in the UK, driven by an aging population and a growing focus on localized healthcare delivery. The company anticipates rental growth of around 2-3% annually over the next five years, underpinned by its long-term leases with NHS tenants.