Assura plc, the Warrington-based healthcare real estate investment trust (REIT), on Tuesday reported a higher first-half net rental income, but profit fell on a property revaluation loss.

Assura said net rental income rose 15% year-on-year to £70 million in the six months to September 30, from £61.1 million.

Portfolio value rose 5% to £2.879 billion.

“We see growing and consistent demand for high-quality community healthcare buildings that is not linked to the economic cycle,” said Assura CEO Jonathan Murphy.

“The need to invest in primary care has widespread cross-party political support – given it is cheaper for the NHS to deliver services in this setting and as pressure on hospital resources becomes increasingly unsustainable.”

Assura said pretax profit plunged 55% to £30.9 million from £69.3 million. The firm said this reflects a £19.0 million hit from valuation movements, swinging from a gain of £28.1 million.

Nevertheless, Assura upped its dividend to 1.52p per share from 1.45p.

Looking ahead, the property investor said it is “well-placed” to deliver attractive returns for shareholders over the long term.

CEO Murphy added: “The NHS has put in place ambitious targets to become the world’s first net zero carbon health system, but this is yet to filter down into plans for implementation and funding across the existing estate.

“Our role is to be an expert partner to bridge those gaps and share our learnings, always pushing the bar higher at our buildings, using our unique expertise and financial capacity to deliver for the NHS over the long-term.”

Reporter: Tom Budszus

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