Assura boss warns of ‘severe’ pressures on health infrastructure alongside solid results

The CEO of health property investor Assura warned alongside its first quarter results that the UK’s healthcare crisis is getting more severe and putting unprecedented pressure on the sector’s infrastructure.

The FTSE 250 firm, which has a portfolio of over 600 healthcare buildings that serve over 6m patients, saw its rent roll stay flat in the second quarter compared to the first three months of the year.

It also completed several developments at a cost of £46m.

Assura settled 43 rent reviews between April and the end of June, securing £7.0m with an uplift of £500,000, or 7.8 per cent.

But despite the solid figures and upbeat outlook, the firm’s CEO, Jonathan Murphy, also warned of the dire state of the nation’s healthcare infrastructure.

He said: “The UK healthcare crisis is getting more severe by the year, which in turn is driving increased demand for healthcare infrastructure.”

The comments follow the firm’s signing of a £250m deal with the Universities Superannuation Scheme Limited (USS) in a 20:80 joint venture to support investment in essential NHS infrastructure.

Murphy added: “Over the first three months of our financial year we have continued to deliver on our strategic objectives, and remain extremely well-placed to help support the NHS and wider healthcare market: we deliver an exceptional product, have a strong financial position, and have a culture that focuses on all of our stakeholders to ensure we build strong relationships for the long-term.”

Assura said it was operating with a weighted average interest rate unchanged at 2.3 per cent, unchanged from the previous year. Its net debt of £1.16bn down from £1.22bn in March, with undrawn facilities of nearly £300m.