Medical centre property specialist Assura PLC (LON:AGR) believes it can help deliver the government’s plans for UK health provision.
“The third-party development model, employed by Assura, remains well-placed to help deliver the significant infrastructure investment needed for the NHS,” it said today.
READ: Assura ups interim dividend after net rental incomes and portfolio growth in first half
The NHS Long Term Plan announced this month put primary medical and community health at the heart of its plans, added the FTSE 250 group.
A report on the challenges of GP premises due this year will also likely highlight the ongoing difficulties faced by practices without space, layout or facilities they need to best serve their patients.
Assura’s annual rental income rose to just shy of £100mln in the three months to December following the acquisition of £67mln worth of new properties, increasing the portfolio up to 553 medical centres
The dividend has already been raised by 5% to 0.685p per quarter with effect from the January 2019 payment.
Jonathan Murphy, chief executive, said that the pipeline of acquisitions and developments currently stands at £170mln
Broker Liberum added that Assura disposed of 11 assets during the past three months, which although only realised a relatively small £6m, represented the first meaningful capital recycling the group has undertaken in recent years.
Low market yields and growing investment demand for low-risk healthcare assets provides an opportune window for the listed primary healthcare REITs, said the broker.
Shares rose 2% to 55.6p.