Assura PLC (LON:AGR) ticked higher on Monday as the primary care property group reported an expansion of its pipeline in the third quarter of its current year.
For the three months ending 31 December, the FTSE 250 firm said its immediate development pipeline had grown to £90mln from £72mln in September, while its immediate acquisitions pipeline has expanded to £96mln from £65mln.
READ: Primary Health Properties and Assura initiated at ‘overweight’ as Barclays turns positive on UK primary care
The total immediate pipeline, including on site developments, was £252mln, up from £206mln in September.
Chief executive Jonathan Murphy said the company had also acquired six new assets and completed its third development of the year at Stow-on-the-Wold in Gloucestershire.
Assura added that its annualised rent roll currently stood at £105.8mln, while 2019 gross debt is at £787mln.
"With the new Government enshrining in law increased funding for the NHS and taking forward the Health Infrastructure Plan, better primary care facilities for patients, staff and services are at the heart of the agenda. In this context, Assura is well positioned to deliver high-quality assets and value for money for the NHS", Murphy said.
Analysts at Liberum said the update confirmed progress in Assura’s strategy of portfolio expansion, adding that the stock offered “high single-digit return potential, with low relative risk” and retained their ‘hold’ rating with a 76p target price.
Shares in Assura were 0.8% higher at 76p in early deals.