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RESULTS FOR
THE YEAR ENDED
31 MARCH 2015
INTRODUCTION
Graham Roberts
Results for the Year Ended 31 March 2015
2
THREE YEAR PROGRESS
Scale
2015
Rent roll
up 59%
£56m
Investment property
up 72%
£925m
Net assets
up 141%
£452m
Flexibility
2012
2015
Free cash/available facilities
£12m
£125m
−
£147m
64%
48%
Unencumbered assets
LTV
Performance
2015
EPS1
up 40%
2.1p
NAV1 per share
up 24%
44.9p
Dividends
up 48%
1.85p
1EPRA
basis (appendix 5)
Results for the Year Ended 31 March 2015
3
TRANSFORMATIONAL YEAR
 46% underlying profit growth
 £245m of medical centre additions
 Portfolio now £925m (up 41%)
 Leverage reduced from 62% to 48%
 Equity raise of £175m (net)
 £105m invested in medical centres
 £57m of debt redeemed
 Joined EPRA/NAREIT index
 New UK plc holding company
 Quarterly dividend increased 11% in November
 2 pence per share, annual basis
 Fully covered
Results for the Year Ended 31 March 2015
4
FINANCIAL RESULTS
Jonathan Murphy
Results for the Year Ended 31 March 2015
5
FINANCIAL HIGHLIGHTS
Income statement
2015)
2014)
% change)
Net rental income (£m)
48.2)
37.8)
28)
Underlying profit before tax (£m)
15.9)
10.9)
46)
2.1)
2.1)
-)
31 March 2015)
31 March 2014)
% change)
925.3)
656.7)
41)
EPRA NAV (pence per share)
44.9)
43.4)
3.4)
LTV (%)
48.3)
62.0)
(22)
Returns
2015)
2014)
% change)
Dividend per share (p)
1.85)
1.36)
36)
Total Property Return (%)
7.8)
7.9)
(1)
Total Accounting Return (%)
7.7)
15.9)
(52)
Underlying profit per share (p)
Balance sheet
Investment property (£m)
Results for the Year Ended 31 March 2015
6
33% GROWTH IN ANNUALISED RENT ROLL
14.4 years weighted average unexpired lease term, 87% NHS funded
£m
60
12.5
55
50
45
0.1
55.6
(0.1)
40
35
1.3
41.8
30
Mar-14
Disposals
Results for the Year Ended 31 March 2015
Lease events
Completed
developments
Acquisitions
Mar-15
7
46% GROWTH IN UNDERLYING PROFIT
Operational efficiency and scale benefits have enabled profit growth ahead of income growth
£m
18
10.4
16
14
12
10
8
6
15.9
10.9
(4.7)
Mar-14
Net finance costs
(0.7)
4
2
0
Results for the Year Ended 31 March 2015
Admin expenses
Net rental income
Mar-15
8
EPRA NAV PER SHARE MOVEMENT
46p
2.8p
45p
44p
43p
0.1p
2.1p
42p
1.4p
41p
40p
44.9p
43.4p
1.9p
39p
38p
37p
Mar-14
Other
Results for the Year Ended 31 March 2015
Share issue
Dividends
Income (underlying
profit)
Capital
(revaluations)
Mar-15
9
41% INCREASE IN INVESTMENT PROPERTY
2015
2014
Net initial yield
5.56%
5.98%
Equivalent yield
5.77%
6.07%
£m
1,000
231.0
900
800
2.2
700
14.0
21.4
600
500
925.3
400
300
656.7
200
100
0
Mar-14
Other
Results for the Year Ended 31 March 2015
Development costs
Revaluation gain
Acquisitions
Mar-15
10
STRONG AND GROWING BALANCE SHEET
 £269m increase in investment property
Property and debt
 Loan to value of 48% within our target
range of 45% to 55%
£m
1000
 £125m of available facilities and cash
 Positioned strongly for future growth
Investment property
900
Net debt
925.3
800
700
656.7
600
500
557.3
400
414.8
450.0
359.5
300
200
100
0
Mar-13
Results for the Year Ended 31 March 2015
Mar-14
Mar-15
11
FINANCING
 Significant refinancing completed since fund raise in October
 £57m facility with Santander redeemed
 £177m of Aviva facilities restructured resulting in 42bps reduction in rates on these loans
 New revolving credit facility secured from three lenders:
 £60m facility
 170bps initial margin
 variable rate
 five year term
Results for the Year Ended 31 March 2015
12
HEALTHY FINANCING RATIOS
31 March 2015
31 March 2014
Net debt (£m)
450.0
414.8
Loan to value
48%
62%
Cash/undrawn facilities (£m)
95.3
27.6
5.28%
5.28%
11.9 years
10.9 years
Interest cover
160%
150%
% of debt at fixed rates
100%
98%
Weighted average interest rate
Weighted average debt maturity
Results for the Year Ended 31 March 2015
13
GROWTH AND SCALE BENEFITS
 Increased scale has delivered cost
efficiencies
 Track record since March 2013:
 EPRA Cost Ratio has fallen from 23%
to 18%
 Costs as a % of average asset value
have fallen from 0.89% to 0.72%
 115% growth in dividends paid
Dividends and costs
p
Dividends paid
(left axis)
2.4
EPRA Cost Ratio
(right axis)
24.0%
2.0
22.0%
1.85
1.6
20.0%
1.36
1.2
18.0%
 Progressive, covered dividend policy
0.8
16.0%
0.86
0.4
14.0%
0
12.0%
Mar-13
Results for the Year Ended 31 March 2015
Mar-14
Mar-15
14
PROPERTY UPDATE
Andrew Darke
Results for the Year Ended 31 March 2015
15
SUBSTANTIAL GROWTH IN YEAR
 £269m increase in portfolio value
 £245m additions
Investment property
 5.6% average yield on cost
Rent roll
 Weighted average unexpired lease
term of 17 years on new additions
WAULT
March 2015
March 2014
£925.3m
£656.7m
£55.6m
£41.8m
14.4 years
14.4 years
Consideration
Timing
£107m
Jun 2014
 Acquisitions have refinancing and
asset enhancement opportunities
MP Realty
 Solicitors instructed on a further
£40m of acquisitions
One Life
£12m
Jul 2014
Metro
£63m
Nov 2014
South Kirkby
£10m
Dec 2014
Other
£39m
Various
Developments
£14m
Various
 2.4 million patients registered with
our GP tenants in 265 properties
Property additions
Results for the Year Ended 31 March 2015
£245m
16
DEVELOPMENTS COMPLETED DURING YEAR
 Achieved in excess of 100 bps margin over
revaluation yield on completed
developments
 In-house experienced development team
Completed
Number of schemes
Development cost
ERV
Margin over revaluation yield
4
£19.6m
£1.4m
>100 bps
Sudbury
Results for the Year Ended 31 March 2015
17
FUTURE DEVELOPMENT SCHEMES
 Long term requirement for country
to invest in new medical centres
 Future pipeline of £35m –
preferred developer status
Number of schemes
 Following NHS reorganisation in
April 2013, NHS England is now
starting to approve developments
ERV
Results for the Year Ended 31 March 2015
Development cost
On-site
Immediate
pipeline
5
9
£22.2m
£25m
£1.2m
Sutton
18
APPROACH TO DESIGN
Securing approval on new schemes – one of many benefits of in-house development
 Unique and bespoke
 Site influences
 Inside-out approach
 Sense of wellbeing
 Natural surveillance
 Environmental
 Sustainability
Results for the Year Ended 31 March 2015
19
RENT REVIEW GROWTH
 RPI and fixed are currently the main drivers
of rental growth
3 year rent review settlements
1.0
0.9
 open market +0.38%
0.8
 Land and construction cost inflation
returning
 Less rental evidence for rent reviews due
to recent hiatus in NHS approval process
Absolute rent roll increase (£m)
 RPI and fixed +3.06%
0.38%
0.7
0.35%
0.6
3.06%
0.5
0.4
4.52%
0.3
1.99%
0.2
0.1
3.23%
0.0
RPI/fixed/other
(25% of rent roll)
2012/13
Results for the Year Ended 31 March 2015
OMR
(75% of rent roll)
2013/14
2014/15
20
MARKET AND OUTLOOK
Graham Roberts
Results for the Year Ended 31 March 2015
21
MARKET OVERVIEW
 Medical centre returns exhibit lower
volatility than commercial property and
Gilts
 Healthy premium over equivalent
maturity Gilt >360bps
 Low point for rental growth
 RPI forecast to recover
 open market reviews to reflect
construction recovery
Yield development
8%
7%
6%
5%
4%
3%
2%
IPD monthly UK index initial yield
1%
Assura Net Initial Yield
15 year Gilt
Results for the Year Ended 31 March 2015
0%
22
HEALTH SECTOR OUTLOOK
 Cross party support for primary care investment continues
 Election result favourable from a timing perspective
 leadership already understands the primary care
problem
 has already committed funding to back new premises
 backed the NHS leadership Five Year Forward View
 Pace of acceleration in development approvals hinges on
CCGs engagement
 Assura has received its first approval under new regime
“A vision of a modern
NHS working for you
7 days of the week –
when you need it,
where you need it.
And that begins with
a transformation of
primary care”
David Cameron
18 May 2015
 There will remain a time lag between approval and delivery,
typically 18 months to 2 years
Results for the Year Ended 31 March 2015
23
OUTLOOK FOR ASSURA
 Attractive long term opportunity
 Assura well placed
 skills, structure, scale
 brand recognition with GPs
 Our three priorities are:
 delivering growth
 capturing further asset management opportunities
 maintaining low cost base
 Delivering a secure and growing dividend
Results for the Year Ended 31 March 2015
24
Q&A
Blaenavon
Birkenhead
Huthwaite
Results for the Year Ended 31 March 2015
25
SUPPLEMENTARY INFORMATION
1. Market
2. Portfolio
3. Cash flows
1.1 Growing demand / inadequate supply
1.2 Market: policy direction supportive
1.3 Recent encouraging statements
1.4 Sector attractiveness
1.5 Risk reward profile unchanged
1.6 Assura well placed to outperform
2.1 Total property assets
2.2 Portfolio
2.3 Sensitivity analysis
2.4 MP Realty portfolio - £107m
2.5 One Life - £12.3m
2.6 Metro portfolio - £63.1m
2.7 South Kirkby - £10.1m
3.1 Cash flow summary
3.2 Contracted rental income
3.3 Lease lengths
3.4 Debt repayment profile
Results for the Year Ended 31 March 2015
4. Rents
4.1 ERV evolution and reversion
4.2 Open market rents still increasing
4.3 Basis of rent reviews
4.4 Rent review timing
5. Net assets
5.1 EPRA net asset value
5.2 EPRA net asset value movement
5.3 Underlying & EPRA earnings per share
5.4 EPRA Cost Ratios
5.5 VCP dilution
6. REITs
6.1 REITs
7. Borrowings 7.1 Bank and bond facilities
7.2 Covenants
8. Dividends
8.1 Dividend calendar
26
1.1 GROWING DEMAND / INADEQUATE SUPPLY
Demand
Supply
 10 year track record of cross-party
support for:
 2014 BMA survey of GP practices
 greater patient choice
 40% of GPs stated premises
inadequate for provision of general
practice services
 more community based facilities
(medical centres, polyclinics)
 70% said premises not suitable for
offering a full range of services
 more services delivered locally
 Unaffordable healthcare budget
 doubled in 10 years to £120bn
 Number of consultations with GPs has
been increasing at 2.5% per annum
 over 340 million visits per year
Results for the Year Ended 31 March 2015
 80% said premises prevented them
hosting a full primary / community
healthcare
 40% said existing premises could not
be extended or developed to meet
current or future needs
27
1.2 MARKET: POLICY DIRECTION SUPPORTIVE
 Cross-party Government support to shift heath provision from expensive acute /
secondary sector into primary care setting
 2014 NHS England Five Year Forward view reinforces this shift
 Health & Social Care Act brings GPs into commissioning role
 Jeremy Hunt, December 2014: “£1 billion of funding over 4 years for investment in new
primary care infrastructure”
 Pressures mounting from changing demands
 ageing population
 different expectations of service
 growing range of medical solutions increasing demand
 changing career and practice profile
 Efficiency will be essential
 £350m Prime Minister’s challenge fund to increase access
Results for the Year Ended 31 March 2015
28
1.3 RECENT ENCOURAGING STATEMENTS
Five Year Forward View
Better Health for London
 Simon Stevens, NHS Chief Executive
 Commission for London (Lord Darzi)
 Published 23 October 2014
 Published 15 October 2014
 Radical upgrade in prevention and public
health
 Professionals deserve modern GP
practices; patients deserve to be seen in
them
 We need a ‘new deal’ for GPs
 [A future that] no longer sees expertise
locked into often out-dated buildings
 Out-of-hospital care needs to become a
much larger part of what the NHS does
 The NHS will invest more in primary care
Results for the Year Ended 31 March 2015
 The quality of facilities impacts the quality
of care, and London is letting both its
patients and its health professionals down
 Many of these new or refurbished facilities
should be co-located with other services,
including diagnostics, specialist care, and
social care, perhaps through a ‘hub and
spoke’ model
29
1.4 SECTOR ATTRACTIVENESS
 Market features
 health spend is non-discretionary
 planning environment ‘benign’
 District Valuer determines rent reviews
 Tenant features
 private businesses underwritten by Government
 premises are bespoke
 GPs are not mobile – “stickiness” offsetting Residual Value (RV)
 Typical lease features
 21 years, no breaks
 upward and downward not less than initial
 landlord triggers the review (3 years)
 often internal repairing and insuring
Results for the Year Ended 31 March 2015
30
1.5 RISK REWARD PROFILE UNCHANGED
Eight year total return vs standard deviation
9%
8%
7%
5%
4%
3%
Total Return
Since 2007
6%
2%
1%
0%
18
16
14
12
10
8
6
4
2
0
Risk (standard deviation)
Source: IPD
Results for the Year Ended 31 March 2015
31
1.6 ASSURA WELL PLACED TO OUTPERFORM
 Good reputation and relationships with
GP community
IPD Annual Return to Dec-14 since
inception of index in 2006
 Development capability and strong
pipeline
8%
 Internally managed
7%
 Knowledgeable and focused team
6%
Assura
Primary Healthcare Benchmark
7.6%
7.0%
6.1%
6.2%
5%
4%
3%
2%
1.4%
0.8%
1%
0%
Income Return
Results for the Year Ended 31 March 2015
Capital Growth
Total Return
32
2.1 TOTAL PROPERTY ASSETS
March 15
£m
March 14
£m
908.3
631.6
Investment property under construction
6.7
14.8
Properties held for sale
5.4
11.6
Pharmacy lease premiums
7.3
7.2
Finance leases
3.0
3.1
930.7
668.3
March 15
£m
March 14
£m
925.3
656.7
5.4
11.6
930.7
668.3
Investment portfolio
Total
Balance sheet classification
Investment portfolio
Property assets held for sale
Total
Results for the Year Ended 31 March 2015
33
2.2 PORTFOLIO
<£1m
£1-5m
£5-10m
>£10m
North
South
Midlands
Scotland
Wales
GPs
NHS Body
Pharmacy
Other
Results for the Year Ended 31 March 2015
Properties
Value (£m)
Value (%)
37
180
36
12
265
25.2
451.6
253.3
178.2
908.3
2.8
49.7
27.9
19.6
Properties
Value (£m)
Value (%)
109
74
55
9
18
265
411.2
221.4
201.2
23.9
50.6
908.3
45.3
24.4
22.1
2.6
5.6
Rent roll (£m)
Value (%)
38.1
10.2
4.3
3.0
55.6
68.5
18.4
7.7
5.4
34
2.3 SENSITIVITY ANALYSIS
ERV)
+1%)
+2%)
+3%)
p/share)
p/share)
)
p/share)
p/share)
6.00%
(6.61p)
(5.78p)
(4.94p)
(4.11p)
5.75%
(2.98p)
(2.11p)
(1.24p)
(0.36p)
5.50%
0.98p)
1.90p)
2.81p)
3.72p)
5.25%
5.33p)
6.28p)
7.24p)
8.19p)
5.00%
10.10p)
11.11p)
12.11p)
13.11p)
NIY
Results for the Year Ended 31 March 2015
35
2.4 MP REALTY PORTFOLIO – £107M
 £107m portfolio of 28 medical centres acquired in June
2014
Birmingham
 5.8% yield on cost1
 off-market transaction
 15 years’ WAULT
 90% of income from GPs / NHS bodies
 Potential ERV of £6.6m
 £0.1m of additional rent is achievable if rents
brought up to current market levels
 £0.3m would arise on letting expansion space
 incremental annual overhead of £0.1m
 Further asset enhancement opportunities in portfolio
1
Worcester
Once historical rent reviews settled
Results for the Year Ended 31 March 2015
36
2.5 ONE LIFE – £12.3m
 £12.3m One Life building, Middlesbrough
acquired in July 2014
 6.5% yield on cost
 off-market transaction
 14 years’ WAULT
 92% of income from GPs / NHS bodies
 Rent roll
 Multi-discipline care providers
 GP practice
 pharmacy
 day case theatre
 x-ray and diagnostic services
 out-patient and community service providers
Results for the Year Ended 31 March 2015
37
2.6 METRO PORTFOLIO – £63.1m
 £63.1m portfolio of 11 medical centres acquired in
November 2014
Barry
 5.4% yield on cost
 off-market transaction
 20 years’ WAULT
 89% of income from GPs / NHS bodies
 Potential ERV of £4.1m
 £0.1m of additional rent is achievable if rents
brought up to current market levels
 £0.6m would arise on letting expansion space
 incremental annual overhead of £0.1m
Porth
Results for the Year Ended 31 March 2015
38
2.7 SOUTH KIRKBY – £10.1m
 £10.1m Church View Medical Centre, South Kirkby
acquired in December 2014
 5.2% yield on cost
 off-market transaction
 23.5 years’ WAULT
 90% of income from GPs / NHS bodies
 Rent roll £0.53m
 Multi-discipline care providers
 GP practice
 pharmacy
 optician
 community based services including maternity,
diabetes screening and minor surgery
Results for the Year Ended 31 March 2015
39
3.1 CASH FLOW SUMMARY
March 15)
£m)
March 14)
£m)
Opening cash
38.6)
35.7)
Net cash from operations
16.9)
7.9)
Property and business acquisitions
(64.3)
(9.1)
Development expenditure
(14.0)
(23.5)
4.2)
3.3)
-)
27.4)
0.1)
-)
Equity issues, net of costs
173.5)
-)
Dividends paid
(14.4)
(7.2)
Net borrowings movement
(74.1)
4.1)
66.5)
38.6)
Cash flows from investing activities:
Sale of properties
Sale of businesses
Other
Cash flows from financing activities:
Closing cash
Results for the Year Ended 31 March 2015
40
3.2 CONTRACTED RENTAL INCOME
£853m total contracted cash flow, 93% of rent roll still contracted in 2025
60
Contracted at 31-Mar-15
50
40
30
20
10
0
Mar-16
Mar-17
Mar-18
Mar-19
Mar-20
Results for the Year Ended 31 March 2015
Mar-21
Mar-22
Mar-23
Mar-24
Mar-25
Mar-26
Mar-27
Mar-28
Mar-29
Mar-30
41
3.3 LEASE LENGTHS
16
Weighted average unexpired lease term 14.4 years
142
leases
14
106
leases
Rental value (£m)
12
125
leases
10
8
6
4
66
leases
51
leases
34
leases
2
0
21+
18-20
Results for the Year Ended 31 March 2015
15-17
12-14
9-11
Years remaining
6-8
21
leases
43
leases
3-5
0-2
42
3.4 DEBT REPAYMENT PROFILE
Gross debt
Weighted average maturity
Weighted average cost of debt
March 15
March 14
£516.6m
£451.9m
11.9 years
10.9 years
5.28%
5.28%
140
Aviva
Bond
RCF
120
100
80
60
40
20
0
Results for the Year Ended 31 March 2015
43
4.1 ERV EVOLUTION AND REVERSION
ERV at Mar 15 £57.9m; vacant space £1.87m, valuers rental ERV £0.45m
60
Passing rent
ERV
£2.3m
£55.6m
50
Rental value (£m)
40
30
20
10
0
Mar-08
Mar-09
Results for the Year Ended 31 March 2015
Mar-10
Mar-11
Mar-12
Mar-13
Mar-14
Mar-15
44
4.2 OPEN MARKET RENTS STILL INCREASING
 1.27% annualised increase
from rent reviews settled
in the period
 0.38% from open
market rent reviews
 3.06% from RPI and
fixed uplift reviews
Annualised
Rent reviews settled in year to 31 March 2015
Number of
outstanding
reviews
(passing rent)
0.38%
Relating to review dates from calendar years:
2009
1 (£0.1m)
2010 (1 review)
1.62%
1 (£0.5m)
2011 (7 reviews)
0.59%
5 (£0.8m)
2012 (8 reviews)
0.26%
16 (£2.2m)
2013 (21 reviews)
0.30%
24 (£2.6m)
2014 (38 reviews)
0.23%
47 (£6.1m)
-
127 (£15.1m)
2015
Results for the Year Ended 31 March 2015
Open
market
reviews
only %
45
4.3 BASIS OF RENT REVIEWS
80%
Upward only review basis (68%)
Upward/downward review basis - landlord only trigger (26%)
70%
Upward/downward review basis - tenant can instigate (6%)
Proportion of rent roll
60%
50%
40%
30%
20%
10%
0%
OMR
Results for the Year Ended 31 March 2015
RPI
Fixed
Other
46
4.4 RENT REVIEW TIMING
Split of current rent roll by rent review basis and frequency of review:
Annually
3 Year
5 Year
Other
-
68%
7%
-
75%
6%
5%
3%
-
14%
Fixed
-
6%
-
-
6%
Other
-
4%
-
1%
5%
6%
83%
10%
1%
100%
OMR
RPI
Results for the Year Ended 31 March 2015
47
5.1 EPRA NET ASSET VALUE
Net assets
Own shares held
Derivative financial instruments
Deferred tax
NAV in accordance with EPRA
Number of shares in issue
EPRA NAV per share – basic
Diluted number of shares
EPRA NAV per share – diluted
Results for the Year Ended 31 March 2015
Adjusted (EPRA))
net asset value)
Adjusted (EPRA))
net asset value)
March 15)
£m)
March 14)
£m)
451.9)
226.6)
1.8)
1.9)
-)
1.8)
(1.3)
(0.7)
452.4)
229.6)
1,006,900,141
529,548,924
44.9p
43.4p
1,027,623,913
529,548,924
44.0p
43.4p
48
5.2 EPRA NET ASSET VALUE MOVEMENT
£m)
Pence per share1)
229.6)
43.4)
Income (underlying profit)
15.9)
2.1)
Capital (revaluations and capital gains)
21.3)
2.8)
Dividends
(14.4)
(1.9)
Share issue
201.8)
(1.4)
(1.8)
(0.1)
452.4)
44.9)
NAV in accordance with EPRA at 31 March 2014
Other
NAV in accordance with EPRA at 31 March 2015
Growth
1.5p)
3.4%
1
Based on shares in issue (529,548,924 at Mar 14, 1,006,900,141 at Mar 15) or weighted average in issue over the year to Mar 15 (763,163,756)
Results for the Year Ended 31 March 2015
49
5.3 UNDERLYING & EPRA EARNINGS PER SHARE
2015
£m
2014
£m
Profit for the year (continuing operations)
37.2
23.8
EPRA earnings
15.8
9.2
Underlying profit
15.9
10.9
763,163,756
529,548,924
– continuing
4.9p
4.5p
– EPRA
2.1p
1.7p
– underlying
2.1p
2.1p
783,887,528
529,548,924
4.7p
4.5p
– EPRA
2.0p
1.7p
– underlying
2.0p
2.1p
Weighted average number of shares in issue – basic
Basic EPS
Weighted average number of shares in issue – diluted
Diluted EPS – continuing
Results for the Year Ended 31 March 2015
50
5.4 EPRA COST RATIOS
EPRA Cost Ratios give an indication of administrative and operating costs relative to gross
rental income
2015
2014
EPRA Cost Ratio (including direct vacancy costs)
17.7%
20.2%
EPRA Cost Ratio (excluding direct vacancy costs)
16.3%
18.4%
Results for the Year Ended 31 March 2015
51
5.5 VCP DILUTION
 Five year scheme to align incentives for staff and management with long-term
shareholder performance
 Participants receive 10% of total shareholder return over 8% compound hurdle rate
subject to overall cap of 25 million shares (which represents 2.5% of total issued share
capital)
 Scheme runs from 2012 – 2017
 First measurement point in 2015 estimates 24.4 million shares would vest over the 5
year period of which 20.7 million would be new dilutive shares and 3.7 million would be
released by the Employee Benefit Trust
 50% of awarded shares held over to future periods subject to future performance
Results for the Year Ended 31 March 2015
52
6.1 REITS
 REIT status is a tax election available to listed real estate companies
 REITs are tax exempt on property rental income and capital gains
 Profits are passed through to investors through minimum Property Income Distributions
(PIDs)
 90% of taxable property rental profits
 Subject to 20% withholding tax (unless investor is a qualifying institution)
 Other dividends are not subject to withholding tax
 Assura currently pays dividends not PIDs as the minimum PID is £nil
 REITs are a recognised global investment class, attractive to specialist investors
 REITs are required to meet rules ensuring they remain focused on real estate investment
activity
 Development activity is permitted but taxable if developments are sold within 3 years of
practical completion
Results for the Year Ended 31 March 2015
53
7.1 BANK AND BOND FACILITIES
Maturity
Effective1
interest1
rate1
Secured
properties
£m
Rental
income
£m
Outstanding)
31 March)
£m)
Fixed
10 year, bullet
repayment 2021
4.75%1
169.5
11.4
110.0)
Fixed
Amortising to
2044
5.43%1
592.1
35.4
406.6)
Floating
Five year, 2020
2.17%1
-
-
-)
Unsecured properties
146.7
8.8
Principal
908.3
55.6
Fixed /
Floating
10 year secured Bond
Aviva amortising secured
loans
Loan / Bond
£60m revolving credit facility
Loan issue costs
Book value
1
516.6)
(3.1)
513.5)
1.70% above LIBOR, subject to LTV and interest rate swaps
Results for the Year Ended 31 March 2015
54
7.2 COVENANTS
All covenant conditions
complied with
Bond
Aviva
RCF
Req.
Act.
Req.
Act.
Req.
Act.
Income v interest cover
>1.5
2.09
≥1.05
1.31
≥1.75
n/a
Loan to Value
>1.35
1.52
n/a
n/a
<65%1
n/a
 In addition, bond requires NHS backed income to exceed 75% (31 March 2015: 78%) and
the weighted average lease length must exceed 10 years (31 March 2015: 12.7 years)
 The RCF requires weighted average lease length to not at any time be less than 9 years
(31 March: n/a)
1
Reduces to 60% in year 4 and 55% in year 5
Results for the Year Ended 31 March 2015
55
8.1 DIVIDEND CALENDAR
Payment date
Ex-div date
Record date
Total2
Q1
23 Apr 2014
9 Apr 2014
11 Apr 2014
0.45p2
Q2
23 Jul 2014
9 Jul 2014
11 Jul 2014
0.45p2
Q3
5 Nov 2014
23 Oct 2014
24 Oct 2014
0.45p2
Q4
21 Jan 2015
8 Jan 2015
9 Jan 2015
0.5p2
Payment date
Ex-div date
Record date
Total2
Q1
30 Apr 2015
16 Apr 2015
17 Apr 2015
0.5p2
Q2
22 Jul 20151
9 Jul 20151
10 Jul 20151
0.5p2
Q3
21 Oct 20151
8 Oct 20151
10 Oct 20151
0.5p2
Q4
20 Jan 20161
7 Jan 20161
8 Jan 20161
0.5p2
2014/15
2015/16
1
Provisional date
2 Provisional amount
Results for the Year Ended 31 March 2015
56
DISCLAIMER
This presentation contains certain statements that are neither financial results nor other historical
information. These statements are forward-looking in nature and are subject to risks and
uncertainties. Actual future results may differ materially from those expressed in or implied by
these statements.
Many of these risks and uncertainties relate to factors that are beyond Assura’s ability to control or
estimate precisely, such as future market conditions, the behaviour of other market participants,
the actions of governmental regulators and other risk factors such as the Company’s ability to
continue to obtain financing to meet its liquidity needs, changes in the political, social and
regulatory framework in which the Company operates or in economic or technological trends or
conditions, including inflation and consumer confidence, on a global, regional or national basis.
Readers are cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date of this document. Assura does not undertake any obligation to publicly
release any revision to these forward-looking statements to reflect events or circumstances after
the date of these materials. Information contained in this presentation relating to the Company or
its share price, or the yield on its shares, should not be relied upon as a guide to future
performance.
Results for the Year Ended 31 March 2015
57