RESULTS FOR THE YEAR ENDED 31 MARCH 2015 INTRODUCTION Graham - - PowerPoint PPT Presentation

RESULTS FOR THE YEAR ENDED 31 MARCH 2015

INTRODUCTION

Results for the Year Ended 31 March 2015 2

Graham Roberts

THREE YEAR PROGRESS

3 Results for the Year Ended 31 March 2015

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 Unencumbered assets − £147m LTV 64% 48% Performance 2015 EPS1 up 40% 2.1p NAV1 per share up 24% 44.9p Dividends up 48% 1.85p

1EPRA basis (appendix 5)

TRANSFORMATIONAL YEAR

4

• 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

FINANCIAL RESULTS

5

Jonathan Murphy

Results for the Year Ended 31 March 2015

FINANCIAL HIGHLIGHTS

6

Income statement 2015) 2014) % change) Net rental income (£m) 48.2) 37.8) 28) Underlying profit before tax (£m) 15.9) 10.9) 46) Underlying profit per share (p) 2.1) 2.1)

• )

Balance sheet 31 March 2015) 31 March 2014) % change) Investment property (£m) 925.3) 656.7) 41) EPRA NAV (pence per share) 44.9) 43.4) 3.4) LTV (%) 48.3) 62.0) (22)

Results for the Year Ended 31 March 2015

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)

33% GROWTH IN ANNUALISED RENT ROLL

7 41.8 55.6 (0.1) 0.1 1.3 12.5 30 35 40 45 50 55 60 Mar-14 Disposals Lease events Completed developments Acquisitions Mar-15 £m

14.4 years weighted average unexpired lease term, 87% NHS funded

Results for the Year Ended 31 March 2015

46% GROWTH IN UNDERLYING PROFIT

8 10.9 15.9 (4.7) (0.7) 10.4 2 4 6 8 10 12 14 16 18 Mar-14 Net finance costs Admin expenses Net rental income Mar-15 £m Results for the Year Ended 31 March 2015

Operational efficiency and scale benefits have enabled profit growth ahead of income growth

EPRA NAV PER SHARE MOVEMENT

9 43.4p 44.9p 0.1p 1.4p 1.9p 2.1p 2.8p 37p 38p 39p 40p 41p 42p 43p 44p 45p 46p Mar-14 Other Share issue Dividends Income (underlying profit) Capital (revaluations) Mar-15 Results for the Year Ended 31 March 2015

41% INCREASE IN INVESTMENT PROPERTY

10 656.7 925.3 2.2 14.0 21.4 231.0 100 200 300 400 500 600 700 800 900 1,000 Mar-14 Other Development costs Revaluation gain Acquisitions Mar-15 £m Results for the Year Ended 31 March 2015

2015 2014 Net initial yield 5.56% 5.98% Equivalent yield 5.77% 6.07%

STRONG AND GROWING BALANCE SHEET

11

Property and debt

557.3 656.7 925.3 359.5 414.8 450.0 100 200 300 400 500 600 700 800 900 1000 Mar-13 Mar-14 Mar-15 £m Investment property Net debt

• £269m increase in investment property
• Loan to value of 48% within our target

range of 45% to 55%

• £125m of available facilities and cash
• Positioned strongly for future growth

Results for the Year Ended 31 March 2015

FINANCING

12

• 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

HEALTHY FINANCING RATIOS

13

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 Weighted average interest rate 5.28% 5.28% Weighted average debt maturity 11.9 years 10.9 years Interest cover 160% 150% % of debt at fixed rates 100% 98%

Results for the Year Ended 31 March 2015

GROWTH AND SCALE BENEFITS

14

• 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
• Progressive, covered dividend policy

Results for the Year Ended 31 March 2015 0.86 1.36 1.85 12.0% 14.0% 16.0% 18.0% 20.0% 22.0% 24.0% 0.4 0.8 1.2 1.6 2.0 2.4 Mar-13 Mar-14 Mar-15 p Dividends paid (left axis) EPRA Cost Ratio (right axis)

Dividends and costs

PROPERTY UPDATE

15

Andrew Darke

Results for the Year Ended 31 March 2015

SUBSTANTIAL GROWTH IN YEAR

16

• £269m increase in portfolio value
• £245m additions
• 5.6% average yield on cost
• Weighted average unexpired lease

term of 17 years on new additions

• Acquisitions have refinancing and

asset enhancement opportunities

• Solicitors instructed on a further

£40m of acquisitions

• 2.4 million patients registered with
• ur GP tenants in 265 properties

March 2015 March 2014 Investment property £925.3m £656.7m Rent roll £55.6m £41.8m WAULT 14.4 years 14.4 years Consideration Timing MP Realty £107m Jun 2014 One Life £12m Jul 2014 Metro £63m Nov 2014 South Kirkby £10m Dec 2014 Other £39m Various Developments £14m Various Property additions £245m

Results for the Year Ended 31 March 2015

DEVELOPMENTS COMPLETED DURING YEAR

17

• Achieved in excess of 100 bps margin over

revaluation yield on completed developments

• In‐house experienced development team

Completed Number of schemes 4 Development cost £19.6m ERV £1.4m Margin over revaluation yield >100 bps

Results for the Year Ended 31 March 2015

Sudbury

FUTURE DEVELOPMENT SCHEMES

18

• Long term requirement for country

to invest in new medical centres

• Future pipeline of £35m –

preferred developer status

• Following NHS reorganisation in

April 2013, NHS England is now starting to approve developments

On-site Immediate pipeline Number of schemes 5 9 Development cost £22.2m £25m

Results for the Year Ended 31 March 2015

Sutton

APPROACH TO DESIGN

19

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

RENT REVIEW GROWTH

20

3 year rent review settlements

• RPI and fixed are currently the main drivers
• f rental growth
• RPI and fixed +3.06%
• open market +0.38%
• Land and construction cost inflation

returning

• Less rental evidence for rent reviews due

to recent hiatus in NHS approval process

3.23% 1.99% 4.52% 0.35% 3.06% 0.38% 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 RPI/fixed/other (25% of rent roll) OMR (75% of rent roll) Absolute rent roll increase (£m) 2012/13 2013/14 2014/15 Results for the Year Ended 31 March 2015

MARKET AND OUTLOOK

21

Graham Roberts

Results for the Year Ended 31 March 2015

MARKET OVERVIEW

22

Yield development

• 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

0% 1% 2% 3% 4% 5% 6% 7% 8%

IPD monthly UK index initial yield Assura Net Initial Yield 15 year Gilt

Results for the Year Ended 31 March 2015

HEALTH SECTOR OUTLOOK

23

• 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
• There will remain a time lag between approval and delivery,

typically 18 months to 2 years

Results for the Year Ended 31 March 2015

“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

OUTLOOK FOR ASSURA

24

• 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

Q&A

25 Results for the Year Ended 31 March 2015

Blaenavon Birkenhead Huthwaite

SUPPLEMENTARY INFORMATION

26

• 1. Market

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. Portfolio

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. Cash flows

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

1.1 GROWING DEMAND / INADEQUATE SUPPLY

27

Demand

• 10 year track record of cross‐party

support for:

• more services delivered locally
• greater patient choice
• more community based facilities

(medical centres, polyclinics)

• 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

Supply

• 2014 BMA survey of GP practices
• 40% of GPs stated premises

inadequate for provision of general practice services

• 70% said premises not suitable for
• ffering a full range of services
• 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

Results for the Year Ended 31 March 2015

1.2 MARKET: POLICY DIRECTION SUPPORTIVE

28

• Cross‐party Government support to shift health 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

1.3 RECENT ENCOURAGING STATEMENTS

29

Five Year Forward View

• Simon Stevens, NHS Chief Executive
• Published 23 October 2014
• Radical upgrade in prevention and public

health

• 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

Better Health for London

• Commission for London (Lord Darzi)
• Published 15 October 2014
• Professionals deserve modern GP

practices; patients deserve to be seen in them

• The quality of facilities impacts the quality
• f 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

Results for the Year Ended 31 March 2015

1.4 SECTOR ATTRACTIVENESS

30

• 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

1.5 RISK REWARD PROFILE UNCHANGED

31 Results for the Year Ended 31 March 2015

Source: IPD

Eight year total return vs standard deviation

Residential index All property Equities All Healthcare Gilts Retail Office Industrial Other property

GP Healthcare Centres

0% 1% 2% 3% 4% 5% 6% 7% 8% 9%

2 4 6 8 10 12 14 16 18

Total Return Since 2007 Risk (standard deviation)

1.6 ASSURA WELL PLACED TO OUTPERFORM

32

IPD Annual Return to Dec-14 since inception of index in 2006

• Good reputation and relationships with

GP community

• Development capability and strong

pipeline

• Internally managed
• Knowledgeable and focused team

6.1% 1.4% 7.6% 6.2% 0.8% 7.0% 0% 1% 2% 3% 4% 5% 6% 7% 8% Income Return Capital Growth Total Return Assura Primary Healthcare Benchmark Results for the Year Ended 31 March 2015

2.1 TOTAL PROPERTY ASSETS

March 15 £m March 14 £m Investment portfolio 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 Total 930.7 668.3

33

Balance sheet classification March 15 £m March 14 £m Investment portfolio 925.3 656.7 Property assets held for sale 5.4 11.6 Total 930.7 668.3

Results for the Year Ended 31 March 2015

2.2 PORTFOLIO

Properties Value (£m) Value (%) <£1m 37 25.2 2.8 £1-5m 180 451.6 49.7 £5-10m 36 253.3 27.9 >£10m 12 178.2 19.6 265 908.3

34

Properties Value (£m) Value (%) North 109 411.2 45.3 South 74 221.4 24.4 Midlands 55 201.2 22.1 Scotland 9 23.9 2.6 Wales 18 50.6 5.6 265 908.3 Rent roll (£m) Value (%) GPs 38.1 68.5 NHS Body 10.2 18.4 Pharmacy 4.3 7.7 Other 3.0 5.4 55.6

Results for the Year Ended 31 March 2015

2.3 SENSITIVITY ANALYSIS

NIY ERV) p/share) +1%) p/share) +2%) ) p/share) +3%) 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)

35 Results for the Year Ended 31 March 2015

2.4 MP REALTY PORTFOLIO – £107M

36

• £107m portfolio of 28 medical centres acquired in June

2014

• 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

Results for the Year Ended 31 March 2015

1 Once historical rent reviews settled

Birmingham Worcester

2.5 ONE LIFE – £12.3m

37

• £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

2.6 METRO PORTFOLIO – £63.1m

38

• £63.1m portfolio of 11 medical centres acquired in

November 2014

• 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

Results for the Year Ended 31 March 2015

Barry Porth

2.7 SOUTH KIRKBY – £10.1m

39

• £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

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) Cash flows from investing activities: Property and business acquisitions (64.3) (9.1) Development expenditure (14.0) (23.5) Sale of properties 4.2) 3.3) Sale of businesses

• )

27.4) Other 0.1)

• )

Cash flows from financing activities: Equity issues, net of costs 173.5)

• )

Dividends paid (14.4) (7.2) Net borrowings movement (74.1) 4.1) Closing cash 66.5) 38.6)

40 Results for the Year Ended 31 March 2015

3.2 CONTRACTED RENTAL INCOME

41 10 20 30 40 50 60 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Mar-26 Mar-27 Mar-28 Mar-29 Mar-30 Contracted at 31-Mar-15

£853m total contracted cash flow, 93% of rent roll still contracted in 2025

Results for the Year Ended 31 March 2015

3.3 LEASE LENGTHS

42 66 leases 51 leases 106 leases 142 leases 125 leases 34 leases 21 leases 43 leases 2 4 6 8 10 12 14 16 21+ 18-20 15-17 12-14 9-11 6-8 3-5 0-2 Rental value (£m) Years remaining Weighted average unexpired lease term 14.4 years Results for the Year Ended 31 March 2015

3.4 DEBT REPAYMENT PROFILE

43 20 40 60 80 100 120 140 Aviva Bond RCF Results for the Year Ended 31 March 2015

March 15 March 14 Gross debt £516.6m £451.9m Weighted average maturity 11.9 years 10.9 years Weighted average cost of debt 5.28% 5.28%

4.1 ERV EVOLUTION AND REVERSION

44 £55.6m £2.3m 10 20 30 40 50 60 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Rental value (£m) Passing rent ERV

ERV at Mar 15 £57.9m; vacant space £1.87m, valuers rental ERV £0.45m

Results for the Year Ended 31 March 2015

4.2 OPEN MARKET RENTS STILL INCREASING

Annualised Open market reviews

• nly %

Number of

• utstanding

reviews (passing rent) Rent reviews settled in year to 31 March 2015 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) 2015

• 127 (£15.1m)

45

• 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

Results for the Year Ended 31 March 2015

4.3 BASIS OF RENT REVIEWS

46 0% 10% 20% 30% 40% 50% 60% 70% 80% OMR RPI Fixed Other Proportion of rent roll Upward only review basis (68%) Upward/downward review basis - landlord only trigger (26%) Upward/downward review basis - tenant can instigate (6%) Results for the Year Ended 31 March 2015

4.4 RENT REVIEW TIMING

Split of current rent roll by rent review basis and frequency of review: Annually 3 Year 5 Year Other OMR

• 68%

7%

• 75%

RPI 6% 5% 3%

• 14%

Fixed

• 6%
• 6%

Other

• 4%
• 1%

5% 6% 83% 10% 1% 100%

47 Results for the Year Ended 31 March 2015

5.1 EPRA NET ASSET VALUE

Adjusted (EPRA)) net asset value) Adjusted (EPRA)) net asset value) March 15) £m) March 14) £m) Net assets 451.9) 226.6) Own shares held 1.8) 1.9) Derivative financial instruments

• )

1.8) Deferred tax (1.3) (0.7) NAV in accordance with EPRA 452.4) 229.6) Number of shares in issue 1,006,900,141 529,548,924 EPRA NAV per share – basic 44.9p 43.4p Diluted number of shares 1,027,623,913 529,548,924 EPRA NAV per share – diluted 44.0p 43.4p

48 Results for the Year Ended 31 March 2015

5.2 EPRA NET ASSET VALUE MOVEMENT

£m) Pence per share1) NAV in accordance with EPRA at 31 March 2014 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) Other (1.8) (0.1) NAV in accordance with EPRA at 31 March 2015 452.4) 44.9) Growth 1.5p) 3.4%

49 Results for the Year Ended 31 March 2015

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)

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 Weighted average number of shares in issue – basic 763,163,756 529,548,924 Basic EPS – continuing 4.9p 4.5p – EPRA 2.1p 1.7p – underlying 2.1p 2.1p Weighted average number of shares in issue – diluted 783,887,528 529,548,924 Diluted EPS – continuing 4.7p 4.5p – EPRA 2.0p 1.7p – underlying 2.0p 2.1p

50 Results for the Year Ended 31 March 2015

5.4 EPRA COST RATIOS

2015 2014 EPRA Cost Ratio (including direct vacancy costs) 17.7% 20.2% EPRA Cost Ratio (excluding direct vacancy costs) 16.3% 18.4%

51 Results for the Year Ended 31 March 2015

EPRA Cost Ratios give an indication of administrative and operating costs relative to gross rental income

5.5 VCP DILUTION

52

• 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

6.1 REITS

53

• 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

7.1 BANK AND BOND FACILITIES

Loan / Bond Fixed / Floating Maturity Effective1 interest1 rate1 Secured properties £m Rental income £m Outstanding) 31 March) £m) 10 year secured Bond Fixed 10 year, bullet repayment 2021 4.75%1 169.5 11.4 110.0) Aviva amortising secured loans Fixed Amortising to 2044 5.43%1 592.1 35.4 406.6) £60m revolving credit facility Floating Five year, 2020 2.17%1

• )

Unsecured properties 146.7 8.8 Principal 908.3 55.6 516.6) Loan issue costs (3.1) Book value 513.5)

54 Results for the Year Ended 31 March 2015

1 1.70% above LIBOR, subject to LTV and interest rate swaps

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

55 Results for the Year Ended 31 March 2015

1 Reduces to 60% in year 4 and 55% in year 5

• 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)

8.1 DIVIDEND CALENDAR

2015/16 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

56 Results for the Year Ended 31 March 2015

1 Provisional date 2 Provisional amount

2014/15 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

DISCLAIMER

57

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