| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 47.18 | -1 |
| Intrinsic value (DCF) | 20.04 | -58 |
| Graham-Dodd Method | 0.34 | -99 |
| Graham Formula | 1.25 | -97 |
Assura plc (AGR.L) is a leading UK Real Estate Investment Trust (REIT) specializing in primary healthcare property. Listed on the London Stock Exchange and part of the FTSE 250 and EPRA indices, Assura focuses on developing and managing high-quality medical facilities for GPs, healthcare professionals, and the NHS. The company plays a vital role in supporting community healthcare infrastructure, with a property portfolio valued at £2.26 billion as of September 2020. Operating in the REIT - Healthcare Facilities sector, Assura benefits from stable, long-term rental income backed by the UK's robust healthcare system. Its strategic focus on primary care properties positions it as a key player in the UK's healthcare real estate market, offering investors exposure to a defensive asset class with strong demand fundamentals.
Assura presents a compelling investment case for income-focused investors, offering a dividend yield supported by stable healthcare property rentals. The defensive nature of its assets, with NHS-backed leases, provides resilience during economic downturns. However, the company's high leverage (total debt of £1.25 billion against market cap of £1.6 billion) and negative net income (-£28.8 million) raise concerns about financial flexibility. The stock's low beta (0.623) suggests lower volatility than the broader market, appealing to risk-averse investors. Key risks include interest rate sensitivity due to substantial debt and potential NHS funding constraints. The 3p dividend per share offers an attractive yield, but sustainability depends on maintaining operating cash flows (£102.4 million) and managing capital expenditures.
Assura holds a strong position in the UK healthcare property market, specializing exclusively in primary care facilities - a niche that differentiates it from broader healthcare REITs. The company's competitive advantage stems from its focused expertise in GP surgeries and primary healthcare centers, long-term relationships with the NHS, and a geographically diversified portfolio across the UK. Its REIT status provides tax advantages that enhance returns. However, the company faces competition from larger diversified property firms and specialized healthcare REITs. Assura's scale is smaller than some competitors, potentially limiting development capabilities. The company's development pipeline and asset management capabilities are key strengths, but its high debt-to-equity ratio may constrain growth compared to better-capitalized peers. The defensive nature of healthcare real estate provides insulation from economic cycles, though tenant concentration (NHS-dependent) presents some risk. Assura's valuation reflects its premium position in primary care properties, but investors should monitor its ability to recycle capital and maintain development yields in a competitive market.