Assura Plc · OTC:ARSSF
Assura — Merger or Acquisition (August 2024)
21 slides from Assura's merger presentation, August 2024
Slide 1: Assura plc £500m acquisition of private hospital portfolio
Assura plc £500m acquisition of private hospital portfolio 1
Slide 2: Summary
Private hospital portfolio August 2024 Summary £500m Strategic highlights portfolio Acquisition accelerates delivery of strategy 20% outlined at capital markets event increase in Increases exposure to a structurally rent roll supported market Attractive portfolio of high-quality private hospit
Slide 3: Acquisition of private hospital portfolio for £500m
Private hospital portfolio August 2024 Acquisition of private hospital portfolio for £500m Acquisition of entire UK portfolio of 14 assets from Northwest Headline price £500m Gross consideration £500m All fully operational private hospitals in the UK Deal offers portfolio of scale at attract
Slide 4: Portfolio supporting local health care demands
Private hospital portfolio August 2024 Portfolio supporting local health care demands Cancer Centre London Providing essential capacity to local healthcare infrastructure Occupiers are tier 1 private operators and complementary to 100% fully tenant repairing and existing Assura private insurin
Slide 5: Increased scale and diversification in UK healthcare market
Private hospital portfolio August 2024 Increased scale and diversification in UK healthcare market Acquisition in line with strategy and cements Assura as the leading listed UK healthcare property investor and developer Material increase in exposure to structurally supported private hospitals ma
Slide 6: Strengthens relationships with tier 1 private providers
Private hospital portfolio August 2024 Strengthens relationships with tier 1 private providers Combined with existing investment with Ramsay and others, Assura has unique and significant relationships with most of the private healthcare providers operating at scale in the UK Opportunity to parti
Slide 7: Assura strategy to diversify into new sectors
Private hospital portfolio August 2024 Assura strategy to diversify into new sectors GP NHS Trusts Private Mental health Ireland Initial lease 21+ years 25-30 years 25-30 years 20-30 years 25 years length Typical rent OMR, 3 yearly Indexed, 1-5 yearly Indexed, 5 yearly Indexed, 5 yearly Irish CPI, 5
Slide 8: Driving rental growth prospects and enhanced WAULT
Private hospital portfolio August 2024 Driving rental growth prospects and enhanced WAULT Proforma WAULT 13.0 years, increasing from 10.8 years at March 2024 Tenant covenant Rent review basis 90 70 Mar-24 Proforma Mar-24 Proforma 80 60 70 50 60 50 40 Over 20% of portfolio now % % reviewed to index a
Slide 9: Funding for transaction
Private hospital portfolio August 2024 Funding for transaction Fully funded £100m consideration shares issued to Northwest on 30-day VWAP basis subject to 6-month lock-in agreement £266m debt taken on & refinanced day 1 £134m from cash/RCF 9
Slide 10: Financial effects – balance sheet
Private hospital portfolio August 2024 Financial effects – balance sheet Following capital recycling of assets into joint venture with USS, addition of this hospital portfolio sees proforma property value increase to £3.2bn Issue of consideration shares ensures LTV remains within existing LTV po
Slide 11: Debt terms and financing structure
Private hospital portfolio August 2024 Debt terms and financing structure New term loan of £266m Debt maturity profile 110bps margin £m Unsecured bond Private placements New term loan* RCF* Matures August 2026 700 * Assumes term loan and RCF have option to extend exercised Option to extend b
Slide 12: Financial effects – income statement
Private hospital portfolio August 2024 Financial effects – income statement Assura – Acquisition Proforma 2024 results (£m) (£m) (£m) Acquisition impact £29.4m day 1 rent roll Net rental income 143.3 29.4 172.7 All acquired properties are FRI Portfolio of scale with limited incremental overhea
Slide 13: Summary
Private hospital portfolio August 2024 Summary £500m Strategic highlights portfolio Acquisition accelerates delivery of strategy 20% outlined at capital markets event increase in Increases exposure to a structurally rent roll supported market Attractive portfolio of high-quality private hospit
Slide 14: Q&A
Q&A 14
Slide 15: Private sector has attractive investment characteristics
Private hospital portfolio August 2024 Private sector has attractive investment characteristics National relationships give Growing patient demand Attractive lease structure opportunity for repeat for private services business Sustainable growth prospects Opportunities for portfolio across all three
Slide 16: Growing demand for private providers
Private hospital portfolio August 2024 Growing demand for private providers Three main strands of private (PMI, self-pay, NHS referred) all experiencing growing demand Top procedures include cataract surgery, chemotherapy, diagnostics (endoscopy, colonoscopy) or orthopaedics (hip/knee replacemen
Slide 17: Supportive political backdrop
Private hospital portfolio August 2024 Supportive political backdrop The current Labour Government have recognised the challenges within the NHS and have therefore committed to investing to improve patient outcomes and reduce waiting lists, including utilising capacity within the private sector
Slide 18: Properties acquired
Private hospital portfolio August 2024 Properties acquired Remaining Registered Rent review Tenant Area (m2) term (years) Theatres beds basis Parkside Hospital Nuffield 8,145 27 4 75 RPI The Holly Hospital Nuffield 8,771 27 5 42 RPI Cancer Centre London Nuffield 2,024 27 - 16 RPI Highgate Hospital N
Slide 19: Private tenants
Private hospital portfolio August 2024 Private tenants Proforma rent roll Assura private portfolio, with £m % the addition of these assets, now stands at over £650m Assura proforma post-acquisition Unique position as a long- Total rent 178.6 term partner to all 5 Tier 1 Private rent 44.0 25% pri
Slide 20: Debt facilities & covenants
Private hospital portfolio August 2024 Debt facilities & covenants All financial covenants to be complied with following addition of hospital portfolio All covenant Fixed/ Effective Secured/ conditions RCF / PPs / new Facility description floating Maturity interest rate unsecured Proforma complied w
Slide 21: Disclaimer
Private hospital portfolio August 2024 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