(Alliance News) - Assura PLC on Thursday said the infrastructure of the UK National Health Service is "not fit for purpose" and requires significant investment, as it reported a fall in net asset value.
The Altrincham, England-based primary care property investor and developer said NAV per share as at September 30 was 51.4 pence, down 4.1% from 53.6p at March 31.
Chief Executive Officer Jonathan Murphy said: "The critical need for investment in infrastructure to support the services delivered by the NHS is as pronounced as it has ever been. We have an ageing population, and it is cheaper for the NHS to deliver health services in a primary care setting. Waiting lists are longer than they have been for decades because hospitals are overburdened, and appropriate space doesn't exist in a community setting to deliver care where it is needed.
"The existing NHS estate is not fit for purpose and requires significant investment to meet this demand. Healthcare professionals openly admit that the premises they work in are constraining the services they can provide, hindering recruitment of staff and holding back progress on tackling the care backlog."
Net initial yield as at September 30 was 5.03%, up from 4.87% at the end of March.
The company declared a half-year dividend of 1.60p per share, up 5.3% from 1.52p a year ago.
Looking ahead, CEO Murphy said there will be an increase in diagnostic, specialist treatment and mental health services moving out of hospitals and into a community setting, with growing demand for private providers of health services.
Assura shares were 3.1% lower at 45.06 pence each in London on Thursday morning.
By Tom Budszus, Alliance News reporter
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Assura (AGR)