Assura PLC (LON: AGR) stands out as a pivotal player in the realm of healthcare real estate investment trusts (REITs) in the UK. With a market capitalisation of $1.59 billion, Assura has carved out a significant niche within the healthcare sector, offering investors a compelling blend of stability and growth potential.
Operating out of the UK, Assura boasts a robust portfolio comprising over 600 healthcare buildings, providing essential services to more than six million patients. The company is a proud constituent of the FTSE 250 and the EPRA indices, and it also maintains a secondary listing on the Johannesburg Stock Exchange. As of March 2025, the portfolio’s value stood at a commendable £3.1 billion, underscoring its substantial market presence.
Currently trading at 48.84 GBp, Assura’s stock has exhibited a price range between 35.34 GBp and 50.65 GBp over the past 52 weeks. While this range reflects a modest volatility, it also highlights the stock’s resilience amidst market fluctuations. The recent price change of -0.28 (-0.01%) suggests a stable short-term outlook, with technical indicators such as the 50-day and 200-day moving averages sitting at 49.84 and 44.17, respectively. The Relative Strength Index (RSI) of 52.56 indicates a balanced market sentiment, neither oversold nor overbought.
A notable aspect of Assura’s investment appeal lies in its dividend yield, which stands at an attractive 6.84%. This yield is supported by a payout ratio of 63.40%, suggesting a well-managed dividend policy that balances shareholder returns with business reinvestment. For income-focused investors, this dividend yield presents an opportunity to secure consistent returns in a sector known for its defensive characteristics.
However, potential investors should be mindful of the valuation metrics, which present a complex picture. The trailing P/E ratio is not applicable, and the forward P/E ratio is significantly high at 1,329.70, indicating potential caution around future earnings growth expectations. The absence of PEG, Price/Book, and Price/Sales ratios suggests that traditional valuation metrics may be challenging to apply directly, necessitating a deeper dive into the company’s financial health and strategic direction.
Assura’s revenue growth of 24.30% is a promising indicator of the company’s upward trajectory, supported by an EPS of 0.05 and a commendable return on equity (ROE) of 10.66%. The free cash flow of £57.26 million further reinforces its financial robustness, providing ample liquidity to support both operational needs and shareholder distributions.
From an analyst perspective, the sentiment towards Assura is cautiously optimistic. The average target price of 49.67 GBp offers a potential upside of 1.69%, with analysts advocating a mix of buy and hold ratings. This reflects a general consensus on the stock’s potential for steady, albeit modest, growth in the near term.
As the first FTSE 250 certified B Corp, Assura’s commitment to Environmental, Social, and Governance (ESG) principles is noteworthy. By prioritising Healthy Environments and Communities, alongside maintaining a Healthy Business, Assura is well-positioned to navigate the evolving landscape of corporate responsibility, which is increasingly important to investors.
For those seeking exposure to the healthcare real estate sector, Assura PLC presents a blend of stability, income potential, and ESG commitment. As with any investment, thorough due diligence and consideration of market conditions remain paramount.
