Assura operates in the Primary Care Property sector – a subsector of the Healthcare Property sector.
The sector displays very strong real estate fundamentals:
- Excellent occupier covenants
- Minimal development risk
- Restricted supply – no speculative development
- Long, break-free leases
A secure and predicable income stream with an underpinning of inflation linkage is a highly attractive proposition to the investor in all economic conditions.
The benefits of this are illustrated by the IPD analysis of real estate returns over the past eight years, which is the period that IPD has been collecting data for the Healthcare Index. This period was one of heightened volatility as it includes the financial crisis following the collapse of Lehman Brothers.
Primary Care has provided both a superior return and a lower risk (as measured by volatility) than all other real estate sectors (except residential, which has very different characteristics) and equities in general. Put simply, this illustrates the investment case for our sector; superior risk adjusted returns.