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MedicX reports on positive performance

MedicX Fund MXF

MedicX reports on positive performance – MedicX Fund (MXF), the specialist primary care infrastructure investor in modern, purpose-built, primary healthcare properties in the United Kingdom and Republic of Ireland, announced its results for the six month period to 31 March 2018. The company became a REIT on 1 October 2017.

The company reported a 8.0% total return on EPRA NAV for the six months ending 31 March 2018. It also increased the amount of rent it received from its tenants by 5.4% to £19.6 million. In 2017, the company generated 18.6 million.  It also reported a 94.1% increase in profit before tax to £26.4 million.

Investment plans

Subject to market conditions, the company intends to issue up to 42.88 million new Ordinary Shares at a premium to EPRA NAV (after taking into account issuance costs) in order to partially fund an opportunity to complete by 8 June 2018, the corporate acquisition of a £64 million portfolio of 12 primary care centres with WAULT of 14.3 years and average lot size of £5.3 million

Other financial highlights:

  • 1.8% increase in annualised rent roll since 30 September 2017 from £40.0 million to £40.7 million; 2.8% like for like increase before selling five non-core properties with rent roll of £0.4 million
  • 89.6% of the rent roll is received directly from or reimbursed by the NHS, HSE or Irish GPs
  • 5.7%1 increase in six month EPRA earnings per Ordinary Share, from 1.75p per share to 1.85p per ordinary share
  • 4.1%2 increase in EPRA NAV from 76.5p per share to 79.6p per share

Investment activity

The company reported a 5.8% increase in the value of the property portfolio to £719.7 million. This follows a capital investment of £26.5 million to acquire a standing let property and fund developments through forward funding schemes less £5.3 million of disposals and a £18.3 million net valuation gain over the six months ending 31 March 2018.

The company also reported new committed investments in the UK and the Republic of Ireland of £11.6 million since 1 October 2017, with an average cash yield of 6.27%. It also acquired  four other sites for £5.5 million in anticipation of new schemes.

It also reported that it has a strong pipeline of approximately £110 million of further acquisition opportunities including projects with a value of £60 million in solicitors’ hands.

Management of capital

The total drawn debt facilities of of the company are approximately £380.0 million with an average fixed rate cost of debt of 4.27% and an average unexpired term of 12.1 years. These are close to the average unexpired lease term of the investment properties of 14.0 years; compared with £372.8 million; 4.29% and 12.7 years at 30 September 2017.

The net debt of the company is in the region of £361.0 million This equates to 49.5% adjusted gearing at 31 March 2018 (30 September 2017: £340.7 million; 49.5%).

MXF : MedicX reports on positive performance

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