Assura : Sep20InterimAccounts.pdf

Interim Report

For the six months ended 30 September 2020

1

CEO statement

In a unprecedented first half of the year, in which the whole team has

worked remotely, I'm pleased to report another period of strong

delivery and progress for Assura.

At the start of the period our shareholderssupported a £185 million equity raise, which we launched to fund our pipeline of development and acquisitionopportunities.Following this investment activity in the first half, in spite of the pandemic, we have delivered ahead of our expectations and have continued to identify attractive opportunitiesto replenish our pipeline for further growth.

With this strong investment activity,we also looked to the debt markets in September, to launch our £300 million debut Social Bond. Again, we were delighted with the support we received from our debt providers which reflects positively on the SixBySix social impact strategy that we launchedin the period. This included a £2.5 million initial contributionto the Assura Community Fund, which we have established to support charities, voluntaryorganisationsand community groups across the UK around Assura'shealthcare buildings, to support healthier communities for then public benefit.

Financialandoperationalperformance

Assura'sbusiness and our abilityto deliver on our purpose - to create outstandingspaces for health services in our communities - is built on the reliabilityand resilience of our long-term, secure cash flows. Even in these most challenging of circumstances, we have retained our normal patterns of cash collection - supported by a weighted average unexpired lease term ('WAULT') of 11.9 years and a strong financial position(demonstrated by our A- credit rating from Fitch RatingsLtd).

While remaining resilient, Assura hasconsistently demonstrated an abilityto identifyand secure new opportunitiesfor growth and to respond to the NHS's fast-evolving needs, serving the medical teams and patientsusing our buildingsthrough our uniquemanagement, investment and development capabilities.

In the first half of the year, the investment team continued their strong track record of investing in new properties, adding20 to our portfolio for total considerationof £80 million,delivering in excess of the £67 million pipeline we had in place at March 2020.

Similarly,having grown the number of schemes on site over the past two years, our development team is now seeing an increased level of schemes reach completion adding new rent-generating assets to the portfolio.Of the 15 on site at year end, six (total cost £38 million)have reached completion in the first half (includingthe UK's first certified Dementia-Friendly medical centre in Cinderford) and we expect a similar level in the second halfbased on current plannedcompletion dates.

We have maintained the number of schemes on site with six schemes starting in the first half. These will provide thousandsof patientsin Leeds, Colney, Preston, Stourport, Kelsall and Beaconsfield with new high qualitypremises that will house primary care, support and many ancillaryservices that these communities need. In total we are currently on site with 15 schemes that will serve 220,000 patients.

The portfoliomanagement team have continued to generate momentum in asset enhancement activity. In the first half we completed 13 regears (existing rent roll £1.1 million) adding17 years to the WAULT on those properties, completing one asset enhancement project at EastfieldMedical Centre in Scarborough and with three more (total capital spend £1.2 million)on site and scheduled to complete in the current financialyear.

Despite some rent reviews taking longer due to COVID-19 delaying processes across statutory entities, we have also successfully achieved a 1.7% weighted annualuplifton the 129 reviews completed in the period.

All of these activities have enabled us to increase our total contracted rental income to £1.47 billion(March 2020: £1.43 billion)and increase our WAULT to 11.9 years (March 2020: 11.7 years).

Our portfoliohas increased 6% in the six months to £2.3 billionand our passing rent roll is up 4% to £113.3 million.Our adjusted EPRA earnings, excluding the one-off impact of the £2.5 milliondonation to the Assura Community Fund, have increased 9% to £35.8 million,remaining flat at 1.4 pence on a per share basis. Taking into account the positive portfoliovaluationmovement in the period, our net profit is £43.8 million or 1.7 pence per share.

In May,we announceda 1.9% increase in the quarterlydividend payment to 0.71 pence per share with effect from the July 2020 payment.

2

Assuraoutlook

We continue to use our market knowledge and long-established relationshipsto source new opportunitiesacross both investment and development, while also continuallyreviewing our existing portfoliofor value enhancement initiatives.

In development, we are on site at 15 sites with a gross development spend of £77 million,an immediate pipelineof £65 million of development opportunitiesthat are expected to commence within the next 12 months, and an extended pipeline of £207 millionof further opportunitieswhere Assura is the exclusive partner. We have £14 million of asset enhancement capitalprojects in the immediate pipeline with acquisition opportunitiesin legal handstotalling £90 million.

We have made good early steps against our SixBySix ambition-

that by 2026 six million people will have benefitted from improvements to and through our healthcare buildings- launchingthe Assura Community Fund with a £2.5 millioninitial contributionand making exciting plansfor our other pledges. I'm delighted that our positive social impact was recognised in the debt markets in September when we successfully launchedour debut £300 millionSocial Bond. I look forward to updating you on our further progress on this over the coming months and years.

Marketoutlook

At the year end, which came during the first COVID-19 lockdown, we talked about how healthcare provision in the UK had been transformed over a very short period of time with the NHS responding quicklyto the challenging requirements of dealing with the pandemic. The resilience and adaptabilityof the GPs and wider primary care teams using our buildings,as they have continued to meet patients' needs through a combinationof remote and physicalappointments,has been remarkable. However, their workloadhas onlyincreased in this period and the anticipated backlog of non-COVID-19 treatments continuesto build.Further support will be required.

In this period we have been working not just with professionals using our buildingsbut also with organisationssuch as the National Associationof Primary Care, the Patients Associationand Dimensions. This will help to ensure that we are supporting the NHS as it evolves the relationshipbetween remote and face-to- face provisionin primary care and deepens cooperationbetween primary and acute care, as providers look to shift more services away from hospitalsand into a community setting.

This is further supported by the NHS increasinglymoving to Integrated Care Systems, where all participantsin a local health system work together. We are actively responding to this trend by working much more closely with scale primary care providers, local

authoritiesand NHS Trusts as we lookto ensure we provide the qualityhealth spaces in the community that the system so badly needs.

It is essential that there is further funding for this crucial investment in healthcare infrastructure, in order to increase the capacitythat is needed to support these trends. In its submission to the Spending Review this autumn, the British Medical Associationcalled for at least £1bn of urgent capital investment in GP premises. This would create extra capacityfor the additional staff needed to deliver the commitment of increasing access to general practice, as well as ongoing COVID-19 funding to increase premises capacity directly in dealing with the pandemic.

To conclude, Assura remains well placed, with the financial strength, innovative wherewithal and necessary skillsto help support the needs of the NHS. We continue to look forward to the future with confidence in our prospects.

JonathanMurphy

CEO 16November2020

3

CFO review

For the six months ended 30 September 2020

As I said in our year end results in May,our business has remained resilient through the current challenging times. Rent collectionshave remained in line with our normal patterns, and we have agreed payment planswhere appropriatewith a small number of pharmacy and ancillaryservice tenants for quarter rent due at March and June. Agreed rent concessions total less than £0.1 million.

We are also delighted to have received continued support from our equity shareholdersand our external debt providers. We completed a £185 million equity raise in April to invest in our pipeline of developments and acquisitionopportunities, extended our RCF to November 2024, and successfully launched a 10 year £300 million Social Bond in September.

This leaves us well placed to continue to deliver our pipeline of opportunities.

AlternativePerformanceMeasures

("APMs")

The financialperformance for the period is reported includinga number of APMs (financialmeasures not defined under IFRS). We believe that includingthese alongside IFRS measures provides additionalinformationto help understand the financial performance for the period, in particularin respect of EPRA performance measures which are designed to aid compatibility across real estate companies. Explanationsto define why the APM is used and calculationsof the measures, with reconciliationsback to reported IFRS measured normallyin the Glossary, are included where possible.

In particular,in the current period we have disclosed an adjusted EPRA earnings measure. This has been introduced to exclude the one-off impact of the £2.5 millioncontributionto the Assura Community Fund in the period, so as to ensure readers of the accountscan continue to understand the underlying,recurring cash flows of the property rental business.

Portfolio as at 30 September 2020: £2,259.4 million (31 March 2020: £2,139.0 million)

Our business is based on our investment portfolioof 576 completed properties. This hasa passing rent roll (current contracted annualrent) of £113.3 million(March 2020: £108.9 million),84% (March 2020: 85%) of which is underpinnedby the NHS. The Weighted Average Unexpired Lease

Term ("WAULT") is 11.9 years (March 2020: 11.7 years) and we have total contracted rental income of £1.47 billion(March 2020: £1.43 billion).

At 30 September 2020, our portfolioof completed investment properties was valued at £2,201.2 million (March 2020: £2,093.6 million includinginvestment property held for sale of£20.3 million),which produced a net initialyield ("NIY") of 4.68% (March2020: 4.68%). Taking account of potentiallettings of unoccupied space and any uplift to current market rents on review,our valuers assess the net equivalent yield to be 4.88% (March 2020: 4.94%). Adjusting this RoyalInstitutionof Chartered Surveyors ("RICS") standard measure to reflect the advanced payment of rents, the true equivalentyieldis 4.91% (March2020: 4.96%).

Our EPRA NIY, based on our passing rent roll and latest annual direct property costs, was 4.60% (March 2020: 4.69%).

	Six months	Six months
	ended	ended
	30 Sep 2020	30 Sep 2019
	£m	£m
Net rental
income	54.4	50.6
Valuation
movement	9.6	1.9
Total
Property
Return	64.0	52.5

Expressed as a percentage of opening investment property plus additions,Total Property Return for the six months was 2.9% compared with 2.6% in 2019.

The net valuationgain in the six months of £9.6 millionrepresents a modest 0.5% uplift on a like-for-like basisnet of movements relating to properties acquired in the period. The valuationgain is reflective of our successful asset enhancement activity, recognising an 8% uplift on properties with a lease regear, and 2% on properties with a rent review increase.

The NIY on our assets continuesto represent a substantial premium over both the 10-year and 15-year UK gilts which traded at 0.23% and 0.47% respectively at 30 September 2020, having continued to reduce from 0.35% and 0.59% respectively at 31 March 2020.

4

Investmentanddevelopment activity

We have continued to invest during the period, with this expenditure split between investments in completed properties, developments, forward funding projects, extensions and fit-out costs enabling vacant space to be let as follows:

	Six months
	ended
	30 Sep 2020
Spend during the period	£m
Acquisition of completed medical
centres	79.2
Developments/forward funding
arrangements	30.5
Like-for-like portfolio
(improvements)	1.8
Total capital expenditure	111.5

We have completed 20 acquisitionsand six developments during the first six months.

These additionswere at a combined total cost of £118 million with a combined passing rent of £5.5 million(yield on cost of 4.6%) and a WAULT of 19.9 years.

We continue to source properties that meet our investment criteria for future acquisition.As at the half year, the acquisition pipeline standsat £90 million,being opportunitiesthat are currently in solicitors' handsand which we would hope to complete within three to six months, subject to satisfactorydue diligence.

During the period, we disposed of 26 properties where we believed there was lower growth prospects than the rest of the portfolio, generating proceeds of £23 million at a premium over book value of £0.9 million.We are continuallyreviewing our portfoliofor any indicationthat properties no longer meet our investment criteria.

Of the 15 developments that were on site at March 2020, six have completed in the first half of the year, and a further six are currently expected to complete in the second half of the year.

The development team has continuedto have success in converting schemes from the pipeline to live schemes, with six schemes moving on site in the first half, meaning 15 are on site at September 2020.

Of the 15 developments on site at 30 September 2020, eight are in- house developments and seven are under forward funding agreements. These have a combined development cost of £77 million of which £42 million had been spent at the halfyear date.

In additionto the 15 developments currently on site, we have an immediate pipeline of 15 properties (estimated cost £65 million) which we would hope to be on site within 12 months. This takes the total immediate development pipeline to £142 million,which includes an increasing proportionthat is directly sourced and developed by our in-house team, as opposed to forward funded.

During the first six months of the year, we recorded a revaluationgain of £2.0 millionin respect of investment property under construction (September 2019: £0.4 million).

Livedevelopmentsandforwardfundingarrangements

	Estimated
	completion date	Development costs	Costs to date	Size
Beaconsfield	Q4 21	£6.2m	£2.9m	1,668 sqm
Bournville	Q2 21	£4.5m	£4.0m	2,380 sqm
Broadway	Q3 21	£3.6m	£1.9m	1,027 sqm
Canterbury	Q1 21	£3.7m	£3.3m	1,053 sqm
Hereford	Q4 20	£9.2m	£7.6m	2,247 sqm
Kelsall	Q4 21	£2.9m	£0.5m	700 sqm
Launceston	Q1 21	£4.0m	£3.4m	1,267 sqm
Leeds	Q3 21	£3.0m	£1.2m	680 sqm
London Colney	Q3 21	£4.0m	£1.2m	680 sqm
Newtown	Q4 20	£4.7m	£4.4m	1,317 sqm
Preston	Q3 21	£12.9m	£1.6m	1,894 sqm
Stourport	Q4 21	£5.6m	£1.5m	1,950 sqm
Timperley	Q1 21	£2.1m	£0.2m	424 sqm
Tonbridge	Q4 20	£5.6m	£5.3m	1,405 sqm
Ware	Q2 21	£5.3m	£2.9m	1,191 sqm
Total		£77.3m	£41.9m

5

Portfoliomanagement

In the first half,our rent roll grew by £4.4 million (4%) to £113.3 million.£0.5 million of this growth was from rent reviews.

We successfully concluded 129 rent reviews during the six months to generate a weighted average annualrent increase of 1.65% (year to March 2020: 1.79%) on those properties, which is a figure that includes22 reviews we chose not to instigate in the period. These 129 reviews covered £15.0 millionor 14% of our rent roll at the start of the year and the absolute increase of £0.5 millionis a 4% increase on this rent. Our portfoliobenefits from a 31% weighting in fixed,

Retail Price Index ("RPI")and other upliftswhich generated an

average uplift of 2.02% during the period. The majority of our portfoliois subject to open market reviews and these have generated an average upliftof 1.22% during the period.

Our renewed focus on asset enhancement hasresulted in us increasing the number of successfully concluded lease events in the period and developing a strong pipeline of asset enhancement opportunities.

Our total contracted rental income, which is a functionof current rent roll and unexpired lease term on the existing portfolioand on- site developments, has increased from £1.43 billionat March 2020 to £1.47 billionat September 2020, despite the passage of time. We grow our total contracted rental income through additionsto the portfolioand getting developments on site, but increasinglyour focus has been extending the unexpired term on the leases on our existing portfolio("re-gears").

We delivered 13 lease re-gears in the six months covering £1.1 million of current rent and adding 17 years to the WAULT for those particularleases (September 2019: 13 re-gears, £0.9 millionof rent). We have a further 42 re-gears (rent £5.5 million)in legal hands.

We completed one capitalasset enhancement capital project during the six months, at EastfieldMedical Centre in Scarborough. In addition,we are on site with three schemes which are due to complete in the second half of the year, with total spend of £1.2 million and adding£0.1 million to rent roll and an additional20 years to the leases on those properties. We currently have a pipeline of 19 asset enhancement projects we hope to complete in the next two years with estimated spend of £14 millionand additionalrent of £1.0 million.

Our EPRA Vacancy Rate was 1.6% (March 2020: 1.6%).

Our current contracted annualrent roll is £113.3 million and, on a proforma basis, would increase to in excess of £138 milliononce the pipelinesfor acquisitions,developments, rent reviews and asset enhancements are completed.

Administrativeexpenses

The Group analysescost performance by reference to our EPRA Cost Ratios(includingand excluding direct vacancy costs) which were 17.0% and 15.8% respectively (2019: 12.8% and 11.6% respectively).

These ratioswould reduce to 12.5% and 11.4% respectively excluding the impact of the one-off contributionof £2.5 million to the Assura Community Fund which was announced as part of the equity raise in April 2020.

Making a further adjustment to exclude the direct costs of the development team, the EPRA Cost Ratio for the six months is 11.1%. All direct development team costs are taken to the income statement as opposed to being capitalisedwithin the cost of investment property under construction.

We also measure our operating efficiency as the proportionof administrative costs (as per the income statement) to the average gross investment property value (average of opening and closing balance sheet amounts). This ratio during the period was 0.23% (2019: 0.24%) and administrative costs stood at £5.1 million (2019: £4.9 million)excluding the £2.5 million contributionto the Assura Community Fund.

6

Financing

As we continue to grow through acquisitionsand developments, we are delighted to have received support from both the debt and equity markets.

In April we completed an equity placing for £185 million.

In May we extended the term on our RCF to November 2024. The facilityis £300 million and subsequent to the period end we have taken the optionto reduce the facilityto £225 million.

In September we successfully launcheda £300 million,10 year Social Bond which priced at a fixed interest rate of 1.5%. This was launched alongside our Social Finance Framework, which supportsour SixBySix social impact strategy, and the proceeds are to used for investment in eligible acquisitions,developments and refurbishment of publicly accessible primary care and community healthcare centres.

Subsequent to the period end, we have also repaid in full our sole remaining secured debt instrument, the £110 million 4.75% secured bond which was due to mature in December 2021.

		31 Mar
Financing statistics	30 Sep 2020	2020
Net debt (Note 11)	£741.9m	£828.6m
Weighted average debt
maturity	7.7 yrs	6.8 yrs
Weighted average interest
rate	2.68%	3.03%
% of debt at fixed/capped
rates	100%	91%
EBITDA to net interest cover	3.5x	3.6x
LTV (Note 11)	33%	38%

Our LTV ratio currently standsat 33% and will increase in the short term as we utilisecash to fund the pipelineof acquisitions, development and asset enhancement opportunities.Our policy allowsus to reach the range of 40%-50% shouldthe need arise.

As at 30 September 2020, 100% of our debt facilitiesare at fixed interest rates, althoughthis will change as we draw on the revolving credit facility which is at a variable rate. The weighted average debt maturity is 7.7 years.

Net finance costs presented through EPRA earnings in the year amounted to £13.2 million(2019: £12.7 million).

IFRSprofitbeforetax

IFRS profit before tax for the period was £43.8 million (2019: £36.4 million).As can be seen below, EPRA earnings have increased compared with the prior year and we have also recorded an increased valuationgain followingour positive asset enhancement activities.

EPRAearnings

	Six months	Six months
	ended 30	ended 30
	Sep 2020	Sep 2019
	£m	£m
Net rental income	54.4	50.6
Administrative
expenses	(7.6)	(4.9)
Net finance costs	(13.2)	(12.7)
Share-based payments	(0.3)	(0.1)
EPRA earnings	33.3	32.9
Add back one off
Assura Community
Fund contribution	2.5	-
Adjusted EPRA
earnings (exc. one off
donation)	35.8	32.9

The movement in adjusted EPRA earnings (exc. one off donation)can be summarised as follows:

	£m
Six months ended 30 Sep 2019	32.9
Net rental income	3.8
Administrative expenses	(0.2)
Net finance costs	(0.5)
Share-based payments	(0.2)
Six months ended 30 Sep 2020	35.8

Adjusted EPRA earnings has grown 8.8% to £35.8 million in the six monthsto 30 September 2020, reflecting the property acquisitionsand developments completed as well as the impact of our asset management activity with rent reviews and new lettings. This has been offset by increases in administrative expenses and financingcosts.

Earningspershare

The basic earningsper share ("EPS")on profit for the period was 1.7pence (2019: 1.5 pence).

EPRA EPS, which excludes the net impact of valuation movements and gains on disposal,was 1.3 pence (2019: 1.4 pence). Excluding the £2.5 millionAssura Community Fund contribution,adjusted EPRA EPS remained flat at 1.4 pence.

Based on calculationscompleted in accordance with IAS 33, share-based payment schemes are currently expected to be dilutive to EPS, with 1.9 million new shares expected to be issued. The dilutionhas no impact on the basic figures, as illustratedin the table below:

EPS measure (Note 7)	Basic	Diluted
Profit for six months	1.7p	1.7p
EPRA	1.3p	1.3p
Adjusted EPRA (exc. one off
donation)	1.4p	1.4p

7

Dividends

Total dividendssettled in the six months to 30 September 2020 were £35.7 million or 1.4 pence per share (2019: 1.4 pence per share). £5.5 millionof this was satisfied through the issuance of shares via scrip.

As a REIT with requirement to distribute 90% of taxable profits (Property Income Distribution,"PID"),the Group expects to pay

out as dividendsat least 90% of recurring cash profits. The April dividend paid was a PID whilst the July dividend paid was a normal dividend (non-PID),as a result of brought forward tax losses and availablecapitalallowances. The October 2020 dividend has subsequentlybeen paid as a PID and future dividendswill be a mix of PID and normal dividendsas required.

Cashflowmovements

	Six months ended 30 Sep	Six months ended 30
	2020	Sep 2019
	£m	£m
Opening cash	18.5	18.3
Net cash flow from operations	28.0	24.2
Dividends paid	(30.2)	(28.4)
Investment:
Property & other acquisitions	(84.2)	(45.4)
Development expenditure	(30.6)	(27.5)
Sale of properties	23.0	18.5
Financing:
Net proceeds from equity issuance	180.8	-
Net borrowings movement	215.8	66.9
Closing cash	321.1	26.6

Net cash flow from operationsdiffers from EPRA earnings due to movements in working capitalbalances, but this is the cash earned and used to support dividendspaid.

The investment activity in the period has been funded by the proceeds from the April 2020 equity raise, whilst the cash balance at the period end is due to the proceeds from the Social Bond having been received just before the period end.

DilutedEPRANTAmovement

	£m	Pence per share
Diluted EPRA NTA at 31 Mar 2020 (Note 8)	1,301.9	53.9
EPRA earnings	33.3	1.3
Capital (revaluations and capital gains)	10.7	0.4
Dividends	(35.7)	(1.4)
Equity issuance	180.8	1.8
Other	5.4	0.2
Diluted EPRA NTA at 30 Sep 2020 (Note 8)	1,496.4	56.2

Our Total Accounting Return per share (dividendsplusmovement in EPRA net tangible assets as a proportionof opening EPRA net tangible assets) for the six months ended 30 September 2020 is 6.9% of which 1.4 pence per share (2.6%) hasbeen distributed to shareholdersand 2.3 pence per share (4.3%) is the movement on EPRA NTA.

JayneCottam

CFO

16November2020

8

EPRAperformancemeasures

The calculationsbelow are in accordance with the EPRA Best Practice Recommendationsdated October 2019, and in line with the calculationsprovided in our accountsfor the March 2020 year end.

	6 months ended	6 months ended
	30-Sep-20	30-Sep-19
EPRA EPS (p)	1.3	1.4
EPRA Cost Ratio (including direct vacancy costs (%)	17.0	12.8
EPRA Cost Ratio (excluding direct vacancy costs (%)	15.8	11.6
	Sep 2020	Mar 2020
EPRA NRV (p)	61.6	59.6
EPRA NTA (p)	56.2	53.9
EPRA NDV (p)	53.9	52.6
EPRA NIY (%)	4.60	4.69
EPRA "topped-up" NIY (%)	4.61	4.73
EPRA Vacancy Rate (%)	1.6	1.6

In addition,we present the followingmeasures on an adjusted basis, to remove the impact of the one-off £2.5 million contribution to the Assura Community Fund.

	6 months ended	6 months ended
	30-Sep-20	30-Sep-19
Adjusted EPRA EPS (p)	1.4	1.4
Adjusted EPRA Cost Ratio (including direct vacancy costs (%)	12.5	12.8
Adjusted EPRA Cost Ratio (excluding direct vacancy costs (%)	11.4	11.6

NewEPRAmeasuresfornetassetvalue

The October 2019 updated EPRA measures included three new metrics in respect of net asset value:

• EPRA Net Reinstatement Value ("EPRANRV") which assumes that entities never sell assets and aims to represent the value required to rebuild the entity.
• EPRA Net Tangible Assets ("EPRANTA") which assumes that entities buy and sell assets, thereby crystallisingcertain levels of unavoidabledeferred tax.
• EPRA Net DisposalValue ("EPRANDV")which represents the shareholders' value under a disposalscenario, where deferred tax, financialinstruments and certain other adjustmentsare calculated to the full extent of their liability,net of any resulting tax.

For Assura, EPRA NTA is the same as the previous EPRA NAV, EPRA NDV is almost the same as the previousEPRA NNNAV and EPRA NRV is a new number adding back assumed purchasers' costs to the property value. The table below illustratesthe reconciliationof the numbers under the new and previousmeasures.

		New measures			Previous measures
£m	EPRA NRV	EPRA NTA	EPRA NDV		EPRA NAV	EPRA NNNAV
NAV per financial statements	1,496.9	1,496.9	1,496.9	1,496.9	1,496.9
Deferred tax	(0.5)	(0.5)	-	(0.5)	(0.5)
Fair value of debt	-	-	(60.7)	-	(60.7)
Real estate transfer tax	144.8	-	-	-	-
EPRA adjusted NAV	1,641.2	1,496.4	1,436.2	1,496.4	1,435.7
Diluted number of shares	2,664,127,627	2,664,127,627	2,664,127,627	2,664,127,627	2,664,127,627
Diluted EPRA measure per share	61.6p	56.2p	53.9p		56.2p	53.9p

9

Portfolioanalysisbycapitalvalue

	Number of	Total value	Total value
	properties	£m	%
>£10m	42	659.1	30
£5-10m	83	546.8	25
£1-5m	373	944.1	43
<£1m	78	51.2	2
	576	2,201.2	100

Portfolioanalysisbyregion

	Number of	Total value	Total value
	properties	£m	%
North	182	819.9	37
South	222	773.3	35
Midlands	90	409.8	19
Wales	58	139.6	6
Scotland & NI	24	58.6	3
	576	2,201.2	100

Portfolioanalysisbytenantcovenant

	Total rent roll	Total rent roll
	£m	%
GPs	76.6	68
NHS Body	18.6	16
Pharmacy	9.0	8
Other	9.1	8
	113.3	100

10

Interimcondensedconsolidated incomestatement

Forthesixmonthsended30September2020

			Six months ended		Six months ended
			30 September 2020	30 September 2019
			Unaudited			Unaudited
				Capital			Capital
				and non-			and non-
			EPRA	EPRA	Total	EPRA	EPRA	Total
		Note	£m	£m	£m	£m	£m	£m
Gross rental and related income		56.8	1.9	58.7	52.7	2.0	54.7
Property operating expenses		(2.4)	(1.9)	(4.3)	(2.1)	(2.0)	(4.1)
Net rental income		54.4	-	54.4	50.6	-	50.6
Administrative expenses		(7.6)	-	(7.6)	(4.9)	-	(4.9)
Revaluation gain - property	9	-	9.6	9.6	-	1.9	1.9
Share-based payment charge		(0.3)	-	(0.3)	(0.1)	-	(0.1)
Gain on sale of property		-	0.9	0.9	-	1.6	1.6
Finance income			0.1	-	0.1	-	-	-
Finance costs		5	(13.3)	-	(13.3)	(12.7)	-	(12.7)
Profit before taxation		33.3	10.5	43.8	32.9	3.5	36.4
Taxation		6	-	-	-	-	-	-
Profit for the period attributable to		33.3	10.5	43.8	32.9	3.5	36.4
equity holders of the parent
EPS	- basic & diluted	7			1.7p			1.5p
EPRA EPS	- basic & diluted	7	1.3p			1.4p

There were no items of other comprehensive income or expense and therefore the profit for the period also represents the Group'stotal comprehensive income. All income derives from continuing operations.

11

Interimcondensedconsolidated balancesheet

Asat30September2020

			30 September	31 March
			2020	2020
		Note	Unaudited	Audited
		£m	£m
Non-current assets
Investment property		9	2,259.4	2,139.0
Property work in progress			12.6	11.1
Property, plant and equipment			0.2	0.2
Investments			0.3	0.2
Deferred tax asset			0.5	0.5
			2,273.0	2,151.0
Current assets
Cash, cash equivalents and restricted cash		321.1	18.5
Trade and other receivables			22.7	19.1
Property assets held for sale		9	0.4	20.7
			344.2	58.3
Total assets			2,617.2	2,209.3
Current liabilities
Trade and other payables			29.4	32.2
Borrowings		11	11.0	11.0
Head lease liabilities			0.1	0.1
Deferred revenue		10	23.6	22.8
			64.1	66.1
Non-current liabilities
Borrowings		11	1,046.4	830.5
Head lease liabilities			5.5	5.5
Deferred revenue		10	4.3	4.8
			1,056.2	840.8
Total liabilities			1,120.3	906.9
Net assets			1,496.9	1,302.4
Capital and reserves
Share capital		12	266.2	241.3
Share premium			757.0	595.5
Merger reserve			231.2	231.2
Reserves			242.5	234.4
Total equity			1,496.9	1,302.4
NAV per Ordinary Share	- basic	8	56.2p	54.0p
	- diluted	8	56.2p	53.9p
EPRA NTA per Ordinary Share	- basic	8	56.2p	54.0p
	- diluted	8	56.2p	53.9p

The Interim Condensed ConsolidatedFinancialStatements were approved at a meeting of the Board of Directors held on 16 November 2020 and signed on its behalf by:

JonathanMurphy	JayneCottam
CEO	CFO

12

Interimcondensedconsolidatedstatementof changesinequity

Forthesixmonthsended30September2020

		Share	Share	Merger		Total
		capital	premium	reserve	Reserves	equity
	Note	£m	£m	£m	£m	£m
1 April 2019		239.8	587.4	231.2	221.5	1,279.9
Profit attributable to equity holders		-	-	-	36.4	36.4
Total comprehensive income		-	-	-	36.4	36.4
Dividend	12, 14	0.8	3.7	-	(32.8)	(28.3)
Employee share-based incentives		-	-	-	(0.1)	(0.1)
30 September 2019 (Unaudited)		240.6	591.1	231.2	225.0	1,287.9

Profit attributable to equity holders		-	-	-	42.5	42.5
Total comprehensive income		-	-	-	42.5	42.5
Dividend	12, 14	0.7	4.4	-	(33.4)	(28.3)
Employee share-based incentives		-	-	-	0.3	0.3
31 March 2020 (Audited)		241.3	595.5	231.2	234.4	1,302.4

Profit attributable to equity holders		-	-	-	43.8	43.8
Total comprehensive income		-	-	-	43.8	43.8
Issue of Ordinary Shares	12	24.0	161.0	-	-	185.0
Issue costs	12	-	(4.2)	-	-	(4.2)
Dividend	12, 14	0.8	4.7	-	(35.7)	(30.2)
Employee share-based incentives		0.1	-	-	-	0.1
30 September 2020 (Unaudited)		266.2	757.0	231.2	242.5	1,496.9

13

Interimcondensedconsolidatedstatementofcash flow

Forthesixmonthsended30September2020

	Six months ended	Six months ended
	30 September	30 September
	2020	2019
	Unaudited	Unaudited
	£m	£m
Operating activities
Rent received	56.3	50.8
Interest paid and similar charges	(16.2)	(16.7)
Fees received	0.7	0.4
Interest received	0.1	-
Cash paid to suppliers and employees	(12.9)	(10.3)
Net cash inflow from operating activities	28.0	24.2
Investing activities
Purchase of investment property	(83.8)	(45.4)
Development expenditure	(30.6)	(27.5)
Proceeds from sale of property	23.0	18.5
Other investments and property, plant and equipment	(0.4)	-
Net cash outflow from investing activities	(91.8)	(54.4)
Financing activities
Issue of Ordinary Shares	185.0	-
Issue costs paid on issuance of Ordinary Shares	(4.2)	-
Dividends paid	(30.2)	(28.4)
Repayment of loans	(80.0)	(30.0)
Long-term loans drawn down	298.1	97.0
Loan issue costs	(2.3)	(0.1)
Net cash inflow from financing activities	366.4	38.5
Increase in cash, cash equivalents and restricted cash	302.6	8.3
Opening cash, cash equivalents and restricted cash	18.5	18.3
Closing cash, cash equivalents and restricted cash	321.1	26.6

14

Notestotheinterim condensedconsolidated financialstatements

Forthesixmonthsended30

September2020

1. Corporateinformation

The Interim Condensed ConsolidatedFinancialStatements of the Group for the six monthsended 30 September 2020 were authorised for issue in accordance with a resolution of the Directors on 16 November 2020.

Assura plc ("Assura")is a publiclimited company, limited by shares, incorporatedand domiciled in Englandand Wales, and the Company's

OrdinaryShares are publiclytraded on the main market of the London Stock Exchange.

With effect from 1 April 2013, the Group has elected to be treated as a UK REIT. See Note 6 for further details.

Copies of thisstatement are availablefrom the website at www.assuraplc.com.

2. Basis of preparation

The Interim Condensed ConsolidatedFinancialStatements for the six months ended 30 September 2020 have been prepared in accordance with IAS 34 Interim FinancialReporting. These accountscover the six-month accounting period from 1 April 2020 to 30 September 2020 with comparatives for the six-month accounting period from 1 April 2019 to 30 September 2019, or 31 March 2020 for balance sheet amounts.

The Interim Condensed ConsolidatedFinancialStatements do not include all the informationand disclosures required in the AnnualReport, and should be read in conjunctionwith those in the Group'sAnnualReport as at 31 March 2020 which are prepared in accordance with IFRSs as

adopted by the EuropeanUnion ("EU").

The accountsare prepared on a going concern basis(see page 22 for further narrative) and presented in poundssterling rounded to the nearest 0.1 million unless specified otherwise.

3. Accounts

The results for the six months to 30 September 2020 and to 30 September 2019 are unaudited.The interim accountsdo not constitute statutory accounts. The financialinformationfor the year ended 31 March 2020 does not constitute the Company'sstatutory accountsfor that year, but is derived from those accounts. Statutory accounts have been delivered to the Registrar of Companies. The auditor reported on thoseaccounts: their report was unqualified,did not draw attention to any matters by way of emphasis and did not contain a statement under section 498(2) or

(3) of the Companies Act 2006.

4. New standards,interpretationsand amendmentsthereof,adoptedby the Group

The accounting policiesadopted in the preparationof the Interim Condensed ConsolidatedFinancialStatements are consistent with those followed in the preparationof the Group'sAnnualReport for the year ended 31 March 2020.

The Group is not expecting any other new and proposed changes in accounting standardsendorsed by the EU to have a material impact on reported numbers in future periods.

15

5. Finance costs

	Six months	Six months
	ended	ended
	30 Sep 2020	30 Sep 2019
	£m	£m
Interest payable	13.5	12.4
Interest capitalised on developments	(1.1)	(0.3)
Amortisation of loan issue costs	0.9	0.6
Total finance costs	13.3	12.7

6. Taxation on profit on ordinaryactivities

The Group elected to be treated as a UK REIT with effect from 1 April 2013. The UK REIT rules exempt the profitsof the Group'sproperty rental businessfrom corporationtax. Gainson properties are also exempt from tax, provided the properties are not held for trading or sold in the three years post completion of development. The Group will otherwise be subject to corporationtax at 19% in 2020/21 (2019/20: 19%).

Any Group tax charge/(credit) relates to its non-propertyincome. As the Group hassufficient brought forward losses, no tax is due in relation to the current or prior period.

As a REIT, the Group is required to pay Property Income Distributions("PIDs")equal to at least 90% of the Group'srental profit calculated by reference to tax rules rather than accounting standards.During the period, the Group paid a PID within the April 2020 interim dividend. Future dividendswill be a mix of PID and normal dividendsas required. To remain as a UK REIT there are a number of conditionsto be met in respect of the principalcompany of the Group, the Group'squalifyingactivities and the balance of business. The Group remains compliantat 30 September 2020.

7. Earnings per OrdinaryShare

		EPRA		EPRA
	Earnings	earnings	Earnings	earnings
	2020	2020	2019	2019
	£m	£m	£m	£m
Profit for the period from continuing
operations	43.8	43.8	36.4	36.4
Revaluation & fair value adjustments		(9.6)		(1.9)
Profit on sale of property		(0.9)		(1.6)
EPRA earnings		33.3		32.9
Additional Company adjustment
Add back: One off Assura Community Fund
contribution		2.5		-
Adjusted EPRA earnings (exc. Community
Fund contribution)		35.8		32.9
Weighted average number of shares in
issue - basic	2,649,839,615	2,649,839,615	2,402,405,484	2,402,405,484
Potential dilutive impact of share options	1,953,589	1,953,589	1,058,252	1,058,252
Weighted average number of shares in
issue - diluted	2,651,793,204	2,651,793,204	2,403,463,736	2,403,463,736
EPS - basic & diluted	1.7p		1.5p
EPRA EPS - basic & diluted		1.3p		1.4p
Adjusted EPRA EPS (exc. Community Fund)
- basic & diluted		1.4p		1.4p

The current estimated number of shares over which nil-cost optionsmay be issued to participantsis 1.9 million.

16

8. NAV per OrdinaryShare

30 September 2020
£m		IFRS	EPRA NRV	EPRA NTA	EPRA NDV
IFRS net assets		1,496.9	1,496.9	1,496.9	1,496.9
Deferred tax			(0.5)	(0.5)	-
Fair value of debt			-	-	(60.7)
Real estate transfer tax			144.8	-	-
EPRA adjusted NAV			1,641.2	1,496.4	1,436.2
NAV per Ordinary Share - basic & diluted	56.2p	61.6p	56.2p	53.9p
31 March 2020
£m		IFRS	EPRA NRV	EPRA NTA	EPRA NDV
IFRS net assets		1,302.4	1,302.4	1,302.4	1,302.4
Deferred tax			(0.5)	(0.5)	-
Fair value of debt			-	-	(30.9)
Real estate transfer tax			137.5	-	-
EPRA adjusted NAV			1,439.4	1,301.9	1,271.5
NAV per Ordinary Share	- basic	54.0p	59.6p	54.0p	52.6p
	- diluted	53.9p	59.6p	53.9p	52.6p

	30 September 2020	31 March 2020
Number of shares in issue	2,662,174,038	2,413,241,827
Potential dilutive impact of share options (Note 7)	1,953,589	2,506,034
Diluted number of shares in issue	2,664,127,627	2,415,747,861

The EPRA measures set out above are in accordance with the Best Practices Recommendationsof the EuropeanPublic Real Estate Association dated October 2019.

Mark to market adjustments represent fair value and have been provided by the counterpartyas appropriateor by reference to thequoted fair value of financialinstruments.

17

9. Propertyassets

Investment properties are stated at fair value, which hasbeen determined for the Group by Savills Commercial Limited and Jones Lang LaSalle as at 30 September 2020. The properties have been valued individuallyand on the basis of open market value in accordance with RICS Valuation- ProfessionalStandards2020 ("the Red Book").

	30 September 2020			31 March 2020
	Investment			Investment
	property	IPUC	Total	property	IPUC		Total
	£m	£m	£m	£m	£m		£m
Opening market value	2,075.9	57.5	2,133.4	1,952.9	23.0		1,975.9
Additions:
- acquisitions	79.2	-	79.2	119.4	-		119.4
- improvements	1.8	-	1.8	1.7	-		1.7
	81.0	-	81.0	121.1	-		121.1
Development costs	-	30.5	30.5	-	47.3		47.3
Transfers	40.6	(40.6)	-	15.1	(15.1)	-
Transfer to assets held
for sale	-	-	-	(18.9)	-		(18.9)
Capitalised interest	-	1.1	1.1	-	1.0		1.0
Disposals	(1.8)	-	(1.8)	(2.7)	-		(2.7)
Unrealised surplus on
revaluation	7.6	2.0	9.6	8.4	1.3		9.7
Closing market value	2,203.3	50.5	2,253.8	2,075.9	57.5		2,133.4
Add head lease liabilities
recognised separately	5.6	-	5.6	5.6	-		5.6
Closing fair value of
investment property	2,208.9	50.5	2,259.4	2,081.5	57.5		2,139.0
				30 September 2020	31 March 2020
					£m		£m
Market value of investment property as estimated by valuer			2,201.2		2,073.3
Add IPUC					50.5		57.5
Add capitalised lease premiums and rental payments			2.1		2.6
Add head lease liabilities recognised separately				5.6		5.6
Fair value for financial reporting purposes				2,259.4		2,139.0
Completed investment property held for sale				-		20.3
Land held for sale					0.4		0.4
Total property assets					2,259.8		2,159.7
				30 September 2020	31 March 2020
					£m		£m
Investment property					2,201.2		2,073.3
Investment property held for sale				-		20.3
Total completed investment property				2,201.2		2,093.6

18

9. Propertyassets (continued)

	30 September 2020
	£m
Assets held for sale at 1 April 2020	20.7
Disposals during the period	(20.3)
Assets held for sale at 30 September 2020	0.4

As at 30 September 2020, 1 asset is held as availablefor sale (31 March 2020: 24 assets).

Fair value hierarchy

The fair value measurement hierarchy for all investment property and investment property under construction ("IPUC")as at 30 September 2020 was Level 3 - significant unobservable inputs(March 2020: Level 3). There were no transfers between Level 1, 2 or 3 during the half year.

The key unobservable inputsin the property valuationare the equivalent yield and the ERV. A decrease in the equivalent yield appliedto a property would increase the market value. An increase in the ERV of a property would increase the market value. The analysisforunobservable inputsdisclosed within Note 9 of the AnnualReport and Accounts for the year ended 31 March 2020 continues to applyto the portfolioas at 30 September 2020.

10. Deferredrevenue

	30 September 2020	31 March 2020
	£m	£m
Arising from rental received in advance	23.0	22.3
Arising from pharmacy lease premiums received in advance	4.9	5.3
	27.9	27.6
Current	23.6	22.8
Non-current	4.3	4.8
	27.9	27.6

19

11. Borrowings

	30 September 2020	31 March 2020
	£m	£m
At beginning of the period/year	841.5	683.3
Amount issued or drawn down in period/year	298.1	157.0
Amount repaid in period/year	(80.0)	-
Loan issue costs	(3.1)	(0.2)
Amortisation of loan issue costs	0.9	1.4
At the end of the period/year	1,057.4	841.5
Due within one year	11.0	11.0
Due after more than one year	1,046.4	830.5
At the end of the period/year	1,057.4	841.5

The Group has the followingbank facilities:

1. 10-yearsenior unsecured bond of £300 millionat a fixed interest rate of 3.0% maturing July 2028 and 10-year senior unsecured Social Bond of £300 millionat a fixed interest rate of 1.5% maturing September 2030. The Social Bond was launched in accordance with Assura's Social Finance Framework to be used for eligible investment in the acquisition,development and refurbishment of publiclyaccessibleprimary care and community healthcare centres. The bondsare subject to an interest cover requirement of at least 150%, maximum LTV of 65% and prioritydebt not exceeding 0.25:1. In accordance with pricing convention in the bond market, the coupon and quantum of the facilityare set to round figures with the proceeds adjusted based on market rates on the day of pricing.
2. Five-yearclub revolving credit facilitywith Barclays, HSBC, NatWest and Santander for £300 million on an unsecured basis at aninitialmargin of 1.60% above LIBOR subject to LTV, reducing to £225 millionwith effect from May 2021 and expiring in November 2024. The margin increases based on the LTV of the subsidiariesto which the facilityrelates, up to 1.95% where the LTV is in excess of 45%. The facilityis subject to a historicalinterest cover requirement of at least 175% and maximum LTV of 60%. As at 30 September 2020, the facilitywas undrawn(31 March 2020: £80 million drawn). Subsequent to the period end, Assura gave notice to reduce the facilityto £225 million with effect from October 2020.
3. 10-yearnotes in the US private placement market for a total of £100 million.The notes are unsecured, have a fixed interest rate of 2.65% and were drawn in October 2016. An additional£107 million of notes were issued in two series, £47 million drawn in August 2019 and £60 million drawn in October 2019. The notes have maturities of 10 and 15 years respectively and a weighted average interest rate fixed at 2.30%. The facilitiesare subject to a historicalinterest cover requirement of at least 175%, maximum LTV of 60% and a weighted averagelease length of seven years.
4. £150 millionof privately placed notes in two tranches with maturities of eight and 10 years drawn in October 2017. The weighted average coupon is 3.04%. The facilityis subject to a historicalcost interest cover requirement of at least 175%, maximum LTV of 60%and weighted average lease length of seven years.
5. 10-yearsenior secured bond for £110 millionat a fixed interest rate of 4.75% maturing in December 2021. The secured bond carries a LTV covenant of 75% (70% at the point of substitutionof an investment property or cash) and an interest cover requirement of 1.15 times (1.5 times at the point of substitution).In addition,the bond is subject to a WAULT test of 10 years which, if not met, gives the bondholderthe optionto request repayment of £5.5 million every six months. The WAULT of the charged properties is below 10 years at 30 September and £11.0 million has therefore been shown as due within one year, at the optionof the bondholder.At the date of this report, the optionhas not been taken up. Subsequent to the period end, the bond has been repaid full.

The Group has been in compliance with all financialcovenantson all of the above loansas applicablethroughoutthe period.

	30 September 2020	31 March 2020
Net debt and LTV	£m	£m
Investment property	2,208.9	2,081.5
Investment property under construction	50.5	57.5
Held for sale	0.4	20.7
Total property	2,259.8	2,159.7
Loans	1,057.4	841.5
Head lease liabilities	5.6	5.6
Cash	(321.1)	(18.5)
Net debt	741.9	828.6
LTV	33%	38%

20

12. Share capital

	Number of shares	Share capital	Number of shares	Share capital
	30 September	30 September	31 March	31 March
	2020	2020	2020	2020
		£m		£m
Ordinary Shares of 10 pence each
issued and fully paid
At 1 April	2,413,241,827	241.3	2,398,371,795	239.8
Issued 17 April 2019 - scrip	-	-	3,707,485	0.4
Issued 17 July 2019 - scrip	-	-	3,664,995	0.4
Issued 9 August 2019	-	-	323,781	-
Issued 16 October 2019 - scrip	-	-	4,478,732	0.4
Issued 15 January 2020 - scrip	-	-	2,695,039	0.3
Issued 9 April 2020	240,207,920	24.0	-	-
Issued 15 April 2020 - scrip	6,543,440	0.7	-	-
Issued 15 July 2020 - scrip	1,290,983	0.1	-	-
Issued 22 July 2020	676,549	0.1	-	-
Issued 1 September 2020	213,319	-	-	-
Total at 30 September/31 March	2,662,174,038	266.2	2,413,241,827	241.3
Own shares held	-	-	-	-
Total share capital	2,662,174,038	266.2	2,413,241,827	241.3

The OrdinaryShares issued in April 2019, July 2019, October 2019, January2020, April 2020 and July 2020 were issued to shareholderswho elected to receive OrdinaryShares in lieu of a cash dividend under the Company scrip dividend alternative. In the six monthsto30 September 2020, this increased share capitalby £0.8 million and share premium by £4.7 million.

In April 2020, a total of 240,207,920 new OrdinaryShares were placed at a price of 77 pence per share. The equity raise resulted in gross proceeds of £185.0 millionwhich has been allocatedappropriatelybetween share capital (£24.0 million)and share premium (£161.0 million). Issue costs totalling£4.2 million were incurred and have been allocatedagainst share premium.

The OrdinaryShares issued in August 2019, July 2020 and September 2020 relate to employee share awards under the PerformanceShare Plan.

13. Commitments

At the period end the Group had 15 committed developments on site (31 March 2020: 15) with a contracted total expenditure of £77.3 million

(31 March 2020: £80.5 million)of which £41.9 million(31 March 2020: £50.3 million)had been expended. The remaining commitment is

therefore £35.4 million (31 March 2020: £30.2 million).

14. Dividends paid on OrdinaryShares

			Six months ended	Six months ended
			30 September	30 September
		Number of Ordinary	2020	2019
Payment date	Pence per share	Shares	£m	£m
17 April 2019	0.685	2,398,371,795	-	15.6
17 July 2019	0.685	2,402,079,280	-	15.6
15 April 2020	0.697	2,419,785,264	16.8	-
15 July 2020	0.71	2,659,993,187	18.9	-
			35.7	31.2

A dividend of 0.71 pence per share was paid to shareholderson 14 October 2020.

15. Post balancesheet events

Subsequent to 30 September 2020, the revolving credit facilityhas been reduced to £225 million(at the request of Assura) and the £110 million secured bond due 2021 has been repaid in full.

21

Additional statements

Principal risks and uncertainties

The factors identified by the Board as having the potentialto affect the Group'soperating results, financialcontrol and/or the trading price of

its shares were set out in detail in the AnnualReport for the year ended 31 March 2020. These risksinclude strategic items outsidethe control of the Group (such as politicalrisk or new entrants to the market), financialrisks (relating to financing availabletothe Group) and operationalrisks (relating to internal matters and how assets are managed).

The Directors have reconsidered the principalrisks and uncertaintiesfacing the Group. Accordingly,the Directors do not consider that the principalrisksand uncertaintieshave changed significantlysince the publicationof the AnnualReport for the year ended 31 March 2020.

With respect to both COVID-19 and Brexit, the Board continuesto monitor the situationbut as disclosed in the AnnualReport, does not consider either COVID-19 or Brexit, in themselves, to constitute a significantrisk to the business.

Going concern

The Directors continue to adopt the going concern basisof accounting in preparing the financialstatements. The Group'sproperties are substantiallylet with the majorityof rent paid or reimbursed by the NHS and they benefit from a weighted average lease length on the portfolioof 11.9 years. The Group hasfacilitiesfrom a variety of lenders, in additionto the secured and unsecured bonds, andhas remained in compliancewith all covenants throughout the period. In making the assessment, and having considered the continuingeconomic uncertainty,the Directors have reviewed the Group'sfinancialforecasts which cover a period of 18 months beyond the balance sheet date, showing that borrowing facilitiesare adequate and the business can operate within these facilitiesand meet its obligationswhen they fall due for the foreseeable future. There have been no material changes in assumptionsin the forecast from the basisadopted in making the assessment at the previous year end.

Directors'responsibilities statement

The Board confirms to the best of their knowledge:

• that the Interim Condensed ConsolidatedFinancialStatements for the six months to 30 September 2020 have been prepared in accordance with IAS 34 Interim FinancialReporting as adopted by the EuropeanUnion;
• that the Interim Report comprising the CFO review and the principalrisksand uncertaintiesincludesa fair review of the information required by 4.2.7R of the Disclosure and Transparency Rules ("DTR",indicationof important events and their impact during the first six months and description of principalrisks and uncertaintiesfor the remaining six months of the year); and
• the Interim Report includesa fair review of the informationrequired by DTR 4.2.8R (disclosure of related parties' transactionsand changes therein).

The above Directors' responsibilitiesstatement was approved by the Board on 16 November 2020.

JonathanMurphy	JayneCottam
CEO	CFO
16November2020

22

Independentreviewreportto

Assuraplc

Forthesixmonthsended30

September2020

Introduction

We have been engaged by the Company to review the condensed set of financialstatements in the half-yearlyfinancialreport for the six months ended 30 September 2020 which comprise the Interim Condensed ConsolidatedIncome Statement, the Interim Condensed ConsolidatedBalance Sheet, the Interim Condensed ConsolidatedStatement of Changes in Equity,the Interim Condensed Consolidated Statement of Cash Flow and the related Notes 1 to 15. We have read the other informationcontained in the half-yearlyfinancialreport and considered whether it containsany apparentmisstatements or material inconsistencies with the informationin the condensed set of financial statements.

Directors'responsibilities

The half-yearlyfinancialreport is the responsibilityof, and has been approved by, the Directors. The Directors are responsible for preparing the half-yearlyfinancialreport in accordance with the Disclosure and Transparency Rules of the United Kingdom's FinancialConduct Authority.

As disclosed in Note 2, the annualfinancialstatements of the Group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financialstatements included in this half-yearlyfinancialreport has been prepared in accordance with InternationalAccounting Standard 34, "Interim FinancialReporting",as adopted by the EuropeanUnion.

Our responsibility

Our responsibilityis to express to the Company a conclusionon the condensed set of financialstatements in the half-yearlyfinancialreport based on our review.

Scope of review

We conducted our review in accordance with InternationalStandardon Review Engagements (UK and Ireland)2410, "Review of Interim FinancialInformationPerformed by the Independent Auditorof the Entity"issued by the FinancialReporting Council for use in the United Kingdom. A review of interim financialinformationconsists of making inquiries,primarily of persons responsible for financialand accounting matters, and applyinganalyticaland other review procedures. A review is substantiallyless in scope than an audit conductedinaccordance with InternationalStandardson Auditing (UK) and consequently does not enable us to obtainassurance that we would become awareof all significantmatters that might be identified in an audit.Accordingly,we do not express an audit opinion.

Conclusion

Based on our review, nothing hascome to our attentionthat causes us to believe that the condensed set of financialstatements in the half- yearly financialreport for the six months ended 30 September 2020 is not prepared, in all material respects, in accordance withInternational Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.

Use of report

This report is made solely to the Company in accordance with guidance contained in InternationalStandardon Review Engagements (UK and Ireland) 2410 "Review of Interim FinancialInformationPerformed by the Independent Auditor of the Entity"issued by the Auditing Practices Board. Our work has been undertaken so that we might state to the Company those matters we are required to state to it in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibilityto anyone other than the Company, for our work, for this report, or for the conclusionswe have formed.

DeloitteLLP-StatutoryAuditor Manchester,UK 16November2020

23

Glossaryandcalculations

AGM is the AnnualGeneralMeeting.

Average Debt Maturity is each trancheofGroupdebt multipliedby the remainingperiodto its maturityand the resultdividedby totalGroupdebt in issue at the year end.

Average InterestRate is the Grouploaninterestand derivativecosts per annumatthe yearend, dividedby totalGroupdebt in issue at the year end.

British Property Federation ("BPF") is the membership organisation,the voice, of the realestate industry.

Building Research Establishment Environmental AssessmentMethod ("BREEAM") assess the sustainabilityof buildingsagainsta rangeof criteria.

Clinical Commissioning Groups ("CCGs") arethe groupsofGPs and other healthcareprofessionalsresponsiblefor commissioningprimaryand secondary healthcareservicesin theirlocality.

Code or New Code is the UK CorporateGovernanceCode 2018, afullcopy of which can be found on the website of the FinancialReportingCouncil.

Company is Assuraplc.

Direct Property Costs comprisecost of repairsand maintenance,voidcosts, other directirrecoverablepropertyexpenses and rentreviewfees.

District Valuer ("DV") is the commercialarm ofthe ValuationOffice Agency. It providesprofessionalpropertyadviceacrossthe publicsector and in respect of primaryhealthcarerepresentsNHS bodieson mattersof valuations,rent reviewsand initialrentson new developments.

Earnings per Ordinary Share from Continuing Operations ("EPS") is the profit attributableto equityholdersof the parentdividedby the weighted average number of sharesin issue duringthe period.

EBITDA is EPRA earningsbeforetax and net financecosts. In the currentperiod this is £46.5 million,calculatedas net rentalincome (£54.4 million)less administrativeexpenses (£7.6 million)and share-basedpaymentcharge(£0.3 million).

European Public Real EstateAssociation ("EPRA") is the industrybodyfor

EuropeanREITs.EPRAis a registered trademarkof the EuropeanPublicReal

EstateAssociation.

EPRA NAV isIFRS NAV adjusted to adjustcertainassets to fairvalueand exclude long-termitems notexpected to crystallise.Thishas nowbeen replacedby EPRANTA.See Note 8.

EPRA NNNAV is .EPRANAV adjustedto includethe fairvalueofdebt, financial instrumentsand deferredtax Thishas now been replacedby EPRANDV. See Note 8.

EPRA CostRatio is administrativeand operatingcosts dividedby grossrental income. Thisis calculatedboth includingand excluding the directcosts of vacant space.

EPRA earnings is a measure of profitcalculatedin accordancewith EPRA guidelines, designed to give an indicationof the operatingperformanceof the business, excludingone off or non-cashitems such as revaluationmovements and profitorloss on disposal.See Note 7.

EPRA EPS is EPRAearnings,calculatedon aper sharebasis.See Note 7.

EPRA Net Disposal Value ("EPRA NDV") is the balancesheet net assets adjustedto reflect the fairvalueof debt and derivatives.See Note 8.

EPRA Net Reinstatement Value ("EPRANRV") is the balancesheet net assets excludingdeferred tax andadjusted to add backtheoreticalpurchasers'costs thatarededucted fromthe propertyvaluation.See Note 8.

EPRA Net Tangible Assets("EPRA NTA") is the balancesheet net assets excludingdeferred taxation.See Note 8.

EPRA NIYis annualisedrentalincome based on cash rentspassingat the balancesheet date, less non-recoverablepropertyoperatingexpenses, divided by the marketvalueof property,increasedwith (estimated)purchasers'costs. EPRA "topped up" NIYincorporatesan adjustmentto the EPRA NIY in respect of the expirationof rent-freeperiodsor other unexpiredlease incentives.

EPRA Vacancy Rate is the ERV ofvacantspace dividedby the ERVof the whole portfolio.

Equivalent Yield is a weighted averageof the Net InitialYield and Reversionary Yield and representsthe returna propertywillproducebased upon the timing of the income received.The trueequivalentyieldassumes rentsarereceived quarterlyin advance.The nominalequivalentassumes rentsarereceived annuallyin arrears.

Estimated Rental Value ("ERV") is the externalvaluers'opinionasto the open market rentwhich, on the dateof valuation,could reasonablybe expected to be obtainedon a new letting or rentreviewof a property.

GMS is GeneralMedicalServices.

GrossRental Income is the grossaccountingrent receivable.

Group is Assuraplc and its subsidiaries.

IFRS is InternationalFinancialReportingStandardsas adopted bythe European Union.

InterestCover is the number of times net interestpayableis coveredby EBITDA.In the currentperiodnet interestpayableis £13.2 million,EBITDAis £46.5 million,givinginterestcover of 3.5 times.

KPI is a Key PerformanceIndicator.

Like-for-like representsamountscalculatedbased on propertiesowned at the previousyear end.

Loan to Value ("LTV") is the ratioofnet debt to the totalvalueof property assets. See Note 11.

Mark to Marketis the differencebetween the bookvalueofan asset or liability and its market value.

MSCI is an organisationthatprovidesperformanceanalysisformost typesof realestate and producesan independentbenchmarkof propertyreturns.The MSCI AllHealthcareIndexrefers to the MSCI UK AnnualHealthcareProperty Index, incorporatingallpropertiesreportedto MSCI for the 12 monthsto December thatmeet the definitionof healthcare.

NAV is Net Asset Value.

24

Glossaryandcalculations(continued)

Net debt is totalborrowingsplushead lease liabilitiesless cash. As at 30 September 2020, this is £741.9 million beingborrowingsof £1,057.4 million plushead lease liabilitiesof £5.6 million,net of cash totalling£321.1 million.

Net Initial Yield ("NIY") is the annualisedrentsgenerated by an asset, after the deductionof an estimate of annualrecurringirrecoverablepropertyoutgoings, expressed as a percentageof the asset valuation(afternotionalpurchasers' costs). Developmentpropertiesarenot included.

Net Rental Income is the rentalincome receivablein the periodafter payment of directpropertycosts. Net rentalincome is quoted on an accountingbasis.

Operating efficiency is the ratioof administrativecosts (beforeone off charitabledonationof £2.5 million)to the averagegrossinvestmentproperty value.Thisratioduringthe periodequated to 0.23%. Thisis calculatedas administrativeexpense of £5.1 million(£7.6 millionless the £2.5 million donation)dividedby the averagepropertybalanceof £2,199 million(opening £2,139 million plusclosing£2,259 million,dividedby two).

Primary Care Propertyis the propertyoccupied by health servicesproviders who act asthe principalpointof consultationforpatientssuch as GP practices, dentalpractices,communitypharmaciesand high street optometrists.

Property Income Distribution ("PID") is the requireddistributionof income as dividendsunder the REIT regime. It is calculatedas 90% of exempted net income.

PSP is PerformanceSharePlan.

Real EstateInvestment Trust ("REIT") is a listed propertycompanywhich qualifiesfor andhas elected into a tax regime which exempts qualifyingUK profits,arisingfrompropertyrentalincome and gainson investmentproperty disposals,fromcorporationtax, butrequiresthe distributionof a PID.

Rent Reviews take placeat intervalsagreed in the lease (typicallyevery three years)and their purposeis usuallyto adjustthe rentto the currentmarket level at the reviewdate.

Rent Roll is the passingrent (i.e.at a pointin time) being the totalof allthe contractedrentsreserved underthe leases, on an annualbasis.At September 2020 the rentrollwas £113.3 million (March2020: £108.9 million)and the growth in the six monthswas £4.4 million.

Retail Price Index ("RPI") is an officialmeasure of the generallevel ofinflation as reflected in the retailpriceof abasket of goods and servicessuch as energy, food,petrol,housing,householdgoods, travellingfares, etc. RPIis commonly computed on a monthlyand annualbasis.

Reversionary Yield is the anticipatedyieldwhich the initialyieldwill riseto once the rent reachesthe ERV and when the propertyis fullylet. It is calculatedby dividingthe ERVbythe valuation.

RPI Linked Leases arethose leases which haverentreviewswhich are linked to changes in the RPI.

Total Accounting Return is the overallreturngenerated bythe Group includingthe impactof debt. It is calculatedas the movement on EPRANTA (see glossarydefinitionand Note 8) for the periodplusthe dividendspaid, dividedby the openingEPRA NTA.OpeningEPRA NTA (i.e. at 31 March2020) was 53.9 pence per share, closingEPRA NTA was 56.2 pence per share,and

dividendspaid total1.41 pence per sharegivinga returnof 6.9% in the six months.

Total Contracted Rent Roll or Total Contracted Rental Income is the total amountofrent to be received over the remainingterm of leases currently contracted.For example, alease with rent of£100 and a remaininglease term of ten yearswouldhavetotalcontractedrentalincome of £1,000. At September 2020, the totalcontractedrentalincome was £1.47 billion(March 2020: £1.43 billion)and the growth in the six months was £43 million.

Total Property Return is the overallreturngenerated bypropertieson a debt- free basis.It is calculatedas the net rentalincome generated by the portfolio plusthe change in market values,dividedbyopeningpropertyassets plus additions.In the periodto September 2020, the calculationis net rental income of £54.4 millionplusrevaluationof £9.6 milliongivinga returnof £64.0 million,dividedby £2,235.5 million(openinginvestmentproperty£2,066.7 millionand IPUC £57.5 millionplusadditionsof £80.7 millionand development costs of £30.6 million).Thisgives a TotalPropertyReturn in the six monthsof 2.9%.

Total Shareholder Return ("TSR") is the combinationof dividendspaid to shareholdersand the net movement in the sharepriceduringthe period, dividedbythe openingshareprice.The sharepriceat 31 March2020 was 83.5 pence, at 30 September 2020 it was 77.2 pence, and dividendspaidduringthe periodwere 1.41 pence per share.

UK GBC is the UK Green BuildingCouncil.

Weighted Average Unexpired LeaseTerm ("WAULT") is the averagelease term remainingto firstbreak,or expiry,acrossthe portfolioweighted by contractedrentalincome.

Yield on cost is the estimated annualrentof a completed development dividedbythe totalcost of developmentincludingsite valueand financecosts expressed as a percentagereturn.

Yield shift is a movement (usuallyexpressed in basispoints)in the yield of a propertyasset or like-for-likeportfolioovera given period.

Yield compression is a commonlyused term fora reductionin yields.

25

CorporateInformation

Registered Office

The BrewHouse

GreenallsAvenue

Warrington

WA4 6HL

Company Number:9349441

Directors

JayneCottam

JonathanDavies

Louise Fowler

Jenefer Greenwood

JonathanMurphy

Ed Smith

Company Secretary

OrlaBall

Auditor

DeloitteLLP

2 HardmanStreet Manchester M3 3HF

Legal Advisors

CMS Cameron McKennaNabarroOlswang LLP DWF Law LLP

Stockbrokers

J.P.MorganSecuritiesplc 25 Bank Street CanaryWharf London

E14 5JP

Stifel Nicolaus Europe Limited

150 Cheapside London EC2V 6ET

Bankers

BarclaysBankplc

HSBC UK Bankplc

NationalWestminster Bank plc

SantanderUK plc