Investment summary

Last week’s IMS confirmed further investment, with acquisitions and new construction in Q1. The most recent portfolio valuation (end December 2011) was £246.7m, a 5.87% net initial yield and £0.9m underlying increase over the quarter. MedicX is in a strong position to pursue further growth, with £15m of cash and £30m of undrawn debt (Deutsche Postbank facility) at end Q1 and terms agreed on a new £50m 20-year facility with Aviva. There is a £86.5m pipeline of investment opportunities, £29.8m already approved. The statement confirmed the intention referred to at the results in early December, to raise new equity. The broad structure is a c £45m open offer, placing and offer for subscription. Details will be set out in a prospectus published later this month, with dealings likely to start towards the end of February.

Last updated on 26/01/2012

Industry outlook

The Health & Social Care Bill confirms the government's intention to transfer budget responsibility from PCTs to GPs over the next two years. The pressure on the NHS to extract better returns from a finite budget should focus attention on further modernisation of the primary care estate, which is positive news for sector investors such as MedicX. A March 2010 BMA report stated that 60% of GPs still work from unsuitable premises, with 75% unhappy with their premises.

Last updated on 09/12/2011