Investment summary

MedicX raised £37.2m gross in March, ie issued 51.7m shares at 72p, above NAV in line with previous issues. January's IMS confirmed an £86.5m approved investment pipeline and recent acquisitions – c £29m purchase including debt of six fully-let assets – came from that source. It is in a strong position to grow earnings over the next two years, with £187m of debt facilities in place at an average all-in 4.48% fixed rate vs a c 6% net initial yield on new acquisitions. It is well on track to achieve its target £80m of acquisitions this year and c £60m in FY13.

Last updated on 23/04/2012

Industry outlook

The Health & Social Care Bill, passed at end March after a year of debate, looks positive for primary care. It transfers budget responsibility from PCTs to GPs, to help the NHS extract better returns from a finite budget. Further modernisation of the primary care estate would benefit 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 23/04/2012