REG - Empiric Student Prop - BUSINESS AND TRADING UPDATE

Empiric Student PropertyAnnouncement

22/05/2024 07:00

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RNS Number : 3749P  Empiric Student Property PLC  22 May 2024

Empiric Student Property plc

("Empiric" or the "Company" or, together with its subsidiaries, the "Group")

 

BUSINESS AND TRADING UPDATE

 

Confidence in outlook for the year, with business poised for growth

 

Empiric Student Property plc (ticker: ESP), the owner and operator of premium,
studio-led student accommodation aligned to top-tier universities, is pleased
to provide a business and trading update as at 22 May 2024.

 

Highlights

 

·   Revenue occupancy for academic year 2024/25 underpins confidence that
our portfolio will again be effectively full for a third consecutive year

·      Like for like growth in average weekly rents to exceed 6% for
academic year 2024/25

·      Potential JV discussions continue to progress positively

·      Second tranche of refinancing concluded, removing refinancing
risk until 2028

 

 

Duncan Garrood, Chief Executive Officer of Empiric Student Property plc, said:

"The booking cycle for the new 2024/25 academic year continues to demonstrate
the resilience of demand for our high quality PBSA offer, providing confidence
in the continued delivery of strong occupancy and rental growth into 2025 and
beyond.

 

"The business is poised for growth. We're progressing schemes through the
planning process and continue to make good progress with potential JV
discussions."

 

Academic year 2024/25

We are encouraged by another strong sales performance for the forthcoming
2024/25 academic year, with 80 per cent of our income now contractually
secured. We continue to expect to deliver another year of strong rental
growth, with like for like rent anticipated to grow by at least six per cent.
We remain confident that the portfolio will be effectively full for the third
consecutive year in a row.

 

To date, the year has seen another very strong rebooker performance, exceeding
expectations and reflecting continued demand for our premium accommodation and
service proposition. This has also contributed to improving customer
satisfaction scores for our Hello Student operating brand.

 

Portfolio management

A planning application has recently been submitted to facilitate an extension
and full refurbishment of our existing operational site at Victoria Point,
Manchester. If successful, the redeveloped scheme would deliver over 200 new
PBSA beds into this acutely undersupplied city.

 

Following the acquisition of College House, Bristol, in February 2024, a
planning application has been submitted to facilitate change of use and the
delivery of over 50 new PBSA beds into this strong operational cluster by
academic year 2025/26. We have also successfully let the property's vacant
retail unit to a local bakery.

 

Discussions in respect of a proposed joint venture focussed on the roll out of
our exclusive Post Graduate product, continue to progress well.

 

We continue to actively consider high-quality, well located investment
opportunities complementary to our core strategy with over £30.0m of assets
remaining under offer.

 

Debt & liquidity

 

As at 31 March 2024, pro forma EPRA LTV was 32.5 per cent (based on 31
December 2023 valuations), with cash and available facilities of £49.3
million.

 

Following completion of the second tranche of refinancing, in line with
guidance provided, the weighted average cost of debt now stands at 4.6 per
cent. The weighted average term to maturity is 5.3 years, with the next
material refinancing not now due until 2028.

 

Dividends

Alongside our full year results in March 2024, we set out our expectation of
meeting a minimum full year dividend of 3.5 pence per share for 2024. Today we
have declared our first quarter dividend of 0.875 pence per share, in line
with this target.

 

ENDS

 

 

FOR FURTHER INFORMATION ON THE COMPANY, PLEASE CONTACT:

 Empiric Student Property plc                                 (via FTI Consulting below)
 Duncan Garrood (Chief Executive Officer)
 Donald Grant (Chief Financial & Sustainability Officer)

 Jefferies International Limited                              020 7029 8000
 Tom Yeadon
 Andrew Morris

 Peel Hunt LLP                                                020 7418 8900
 Capel Irwin

 Carl Gough

 FTI Consulting                                               020 3727 1000

 Dido Laurimore                                               empiric@fticonsulting.com (mailto:empiric@fticonsulting.com)

 Eve Kirmatzis

The Company's LEI is 213800FPF38IBPRFPU87.

 

Further information on Empiric can be found on the Company's website at
www.empiric.co.uk (http://www.empiric.co.uk/) .

 

Notes:

Empiric Student Property plc is a leading provider and operator of modern,
predominantly direct-let, premium student accommodation serving key UK
universities. Investing in both operating and development assets, Empiric is a
fully integrated operational student property business focused on premium
studio-led accommodation managed through its Hello Student operating platform,
that is attractive to affluent growing student segments.

 

The Company, an internally managed real estate investment trust ("REIT")
incorporated in England and Wales, listed on the premium listing segment of
the Official List of the Financial Conduct Authority and was admitted to
trading on the main market for listed securities of the London Stock Exchange
in June 2014. The Company is classified as a commercial company listed under
chapter 6 of the UK Listing rules and as such is not an alternative investment
fund ("AIF") for the purposes of the Alternative Investment Fund Managers
Directive ("AIFMD") and is not required to provide investors with a Key
information Document ("KID") in accordance with the Packaged Retail and
Insurance-based Investment Products ("PRIIPs") regulations.

 

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