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Empiric Student Property Announce Latest Financials

Posted by Richard Ward in

Image courtesy of Flickr, Creative Commons

Empiric Student Property has reported its latest trading update for the six months ending 30 June 2018, recording a 6.2% increase in its portfolio valuation to £945.2 million (31 Dec 2017: £890.1 million).

On a like-for-like basis, Empiric's property portfolio increased by 3.0%, whilst the company's net asset value per share increased by 1.1% to 105.54 pence.

The company reported a gross margin of 62.3% compared to 60.4% in the first half of 2017, reflecting progress in reducing property costs and annualised rent on its 87 operating properties of £66.6 million for the 2017-18 academic year.

As of August 14th, bookings were recorded at 87%, putting the business on track to report an occupancy rate of 97% for the 2018-19 academic year.

Like-for-like income growth was reported at above 6.0% for 2018-19, which is attributed to annualised student rental growth of 2.0% and an increase in the weighted average lease term from 48.5 weeks to 50.5.

Commenting on the results, Stuart Beevor, Acting Non-Executive Chairman said: "This has been a positive six months for the Group and while there is more to do, we are confident that we are on track to deliver our target levels of performance for the full year and beyond."

"Empiric has attractive assets in the right locations, giving us a portfolio that would be difficult to replicate. We also have a strong leadership team, with a clear plan for maximising the performance of those assets. As the operational transformation takes effect, and the financial results reflect that transformation, management is able to extend its focus to the further enhancement of NAV growth. This will be achieved through deploying the proceeds of the sale of non-core assets into development and forward funding projects in our core locations."

"Our total return target remains at 10% p.a. based on our expectations for the performance of our stabilised operating portfolio and development programme."