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(Alliance News) - Empiric Student Property PLC on Wednesday said it expects to report a double-digit fall in revenue this academic year, but continues to see demand for accommodation for the forthcoming academic year.
The student accommodation provider said its buildings continue to be staffed and maintained despite the lockdown.
However, the company said it expects a total reduction in income for the current academic year of up to 12% - about GBP8 million - which is short of the worst-case-scenario reduction in revenue of up to GBP21 million previously announced by the company.
Empiric explained that it has released from rent and lease obligations residents who are either no longer in occupation or, due to university closures, plan not to return to their accommodation.
However, the company noted that 55% of its student accommodation bedrooms continue to be occupied by residents despite university closures.
Looking ahead, Empiric said it continues to receive bookings for the forthcoming academic year, with 47% of rooms now reserved, compared with 54% at the same point last year.
Demand from international students is continuing, albeit at lower levels, but the company said it is starting to see an increase in bookings from the UK domestic market.
The company also noted that its 52-bed development at New Walk in Leicester is expected to complete later this month, in time for the forthcoming academic year.
However, given Empiric's priority of conserving cash during this period of uncertainty, the company said it has deferred the delivery of further three developments until market conditions stabilise.
"Empiric's strategy of owning and operating premium student accommodation in high-demand towns and cities combined with a strong and robust balance sheet puts the group in a strong position to withstand the challenges presented by the Covid-19 pandemic," the company said in its statement Wednesday.
Empiric shares were trading 6.5% higher in London on Wednesday at 62.28 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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