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(Alliance News) - Empiric Student Property PLC on Thursday reported significant increases in half-year profit and revenue as market conditions normalise and strong student demand drives increased occupancy rates for the upcoming academic year.
For the six months ended June 30, pretax profit multiplied to GBP70.3 million from GBP7.0 million a year ago, due to the reduced impact of Covid on the academic year, increased rents and strong student demand.
Total return for the period also multiplied to 11% from 1.1% a year before.
Revenue increased 37% to GBP35.6 million from GBP25.9 million a year prior. This can be attributed to revenue occupancy for the first half, which increased to 86% from 65% a year before.
In addition, net profit from a change in the value of investment properties surged to GBP58.6 million from GBP1.8 million a year prior.
Empiric declared an interim dividend of 0.625p per share. The company said it continues to target a dividend of 2.5p for the full year and will review the target dividend once occupancy levels are confirmed.
Looking ahead, Empiric said there is strong student demand for the upcoming academic year, as occupancy rate for the year ahead sits at 92% to date, which is 10% ahead of pre-pandemic levels. The company now expects to deliver revenue occupancy at the upper end of its guidance, between 90% and 95% for the upcoming academic year, due to market conditions normalising.
The London-based owner and operator of student accommodation noted an increase in re-bookers and postgraduates, and it said it is confident its postgraduate product will have "significant attraction". The firm's postgraduate product is currently piloting in Edinburgh.
Chief Executive Officer Duncan Garrood said: "Despite the wider uncertain backdrop, we are well positioned to provide further attractive growth. We are increasingly confident in the normalisation, and long-term strength and resilience of our market, and of the strong, sustainable growth and value creation potential within our business."
Shares in Empiric Student were up 1.9% at 97.71 pence in London on Thursday morning.
By Dominique Pretorius; dominiquepretorius@alliancenews.com
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