(Alliance News) - Empiric Student Property PLC on Tuesday reported rises in revenue, profit and net asset value in the first half of 2019.
In the six months to June 30, revenue grew by 14% to GBP35.7 million from GBP31.3 million with pretax profit rising by 33% to GBP28.8 million from GBP21.7 million.
The student accommodation provider reported a net asset value per share as at June 30 of 108.45 pence, up 2.2% from 106.14p in December. Its property valuation rose 5.9% year-on-year to GBP1.00 billion from GBP945.0 million.
Empiric said it is confident of meeting its "financial and operational targets for the year".
The company will pay a total first half dividend of 2.5 pence per share, flat year-on-year.
Empiric reported that its portfolio contained 9,401 beds from 95 assets. Looking ahead, 687 more beds are in the development pipeline and area expected to be delivered over the next three academic years. From September however, 240 beds will come out of operation while the Emily Davies asset in Southampton is redeveloped.
The firm has achieved 85% bookings for the 2019-20 academic year.
The fourth quarter, when most university academic years begin, is traditionally the strongest for the Empiric, with the third quarter often weaker due to turnaround costs between tenancy periods.
For the full-year 2019, Empiric anticipates a gross margin above 67%. For 2018, it achieved a gross margin of 62%.
Chief Executive Tim Attlee said: "We have made good progress over the last six months and have delivered the most significant part of our operational transformation, from being a real estate owner to a fully integrated operational business with customer service at its heart.
"We continue to develop a dynamic and well-targeted digital marketing platform, and bookings for the 2019/20 academic year are progressing well. We are continuing to improve our financial and operational performance, which remains in line with market guidance, and we are confident in the outlook for our business."
Shares in Empiric were trading 1.4% higher at 91.72 pence each in London on Tuesday morning.
Empiric (ESP)