(Alliance News) - Empiric Student Property PLC on Monday said a gradual acceleration in bookings as university applications increase gives it "cautious optimism" for a return to normal occupancy levels.
Bookings for the 2021-22 academic year are at 40%. That's lower than would have been expected at this time of year before the pandemic, but bookings are slowly speeding up, the company said.
The real estate investment trust, which owns student accommodation in UK city centres, expects the sales cycle to be "significantly back-ended" as restrictions ease. University applications for 2021-22 are showing "encouraging growth", with those from the UK up 11% and China up 21%.
Occupancy for the current academic year remains at 65% and rent collection is in line with the usual collection profile, the company said.
London-based Empric also said it sold a non-core asset in Exeter for GBP11.1 million, which is more than its book value as of December 31.
"We remain confident that our strongly differentiated premium accommodation for students... provide us with a compelling competitive advantage, especially in a Covid-19 affected world," Chief Executive Duncan Garrood said.
Shares were down 0.5% to 87.60 pence in London. They're up 17% year-to-date, but remain off pre-pandemic levels of over 100 pence each as students have stayed at home or cancelled leases.
By Ivan Edwards; ivanedwards@alliancenews.com
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Empiric (ESP)