Last checked at 31 Oct 2019 07:00
31 October 2019
Empiric Student Property plc
("Empiric" or the "Company" or, together with its subsidiaries, the "Group")
TRADING UPDATE
The board of Empiric Student Property plc (ticker: ESP) (the "Board"), the owner and operator of premium student accommodation across the UK, is pleased to provide the following update on trading.
Student revenue is expected to be approximately 10% up in full year 2019 compared to full year 2018, driven by an increase in the number of beds, increased occupancy and an increase in revenue generated per bed. The Company is continuing to reduce average cost per bed and expects a reduction of approximately 8% for full year 2019.
Bookings for the 2019/20 academic year are currently at 93%, in line with the corresponding point in the previous academic year. The Company anticipates similar opportunities to sell semester lets as achieved during the 2018/19 academic year, which successfully increased bookings to achieve 97% occupancy. The Company anticipates c. 3% growth in average rents for the 2019/20 academic year.
Full year 2019 performance is on track, with the business expected to achieve a gross margin of around 67% and dividend cover in excess of 85%. Administration costs are expected to be around £9.5 million, slightly below the Company's previous guidance of £10 million.
The Group has also started selling for the 2020/21 academic year, which will be the first full academic year that the Company has the benefit of direct control of its improved and established sales processes for all of its properties. Much of the operational reorganisation has now been achieved and the Company continues to focus on embedding and driving further improved efficiencies across the business through the Group's operational platform.
The Board intends to provide guidance on the Company's full year 2020 in late January 2020.
Tim Attlee, Chief Executive Officer, commented:
"We continue to make good progress in transforming Empiric into a fully integrated operational property business, leaving the Company better placed to deliver improved customer experience and financial performance."
FOR FURTHER INFORMATION ON THE COMPANY, PLEASE CONTACT:
Empiric Student Property plc | (via Maitland/AMO below) |
Tim Attlee (Chief Executive Officer) |
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Lynne Fennah (Chief Financial & Operating Officer) |
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Jefferies International Limited | Tel: 020 7029 8000 |
Gary Gould |
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Stuart Klein |
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Maitland/AMO (Communications Adviser) | Tel: 020 7379 5151 |
James Benjamin | Email: empiric-maitland@maitland.co.uk |
The Company's LEI is 213800FPF38IBPRFPU87.
Further information on Empiric can be found on the Company's website at www.empiric.co.uk.
Notes:
Empiric Student Property plc is a leading provider and operator of modern, direct-let, nominated or leased student accommodation across the UK. Investing in both operating and development assets, Empiric is a multi-niche student property company focused on, (i) providing good quality first year accommodation managed through its Hello Student® operating platform in partnership with universities, (ii) offering a variety of second and third year purpose-built accommodation options for individual students and those wanting a group living environment, and (iii) continuing to expand the Group's existing premium, studio-led accommodation portfolio which is attractive to international and postgraduate students.
The Company, an internally managed real estate investment trust ("REIT") incorporated in England and Wales, listed on the premium listing segment of the Official List of the Financial Conduct Authority and was admitted to trading on the main market for listed securities of the London Stock Exchange in June 2014.