Last checked at 10 Feb 2021 07:00
10 February 2021
Empiric Student Property plc
("Empiric" or the "Company" or, together with its subsidiaries, the "Group")
UPDATE ON CONTINUING SUPPORT TO STUDENTS AND TRADING
Empiric Student Property plc (ticker: ESP), the owner and operator of premium student accommodation across the UK, today provides an update on the continuing support we provide to our residents and an update on trading.
As a responsible owner and operator of predominantly direct-let, premium UK student accommodation, the Group continues to support students through providing Covid-19 secure homes, critical services, and assistance to ensure the safety and wellbeing of our residents and staff.
The Group supported its students throughout 2020 and remains committed to supporting students who have been further impacted by the UK Government's latest Covid-19 lockdown and associated restrictions. We continue to look favourably upon requests on a case-by-case basis from students seeking to amend their rent and lease obligations for the current semester if they are unable to occupy their rooms at this time.
We also remain committed to supporting residents who currently occupy their rooms at the Group's properties. Our accommodation is a person's home and often residents do not have alternative accommodation. This is particularly important for international students who comprise around 60% of Empiric's residents for the current academic year 2020/21. All our buildings remain open, staffed, maintained, and operating strictly in line with Government guidance. We are continuing to work closely with students, universities and wider stakeholders, and by following Government guidance we are ensuring that our residents, colleagues, business partners and the communities in which we operate remain safe and secure.
On 23 October 2020, we announced revenue occupancy of 70% for the academic year 2020/21, which included just under 10% of occupancy from students who were yet to check-in. Following further progress with the late checking-in of students and adjusting for the support we have provided to students since January 2021 as a result of the further national lockdown, revenue occupancy has reduced to 65% to date, which includes 2% of students still to check-in now or at a later date in the academic year. The collection of rents remains in line with our usual collection profile and the physical occupancy level in our buildings is currently approximately 50% of total operational rooms. Until there is greater certainty on when the current national lockdown will end, as well as students and universities intentions for the remainder of the current academic term and year, it is not possible to provide further guidance on revenue for the current academic year.
At 31 December 2020, the Group LTV was 35.4%, with cash and undrawn debt available of £63.9 million at the same date. The Group remains fully compliant with its banking covenants.
The Company will provide a further update at the time of its annual results for the year ended 31 December 2020, which are on Wednesday, 17 March 2021.
Duncan Garrood, Chief Executive Officer of Empiric Student Property plc, commented:
"Our top priority remains the health, safety and welfare of our residents, employees and wider stakeholders. We recognise that these are again particularly challenging times for all students, and we remain committed to supporting and doing the right thing by each student on a case-by-case basis, whilst also protecting the long-term value of the Group."
FOR FURTHER INFORMATION ON THE COMPANY, PLEASE CONTACT:
Empiric Student Property plc | (via Maitland/AMO below) |
Duncan Garrood (Chief Executive Officer) | |
Lynne Fennah (Chief Financial & Operating Officer) | |
Jefferies International Limited | 020 7029 8000 |
Stuart Klein | |
Tom Yeadon | |
RBC Europe Limited (trading as RBC Capital Markets) | 020 7653 4000 |
Charlie Foster Marcus Jackson | |
Maitland/AMO (Communications Adviser) | 07747 113 930 |
James Benjamin | 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, predominantly direct-let, premium student accommodation located in high-demand university towns and cities across the UK. Investing in both operating and development assets, Empiric is a fully integrated operational student property business focused on premium studio-led accommodation managed through its Hello Student® operating platform, that is attractive to affluent growing student segments.
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.