Investor information
Investment Overview

Investment Overview

Investment overview

Empiric Student Property plc (LSE: ESP) is an internally managed UK REIT investing in modern, premium student accommodation located in prime city centre locations in top university towns and cities in the UK. The Company listed on the Main Market (Premium Listing) of the London Stock Exchange in June 2014.

Financial highlights (as at 31 December 2016)

 

  • As at 31 December 2016, our portfolio was valued at £721.3m (30 June 2016: £523.9m).
  • Our portfolio of operating assets had gross annualised income of £52.1m as at 31 December 2016 (increase of 57.4% over 30 June 2016).
  • We have paid out dividends in respect of the six month period ended 31 December 2016 equating to 3.05p per share (12 months to 30 June 2016: 6.0p per share).
  • We raised an additional £143.4m of new debt .

Operational Highlights (for the six months to 31 December 2016)

  • 14 new assets (1,142 beds) were contracted in the six months to 31 December 2016.
  • 2,515 new beds generating revenue for 2016/17 academic year, including 1,728 beds from 13 newly completed developments.
  • Portfolio now consists of 89 assets (8,504 beds) in 30 prime UK cities and towns as at 31 December 2016, continued progress to the IPO target of 10,000 beds within five years.
  • Average valuation yield on the portfolio of operating assets at 31 December 2016 was 5.9% compared with average yield on acquisition or cost of 6.5%.

Post Balance Sheet Highlights

  • Acquired one new standing asset (Foss Studios, 220 beds) and one forward funded asset (Percy’s Lane, 106 beds) in York.
  • Acquired the remaining 50 per cent. share in joint venture asset (Glasgow, Willowbank) previously owned by an investment fund affiliated with Revcap Advisors Limited.
  • Agreed a £10m, three year unsecured loan with First Commercial Bank which has been drawn down.

Notes

1 The Company budgets and models on the basis of 97% occupancy. Occupancy or income of the operational portfolio to this level and in excess is considered fully let.

Investment Objective

Empiric’s investment objective is to provide shareholders with regular, sustainable and growing (at least in line with the RPI inflation index) dividends, together with the potential for capital appreciation over the medium to long-term.

Investment Policy

Empiric intends to meet its investment objective through acquiring, owning, leasing, developing and managing student residential accommodation in the UK across multiple formats. We let to students in higher education on direct tenancy agreements and on other longer term lease arrangements, as appropriate. We invest in and develop high-quality, modern student accommodation, with a focus on quality, predominantly positioned in prime, city-centre locations in top university cities and towns around the UK, therefore benefitting from strong geographic risk diversification. Full Investment Policy is set out under Company Documents.

In this section

Share price chart, regulatory news, reports and more...

8%

The growth of full-time student numbers in ESPs locations vs 5% nationally over 5 years

2.3

The number of students who require a bed for every PBSA bed in the UK, undersupply is worsening over time

18.4%

Rental costs up 18.4% between 2012 and 2016, significantly outperforming RPI

23%

The increase in full-time student population in the last ten years

Questions? Get in touch.

Contact Us

Empiric Head Office
Empiric Student Property plc
Swan House, 17-19 Stratford Place, London W1C 1BQ

info@empiric.co.uk
+44 (0)20 3828 8700

Media Contact

James Benjamin
Partner
Newgate Communications LLP

empiric@newgatecomms.com
+44 (0)20 7680 6550

Broker

Stuart Klein
Managing Director, Corporate Broking
Jefferies International Ltd

stuart.klein@jefferies.com
+44 (0) 20 7029 8000