Empiric Student Property ‘poised for growth’ as rent income rises
Empiric Student Property said it is “poised for growth” over the 2024 academic year as income from rents continues to rise.
The firm, which owns and operates student accomodation at top UK universities, said it expects like for like growth in average weekly rents to exceed six per cent.
Empiric noted it had seen a “very strong rebooker performance,” which exceeded expectations and reflected “continued demand” for its accomodation.
Strong sales for the forthcoming 12 months means 80 per cent of full-year income is already contractually secured, it added.
Dividends for the first quarter came in at 0.88p per share, in line with a full-year target of 3.5p per share.
Chief Executive Officer Duncan Garrood, said: “The booking cycle for the new 2024/25 academic year continues to demonstrate the resilience of demand for our high quality offer, providing confidence in the continued delivery of strong occupancy and rental growth into 2025 and beyond.”
The business has overseen a significant expansion of its portfolio of student properties.
A planning application was recently submitted to extend and refurbish the company’s existing site at Victoria Point, Manchester. If successful, the redevelopment will deliver over 200 new purpose-built student accomodation (PBSA) beds to the city.
Empiric is also applying to build 50 new PBSA beds in Bristol following its acquisition of College House in February 2024, and is exploring options for a joint venture to roll out a new offering for post grads.
“We continue to actively consider high-quality, well located investment opportunities complementary to our core strategy with over £30m of assets remaining under offer,” the group said in a statement to markets.
It comes after a booming update in March saw Empiric Student Property’s earnings skyrocket as the number of full-time students in the UK reached over 2.2m.
In 2023, some 22 per cent of rooms were sold to students who were already staying with them, the highest level on record.