GCP Student Living reports a total shareholder return for the six month period to 31 December 2015 of 7.8%. The EPRA NAV (cum-income) per ordinary share at the end of the period was 135.35 pence. Dividends of 2.82 pence per share were paid or declared in the period in line with target.
All properties are fully occupied and they expect rental growth of 4.5% for the 2015/16 academic year. The external market valuation of their property portfolio was £400.5m, which represents a valuation uplift of £21.7m or 5.7% in the six month period to 31 December 2015. They say the valuation increase has been driven by gains at acquisition, rental growth and the high levels of demand for student accommodation driving upward pressure on asset prices impacting yields across the sector. The Company experienced yield compression of 26 bps across the portfolio, giving an average yield of 5.04%.
They bought three further properties in September 2015, doubling the size of the Company’s investment portfolio to c GBP400m.
Net debt-to-property value at 31 December 2015 was 32% – this excludes the impact of the deal they did after the period-end when they acquired Water Lane Apartments, a modern, private, student accommodation residence in Bristol.
They say the removal of the student cap for the 2015/16 academic year has increased the supply/demand imbalance in markets with well-regarded Higher Education Institutions and strong international student numbers, with UCAS data showing a record intake of undergraduates entering UK higher education.
DIGS : Record student intake good news for GCP Student Living