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GCP Student Living moves up to main market

GCP Student Living reports that its EPRA NAV per ordinary share increased by 9%, from 125.51 pence to 136.93 pence as at 30 June 2016. Total operating profit (including valuation gains) was GBP39.3 million (GBP 12.2 million excluding valuation gains). Earnings per share fell from 28.46p to 15.48p and EPRA EPS for the group fell from 5.11p to 0.64p. The Company paid dividends in respect of the financial year ended 30 June 2016 of 5.66 pence per ordinary share (2015 5.6p). The dividends were paid as 5.31 pence per ordinary share as a REIT property income distribution in respect of the Group’s tax exempt property rental business and 0.35 pence per ordinary share as an ordinary UK dividend.

On 14 September 2016, the Company announced it had satisfied the requirements for migration to a premium listing on the Official List of the UK Listing Authority and accordingly, it is expected that, with effect from 16 September 2016, its ordinary shares will be admitted to the Official List and trading transferred from the SFS to the Premium Segment of the Main Market of the London Stock Exchange. The Board believes this will result in a broader investor base over the longer term and better position the Company to meet the liquidity requirements of a wider audience of investors. Migration will also help the Company meet the requirements of the FTSE Group for inclusion in the relevant FTSE indices in due course.

GCP Student Living had c.2,000 beds located primarily in and around London with a valuation of GBP 424.8 million at the year end. This represents a valuation uplift of GBP58.9 million or 16.1% over the aggregate acquisition price (excluding acquisition costs). The valuation increase has been driven by a combination of uplift in valuation at acquisition, rising rental rates and the high levels of investment demand for student accommodation driving upward pressure on asset prices impacting yields across the sector. Year-on-year rental was 4.5%.

The Company successfully raised GBP79 million through two oversubscribed placings of  ordinary shares. During the year, the Company acquired four high-specification, student accommodation assets – Scape Shoreditch, Scape Surrey, The Pad 2 development at RHUL and Water Lane Apartments in Bristol. In addition, the Board was pleased to have secured a rare opportunity to acquire a large scale, forward-funded development at Apex House, Wembley, which will enable the Company to acquire an asset, which is expected to be operational for the 2017/18 academic year, at an attractive valuation relative to acquiring existing operating assets. Once complete, it is expected that Apex House will add a further c.580 modern studios and beds to the Company’s portfolio. Finally, the Company also entered into a conditional forward purchase agreement which will allow it to acquire Podium, which is in the same locality as The Pad at RHUL and which is expected to provide a further c.170 studios and beds once completed for the 2017/18 academic year.

DIGS : GCP Student Living moves up to main market

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