Empiric Student Property on track to cover dividend in 2019 – Empiric Student Property has published update on trading ahead of the Company’s half year results for the six months ended 30 June 2018 (which will be announced on Tuesday, 21 August 2018).
They says that they continue to make good progress on delivering financial and operational improvements across the business and remain on track to meet previously stated targets of:
- Full (i.e. 97% or higher) occupancy for the 2018/19 academic year.
- Increasing the operating margin from 57% in FY 2017 to 70% over the next two years.
- Reducing administration expenses to GBP10m pa in 2018, a reduction of 26% on FY 2017.
- Improving dividend cover to approximately two thirds covered by adjusted earnings in FY 2018 and fully covered in FY 2019.
Bookings for the 2018/19 academic year are continuing to progress well and are currently at 76% compared to 63% at the same time last year, and up from 57% as announced by the company on 25 April 2018.
The programme of bringing all facilities management in-house in stages by 1 April 2019 is on track, with 33% of the group’s properties expected to be transferred in-house by 1 September 2018. The management of all utilities has already been successfully transferred in-house from 1 July 2018. The first significant cost savings from this transfer in-house of facilties management are expected in Q4 2018 as third party costs begin to fall away.
ESP : Empiric Student Property on track to cover dividend in 2019