Empiric Student Property anticipating 10% increase in student revenues – Empiric Student Property (ESP) has provided a trading update:
- ESP say that student revenue is expected to be approximately 10% up in full year 2019 compared to full year 2018, driven by an increase in the number of beds, increased occupancy and an increase in revenue generated per bed. The Company says it is continuing to reduce average cost per bed and expects a reduction of approximately 8% for full year 2019;
- Bookings for the 2019/20 academic year are currently at 93%, in line with the corresponding point in the previous academic year. The company anticipates similar opportunities to sell semester lets as achieved during the 2018/19 academic year, which successfully increased bookings to achieve 97% occupancy. The company anticipates c. 3% growth in average rents for the 2019/20 academic year;
- ESP say that full year 2019 performance is on track, with the business expected to achieve a gross margin of around 67% and dividend cover in excess of 85%;
About ESP
ESP is a provider and operator of modern, direct-let, nominated or leased student accommodation across the UK. Investing in both operating and development assets, The company is a multi-niche student property company focused on, (i) providing good quality first year accommodation managed through its Hello Student® operating platform in partnership with universities, (ii) offering a variety of second and third year purpose-built accommodation options for individual students and those wanting a group living environment, and (iii) continuing to expand the group’s existing premium, studio-led accommodation portfolio which is attractive to international and postgraduate students.
ESP: Empiric Student Property anticipating 10% increase in student revenues