Student accommodation provider Empiric Student Property said it had so far not seen a “negative impact on reservations from international students for the 2020/21 academic year” as a result of the Covid-19 pandemic.
In full year results for 2019, the group said as of today, bookings for the 2020/21 academic year were “very much in line with the bookings we had taken for 2019/20 at this time last year”.
“The situation is rapidly evolving and it is not yet clear how the student population and university sector will respond to the impact of the virus,” it added.
It said it had modelled severe stress tests on all of its loan covenants and that it has significant headroom.
Results for the year were positive. Its EPRA NAV was up 4% to 110.2p per share as a result of a 6% increase in its property portfolio to £1.029bn.
Revenue grew 11% in the year to £70.9m, driven by an increased number of beds and higher occupancy levels, while pre-tax profit was up 36% to £54.8m.
Adjusted earnings was up 38% to 4.43p per share, while it paid a total dividend in the year of 5.0p per share – giving it a dividend cover of 88.5%.
“This is the second successive year of improved margins, dividend cover and total returns, financial indicators which reflect the continuing benefits of our business transformation,” said Tim Attlee, chief executive of Empiric Student Property.
“In 2020, we expect to build on the progress we have made in 2019, as we continue to drive revenue and reduce costs, creating a solid base for sustainable growth.”
ESP : Empiric Student Property’s international student bookings not impacted by Covid-19