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GCP Student Living posts 4.5% jump in NAV

GCP Student Living has posted a 4.5% increase in EPRA net tangible assets (NTA) for the first quarter of 2021.

The increase, to 179.07p per share, was mainly down to a 3.5% uplift in the value of its portfolio (mainly focused on London) to £1.06bn. This was due to an uptick in activity in the investment markets during the period. Investment volumes exceeded £1.6bn in Q1 2021, including £300m across five assets transacted in and around London at yields estimated to be between 3.90% and 4.15%.

Bookings and market update

  • Bookings across the portfolio for the 2020/21 academic year remained at 68%. Around 71% of booked rooms are currently occupied and/or subject to nominations agreements, showing a slight improvement in physical occupancy to the 64% reported in March 2021.
  • Around 91% of the direct let rents due on bookings and 86% of total rents due for the 2020/21 academic year have been collected.
  • Based on the current level of contracted occupancy, reduced rental rates on direct lets and the Investment Manager’s assumptions in relation to nominations agreements and long term leases across the group’s portfolio, the company said it anticipates it will collect between 55% and 60% of budgeted total income of £60.1m for the 2020/21 academic year.
  • Bookings for the 2021/22 academic year are currently at 26%. The group said it anticipates the 2021/22 booking season being condensed and back-ended, with the majority of bookings made between June and October.

Cash and available debt facilities 

  • At 31 March 2021 the company had cash resources of £45.8m and £12m available through debt. The company’s current capital commitments, including in respect of the construction costs at Circus Street, are around £4m and will be funded through the available cash resources.
  • The group’s borrowings have an average weighted maturity on its drawn debt of approximately four years. The group’s Loan to Value (LTV) was 23% at 31 March 2021.

Dividend

The group declared a third interim dividend of 0.25p per ordinary share for the quarter ended 31 March 2021.

The dividend will be reviewed on a quarterly basis with a view to increasing the quarterly payment when there is greater visibility on the company’s revenue prospects. The directors said it expects to increase dividend payments as revenues improve through growing occupancy levels.

DIGS : GCP Student Living posts 4.5% jump in NAV

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