Empiric Student Property has delivered a strong set of results with earnings growth of 17.6% and a net asset value (NAV) uplift of 4.6%.
The company’s EPRA earnings per share jumped to 4.0p (from 3.4p) in the year to 31 December 2023, allowing it to increase its dividend by 27% to 3.5p.
Revenue was up 10.3% to £80.5m (2022: £73.0m), off the back of strong rental growth and occupancy across its portfolio. Rent was up 10.5% in the year and the company forecasts further rent rises this year in excess of 6%.
EPRA net tangible assets (NTA) was 120.7p (2022: 115.4p), helped by a 3.0% like-for-like increase in the value of its portfolio to £1,097.9m.
The group’s EPRA loan to value was 30.6% (2022: 32.7%), comfortably within its long-term target of 35%, with a weighted average cost of debt of 4.3% (2022: 4.0%), 88% with interest rate protection. Weighted average debt maturity was extended from 3.9 years to 5.7 years following refinancing.
Duncan Garrood, chief executive, said: “During what has been another record year for the Company, we have delivered strong rental growth and filled our rooms earlier than ever before. Customer satisfaction improved further and continues to be amongst the highest in the sector with our Hello Student brand awarded Platinum Operator certification by the industry-recognised Global Student Living. Combined with ongoing undersupply of high quality, well located student accommodation in prime cities, this dynamic continues to drive increased re-bookings and greater demand for our rooms. This momentum has continued into the new sales year, and positions us well for growth.”