Empiric Student Property says it is confident next year will beat its pre-pandemic performance, despite revenues remaining low.
Publishing its full-year results this morning, chief executive Duncan Garrood said bookings “were returning to pre-Covid levels”, with occupancy for the 2022/23 academic year expected to be between 85-95%. Occupancy was just 65% in June last year.
Revenues for the premium PBSA operator dipped slightly for the year to 31 December 2021, falling by 6% to £56m. Gross margins also fell from 61.9% to 58.8%. However, profits rose to £29.2m from 2020’s £24m loss, thanks in part to a valuation uplift of £17.6m and the proceeds from the sale of non-core assets. The group’s portfolio is valued at just over £1bn, following a like-for-like increase of 3%.
Garrood said its development pipeline, paused during the pandemic, had been revived, with work restarting in Bristol and Edinburgh.
He added: “We are continuing to make further non-core disposals, with nine assets sold to date for £44.6m and above book value.” Empiric plans to dispose of a similar amount this year, as it focuses on Russell Group locations.
Last month, Empiric made its first acquisition since 2018 – a 92-bed PBSA block bought from McLaren Property for £19m. Garrood said this was “all in line with our strategy of recycling capital, building clusters in key cities and driving operational performance and returns”.
To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews
