Developer Watkin Jones has said it will post growth in revenue and underlying earnings for the year to 30 September, on the back of a strong student housing and build-to-rent pipeline.
In its latest trading update, its PBSA pipeline consists of six schemes scheduled for delivery next year totalling 2,723 beds. Five of these schemes have been forward-sold.
For its 2020 financial year, Watkin Jones expects to deliver a further seven projects comprising 2,606 beds. So far four have been forward-sold. An additional four development sites have been secured for 2021.
In BTR, the developer has agreed a deal with M&G Real Estate to build 315 flats in Reading, Berkshire, and with Singaporean-incorporated Lum Chang Holdings to deliver 300 flats in Wembley, North West London, with construction expected to complete in 2021.
Including these, the developer said its secured delivery pipeline now totals 1,500 flats across seven sites, targeted for delivery over the next three years.
Chief executive Mark Watkin Jones said: “Trading in the period has been strong and we are pleased to report that revenues and underlying earnings for the financial year are expected to be slightly ahead of the board’s previous expectations.
“We have achieved excellent progress on forward-sold student accommodation developments, successfully completing all 10 schemes scheduled for delivery in the period and continue to see strong demand from institutional investors.
“We are also encouraged by the progress that has been made in the build-to-rent sector, with the agreements for significant developments in Reading and Wembley demonstrating our position as a developer of choice for leading institutions.
“The group has a strong development pipeline that provides us with excellent future earnings and cash flow visibility, demonstrating the robustness of our model and ability to deliver significant returns for our shareholders.”
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