Empiric Student Property’s like-for-like rental growth hit 10.5 per cent in the first half of its 2024 financial year as the demand for student property exceeded demand.
The firm, which owns and operates student accommodation at top UK universities, reported revenue growth of 2.7 per cent over the six months to 30the June. Adjusted earnings rose 2.8 per cent to £14.5m.
Like-for-like rental growth reached 10.5 per cent, more than double the 5.2 per cent achieved in the first half of 2023.
“It has been an active first half of the year with good progress made across the board, including the growth of our portfolio through acquisitions, the submission of planning applications and our successful refurbishments programme,” said Duncan Garrood, chief executive of Empiric.
The company’s growth was pushed forward by two acquisitions in Bristol and Glasgow, along with a full refurbishment of 173 rooms in Southampton, due to open in September.
This pushed up its portfolio valuation to £1.13bn, a 1.3 per cent net like-for-like increase, including the removal of the multiple dwellings relief.
It ended the period with an EPRA net asset value per share of 122.8p. It also increased its dividend for the period by 7.7 per cent to 1.75p per share.
The company’s Global Student Living Index Net Promoter Score soared from 32 to 37 throughout the six months, compared to the PBSA average of 14 and University Halls average of just six, with Empiric’s customer satisfaction score of 87 per cent beating out the average 79 per cent.
Empiric said its occupancy for the next academic year is currently at 92 per cent. The company added that it expects the figure to exceed 97 per cent as its re-booker rate is set to surpass the 22 per cent achieved last academic year.
“We continue to experience strong demand for our high-quality, well-located accommodation, with the booking cycle for the forthcoming 2024/25 academic year providing confidence in the delivery of strong occupancy and rental growth that surpasses inflation,” added Garood.
“Operationally, the business continues to perform very well with our net promoter score and customer satisfaction rate advancing year-on-year, underpinning improved re-booker rates, which are on track to be our best ever.”