Empiric Student Property, the owner and operator of student accommodation in the U.K., has announced a decline in its first-half pretax profit. The company attributes this decrease to lower gains in the fair value of investment property compared to the previous year. Despite this setback, Empiric is optimistic about its position heading into the new academic year.
Financial Overview
- Pretax profit for the six-month period was £24.6 million ($31.3 million), down from £70.3 million in the same period last year.
- The decrease in profit can be attributed to a lower fair value of investment property, which amounted to £10.3 million, compared to £58.6 million in the first half of 2022.
- However, revenue saw a 16% increase, reaching £41.3 million, and earnings per share rose by 18.5% to 2.3 pence.
- The board declared a dividend of 1.625 pence per share, up from 1.250 pence.
Strong Outlook for the Future
- Empiric is confident in its prospects for the forthcoming 2023-24 academic year, with accommodation bookings already at an impressive 98%.
- The company anticipates delivering like-for-like rental growth of approximately 9% and aims to achieve a minimum full-year dividend of 3.25 pence per share.
- Chief Executive Duncan Garrood expressed optimism about the year ahead, stating that 2023 is set to be another record-breaking year for Empiric.
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