Empiric reports 70% student occupancy
Occupancy of Empiric Student Property’s portfolio has reached 70% for the new academic year despite the ongoing impact of Covid-19.
The firm said in a trading update that bookings continued to be made, albeit at lower levels compared to previous years. All of its building are open.
For the 2019/20 academic year, occupancy across Empiric’s portfolio was 94%.
Occupancy of Empiric Student Property’s portfolio has reached 70% for the new academic year despite the ongoing impact of Covid-19.
The firm said in a trading update that bookings continued to be made, albeit at lower levels compared to previous years. All of its building are open.
For the 2019/20 academic year, occupancy across Empiric’s portfolio was 94%.
Empiric added that like-for-like rental growth to date was 2.4%. For the entire 2019/20 academic year it was 3.1%.
The company reported a “slight increase” in customers from the UK, equating to 39%, while its customers from China had fallen to 29%. Usually the breakdown is a third each from the UK, China and other international students.
The firm also said it remained fully compliant with its banking covenants.
It has drawn down £390m of debt, of which £277m (71%) is at fixed interest rates and £113m (29%) is at floating rates. The aggregate cost of the debt is 2.9% with a weighted average term to maturity of six years.
This leaves Empiric with £48m of undrawn debt facilities and cash.
LTV is 36.8% based on its drawn down facilities at the end of September.
Duncan Garrood, chief executive of Empiric Student Property, said: “Whilst we continue to weather the challenges that have arisen as a result of Covid-19, we continue to trade profitably, and we remain very confident about our long-term future.
“The long-term fundamentals supporting the student housing sector remain strong and our smaller, more flexible buildings have adapted well to many of the challenges posed by this pandemic. Our philosophy of ‘homes not halls’ has never been more compelling.
“Having visited many of our assets over the last few weeks, I am also hugely impressed by, and grateful to, the dedicated operational teams who continue to work in challenging circumstances to keep our buildings open and provide excellent services and assistance to residents who need our support.”
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