Student accommodation group Empiric lifts forecasts

Empiric Student Property boasted a “very strong start” to 2023 as it raised its full-year guidance and pumped up its interim dividend.

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The company, which owns and operates studio-led student accommodation across the UK, reported a 16% year-on-year jump in first-half revenues to £41.3m, while earnings per share rose 18.5% to 2.3p

“Following our best ever re-booker campaign, the booking cycle for academic year 2023/24 has tracked significantly ahead of the prior year,” said chief executive Duncan Garrood. “Our accommodation is now effectively full for the forthcoming academic year with occupancy at 98 per cent, a level achieved earlier than ever before.”

The company said its strategy to actively shift its portfolio away from non-core locations to prime, undersupplied cities with top-tier universities has paid off.

Looking ahead, Garrood said he expects “another record year” for Empiric, and said that like-for-like rental growth would now be around 9%, up from previous guidance of 7% – which had already been upgraded in May from earlier forecasts.

The company declared a dividend for the first half of 1.625p per share, up 30% year-on-year.