Unite Group makes offer for Empiric Student Property amid 7% rental growth

Published 14/08/2025, 07:36
Unite Group makes offer for Empiric Student Property amid 7% rental growth

LONDON - Empiric Student Property plc (LSE:ESP) reported a 3.3% increase in revenue to £43.8 million for the six months ended June 30, 2025, alongside the announcement of a firm and recommended takeover offer from The Unite Group PLC.

The student accommodation provider achieved 7% like-for-like rental growth during the period, while EPRA earnings rose 5.1% to £14.3 million. On a per-share basis, EPRA earnings declined slightly to 2.2 pence from 2.3 pence a year earlier, which the company attributed to a temporary effect from its equity raise in late 2024 and an anticipated weakening in operating margin.

The company’s portfolio valuation increased to £1.16 billion, reflecting a 0.8% net like-for-like increase, while EPRA net tangible assets per share rose 0.5% to 120.2 pence.

Empiric declared dividends of 1.85 pence per share for the first half, up 5.7% from the same period in 2024, and reconfirmed its minimum dividend target of 3.7 pence for the full year.

The company reported that its eligible re-booker rate for the 2025/26 academic year exceeds 60%, with current occupancy at 77%. Empiric expects to achieve 97% or better occupancy for the upcoming academic year, despite what it described as a "normalised" sales cycle.

During the period, Empiric completed two acquisitions in Manchester and Birmingham using proceeds from its October 2024 capital raise. The company also continued its postgraduate accommodation conversion program, with three properties on track to open in September and a fourth due in early 2026.

Empiric maintained a loan-to-value ratio of 30%, below its long-term target of 35%, with cash and undrawn committed facilities of £73.4 million. The company has no refinancing requirements until 2028 and reported a weighted average cost of debt of 4.5%.

The takeover offer from Unite Group was announced separately on August 14, according to the press release statement.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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