Empiric Student Property reports 89% occupancy for 2025/26 academic year

Investing.com -- Empiric Student Property (LON:ESP) has achieved 89% occupancy for the 2025/26 academic year, with like-for-like rental growth of 4.5% in line with guidance, the company announced Monday.

The student accommodation provider noted a slowdown in reservations since September 9, making its target occupancy rate of 97% challenging under current conditions. The company has seen fewer Chinese students and faced supply-demand imbalances in Nottingham, Sheffield, and Glasgow.

UK students now represent 43% of reservations, with Chinese students accounting for 30% and other international students making up 27%.

"The booking cycle for academic year 2025/26 has seen an increase in reservations from UK students and a reduction in the number of Chinese students staying with us, potentially the result of geopolitical events," said Duncan Garrood, Chief Executive Officer.

The company has completed three postgraduate conversions in Bath, Sheffield, and Southampton, with a fourth in Bristol on track to open in early 2026. It also completed the sale of Pavillion Court in Canterbury for £7.5 million.

As of September 30, the company’s property loan-to-value ratio stood at 27.3%, with a weighted average cost of debt of 4.4% and cash and available facilities totaling £101.8 million.

The board reconfirmed its dividend target of 3.7 pence per share for the year and declared a third-quarter dividend of 0.925 pence per share, to be paid on December 5.

Garrood also noted that following shareholder approval in early October, the Competition and Markets Authority has begun its Phase 1 investigation of the proposed acquisition of Empiric by The Unite Group. The company anticipates the scheme will become effective in the first half of 2026, subject to conditions.

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