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Empiric Student Property (ESP) investor relations material
Empiric Student Property H1 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Achieved 7% like-for-like rental growth and 3.3% revenue increase to £43.8m compared to H1 2024, with strong progress on strategic priorities and portfolio expansion.
Announced a firm and recommended offer from The Unite Group PLC, valuing the company at up to £723m, representing a significant premium to recent share prices.
Completed targeted acquisitions in Manchester and Birmingham, advanced postgraduate refurbishment, and disposed of non-core assets, improving alignment to top-tier universities.
Maintained robust balance sheet with EPRA loan-to-value at 30.0% and no refinancing required until 2028.
Hello Student platform continued to deliver market-leading service, with NPS of +32 and gold operator accreditation.
Financial highlights
Revenue rose 3.3% to £43.8m (H1 2024: £42.4m); like-for-like rental growth was 7%.
EPRA earnings per share declined to 2.2p (H1 2024: 2.3p) due to margin pressure and equity raise.
Gross margin decreased to 68.5% from 72.2% year-over-year, mainly due to higher utility costs.
Portfolio valuation increased to £1,160.4m, up 0.8% like-for-like from 31 Dec 2024.
Interim dividends paid and payable of 1.85p per share, 5.7% ahead of H1 2024.
Outlook and guidance
Expect like-for-like rental growth above 4% for academic year 2025/26.
Anticipate occupancy rates of 97% or better for 2025/26, despite slower booking cycle.
Minimum dividend target for 2025 reconfirmed at 3.7p per share.
Unite offer expected to deliver cost synergies, enhanced returns, and operational improvements.
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