HIGHLIGHTS FOR THE PERIOD
- The Company delivered a strong set of results, generating total rental income for the period of £9 million.
- The Company successfully deployed £120 million raised by way of an issue of C shares to finance the acquisition of Scape Surrey, The Pad 2 (located adjacent to The Pad) and Scape Shoreditch.
- The Company drew down £130 million at a fixed rate of 3.07% under a new loan facility agreement with Pricoa Mortgage Capital, which is set to mature in September 2024. This facility replaced all existing short-term debt.
- Total shareholder return for the six month period to 31 December 2015 of 7.8%.
- The Company’s properties continue to benefit from the supply/demand imbalance for high–quality, modern student facilities, with all properties fully occupied and rental growth of 4.5% for the 2015/16 academic year.
- Dividends of 2.82 pence per share paid or declared in the period in line with target.
- EPRA NAV (cum-income) per ordinary share of 135.35 pence and EPRA NAV (ex-income) per ordinary share of 133.94 pence at 31 December 2015.
- Broad student mix with students from 102 countries studying at 57 HEIs.
- High-quality portfolio of five purpose-built properties with c.1,800 beds located in and around London with a valuation of £400.5 million.
- Net debt-to-property value at 31 December 2015 of 32%.
- Post period-end, the Company acquired Water Lane Apartments, a modern, private, student accommodation residence in Bristol.
Robert Peto, Chairman, commented:
“I am pleased to report a period of strong performance and growth. The Company acquired three further high–quality properties in September 2015, doubling the size of the Company’s investment portfolio to c£400m over the period. The Company has paid dividends of 2.82 pence per share in respect of the six month period to 31 December 2015 and delivered a total shareholder return over that period of 7.8%.
The removal of the student cap for the 2015/16 academic year has increased the supply/demand imbalance in markets with well-regarded Higher Education Institutions and strong international student numbers, with UCAS data showing a record intake of undergraduates entering UK higher education.
The Directors are confident of continued investor interest in the student accommodation sector because of its defensive income qualities as well as the prospect for continued income growth, against a backdrop of wider equity market instability and investor concerns over the sustainability of UK equity dividends. The Board remains focused on growing rental income to ensure that the Company continues to deliver an attractive total return and grow its dividend over time.”
