Empiric Student Property has reported annual rental growth of 9.3% in 2024 results, as the student accommodation sector continues to thrive.

Like for like rental growth for the academic year 2023/24 was 10.5%, while it achieved 7.0% in the 2024/25 academic year.

This translated into a 5.0% uplift in EPRA earnings per share 4.2p (2023: 4.0p). Dividends paid and payable for the year were 3.7p, 5.7% ahead of prior year and above target.

The company’s portfolio valuation was up 1.6% to £1,135m, with net initial yield unchanged at 5.5%. EPRA net tangible assets (NTA) was down slightly to 119.6p (from 120.7p) due to its equity raise during the year.

EPRA loan to value was down to 27.2% (2023: 30.6%). Refinancing extends weighted average debt term to 4.7 years, with refinancing risk removed until 2028. Weighted average cost of debt was up slightly to 4.5% (2023: 4.3%), with all drawn debt subject to interest rate protection. Cash and undrawn committed facilities was £75.4m.

Other highlights

• Record re-booker rate of 23% for academic year 2024/25 (2023/24: 22%)
• 97% occupancy achieved for academic year 2024/25 (2023/24: 99%)
• 98% occupancy for financial year 2024 (2023: 99%)
• Successful equity raise generated £56.1m for deployment into accretive investment and postgraduate refurbishment opportunities, £19.8m deployed before the year end, with a further £20.0m on track for investment during 2025
• Three acquisitions completed in top-tier cities (Bristol, Glasgow and Manchester)
• Planning consent achieved for comprehensive redevelopment and expansion of Victoria Point, Manchester, increasing the current provision of beds by 310. On site works likely to begin in late 2026
• Four non-core sales

Outlook for academic year 2025/26 sales cycle

• Occupancy of 48% currently secured, with booking behaviour normalising
• Like-for-like rental growth of 5% anticipated
• Target occupancy remains above 97%

Duncan Garrood, chief executive, said:

“The business has delivered another year of great progress against its strategic objectives, most pleasingly in respect to our growth agenda. Having successfully concluded the Company’s first equity raise since 2017, our focus remains squarely on its deployment and delivery.

“2024 saw us add three fantastic new sites to the portfolio growing our existing clusters in Bristol, Glasgow and Manchester. We also unlocked value from existing sites with planning consent achieved at Victoria Point in Manchester, and have continued to make good progress on our programme of refurbishment, driving enhanced rental growth.”