Empiric Student Property (ESP) H1 2025 earnings summary

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.