Empiric Student Property plc has expanded its portfolio with three new sites in Bristol, Glasgow, and Manchester, reinforcing its presence in key student cities. The company also secured planning consent for redevelopment at Victoria Point in Manchester and made significant progress in refurbishing existing properties, supporting rental growth.

Financial and Operational Highlights

Empiric reported a 9.3% like-for-like rental growth for the year, with gross margin increasing to 70%. The company’s portfolio is valued at £1.135 billion, reflecting a 1.6% increase despite the removal of Multiple Dwellings Relief. EPRA EPS rose to 4.2p, while the net initial yield remained at 5.5%.

Record Occupancy and Re-Booking Rates

Occupancy levels for the 2024/25 academic year reached 97%, aligning with targets, while 23% of rooms were re-booked by existing tenants, a record high. The company continues to attract international students, who now make up 69% of all bookings, with Chinese students representing 40% of the total.

Strategic Growth and Investment

Empiric successfully raised £56.1 million in equity, with £19.8 million deployed before year-end and an additional £20 million planned for 2025. The company remains focused on acquiring high-quality assets in top-tier university cities and executing its Postgrad by Hello Student brand expansion.

Market Resilience and Future Demand

Despite economic headwinds, the Purpose-Built Student Accommodation (PBSA) market remains strong due to undersupply of high-quality student housing. The UK’s higher education sector continues to attract students, with over 2.4 million full-time enrolments. The sector faces viability challenges due to rising construction costs, but Empiric’s strategic focus on prime markets is expected to drive long-term growth.

Sustainability and Net Zero Commitment

Empiric remains committed to achieving Net Zero by 2033, with over 60% of its portfolio rated EPC B or better. Investments in energy efficiency have led to a 3% reduction in energy consumption per bed, reinforcing the company’s sustainability strategy.

2025 Outlook and Strategic Focus

Looking ahead, Empiric anticipates 5% like-for-like rental growth and occupancy levels above 97% for the 2025/26 academic year. The company will focus on refurbishment, operational efficiencies, and targeted investment, while managing cost pressures from rising energy prices and wage increases.

Despite potential challenges, Empiric remains confident in continued strong demand for student housing, particularly in high-tariff university cities, positioning itself for another successful year.