With university students across Britain gearing up for the new academic year, one of the country's largest providers of student housing is celebrating a third consecutive year in which every single one of its rooms is expected to be filled.
Empiric Student Property, which owns and operates apartments and residence halls for students at top universities, said this week that a remarkable 80 percent of its target income for the 2024-25 academic year had already been contractually secured.
The company is bracing for yet another period of high demand and soaring rental prices for its housing stock.
"We've filled our rooms earlier than ever before," said Duncan Garrood, Empiric's chief executive, pointing to data showing improved customer satisfaction ratings and increased numbers of students re-booking their same accommodations year after year.
The private company's upbeat projections arrive on the heels of a stellar financial performance over the past year.
Earnings jumped nearly 18 percent to £24.1 million, revenue grew by over 10 percent to £80.5 million, and the company was able to raise its dividend payout to shareholders by more than a quarter.
With an ongoing shortage of housing for Britain's students — particularly newer, upscale properties like those owned by Empiric — the company said it expected another year of strong rental growth, with prices rising by over 6 percent.
Empiric has also taken steps to solidify its financial footing for years to come.
It completed a major round of refinancing that analysts said eliminated any risk to the company until 2028.
And its first-quarter dividend payment signalled its intention to hit a minimum target for the full year.
Not resting on its laurels, Empiric is actively exploring growth opportunities, including a potential joint venture to develop post-graduate housing that the company said was "progressing positively."
With Britain's universities continuing to attract students from around the world, and with limited avenues for expanding housing stock in cities like London, analysts say the future remains bright for companies like Empiric that have managed to carve out a lucrative niche in the student accommodation market.
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