Rusty Jock
20 Apr 2017
In The Times Today Theresa May to change the way immigration numbers are calculated by excluding foreign students from the immigration figures , confirming that foreign students are welcome in the U.K. Should give welcome support to the share price .
Eadwig
11 Apr 2017
Re: RESULTS to 31 Dec 16 Hardboy, "So in the unlikely event that something nasty happened with Brexit & EU number drop off it would be painful, but not terminal"A cap on net immigration which includes student visas will impact students from outside the UK, not just the 7% or so from from the EU, which has always been a relatively small figure.
sharegardener
10 Apr 2017
Re: RESULTS to 31 Dec 16 [link] gives their financial reporting standards with definitions etc so that REITs can be compared.SG
peter55
10 Apr 2017
I used to have a large holding in ESP, bought at a couple of the fund raisings last year. However, I sold out, not because of the Brexit story but because 1. I was concerned when the finance director recently resigned, 2. The management incentive scheme looked greedy, given the size of company and what was already in place, in my opinion and was not backed by blanket vote from shareholders when it was passed, 3. the portfolio revaluation gains have been a significant part of dividend, which has until now not been covered by earnings (ie from my understanding the capital raises have been used to fund the headline 6p dividend). 4. another fund raising is due, the problem they have is to get large oversubscription is harder given last was @107 and share price not that much higher now.
nk1999
10 Apr 2017
Re: RESULTS to 31 Dec 16 HB,I believe the EPRA are the European Public Real-estate Association that define the standards and best practices to be used in reporting by companies like Empiric.[link]
Hardboy
10 Apr 2017
Re: RESULTS to 31 Dec 16 Things seem to be going in the right direction.I'm still trying to get my head round how Operating profits can be bigger than total income. I also searched throughout the report to find a definition of EPRA, without success. (Do you know Eadwig?)Interesting to see an analysis of the tenants. If they have shown it before I've always glossed over it. 49% f4rom the UK. 10% from EU. (So in the unlikely event that something nasty happened with Brexit & EU number drop off it would be painful, but not terminal.)55% Female. (Good - I bet they are better payers than men.) 74% Undergraduates.
Eadwig
10 Apr 2017
Some 2025 Questions Answered Q What was the rationale for the multi-niche diversification - the 2025 Plan?Our IPO strategy was based on an accommodation type virtually unknown ten years ago, satisfying the needs of a wealthier, but substantial part of the student market. Whilst a good deal of development activity in recent years has focused on this, research carried out for Empiric during the last year bears out that there is still significant opportunity in this area. For that reason, as one of the four niche strategies within the 2025 Plan, we see continued expansion beyond the 10,000 beds targeted at IPO.The IPO strategy has delivered a robust portfolio of small and medium-sized city centre buildings in the 30 leading university towns and cities in the UK. We have had good rebooker rates in these buildings but having some of the studio apartment based tenants ask whether they could share in newly formed friendship groups was one of the catalysts for the development of the 2025 Plan.As we know from our tenant base (of 137 different countries with an age range of 17-61 this academic year) the student market is large and complex. As the numbers of both UK and international students have expanded over recent decades (reaching 1.7 million full-time students in 2015/16) and participation of young UK people in higher education is at record levels, we recognise that there is more diversity in the UK student population than there has ever been. These students have expectations of good value, quality accommodation in attractive, central locations or on campus. The growing pressures on the HMO market, and on universities which are unable to keep up with the guarantee to provide for their first years, are resulting in a huge opportunity for a specialist provider to think differently about this target market. Indeed, as the supply of purpose-built accommodation has increased, a greater proportion of students is attracted to this way of life, and we believe there is a structural shift towards PBSA. The Cushman & Wakefield Student Accommodation Annual Report 2016/17 indicated that the number of students per PBSA bed has actually increased from 2.1 to 2.3 in 2016/17, signifying that supply is not keeping up with demand.We believe that there is a role for a multi-niche student accommodation provider to become more widely embedded in the market to meet and capitalise on these opportunities. The 2025 Plan enables us to respond in a targeted and distinctive way, opening up new channels and stock types which will add value to students, our business and our shareholders.Q How quickly will the portfolio grow in the 2025 Plan, and what impact will it have on the mix of room types and customer demographics?The 2025 Plan sets out four different niches which we believe cross-fertilise and do not compete with each other. becoming engaged in a wider range of accommodation types, the business will be able to continue to grow and target different potential customers at different stages of their academic life. The four niches are described as:· Core Studio and Premium Small Group - this is a continuation of the offer from our initial strategy and includes premium studio, two bed and three bed apartments;· Premium Houses - accommodation in prime locations configured into townhouses with large living spaces which will appeal to customers seeking high specifications within a group environment. Shared communal facilities and a concierge desk are provided similar to the Core Studio and Premium Small Group;· Affordable Apartments - with a focus on prime locations, new stock types which fit with the Empiric brand and service offer, but that manifest in more affordable rent levels. These are designed as tightly planned and contemporary two, three and four bedroom apartments arranged around staircases to avoid an institutional feel; and· University Relationships - innovation in our business and operating model to work with universities
Eadwig
10 Apr 2017
Dividend Target "We are targeting a dividend of 6.1p per share for the 12 months to 30 June 2017 (in line with our annual dividend growth target of not less than RPI), which we expect to be substantially covered by adjusted EPRA earnings per share for 2017""We are targeting a dividend of 6.1p per share for the 12 months to 30 June 2017 (in line with our annual dividend growth target of not less than RPI), which we expect to be substantially covered by adjusted EPRA earnings per share for 2017"
Eadwig
10 Apr 2017
RESULTS to 31 Dec 16 Hopefully ii will publish the full RNS shortly:10 April 2016 Empiric Student Property plcRESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2016The Board of Empiric Student Property plc (ticker: ESP), the owner and operator of modern, premium student accommodation across the UK, today announced the Company's audited results for the six months to 31 December 2016.Following consideration of the Group's activities, in particular, the focus of operational and development activity around the start of the academic year in September, the Board decided that it would be appropriate to change the accounting reference date to 31 December. These results have, therefore, been prepared for the shortened six month period to 31 December 2016.HIGHLIGHTSFinancial Highlights As at 31 Dec 2016 Portfolio valuation 721.3m +37.7% on 30 June 2016NAV per share (basic) 105.9p +0.5% on 30 June 2016Dividend declared per share 3.05p +1.67% based on 12 month target Gross annualised rent £52.1m +57.4% on 30 June 2016Adjusted EPRA Earnings Per Share 0.61pRevenue £19.2mEarnings Per Share (basic) 3.38p EPRA Earnings Per Share 0.27p* Operating profit of £20.2 million *£14.5 million revaluation gain £19.2 million rental income from standing assets£143.4 million of new debt raised through two new facilitiesAs at 31 December 2016, the Loan to Value ratio ("LTV"
was 31.1% (compared to a target of 35% and maximum of 40%), with a weighted average term to maturity for the debt of 7.5 years and a weighted average interest payable of 3.46%* Operational Highlights *14 new assets (1,142 beds) contracted in the six months to 31 December 20162,515 new beds generating revenue for 2016/17 academic year, including 1,728 beds from 13 newly completed developmentsPortfolio now consists of 89 assets (8,504 beds) in 30 prime UK cities and towns as at 31 December 2016, continued progress to the IPO target of 10,000 beds within five yearsAverage valuation yield on the portfolio of operating assets at 31 December 2016 was 5.9% compared with average yield on acquisition or cost of 6.5%Average rental uplift of 2.5% targeted for the 2017/18 academic yearHello Student® managed 3,075 beds as at 31 December 2016 (30 June 2016: 1,868) and was ANUK accredited* Post balance sheet highlights *Acquired one new standing asset (York, Foss Studios, 220 beds) and one forward funded asset (York, Percy's Lane, 106 beds)Acquired the remaining 50 per cent. share in joint venture asset (Glasgow, Willowbank) previously owned by an investment fund affiliated with Revcap Advisors LimitedAgreed £10m, three year unsecured loan with First Commercial Bank which has been drawn downThe Rt Hon Baroness Dean of Thornton-le-Fylde, Chairman of Empiric Student Property plc, commented:"The last six months has been a period of continuing growth. We invested in or committed to a further 14 buildings with 1,142 beds in eight towns and cities across the UK, of which 10 buildings were operational. The number of revenue generating assets increased from 52 at 30 June 2016 to 75 at 31 December 2016."In addition, a key development was the approval by shareholders of a revised Investment Policy which enables us to grow our existing studio portfolio, as well as diversifying the range of student accommodation formats, catering for a wider group of students. These changes have facilitated the implementation of our 2025 Plan - our blueprint for the future growth of the Group."
Eadwig
29 Mar 2017
Re: Brexit Impact Hardboy,I'm surprised to hear him say that - I assumed he'd fought for the £100 million a year his own department was *directly* awarded for the next five years within the last budget.And that's running costs, not the cost of setting up a new department which I haven't seen a figure for yet.I used to have a lot of respect for David Davies. I now think, like many others on both sides of the debate, his moral compass has been completely wrecked by the Brexit campaign and the on-going pressures of having to deal with the realities he'd previously denied existed, or would exist.I'm still not convinced that political ego, rather than the good of the country, will dictate the eventual 'divorce settlement'. We need a leader who is prepared to sacrifice their own career if that is what it takes to get the best deal. I'm not sure such a politician exists. Heseltine, maybe, except the process would likely kill him off.Mind you, who knows what the best deal is with regard to the vote? I'm talking about the best economic deal, who knows what people actually voted for? I heard a Brexit voter talk about 'making Britain great again' in an interview from Sunderland this morning. Unfortunately, the interviewer didn't follow up with the obvious questions to her: "When was that?" and "Do you really think its possible Britain could re-achieve that status in the modern world?"All we can do as individual investors is stay flexible and don't let personal feelings sway trading or investment decisions, I feel. Whatever happens ultimately, I doubt the people with more money will end up being in a worse position than those who have less.
Hardboy
28 Mar 2017
Re: Brexit Impact I haven't seen the exact quote (probably from question time last night) but I heard on the news that David Davis said there would be no cost to the UK for Brexit. I wonder what formula he uses to cost MPs & other civil servants' time. I for one resent having to pay so many people so much money for talking about Brexit when there are so many other important things to do; and the things they are talking about should have been clarified before the referendum.
Eadwig
28 Mar 2017
Brexit Impact A major Brexiteer was on the radio this morning, I've forgotten who it was unfortunately, I wasn't really listening very closely as he was banging on about the EU only being 15% of global trade and we have 85% to do deals with etc etc ...His last word when asked to sum up was basically about focussing on the other 85% and then added, without anything else having been said in the interview about it, that foreign students numbers should be removed from the net immigration figures immediately.It is the very first sign from any politician, Brexit or Remain, that someone has finally woken up to the fact that a cap on immigration numbers could badly damage this extremely important sector. Its a shame the whole interview wasn't about it, but I take it as a positive sign that someone within the government and firmly in the Brexit camp has finally latched on to the danger. Let's hope he doesn't get silenced if he starts to fight the corner more vociferously.
Eadwig
16 Mar 2017
Re: 2017 Dividend Dates ? RNS Confirmation of what James Bond was predicting. A 6 month accounting year, effectively:NOTICE OF AUDITED RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2016Empiric Student Property plc, the owner and operator of premium student accommodation across the UK, will announce its audited results for the six months ended 31 Dec 2016 on Monday, 10 April 2017.A Company presentation to analysts will take place at 9.00am on the day, at the offices of Newgate, Sky Light City Tower, 50 Basinghall Street, EC2V 5DE.Those wishing to attend are kindly asked to contact Newgate at [email protected] or by telephone on +44 (0) 20 7680 6550.The Company announced on 14 September 2016, following Board approval, that an accounting reference date of 31 December was more appropriate in light of the Group's activities over the course of a year.
Eadwig
06 Mar 2017
Re: 2017 Dividend Dates ? I believe 007 is correct, despite the statement "Targeting a divi of 6.1p per share for the 12 months ending 30 June 17" which is referring to the divi rate NOT the accounting dates.I hope he's correct, those with long memories will remember I was worried they might slip in an 18 month period which I could see meaning less divi payment rate than otherwise.It is true to say that the payments have been slightly delayed for final dividends, but is only an extra couple of weeks. Still much faster than most other companies between 'preliminary final results (unaudited)' and the eventual payment of the final dividend. Some companies are allowed to get away with 5-6 months, which I find bizarre. They'd never get away with it in the USA.With luck, In June, the next RPI rise will be calculated and added, because it is flying at the moment (2.9% and climbing), but that may just be wishful thinking on my part. ESP should really have a date set each year to take the RPI figures from, like state pensions do, then no chance of any deviation which could be seen as dubious. If they haven't set one already, then it is something the board should address as part of the new accounting year dates.Its all part of that quality culture thang. It shouldn't just apply to the 'premier' accommodation and services, it should apply throughout the business, because you generally can't get away with lax standards in one area and expect to hit top standards in others.
Eadwig
06 Mar 2017
Re: 2017 Dividend Dates ? Beat me to it Hardboy, lack of a financial calendar is just another of the short-comings of the ESP web site at the moment (One link I clicked on led to a dead page, and the market stats are well out of date now too. Poor show, really). The complications surrounding REIT tax laws which affect one divi payment a year just confuse things further - especially if looking at historic payments to try to predict future payments.Two excellent things about ESP is that they pay quarterly, and you only have to wait about 2 weeks from the announcement for the payment. Effectively, this means you can expect payment about 5 weeks after the end of each quarter, which is all Pref really needs to know (or all he is asking about, anyway!)There is a change to the accounting year date just to confuse things further, and also ESP is only just getting into its planned stride of divis after its initial start-up, which all means looking at previous payments for a guide is not going to get you very far.I think I'm correct in saying that from here on in, ESP will be reporting for every standard quarter, I.e. ending Mar 31, Jun 30, Sep 30 and Dec 31. They tend to be very quick to get the results out - about 2 weeks, and then as I say the payment is also quick. So, around 5-6 weeks from the end of each quarter to the divi payment date, is a reasonable guess. We're currently on 6.1pps payment over the year, that should rise by RPI (again) at some point but the next rise is difficult to predict with the accounting change. Remember the original target was 6% p.a. on the original IPO price of @100p (I.e. 6pps) rising by at least RPI once achieved. We've now passed that point and had the first RPI rise. For the moment assume 1.55pps each quarter until notified differently. Like any other company they don't announce the dividend rate or the ex-div or payment dates until the trading statement.One thing their web site does have which would have answered a lot of question for everyone at the last payment date is this (slightly edited by me for brevity):* The Board of ESP has declared a dividend of 1.55 pence per share in respect of the quarter ended 31 December 2016, payable on or around 8 Feb 2017 with an ex-div date of 19 Jan 17.0.93p of this divi will be paid as a Property Income Distribution ("PID" due to the Company's tax exempt property rental business and 0.62p will be paid as an ordinary UK divi ("non-PID".Targeting a divi of 6.1p per share for the 12 months ending 30 June 17. The Board expects all future divis to be substantially, if not fully, covered by adjusted earnings with effect from Jan 17 *So, as you can see, I think allowing 5-6 weeks from the end of each quarter looks reasonable from now on, which means the next payment can be expected around 1st week of May for 2017Q1 which ends on Mar 31. In other words, we're into the different yearly schedule now. We never had an ex-div in Jan until this year, which seems to prove my assumptions. A financial calendar, assuming I'm right, would show the next trading update due around mid April.After another couple of updates and divi payments we should have a solid pattern established that will be set for many years to come. I hope the current drift upwards in share price isn't because divi chasers are expecting an ex-div date around about now, but actually due to NAV increases due to property price rises.
