GCP Student Living Confident After Further Strong Annual Outturn

(Alliance News) - GCP Student Living PLC on Wednesday reported a "strong" set of annual results, ...

Alliance News 4 September, 2019 | 10:51AM
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(Alliance News) - GCP Student Living PLC on Wednesday reported a "strong" set of annual results, with the outlook remaining positive.

GCP said it has "substantially" outperformed the FTSE EPRA NAREIT index of UK real estate investors, which declined 6.0% in the year to June 30. GCP's total return for the year was 14.8%.

Rental income climbed 24% to GBP44.4 million, with profit before tax and fair value gains on investment properties up 40% to GBP18.9 million. Pretax profit on a reported basis was up 52% to GBP92.8 million.

EPRA net asset value per share as of June 30 was 165.52 pence each, up 11% from the year before, despite a "backdrop of concerns" such as weakening valuations and cash flows in the UK commercial property sector.

The value of GCP's property portfolio at the end of its financial year was GBP921.6 million, 17% higher than a year prior. It has some 4,116 student beds located mainly in and around London.

GCP raised its annual dividend by 3.4% to 6.15p from 5.95 a year before.

Chair Robert Peto said: "I am pleased to report on a sixth consecutive year of robust results for the company. The company's focus on student residential accommodation assets in locations which benefit from supply and demand imbalances, including its core London market, has delivered total shareholders returns of 14.8% for the year.

"The company's performance has been underpinned by strong operational drivers including full occupancy across the portfolio and year-on‑year rental growth in excess of both inflation and the national average for student accommodation."

Looking ahead, GCP said it is confident on further net asset value growth given a continued rise in the number of international students in the UK, many of whom decide to study in or near London.

GCP shares were 0.1% higher on Wednesday morning at a price of 162.58p a share.

By George Collard; georgecollard@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
GCP Student Living Ord 122.00 GBX -1.61 -

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