GCP Student Living Increases Interim Dividend As Rental Income Rises

(Alliance News) - GCP Student Living PLC on Friday increased its interim dividend as rental ...

Alliance News 6 March, 2020 | 10:10AM
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(Alliance News) - GCP Student Living PLC on Friday increased its interim dividend as rental income grew and the value of its portfolio rose higher.

For the six months to the end of December, the student accommodation investor reported a pretax profit of GBP47.8 million, a dip from GBP48.9 million, due to higher finance costs associated with amounts repaid on the company's credit facility.

There was also a dip in the fair value gains on investment properties to GBP38.0 million from GBP39.9 million.

Rental income grew by 18% to GBP24.6 million from GBP20.9 million the prior year.

GCP Student Living's EPRA net asset value per share as at December 31 was 174.71 pence, up 11% from 157.13p the same date the year before.

The company's portfolio at the end of December consisted of 11 properties with 4,100 beds and had a total value of GBP987.3 million, up 17% from GBP841.5 million.

GCP Student Living declared an interim dividend of 3.15 pence per share, up 2.9% from 3.06p the year before.

Looking ahead, GCP said the effect of the implementation of Brexit following the UK general election on the company remains unknown and difficult to identify. However the attraction of the UK, and London in particular to domestic and global student alike remains evident.

As for the coronavirus, GCP said it is monitoring the outbreak's potential impact, both in terms of the ability of students to attend universities, and the wellbeing of students in company buildings.

"The company's focus on assets in and around London has delivered another interim period of strong NAV performance. This performance can be attributed to strong year-on-year student rental growth in excess of both inflation and the national average for student accommodation across a fully occupied portfolio of assets," said Chair Robert Peto.

"The board notes that, at the date of publication, bookings for the forthcoming academic year are in line with 2019/20 and residents for the current academic year continue to occupy their rooms. Student applications for full time higher education for the 2020/21 academic year have increased by 1.2% year-on-year," Peto added.

Shares in GCP Student Living were down 3.2% at 187.80 pence on Friday in London.

By Dayo Laniyan; dayolaniyan@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
GCP Student Living Ord 127.60 GBX -5.34 -

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