GCP Student Living reports continued growth in full-year numbers
Student accommodation real estate investment trust GCP Student Living reported continued growth in its full-year results on Friday, with revenue rising to £28.6m from £22.5m in the prior year.
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The firm said that, in the 12 months to 3 June, its net operating margin was 79% - precisely in line with the 2016 financial year, while its rental growth slowed to 3.9% from 4.5%.
Annualised shareholder return since IPO was 14.2% at year-end, compared to 13.9% on 30 June last year.
The board of GCP confirmed total dividends for the year of 5.75p, up from 5.66p, per ordinary share.
Its EPRA net asset value at year-end was 139.08p per ordinary share, up from 136.93p, while its share price closed the year at 145p, compared to 130.75p 12 months earlier.
The value of GCP’s property portfolio at year-end was £634.6m, rising from £424.8m.
“I am pleased to report a year of continued positive performance,” said chairman Robert Peto.
“The company has grown its dividend to 5.75p per ordinary share in respect of the year and delivered annualised total returns since IPO in 2013 of 14.2%, exceeding its long term target of 8-10% per annum.”
Peto said the company’s core focus on student residential accommodation assets located in and around London, where at the year end, 97% of the value of the portfolio was located, coupled with conservative levels of borrowings, provided shareholders with a portfolio of properties which benefitted from strong supply and demand characteristics.
He said that was the “primary driver” of rental growth in the sector, and underpinned the company’s “attractive” income characteristics.
“The two oversubscribed capital raises over the period are a reflection of the strong ongoing support for the company’s investment mandate by new and existing investors alike, with admission to the FTSE All-Share and EPRA/NAREIT Global REIT indices further broadening the company’s appeal.”
Demand from overseas students for private student residential accommodation in the company’s core market is likely to remain resilient relative to the rest of the UK, Peto added, given the “attractions of London” as a cosmopolitan, global centre of academic excellence.
“The company continues to deliver on its objectives and its portfolio remains well positioned to provide shareholders with regular, sustainable dividends that should continue to grow over the long term.”