Prospectus

The investment objective of the Company is to provide Shareholders with regular, sustainable and growing long-term dividends (which it will seek to grow at least in line with the RPI inflation index) together with the potential for capital appreciation over the medium to long term.



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ESP(ESP) Fundamentals

Empiric to acquire student accommodation property in York: Percy's Lane

The Board of Empiric Student Property plc (ticker: ESP), the owner and operator of premium student accommodation across the UK, is pleased to announce that the Group has acquired the land and entered into a forward funded development agreement for a 106 bed, premium student accommodation development in York for a total funding commitment of £9.245 million.

The Percy's Lane development comprises the redevelopment of a site involving the demolition of the existing buildings and the construction of new purpose-built student accommodation with a mix of studios and one, three and five bedroom apartments, as well as six bedroom townhouses and communal facilities.

The scheme is being developed by S. Harrison Developments, one of the leading property and development businesses in the north of England, and also the developer of Empiric's Lawrence Street forward funded development in York. Construction on the Percy's Lane property is due to commence in May 2017 with practical completion scheduled in time for the 2018/19 academic year.

The property is located close to the Lawrence Road development and the newly acquired Foss Studios scheme, between York city centre and the University of York, and is approximately 1.5 miles from York St John University. The scheme is immediately adjacent to an existing student accommodation property which is currently leased to York St John University.

Empiric will be responsible for marketing and letting the scheme through the Hello Student® operating platform, with a show flat being made available from January 2018.

Paul Hadaway, Chief Executive of Empiric Student Property plc, commented:

"This investment follows the acquisition of Foss Studios, York, announced earlier this week. As a result of these transactions, the Group will own a total of 441 beds in York, some 2% of the local full-time student population. The design of the self-contained apartments is in line with our "townhouse" concept, providing students with a group living environment with all the benefits of purpose-built student accommodation. This acquisition is in line with Empiric's investment criteria and returns profile."

New Unsecured Term Loan Facility of £10 million

The Board of Empiric Student Property plc (ticker: ESP), the owner and operator of modern, premium student accommodation across the UK, is pleased to announce that the Company has agreed a new unsecured term loan facility (the "Facility") of £10 million with First Commercial Bank Limited (acting through its London branch).

The Facility is available to draw down in full over the next 12 months. It is repayable three years from the date of agreement with an all-in cost of 2.15% per annum.

The Facility can be used for general corporate purposes including the financing of the purchase of properties by any Group company to be operated as student accommodation or in refinancing the costs of acquisition of such properties.

Strategic advice on the structure and assistance in arranging the debt was provided by JCRA.

Commenting on the Facility, First Commercial Bank said:
"Empiric has established itself as a leading investor in the highly attractive UK student accommodation market. First Commercial Bank is pleased to provide support for their future growth plans."

Paul Hadaway, Chief Executive of Empiric Student Property plc, commented:
"This is the first unsecured loan we have secured at the PLC level which reflects the maturity of the business. The new facility provides the Company with additional flexibility in financing future acquisitions, within our target loan-to-value parameters. This is a new debt funding relationship and we look forward to working with First Commercial Bank in the future."

RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2016

· Operating profit of £20.2 million
o £14.5 million revaluation gain
o £19.2 million rental income from standing assets
· £143.4 million of new debt raised through two new facilities
· As 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 2016
· 2,515 new beds generating revenue for 2016/17 academic year, including 1,728 beds from 13 newly completed developments
· Portfolio 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 years
· Average 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 year
· Hello 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 (Foss Studios, 220 beds) and one forward funded asset (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 Limited
· Agreed £10m, three year unsecured loan with First Commercial Bank which has been drawn down.

more.....

Trading Statement

Highlights

· Unaudited basic eNAV per ordinary share as at 30 April 2017 is 107.75 pence compared to basic NAV per ordinary share of 105.9 pence as at 31 December 2016 (prior to adjusting for the dividends of 1.525 pence and 1.55 pence per share, respectively)
· The Board is targeting a dividend of 6.1 pence per ordinary share for the year to 31 December 2017. It is anticipated the dividend will be substantially covered by adjusted EPRA earnings per share for 2017 and going forward1
· The Company's property portfolio has been independently valued by CBRE Ltd as at 30 April 2017 at £786.7 million (including forward funded commitments) (31 December 2016: £721.3 million), as confirmed in their valuation report dated 5 June 2017 for the purposes of this announcement
· 81 assets (7,579 beds) expected to be operational for the 2017/18 academic year
· The Group is targeting an annual rental uplift for the 2017/18 academic year of approximately 2.8%, with a gross annualised rent roll (including commercial) of approximately £63.6 million (31 December 2016: £52.1 million)
· Excluding the benefit of developer rental guarantees, letting for the operating property portfolio is progressing ahead of this time last year
· Significant progress with the transfer of assets onto the Hello Student® operating platform
· Net operating margin has returned to historical levels of c. 70%
· The Company is in advanced discussions in respect of a substantial new revolving credit facility
· Strong near-term pipeline of attractive investment assets comprising a mix of operating and development properties representing, in aggregate, over 2,900 beds, including a significant London based portfolio of operating assets.

more.....

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PROPOSED ISSUE OF EQUITY
On 27 June 2017, the Board of Directors ("Board") of Empiric Student Property Plc (ticker: ESP) published a circular to shareholders seeking shareholder authority for, inter alia, the issue for cash of up to 140 million new ordinary shares ("Shares") in anticipation of a further issue of Shares.

The Board today confirms its intention to proceed with an issue of Shares to raise up to £150 million (before expenses) through a Placing, Open Offer and Offer for Subscription of, in aggregate, up to 137,614,678 Shares at an Issue Price of 109 pence per Share (the "Issue").

The Company expects to use the proceeds of the Issue to acquire further investments in line with its "2025 Plan" investment strategy, to fund specified capital investments in its existing assets and for general corporate purposes.

Hmmm - Result of Equity Issue

Empiric to acquire student accommodation scheme in Canterbury

The Board of Empiric Student Property plc (ticker: ESP), the owner and operator of premium student accommodation across the UK, is pleased to announce that the Group has exchanged contracts to acquire the freehold of the Franciscan International Study Centre (the "Property") in Canterbury for £5.8 million (excluding costs). The acquisition is expected to complete on or around 9 August 2017.

The Property includes five standing townhouses for student accommodation with 50 beds (of which 27 are en-suite rooms) and a separate 16,200 sq. ft. building, all set in three acres of land with development potential. The Property is located at the edge of the main campus of the University of Kent which benefits from a 24-hour shuttle bus service between the university and the city centre. Hello Student® will manage the townhouse accommodation and will be marketing it for the 2017/18 academic year.

The Group is currently in pre-application discussions with Canterbury County Council regarding planning permission for a student accommodation scheme in excess of 325 beds to be developed on the Property. The scheme will consist of a mix of studios, two and three bed apartments and six bed townhouses, with a generous amount of student amenity space including a central reception area, large common and games rooms, work and reading rooms, a gym and offices. The Company is currently targeting the commencement of development works in Q3 2018.

Paul Hadaway, Chief Executive of Empiric Student Property plc, commented:

"Canterbury represents a prime opportunity for the Group with a low level of private accommodation serving the student market. The Property is ideally located to target students from the University of Kent, which is well regarded and has demonstrated strong growth over the past five years, including a 58 per cent. rise in postgraduate students and a 41 per cent. rise in international students. As well as generating revenue for the forthcoming academic year, the acquisition of the Property should enable the Group to develop a significant student accommodation scheme adjacent to this vibrant university and close to Pavilion Court, the Group's first Canterbury acquisition. This acquisition is in line with Empiric's investment criteria and returns profile."

StockMarketWire.com
Empiric Student Property has exchanged contracts to acquire the freehold of the Hahnemann Building in Liverpool for £10.8 million, excluding costs.

The acquisition is expected to complete in October.

The Hahnemann Building is a Grade II listed building within an established student area in Liverpool.

The property was originally Liverpool Hahnemann Hospital and has been converted into a high specification student accommodation scheme comprising 98 studios with communal space.

The property is on Hope Street which connects Liverpool's two iconic landmark cathedrals, situated in a World Heritage Site Buffer Zone, close to the city centre and within easy reach of the main railway station, Liverpool Lime Street.

The Hahnemann Building is adjacent to John Moores University and is ten minutes' walk from the central academic facilities of the University of Liverpool. The scheme was completed for the 2016-17 academic year and was fully let under the management of CRM.

StockMarketWire.com
Empiric Student Property's portfolio valuation rose to £817.9m in the six months to the end of June - up 13.4% from the end of December.

Operating profit was £20.2 million (H2 2016: £20.2 million).

Highlights:
- 3.05 pence dividend paid for the six months ended 30 June 2017 (3.05 pence for the six months ended 31 December 2016)

* Target dividend for the period to 31 December 2017 of 6.1 pence per share

- £13.0 million revaluation gain (H2 2016: £14.5 million)

- NAV per share (basic) of 105.81 pence

- 0.08% decrease from a NAV of 105.90 pence (basic) as at 31 December 2016 net of all property acquisition costs

- Loan to value ratio at 30 June 2017 of 36.0%, with a weighted average term to maturity for the debt of 7.1 years and weighted average interest payable of 3.42%

- Agreed a new £10 million three year unsecured loan, which has been drawn down

- Total property portfolio valuation of £817.9 million as at 30 June 2017 (31 December 2016: £721.3 million)

- Total valuation uplift of £96.6 million (13.4%) for the period compared to 31 December 2016

Chairman Baroness Dean of Thornton-le-Fylde said: "More students demanding a bed in purpose built accommodation coupled with pressures on local housing markets means that demand for PBSA remains strong.

"The details of the UK's exit from the European Union remain unclear but the UK Government recognises the importance of the continued success of the higher education sector.

"Around 23% of students in the UK are international, of which nearly 7% are from the EU.

"Many are postgraduates who come to the UK for 12 months or less, which means they should not be affected by post-Brexit limits on immigration, which would apply to those coming here for more than one year.

"The student accommodation market remains highly attractive and we have the strategy, pipeline, financial resources, management team and people to continue to grow the business successfully in the second half of the year and into the future.

"In summary, we are optimistic about Empiric's prospects in the remainder of 2017 and beyond."

Empiric targets second and third year students as demand grows

Numis Hold 108.38 115.00 115.00 Retains

StockMarketWire.com
Empiric Student Property is to implement operational improvements and cost savings after a review identified a number of inefficiencies which have had an adverse impact on performance.

The review was led by chief financial officer Lynne Fennah, who joined the company on 26 Jun, with chief executive Paul Hadaway and chief investment officer Tim Attlee.

It said the board expects these to deliver growth in operating margin, dividend cover and total shareholder return in 2018 and beyond.

The group said the initiatives were not expected to have a negative impact on the core business activities or its investment strategy.

Chairman Baroness Dean said: 'With the increase in operating properties from 52 to 84 and in internally managed buildings of 18 to 61, from June 2016 to the start of the current academic year, 2017 has been a year of exceptional growth for Empiric.

'The review undertaken has identified a number of operational inefficiencies which have adversely impacted performance.

'The Board is acutely aware that performance has fallen below expectations and is fully focused on delivering operational efficiencies.

'We are confident in the quality of the portfolio, prospects for future performance and the Company's potential to deliver returns which meet market expectations.'

Clarification of Company announcement on 1 December: Notification of Transaction of a Director



Further to the Company announcement on 1 December 2017, Notification of Transaction of a Director, the Board of Empiric Student Property plc (ticker: ESP), the owner and operator of premium student accommodation across the UK, confirms that Paul Hadaway, Chief Executive of the Company, has reorganised his personal shareholding by transferring 388,750 ordinary shares in the Company ("Ordinary Shares") from his personal account into his pension fund.



Mr Hadaway sold 388,750 ordinary shares in the Company ("Ordinary Shares") at a price of 87.75 pence per Ordinary Share and Mr Hadaway's pension fund then subsequently purchased 388,750 Ordinary Shares at price of 87.7575 pence per share.



Following the transaction, there were no net changes to Mr Hadaway's shareholding in the Company and he continues to hold 1,532,775 Ordinary Shares (equivalent to 0.25 per cent. of the Company's issued ordinary share capital).



This notification is made in accordance with Article 19 of the Market Abuse Regulations and further details required under Article 19(6) are set out in the Appendix below.

This seems to have slipped beyond any reasonable logic. Presumably partly due to the effect of Brexit, but last set of figures weren't bad. Has now fallen well below the float price....presumably divi is safe? Am tempted to get back in at these levels.
EDIT: Just seen divi has been cut. (1.52p to 1.25p)

Really?

Did you not read about their specific problems ????

Must have missed that JS. Will have a better look.
EDIT : Dec 2016 seems to have been the time of unrest concerning Directors remuneration. Revolving credit facility renegotiated Sept 2017 + increase in equity. A 30% drop in the sp might be a bit overdone?

Link courtesy of Jonwig.

Empiric hoists £600m 'for sale' sign after ousting CEO

What do you reckon skinny?
Surely selling the company as a whole has got to be a better option than selling off individual assets, as far as shareholders are concerned?

I'm not sure Harry - I'm obviously missing something.