GCP Student Living income to fall short of expectations; bookings 'marginally' behind

Fri, 1st May 2020

Student accommodation investor GCP Student Living said bookings for the forthcoming academic year were 'marginally behind' on-year and said it expected income to fall short as a result of measures to support its tenants. Owing to flexibility offered to direct let tenants and the wider economic impacts of Covid-19, the company anticipated a reduction of about 18% , or £9.0m, to all the budgeted 2019-to-2020 academic year income. The EPRA net asset value (ex-income) was 169.97 pence per ordinary share , representing a quarterly decrease of 1.8% which had mainly been driven by the anticipated impact of the Covid-19 pandemic on the group's income for the remainder of the 2019-to-2020 academic year. GCP Student said it currently anticipated property operating cost savings of about £1m from lower occupancy, reducing the impact on earnings to £8m. The company also said it expected not to generate any material income in respect of summer lettings at its Scape Bloomsbury asset. The budgeted gross income for the coming summer was about £1.1m. GCP Students declared a third interim dividend of 1.58p a share in respect of the quarter ended 31 March. 'In the event that the disruption caused by the Covid-19 pandemic continues into the 2020/21 academic year, the company's rental income will be adversely impacted,' it added. Story provided by StockMarketWire.com

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