17th Sep 2014 10:54
LONDON (Alliance News) - GCP Student Living PLC, which launched an initial public offering in May 2013, reported a dip in profit for its last financial year Wednesday, but said its net asset value per share increased as it added to its portfolio.
The real estate investment trust posted pretax profit of GBP7.7 million for the period February 26, 2013 to June 30, down slightly from GBP7.8 million a year earlier, even though revenue, which is made up of rental income, more than doubled to GBP9.1 million from GBP4.5 million.
In the previous year profit was boosted by a GBP5.0 million fair value gain on investments in subsidiary companies which did not reoccur, said the company.
GCP said its net assets have grown significantly over the period since its IPO with the acquisition of student residence sites The Pad and Scape Greenwich. Its net assets have risen to GBP11.9 million from GBP70.1 million at the time of the IPO.
In turn it said its net asset value per share has increased to 102.64 pence from 97.00 pence at the time of its IPO.
At an operating level, GCP said its portfolio was completed occupied for the 2013/14 academic year, all on 51 week tenancies. At present, Scape East, Scape Greenwich and The Pad are fully occupied for the 2014/15 academic year.
Looking ahead, the company said it remains optimistic about future growth following a 4% increase in student applications for the forthcoming 2014/15 academic year.
It said the supply and demand imbalance in and around London is expected to continue, with limited new stock coming on stream and an increasing number of domestic and in particular international students forecast for the forthcoming academic year.
GCP said its investment manager will continue to review and source additional opportunities in line with its investment policy and currently expects to make further investments in 2015.
The company paid 6.10 pence in dividends for the year. All dividends were made as property income distributions in respect of the group's tax exempt property rental business.
GCP Student Living shares were quoted flat at 107.25 pence per share Wednesday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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