31st Oct 2018 09:44
LONDON (Alliance News) - Student accommodation firm Watkin Jones PLC on Wednesday said it expects to beat previous guidance for both annual revenue and earnings.
Watkin Jones completed ten student accommodation developments during its financial year, which ended September 30, and of the six schemes due for its new financial year, financial 2019, five have already been forward sold.
In its year ending September 2020, Watkin Jones expects to deliver seven schemes, four of which have been forward sold, and it has four sites already secured for the financial year after that.
This work, the company said, is what underpins the increase in its earnings expectations.
In Build to Rent, Watkin Jones is making "good" progress, and it has a pipeline of 1,500 apartments across seven sites for up to and including its year ending September 2022. Likewise, the company said it had a good year in the residential market.
Chief Executive Mark Watkin Jones commented: "Trading in the period has been strong and we are pleased to report revenues and underlying earnings for the financial year are expected to be slightly ahead of the board's previous expectations."
"We have achieved excellent progress on forward sold student accommodation developments, successfully completing all ten schemes scheduled for delivery in the period and continue to see strong demand from institutional investors," Watkin Jones added.
"We are also encouraged by the progress made in the Build to Rent sector, with the agreements for significant developments in Reading and Wembley demonstrating our position as a developer of choice for leading institutions."
He continued: "The group has a strong development pipeline that provides us with excellent future earnings and cash flow visibility, demonstrating the robustness of our model and ability to deliver significant returns for our shareholders."
Shares were 3.8% higher on Wednesday at a price of 206.90 pence each.
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