GCP Student Living Dividend Declaration and Net Asset Valuation

 
TIDMDIGS 
 
GCP Student Living plc 
("GCP Student" or the "Company", together with its subsidiaries the "Group") 
 
LEI: 2138004J4ID66FK38H25 
 
Net Asset Value and Dividend 
 
Net Asset Value 
 
GCP Student, the UK's first REIT focused on student residential assets, today 
announces that at close of business on 31 December 2018, the unaudited 
estimated EPRA net asset value per ordinary share of the Company was 157.93 
pence. The EPRA net asset value includes income for the period (cum-income) and 
does not include a provision for an accrued dividend for the quarter to 31 
December 2018. 
 
The EPRA net asset value (ex-income) was 156.4 pence per ordinary share as at 
that date, representing a quarterly increase of 3.2%. 
 
Dividend 
 
The Board is pleased to announce a second interim dividend of 1.53 pence per 
ordinary share, in respect of the quarter ended 31 December 2018. The second 
interim dividend will be paid on 11 March 2019 to ordinary shareholders on the 
register at 15 February 2019. The dividend will be paid as 1.22 pence per 
ordinary share as a REIT property income distribution ("PID") in respect of the 
Group's tax-exempt property rental business and 0.31 pence per ordinary share 
as an ordinary UK dividend ("non-PID"). 
 
Portfolio Update 
 
At 31 December 2018, the valuation of the Company's portfolio was GBP841.5 
million, 92% of which was located in and around London, representing a 
like-for-like increase over the quarter of 3.0%. The portfolio comprised ten 
assets with c.3,600 beds, of which nine are currently operational. The Net 
Initial Yield on the operational portfolio was 4.74%. 
 
As announced on 10 September 2018, the comprehensive refurbishment of Scape 
Bloomsbury, located in London WC1, completed ahead of schedule and opened to 
students for the 2018/19 academic year, providing 432 beds in London WC1. 
Accordingly, the Company's dividend cover is expected to be materially enhanced 
(assuming current occupancy levels across the existing portfolio). 
 
The forward funded construction of Circus Street, Brighton continues in-line 
with the Investment Manager's expectations. The asset is expected to complete 
for the 2019/20 academic year and will provide a further 450 beds in addition 
to c.30,000 square feet of commercial office space. The student accommodation 
will be contracted on a 21-year lease, with annual uplifts of RPI plus 50 basis 
points, capped at 5% and floored at 2%, to a subsidiary of Kaplan Inc, a global 
education provider. The Company benefits from a licensing fee providing a 5.5% 
coupon on drawn funding through the construction stage. 
 
In July 2018, the Company entered into a conditional contract to acquire and 
forward fund Scape Brighton. This contract has now gone unconditional and the 
Company expects to complete on the acquisition of the asset in the coming 
months. Scape Brighton will provide c.550 beds, extensive communal areas and 
c.1,500 square feet of retail space. It is currently expected that Scape 
Brighton will be operational for the 2020/21 academic year. 
 
In December 2018 the Company secured a new borrowing facility with Wells Fargo 
Bank N.A. for an amount of up to GBP55 million partly to fund the construction of 
Scape Brighton (the "Development Facility").  The Group's aggregate available 
banking facilities total GBP335 million. Its current blended cost of borrowing on 
drawn debt is 2.96%. The loan-to-value of the Group at 31 December 2018 is 
approximately 26%. 
 
Additional information on the Company's portfolio can be found in the factsheet 
for the period ended 31 December 2018, which will be published shortly and will 
be available at: - 
 
www.graviscapital.com/funds/gcp-student/literature 
 
For further information please contact: 
 
Gravis Capital Management Limited         [phone] 
Tom Ward 
Nick Barker 
Dion Di Miceli 
 
Stifel Nicolaus Europe Limited       [phone] 
Neil Winward 
Mark Young 
Tom Yeadon 
 
Buchanan / Quill        [phone] 
Helen Tarbet 
Henry Wilson 
 
 
About GCP Student 
 
The Company was the first student accommodation REIT in the UK, investing in 
modern, purpose-built, private student residential accommodation and teaching 
facilities. Its investments are located primarily in and around London where 
the Investment Manager believes the Company is likely to benefit from supply 
and demand imbalances for student residential accommodation. 
 
GCP Student's property portfolio comprises ten assets with c.3,600 beds, 
including one asset which is expected to complete construction for the 2019/20 
academic year. At 31 December 2018, its property portfolio was valued at GBP841.5 
million. 
 
The Company's standing properties are predominantly occupied by international 
students and offer high specification facilities and hotel-level concierge type 
services which the Investment Manager believes are attractive to overseas 
students. 
 
 
 
END 
 

(END) Dow Jones Newswires

February 05, 2019 02:00 ET (07:00 GMT)