GCP Student Living Net Asset Value, Portfolio Update and Dividend

 
TIDMDIGS 
 
GCP Student Living plc 
 
 ("GCP Student" or the "Company", together with its subsidiaries the "Group") 
 
                           LEI: 2138004J4ID66FK38H25 
 
                Net Asset Value, Portfolio Update and Dividend 
 
Net Asset Value 
 
GCP Student Living, the UK's first REIT focused on student residential assets, 
today announces that at close of business on 31 March 2018, the unaudited 
estimated EPRA net asset value per ordinary share of the Company was 146.92 
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 March 2018. 
 
The EPRA net asset value (ex-income) was 145.44 pence per ordinary share as at 
that date, representing a quarterly increase of 0.4%. 
 
Portfolio update 
 
At 31 March 2018, the valuation of the Company's portfolio was GBP759.1 million, 
95% of which was located in and around London, representing a like-for-like 
increase over the quarter of 0.6%. 
 
The portfolio comprised ten assets with c.3,600 beds. Eight of the assets are 
currently operational whilst two of the assets are under construction / in 
refurbishment. The Net Initial Yield on the operational portfolio was 5.01%. 
 
 
Operational Portfolio: 
 
The focus on assets in and around London has delivered stable NAV performance 
over the period. Whilst the Company has not benefitted from any material yield 
compression over the period, it notes the recent sale of a portfolio of c.3,600 
beds primarily located in London which was achieved at a net yield estimated by 
the Investment Manager of c.4.3%. 
 
Assets under construction / in refurbishment: 
 
During the period under review, the Company's Woburn Place asset, which has 
been rebranded as Scape Bloomsbury, remained closed in order for it to be 
reconfigured and refurbished, as set out at the time of its acquisition in 
April 2017. The refurbishment of Scape Bloomsbury involves diversifying the mix 
of accommodation units, offering modern studios and single and double occupancy 
apartment-style accommodation, which is expected to increase the annual rental 
income previously generated by the property prior to its acquisition by the 
Company. Scape Bloomsbury remains on track to re-open in September 2018, 
in-line with forecast, with the refurbishment costs currently in line with 
budgeted expectations. The property, which is located in central London, WC1, 
will provide c.430 beds. 
 
The Company's forward-funded construction at Circus Street, Brighton - which 
was acquired in August 2018 - remains on track for completion in September 
2019. The property will provide c.450 beds and c.30,000 square feet of 
commercial office space. The student accommodation will be contracted on a 21? 
year lease, with upward only annual uplifts of RPI plus 50 basis points capped 
at 5% and floored at 2%, to a subsidiary guaranteed by Kaplan, a global 
education provider. 
 
Additional information on the Company's portfolio can be found in the factsheet 
for the period ended 31 March 2018 which will be published shortly and 
available at www.graviscapital.com/funds/gcp-student/literature. 
 
Dividend 
 
The Board is pleased to announce a third interim dividend of 1.48 pence per 
ordinary share, in respect of the quarter ended 31 March 2018. The third 
interim dividend will be paid on 11 June 2018 to ordinary shareholders on the 
register at 11 May 2018. The dividend will be paid as 0.92 pence per ordinary 
share as a REIT property income distribution ("PID") in respect of the Group's 
tax exempt property rental business and 0.56 pence per ordinary share as an 
ordinary UK dividend ("non-PID"). 
 
The Company targets a fully covered dividend over the longer term. Where assets 
in its portfolio are being refurbished or are under construction (as is the 
case with Scape Bloomsbury and Circus Street, Brighton), cover may be lower 
over the short term. The acquisition of such assets enables the Company to 
secure properties located in areas which benefit from favourable supply and 
demand characteristics, where appropriate operational assets may not be 
available, and which the Directors believe will provide regular, sustainable 
dividends with rental growth prospects over the longer term. 
 
The dividend was 65% covered by adjusted EPS for the six-month interim 
accounting period to 31 December 2017. On the basis of an investment portfolio 
which is fully operational, and assuming current occupancy levels across the 
portfolio, the Directors expect the dividend to be fully covered. 
 
Where the Company acquires forward-funded assets that are under construction, 
it seeks to benefit from licensing fees providing revenue through the 
construction phase which supports its objective of regular, sustainable 
dividends over the longer term. The Circus Street asset provides a 5.5% coupon 
during its construction phase. 
 
30 April 2018 
 
For further information please contact: 
 
Gravis Capital Management Limited                      [phone] 
 
Tom Ward               [e-mail] 
 
Nick Barker              [e-mail] 
 
Dion Di Miceli          [e-mail] 
 
Stifel Nicolaus Europe Limited                              [phone] 
 
Neil Winward            [e-mail] 
 
Mark Young             [e-mail] 
 
Tom Yeadon            [e-mail] 
 
Buchanan                                                              +44 020 
7466 5000 
 
Charles Ryland        [e-mail] 
 
Vicky Watkins          [e-mail] 
 
About GCP Student Living 
 
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 which 
are either currently fully operational or expected to complete construction/ 
refurbishment over the next two academic years. At 31 March 2018, its property 
portfolio was valued at GBP759.1 million. 
 
The Company's standing properties are mainly 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

April 30, 2018 02:00 ET (06:00 GMT)