RNS Number : 0765O
GCP Student Living PLC
05 February 2021
GCP Student Living plc
("GCP Student" or the "Company", together with its subsidiaries
NAV, portfolio update and dividend
Net Asset Value
GCP Student, the only UK REIT focused on modern, purpose-built
private student accommodation in and around London, today announces
its EPRA Net Tangible Assets (NTA) per ordinary share, as set out
At 31 December At 30 September % quarterly
2020 2020 change
EPRA NTA (cum-income) 171.38 pence 171.71 pence -0.2%
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EPRA NTA (ex-income) 171.13 pence 171.46 pence -0.2%
---------------- ----------------- ------------
Portfolio and management update
At 31 December 2020, the valuation of the Company's portfolio
was GBP1.03 billion representing a like-for-like decrease over the
quarter of 0.2%.
At that date the portfolio, of which 80% by value was located in
and around London, comprised eleven operational assets with c.4,100
beds. The valuation Net Initial Yield on the operational portfolio
Bookings and market update
-- The Group's buildings remain operational with the Directors
and Investment Manager remaining focused on ensuring the wellbeing
of residents and staff by providing a safe and secure environment
in-line with government regulations.
-- On 5 November 2020 the Company announced that bookings across
its portfolio for the 2020/21 academic year stood at 69%, with the
substantial majority (c.86%) of those rooms being occupied by
residents and/or subject to nominations agreements.
The recent intensification of international and national travel
restrictions and changes in government guidance has made it
difficult for many of the Group's residents to occupy their rooms
at the present time. This has resulted in a reduction to occupancy
levels, with approximately 64% of booked rooms currently occupied
and/or subject to nominations agreements. Cancellations during the
quarter have slightly reduced bookings levels to 68%.
-- As previously announced the Company has offered rental
concessions of up to 100% to certain students for a six-week
period, commencing on 5 January 2021 (subject to conditions) and
which will be applied to the student's final instalment for the
academic year which is due in April 2021. Based on the number of
rooms which have been booked but which remain unoccupied, the
Investment Manager estimates the maximum loss of rental income
arising from this rent concession to be approximately GBP1.9
million (c.0.43 pence per share).
-- The Company's academic year runs for a period of 51 weeks
from mid-September. It receives direct let income in three tranches
for each academic year; c.40% in each of September and January and
the remaining c.20% in April. Approximately 88% of the direct let
rents due on bookings for the 2020/21 academic year in respect of
the September 2020 and January 2021 tranches have been
-- Based on the current level of contracted occupancy, reduced
rental rates on direct lets and the Investment Manager's
assumptions in relation to nominations agreements and long term
leases across the Group's portfolio, the Company would collect
between 55% and 60% of budgeted total income of GBP60.1 million for
the 2020/21academic year.
Nominations agreements and long-term leases
-- Rental income in respect of the Group's lease at Circus
Street, Brighton, continues to be received in line with
expectations. The Company receives c.GBP3 million per annum of
rental income in respect of this lease.
-- The Company has received a full settlement of all arrears due
from INTO of GBP1.9 million in respect of the 2019/20 academic
year. Further, it has received all payments due in respect of the
2020/21 academic year.
-- Scape Shoreditch has an occupational lease of the ground and
first floor offices to a WeWork subsidiary ("WeWork"), which is
part-guaranteed by its US parent company WeWork Companies Inc.
Rental payments are received from WeWork quarterly in advance.
As at the date of this announcement WeWork is in arrears of
GBP2.3 million in respect of half of the quarterly payments due to
the Group in March and June 2020 and for the full September and
December 2020 quarterly payments. All arrears to date and payments
due through to the end of June 2021 are covered by the
The Directors and the Investment Manager remain in discussion
with WeWork about the outstanding arrears on the lease as well as
WeWork's ongoing commitment to the asset. The current passing rent
is approximately GBP2.5 million per annum.
S cape Shoreditch is a modern property located in a prime London
location and a two-minute walk from Old Street underground
Cash and available debt facilities
-- At 31 December 2020 the Company had cash resources of c.GBP43
million and a redrawable credit facility of which c.GBP16 million
was available to be drawn at that date. The Company's current
capital commitments, including in respect of the construction costs
at Scape Brighton, are approximately GBP6m and will be funded
through the Company's available cash resources.
-- The Group's borrowings have an average weighted maturity on
its drawn debt of approximately four years from the date of this
announcement. The Group's Loan to Value ("LTV"), calculated as
borrowings net of cash as a proportion of the Group's total
portfolio value, was 24% at 31 December 2020.
Noting the impact on the Company's revenues and the ongoing
uncertainties relating to the Covid-19 pandemic, and a desire to
manage the business in a prudent and conservative manner, the
Directors have decided to announce a second interim dividend of
0.25 pence per ordinary share in respect of the quarter ended 31
The quantum of the dividend will be reviewed on a quarterly
basis with a view to increasing the quarterly payment when there is
greater visibility on the Company's revenue prospects.
The dividend will be paid on 26 March 2021 to ordinary
shareholders on the register at 19 February 2021. The dividend will
be paid as 0.25 pence per ordinary share as a REIT property income
distribution ("PID") in respect of the Group's tax-exempt property
rental business. No element of the dividend will be paid as an
ordinary UK dividend ("non-PID").
Additional information on the Company's portfolio can be found
in the factsheet for the period ended 31 December 2020, which will
be published shortly and will be available at:
For further information please contact:
Gravis Capital Management Limited +44 020 3405 8500
Jefferies International Limited +44 020 7029 8000
Buchanan / Quill +44 020 7466 5000
About GCP Student
The Company is t he only UK REIT focused on modern,
purpose-built private student accommodation in and around London
Its investments are located 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 eleven operational assets with c.4,100
beds. At 31 December 2020, its property portfolio was valued at
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(END) Dow Jones Newswires
February 05, 2021 02:00 ET (07:00 GMT)