The owner of student halls in St Andrews has vowed to “look favourably” on requests for help with rent – despite losing a third of its income.
Empiric Student Property, which owns 233-bedroom Ayton House in Abbey Walk, has made the offer to help tenants.
The company has continued to operate its 92 revenue-generating properties throughout the pandemic.
In a trading update the London-listed company reported its revenues had continued to deteriorate.
It said only around half of its 9,401 beds nationally were being occupied.
Health and welfare top priority
Despite this, it said it would “continue to look favourably” upon requests on a case-by-case basis from students seeking to amend their rent and lease obligations.
The requests would be considered in cases where the students are unable to occupy their rooms due to Covid-19.
Duncan Garrood, chief executive officer of Empiric Student Property, said: “Our top priority remains the health, safety and welfare of our residents, employees and wider stakeholders.
“We recognise that these are again particularly challenging times for all students, and we remain committed to supporting and doing the right thing by each student on a case-by-case basis, whilst also protecting the long-term value of the group.”
Falling occupancy rates
Empiric said it had cash and undrawn debt available of £63.9 million at the end of 2020 and remained compliant with its banking covenants.
It said it was impossible to give guidance on revenue for the current academic year as it depends on the length of the current national lockdown.
“On 23 October, we announced revenue occupancy of 70% for the academic year 2020/21, which included just under 10% of occupancy from students who were yet to check-in,” the firm told investors.
“Following further progress with the late checking-in of students and adjusting for the support we have provided to students since January 2021 as a result of the further national lockdown, revenue occupancy has reduced to 65% to date.
“This includes 2% of students still to check-in now or at a later date in the academic year.”
Ayton House
Empiric purchased Ayton House in a £26m deal at the end of 2015.
The development features a range of properties, including studios and four and five-bed en-suite apartments.
The price to students ranges from £169 and £247 a week depending on the property, with internet and all utilities included.
Empiric’s entire portfolio is valued at just over £1 billion. Prior to Covid-19 the business had increased its profits after a “top to bottom” review in November 2017 which led to a cull of two-thirds of the finance team.
