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Empiric Student Property PLC (GB:ESP)
LSE:ESP
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Empiric Student Property (ESP) AI Stock Analysis

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GB:ESP

Empiric Student Property

(LSE:ESP)

Rating:69Neutral
Price Target:
106.00p
▲(12.65% Upside)
Empiric Student Property's overall stock score is driven by solid financial performance and positive corporate events. The company's strategic growth and shareholder confidence are significant strengths. However, technical analysis indicates weak momentum, and modest cash flow growth suggests areas for improvement. The valuation remains fair, with a reasonable P/E ratio and attractive dividend yield.
Positive Factors
Acquisition Opportunities
The proceeds of the raise are to be deployed into acquisition opportunities, with £30m allocated for two identified assets in Manchester and Edinburgh, due to complete in the short-term.
Balance Sheet Management
Empiric has established a track record for good balance sheet management, having achieved its LTV target in each of the 10 years since IPO.
Revenue and Occupancy
Trading update shows revenue occupancy for the academic year at 95%, expected to be full by January, with rental growth expected to exceed 6.5%.
Negative Factors
NTA Dilution
The Placing will be slightly dilutive to NTA, reducing it by 2-3%.
Share Price Discount
The company's shares are trading at a 25% discount to the FY24 NTA forecast, highlighting significant total return potential.

Empiric Student Property (ESP) vs. iShares MSCI United Kingdom ETF (EWC)

Empiric Student Property Business Overview & Revenue Model

Company DescriptionEmpiric Student Property plc is a leading provider and operator of modern, predominantly direct-let, premium student accommodation located in high-demand university towns and cities across the UK. Investing in both operating and development assets, Empiric is a fully integrated operational student property business focused on premium studio-led accommodation managed through its Hello Student® operating platform, that is attractive to affluent growing student segments. The Company, an internally managed real estate investment trust (REIT) incorporated in England and Wales, listed on the premium listing segment of the Official List of the Financial Conduct Authority and was admitted to trading on the main market for listed securities of the London Stock Exchange in June 2014.
How the Company Makes MoneyEmpiric Student Property generates revenue primarily through leasing its purpose-built student accommodation to university students. The company charges rental fees, which are typically collected on a quarterly or monthly basis, depending on the lease agreements. Additionally, ESP may earn revenue from ancillary services such as property management fees and amenities offered to tenants. The company benefits from partnerships with universities and local student organizations, which help to ensure high occupancy rates and attract a steady stream of tenants. Furthermore, ESP's strategic focus on acquiring and developing properties in high-demand areas contributes to its revenue stability and growth.

Empiric Student Property Financial Statement Overview

Summary
Empiric Student Property shows solid financial health with consistent revenue growth and strong profitability margins. The balance sheet is stable with moderate leverage, but attention to improving net income and cash flow growth could enhance its financial standing.
Income Statement
75
Positive
The company has shown consistent revenue growth, with a 4.6% increase from 2023 to 2024. Gross Profit Margin improved slightly to 69.0%, while Net Profit Margin decreased to 40.8% due to a lower net income. EBIT Margin remained strong at 64.6%. Overall, the income statement reflects steady growth, strong profitability, but a recent dip in net income.
Balance Sheet
70
Positive
The Debt-to-Equity Ratio stands at a manageable 0.46, indicating moderate leverage. The company's Equity Ratio is healthy at 65.3%, reflecting a strong equity base. Return on Equity decreased to 4.3% due to lower net income, but the balance sheet remains stable with solid asset backing.
Cash Flow
68
Positive
Operating Cash Flow remained stable, supporting a strong Free Cash Flow. However, the Free Cash Flow Growth Rate was minor at 1.9%. The Operating Cash Flow to Net Income Ratio is robust at 1.25, indicating efficient cash generation. Overall, cash flow is stable, though growth was limited.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue84.20M80.50M73.00M55.97M59.44M
Gross Profit58.10M55.30M48.40M32.45M36.47M
EBITDA52.80M70.40M36.40M22.95M-11.81M
Net Income34.40M53.40M67.70M29.20M-23.97M
Balance Sheet
Total Assets1.23B1.15B1.15B1.07B1.05B
Cash, Cash Equivalents and Short-Term Investments75.40M40.50M55.80M37.13M33.93M
Total Debt371.40M357.80M387.80M372.03M385.27M
Total Liabilities425.40M416.10M445.70M421.88M421.47M
Stockholders Equity801.30M734.20M700.80M647.60M633.28M
Cash Flow
Free Cash Flow42.90M42.10M28.40M29.68M5.22M
Operating Cash Flow43.00M43.70M30.30M30.64M5.66M
Investing Cash Flow-31.50M8.80M-9.40M1.32M-14.70M
Financing Cash Flow23.40M-67.80M-2.20M-28.76M26.45M

Empiric Student Property Technical Analysis

Technical Analysis Sentiment
Negative
Last Price94.10
Price Trends
50DMA
99.85
Negative
100DMA
94.12
Negative
200DMA
88.38
Positive
Market Momentum
MACD
-1.21
Positive
RSI
31.28
Neutral
STOCH
7.24
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ESP, the sentiment is Negative. The current price of 94.1 is below the 20-day moving average (MA) of 97.47, below the 50-day MA of 99.85, and above the 200-day MA of 88.38, indicating a neutral trend. The MACD of -1.21 indicates Positive momentum. The RSI at 31.28 is Neutral, neither overbought nor oversold. The STOCH value of 7.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:ESP.

Empiric Student Property Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
£571.22M5.2115.17%4.04%16.81%89.02%
73
Outperform
£3.58B10.327.57%3.74%12.77%14.86%
69
Neutral
£624.94M16.514.48%3.93%4.60%-35.59%
63
Neutral
$6.82B13.21-0.62%7.17%3.67%-27.43%
61
Neutral
£111.32M-6.65%7.10%
35
Underperform
£5.15M-3.56%3.67%-11000.00%
£71.15M
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:ESP
Empiric Student Property
93.60
-0.74
-0.78%
GB:KCR
KCR Residential REIT PLC
12.35
3.85
45.29%
GB:UTG
Unite Group plc
732.00
-186.71
-20.32%
GB:RESI
Residential Secure Income
58.00
9.00
18.37%
GB:PRSR
PRS REIT Plc
104.40
18.91
22.12%
GB:HOME
Home REIT PLC
9.00
-29.05
-76.35%

Empiric Student Property Corporate Events

M&A Transactions
Empiric Student Property Considers Possible Acquisition by Unite Group
Neutral
Jul 31, 2025

Empiric Student Property PLC has received a potential acquisition proposal from The Unite Group PLC, which could enhance Unite’s growth opportunities and broaden its offerings for returning students. The deadline for Unite to announce its firm intention to make an offer has been extended to August 14, 2025, allowing more time for due diligence and documentation, though there is no certainty an offer will be made.

The most recent analyst rating on (GB:ESP) stock is a Buy with a £99.00 price target. To see the full list of analyst forecasts on Empiric Student Property stock, see the GB:ESP Stock Forecast page.

Delistings and Listing ChangesRegulatory Filings and Compliance
Empiric Student Property Increases Share Capital
Neutral
Jul 31, 2025

Empiric Student Property plc has announced an increase in its issued share capital to 664,122,535 Ordinary shares following the issuance of 2,789 shares under its 2021 SAYE Option Plan. This update is significant for shareholders as it impacts the calculation of their notifiable interests under the FCA’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:ESP) stock is a Buy with a £110.00 price target. To see the full list of analyst forecasts on Empiric Student Property stock, see the GB:ESP Stock Forecast page.

M&A Transactions
Empiric Student Property Extends Deadline for Potential Unite Group Offer
Neutral
Jul 3, 2025

Empiric Student Property PLC has announced an extension of the deadline for The Unite Group PLC to make a potential offer for the company. The extension allows Unite more time to complete due diligence, which has reinforced the potential benefits of acquiring Empiric’s portfolio, including increased scale and growth opportunities. The possible acquisition is expected to enhance shareholder returns and maintain financial stability, although there is no certainty that an offer will be made.

The most recent analyst rating on (GB:ESP) stock is a Buy with a £110.00 price target. To see the full list of analyst forecasts on Empiric Student Property stock, see the GB:ESP Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
BlackRock Increases Stake in Empiric Student Property
Neutral
Jun 23, 2025

Empiric Student Property PLC has announced a change in its voting rights structure following an acquisition by BlackRock, Inc. The acquisition has resulted in BlackRock holding a total of 6.85% of voting rights in Empiric, up from a previous 6.69%. This change reflects BlackRock’s increased influence in the company, potentially impacting future strategic decisions and stakeholder interests.

The most recent analyst rating on (GB:ESP) stock is a Buy with a £110.00 price target. To see the full list of analyst forecasts on Empiric Student Property stock, see the GB:ESP Stock Forecast page.

Regulatory Filings and Compliance
BlackRock Adjusts Voting Rights in Empiric Student Property
Neutral
Jun 19, 2025

Empiric Student Property PLC has announced a change in the voting rights held by BlackRock, Inc., which has decreased its total voting rights in the company from 6.81% to 6.69%. This change reflects a slight adjustment in BlackRock’s investment position, potentially impacting its influence over company decisions. The notification highlights the importance of monitoring shareholder movements, as they can affect the company’s governance and strategic direction.

The most recent analyst rating on (GB:ESP) stock is a Buy with a £110.00 price target. To see the full list of analyst forecasts on Empiric Student Property stock, see the GB:ESP Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Empiric Student Property Reports Change in BlackRock’s Voting Rights
Neutral
Jun 11, 2025

Empiric Student Property PLC has reported a change in voting rights following an acquisition or disposal by BlackRock, Inc., a major shareholder. As of June 10, 2025, BlackRock’s total voting rights in Empiric Student Property amount to 6.81%, with a combination of direct and indirect holdings. This adjustment in voting rights reflects BlackRock’s strategic positioning within the company, potentially impacting its influence over corporate decisions and stakeholder interests.

The most recent analyst rating on (GB:ESP) stock is a Buy with a £110.00 price target. To see the full list of analyst forecasts on Empiric Student Property stock, see the GB:ESP Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Empiric Student Property Announces Change in Voting Rights
Neutral
Jun 10, 2025

Empiric Student Property PLC has announced a change in the voting rights held by East Riding Pension Fund, which now holds 3.9% of the voting rights in the company. This adjustment in holdings could influence the company’s governance and decision-making processes, potentially impacting its strategic direction and stakeholder interests.

The most recent analyst rating on (GB:ESP) stock is a Buy with a £110.00 price target. To see the full list of analyst forecasts on Empiric Student Property stock, see the GB:ESP Stock Forecast page.

M&A TransactionsRegulatory Filings and Compliance
Empiric Student Property Enters Offer Period Amid Retraction of Analyst Statements
Neutral
Jun 9, 2025

Empiric Student Property PLC announced that it has entered an initial period of due diligence following a proposal from The Unite Group PLC, marking the start of an offer period under the City Code on Takeovers and Mergers. However, the company retracted statements made by an investment analyst regarding potential synergies and competition concerns, clarifying that these statements were not properly compiled or supported by necessary analyses. This retraction underscores the company’s commitment to adhering to regulatory standards and maintaining transparency with its stakeholders.

The most recent analyst rating on (GB:ESP) stock is a Buy with a £110.00 price target. To see the full list of analyst forecasts on Empiric Student Property stock, see the GB:ESP Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Empiric Student Property Receives Acquisition Proposal from Unite Group
Neutral
Jun 5, 2025

Empiric Student Property PLC has received a non-binding acquisition proposal from The Unite Group PLC, valuing each Empiric share at 107.0 pence. The proposal includes a cash component and new Unite shares, and both companies have agreed to enter a period of due diligence. There is no certainty that a formal offer will be made, and Unite has until 3 July 2025 to announce its intentions. This potential acquisition could significantly impact Empiric’s market positioning and provide strategic growth opportunities within the student accommodation sector.

The most recent analyst rating on (GB:ESP) stock is a Buy with a £1.05 price target. To see the full list of analyst forecasts on Empiric Student Property stock, see the GB:ESP Stock Forecast page.

Shareholder MeetingsBusiness Operations and Strategy
Empiric Student Property Successfully Passes All AGM Resolutions
Positive
Jun 4, 2025

Empiric Student Property plc announced that all resolutions proposed at its Annual General Meeting on 4 June 2025 were passed by a poll of shareholders. The resolutions included both ordinary and special business matters, such as the approval of the annual report, directors’ remuneration, and re-election of directors. The successful passage of these resolutions reflects shareholder confidence in the company’s strategic direction and governance, potentially strengthening its market position and operational stability.

The most recent analyst rating on (GB:ESP) stock is a Buy with a £110.00 price target. To see the full list of analyst forecasts on Empiric Student Property stock, see the GB:ESP Stock Forecast page.

Dividends
Empiric Student Property Declares Interim Dividend
Positive
Jun 4, 2025

Empiric Student Property plc has declared an interim dividend of 0.925 pence per ordinary share for the quarter ending March 31, 2025, to be paid as a Property Income Distribution. The company maintains a progressive dividend policy, aiming for a minimum dividend of 3.7 pence per share for the 2025 financial year, reflecting its commitment to providing returns to shareholders while reinforcing its position in the premium student accommodation market.

The most recent analyst rating on (GB:ESP) stock is a Buy with a £110.00 price target. To see the full list of analyst forecasts on Empiric Student Property stock, see the GB:ESP Stock Forecast page.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Empiric Student Property Reports Strong Performance and Strategic Growth
Positive
Jun 4, 2025

Empiric Student Property plc reports strong business performance with reservation rates for the 2025/26 academic year ahead of the wider market, indicating high occupancy and rental growth exceeding inflation. The company has successfully deployed funds from a recent share placing for acquisitions, including Selly Oak Apartments, and is progressing on new developments and planning consents, which are expected to unlock future value. Empiric continues to optimize its portfolio by disposing of non-core properties and maintains a healthy financial position with a low loan-to-value ratio and robust liquidity.

The most recent analyst rating on (GB:ESP) stock is a Buy with a £110.00 price target. To see the full list of analyst forecasts on Empiric Student Property stock, see the GB:ESP Stock Forecast page.

Regulatory Filings and Compliance
BlackRock Adjusts Stake in Empiric Student Property
Neutral
May 27, 2025

BlackRock, Inc., a major shareholder in Empiric Student Property PLC, has adjusted its holdings, crossing a new threshold in voting rights. The change in BlackRock’s voting rights, which now total 6.81%, reflects a slight increase from the previous position, potentially impacting the company’s governance and decision-making processes.

The most recent analyst rating on (GB:ESP) stock is a Buy with a £110.00 price target. To see the full list of analyst forecasts on Empiric Student Property stock, see the GB:ESP Stock Forecast page.

Regulatory Filings and Compliance
Empiric Student Property Updates on BlackRock’s Voting Rights Adjustment
Neutral
May 21, 2025

Empiric Student Property PLC has announced a change in its voting rights following an acquisition or disposal by BlackRock, Inc., a major shareholder. As of May 19, 2025, BlackRock’s total voting rights in Empiric Student Property have slightly decreased from 6.82% to 6.77%, indicating a minor adjustment in its investment position. This change reflects BlackRock’s ongoing management of its investment portfolio and could have implications for the company’s governance and decision-making processes.

The most recent analyst rating on (GB:ESP) stock is a Buy with a £110.00 price target. To see the full list of analyst forecasts on Empiric Student Property stock, see the GB:ESP Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 08, 2025