tiprankstipranks
Trending News
More News >
Empiric Student Property PLC (GB:ESP)
LSE:ESP
UK Market

Empiric Student Property (ESP) AI Stock Analysis

Compare
15 Followers

Top Page

GB

Empiric Student Property

(LSE:ESP)

Rating:81Outperform
Price Target:
112.00p
▲(8.53%Upside)
Empiric Student Property receives a strong score due to robust technical indicators and positive corporate events, which signal confidence in its strategic direction. While financial performance is solid, further improvements in net income and cash flow growth are needed to enhance financial standing. The fair valuation and attractive dividend yield also contribute positively to the overall score.
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 (ESP) is a UK-based real estate investment trust (REIT) that specializes in owning and managing high-quality, purpose-built student accommodation. The company primarily focuses on providing modern, secure, and well-located housing solutions for students attending leading universities across the United Kingdom. With a portfolio strategically positioned in key university cities, ESP aims to offer premium living experiences tailored to the needs of domestic and international students.
How the Company Makes MoneyEmpiric Student Property generates revenue primarily through rental income from its portfolio of student accommodation properties. The company leases its properties to students, typically on an academic year basis, ensuring a steady and predictable cash flow. ESP benefits from strong demand for student housing in the UK, driven by a growing student population and limited supply of high-quality accommodation. Additionally, the company's properties are often located in prime areas close to major universities, allowing it to charge premium rents. While rental income is the primary revenue stream, ESP may also engage in property sales or development activities to optimize its portfolio and enhance value. The company's performance can be influenced by factors such as occupancy rates, rental prices, and operational efficiency.

Empiric Student Property Financial Statement Overview

Summary
Empiric Student Property demonstrates solid financial health with consistent revenue growth and strong profitability margins. The balance sheet reflects a stable financial position with moderate leverage. While cash flow generation remains strong, growth has been modest. Overall, the company shows resilience with potential for future growth, 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.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
84.20M80.50M73.00M55.97M59.44M
Gross Profit
58.10M55.30M48.40M32.45M36.47M
EBIT
54.40M71.40M35.80M22.49M27.00M
EBITDA
52.80M70.40M36.40M22.95M-11.81M
Net Income Common Stockholders
34.40M53.40M67.70M29.20M-23.97M
Balance SheetCash, Cash Equivalents and Short-Term Investments
75.40M40.50M55.80M37.13M33.93M
Total Assets
1.23B1.15B1.15B1.07B1.05B
Total Debt
371.40M357.80M387.80M372.03M385.27M
Net Debt
296.00M317.30M332.00M334.90M351.34M
Total Liabilities
425.40M416.10M445.70M421.88M421.47M
Stockholders Equity
801.30M734.20M700.80M647.60M633.28M
Cash FlowFree Cash Flow
42.90M42.10M28.40M29.68M5.22M
Operating Cash Flow
43.00M43.70M30.30M30.64M5.66M
Investing Cash Flow
-31.50M8.80M-9.40M1.32M-14.70M
Financing Cash Flow
23.40M-67.80M-2.20M-28.76M26.45M

Empiric Student Property Technical Analysis

Technical Analysis Sentiment
Positive
Last Price103.20
Price Trends
50DMA
90.04
Positive
100DMA
85.75
Positive
200DMA
87.75
Positive
Market Momentum
MACD
3.00
Negative
RSI
81.52
Negative
STOCH
78.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ESP, the sentiment is Positive. The current price of 103.2 is above the 20-day moving average (MA) of 94.50, above the 50-day MA of 90.04, and above the 200-day MA of 87.75, indicating a bullish trend. The MACD of 3.00 indicates Negative momentum. The RSI at 81.52 is Negative, neither overbought nor oversold. The STOCH value of 78.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ESP.

Empiric Student Property Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBESP
81
Outperform
£685.37M18.114.48%3.58%4.60%-35.59%
GBUTG
80
Outperform
£4.11B8.729.95%4.44%7.75%276.67%
76
Outperform
£630.54M5.7515.17%3.57%16.81%89.02%
61
Neutral
$2.83B10.910.42%8438.90%5.74%-20.95%
61
Neutral
£107.99M-6.65%7.05%
GBKCR
35
Underperform
£4.58M-3.56%3.67%-11000.00%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:ESP
Empiric Student Property
103.20
13.98
15.67%
GB:UTG
Unite Group plc
840.00
-32.68
-3.74%
GB:KCR
KCR Residential REIT PLC
11.00
2.00
22.22%
GB:RESI
Residential Secure Income
58.40
15.26
35.37%
GB:PRSR
PRS REIT Plc
114.80
40.01
53.50%

Empiric Student Property Corporate Events

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.

Private Placements and FinancingRegulatory Filings and Compliance
Empiric Student Property Increases Share Capital
Neutral
Apr 30, 2025

Empiric Student Property plc announced an increase in its issued share capital to 664,119,746 Ordinary Shares following the issuance of 122,902 shares under its 2024 Long Term Incentive Plan. This adjustment in share capital is significant for shareholders calculating their notifiable interests under the FCA’s Disclosure Guidance and Transparency Rules.

Shareholder MeetingsFinancial Disclosures
Empiric Student Property Releases 2024 Annual Report and Announces AGM
Neutral
Apr 30, 2025

Empiric Student Property plc has released its Annual Financial Report for the year ending December 31, 2024, highlighting its continued focus on premium student accommodations aligned with top-tier UK universities. The company also announced its Annual General Meeting scheduled for June 4, 2025, where shareholders will convene to discuss the company’s performance and future strategies. This announcement underscores Empiric’s commitment to transparency and stakeholder engagement, reinforcing its position in the student accommodation sector.

Business Operations and StrategyRegulatory Filings and Compliance
Empiric Student Property Sees Change in Voting Rights with BlackRock’s Increased Stake
Neutral
Apr 22, 2025

Empiric Student Property PLC has announced a change in its voting rights structure following an acquisition or disposal by BlackRock, Inc., a major stakeholder. As of April 17, 2025, BlackRock’s total voting rights in Empiric have increased to 6.82%, up from a previous 5.77%. This change reflects BlackRock’s strategic adjustments in its holdings, potentially impacting Empiric’s decision-making processes and shareholder dynamics.

M&A TransactionsBusiness Operations and Strategy
Empiric Student Property Expands Portfolio with Strategic Acquisitions
Positive
Apr 17, 2025

Empiric Student Property plc has announced the completion of its acquisition of Selly Oak Apartments in Birmingham for £9.0 million, expanding its operational beds in the area to 430 and enhancing its portfolio’s quality and resilience. Additionally, the company has received planning consent to transform College House in Bristol into a 57-bed student accommodation for postgraduates, aligning with its strategy to grow high-quality properties associated with top-tier universities and improve shareholder returns.

Executive/Board Changes
Empiric Student Property Announces Executive Share Awards
Neutral
Mar 21, 2025

Empiric Student Property plc has announced the granting of annual deferred bonus share awards and long-term incentive plan options to its executive directors. These awards, granted to CEO Duncan Garrood and CFO Donald Grant, include nil-cost options over ordinary shares, reflecting the company’s commitment to aligning executive incentives with shareholder interests. The long-term incentive plan options are subject to performance measures, including Total Accounting Return and Total Shareholder Return, ensuring a focus on sustainable growth and value creation for stakeholders.

Dividends
Empiric Student Property Announces Interim Dividend
Positive
Mar 13, 2025

Empiric Student Property plc has declared an interim dividend of 1.075 pence per ordinary share for the quarter ended 31 December 2024, to be paid on 11 April 2025. This announcement aligns with the company’s progressive dividend policy, which targets a minimum dividend of 3.7 pence per ordinary share for the 2025 financial year, reflecting its commitment to providing consistent returns to shareholders.

Business Operations and StrategyFinancial Disclosures
Empiric Student Property Reports Strong 2024 Results with Strategic Growth
Positive
Mar 13, 2025

Empiric Student Property plc reported strong financial and operational performance for the year ended 31 December 2024, with significant progress in its growth agenda. The company achieved a 9.3% like-for-like rental growth and added three new sites to its portfolio in Bristol, Glasgow, and Manchester. Despite a slight dip in occupancy to 97% for the 2024/25 academic year, Empiric maintained a robust balance sheet with a loan-to-value ratio of 27.2% and extended its debt term to 4.7 years. The company’s strategic focus on premium student accommodation and refurbishment projects has driven enhanced rental growth and asset value, positioning it well for future opportunities.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.