Empiric Student Property (ESP) AI Stock Analysis

• Market Cap: £685.37M
• Dividend Yield: 3.58%
• Average Volume (3M): 2.43M
• Price to Earnings (P/E): 18.1
• Beta (1Y): 0.71
• Revenue Growth: 4.60%
• EPS Growth: -35.59%
• Country: UK
• Employees: 369
• Sector: Real Estate
• Sector Strength: 62
• Industry: REIT - Residential
• EPS (TTM): 0.06
• Shares Outstanding: 664,119,750
• 10 Day Avg. Volume: 4,053,110
• 30 Day Avg. Volume: 2,432,126
• PEG Ratio: -0.48
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.83
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £102.00
• Price Target Upside: -1.16% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 81 Outperform
• 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 Business Overview & Revenue Model

Company Description

Empiric 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 Money

Empiric 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

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

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

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
84.20M	80.50M	73.00M	55.97M	59.44M
	Gross Profit
58.10M	55.30M	48.40M	32.45M	36.47M
	EBIT
54.40M	71.40M	35.80M	22.49M	27.00M
	EBITDA
52.80M	70.40M	36.40M	22.95M	-11.81M
	Net Income Common Stockholders
34.40M	53.40M	67.70M	29.20M	-23.97M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
75.40M	40.50M	55.80M	37.13M	33.93M
	Total Assets
1.23B	1.15B	1.15B	1.07B	1.05B
	Total Debt
371.40M	357.80M	387.80M	372.03M	385.27M
	Net Debt
296.00M	317.30M	332.00M	334.90M	351.34M
	Total Liabilities
425.40M	416.10M	445.70M	421.88M	421.47M
	Stockholders Equity
801.30M	734.20M	700.80M	647.60M	633.28M
Cash Flow		Free Cash Flow
42.90M	42.10M	28.40M	29.68M	5.22M
	Operating Cash Flow
43.00M	43.70M	30.30M	30.64M	5.66M
	Investing Cash Flow
-31.50M	8.80M	-9.40M	1.32M	-14.70M
	Financing Cash Flow
23.40M	-67.80M	-2.20M	-28.76M	26.45M

Empiric Student Property Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 103.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESP	81 Outperform	£685.37M	18.11	4.48%	3.58%	4.60%	-35.59%
UTG	80 Outperform	£4.11B	8.72	9.95%	4.44%	7.75%	276.67%
PRSR	76 Outperform	£630.54M	5.75	15.17%	3.57%	16.81%	89.02%
Sector *	61 Neutral	$2.83B	10.91	0.42%	8438.90%	5.74%	-20.95%
RESI	61 Neutral	£107.99M	―	-6.65%	7.05%	―	―
KCR	35 Underperform	£4.58M	―	-3.56%	―	3.67%	-11000.00%

Empiric Student Property Corporate Events

Empiric Student Property Receives Acquisition Proposal from Unite Group

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.

Empiric Student Property Successfully Passes All AGM Resolutions

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.

Empiric Student Property Declares Interim Dividend

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.

Empiric Student Property Reports Strong Performance and Strategic Growth

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.

BlackRock Adjusts Stake in Empiric Student Property

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.

Empiric Student Property Updates on BlackRock’s Voting Rights Adjustment

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.

Empiric Student Property Increases Share Capital

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.

Empiric Student Property Releases 2024 Annual Report and Announces AGM

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.

Empiric Student Property Sees Change in Voting Rights with BlackRock’s Increased Stake

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.

Empiric Student Property Expands Portfolio with Strategic Acquisitions

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.

Empiric Student Property Announces Executive Share Awards

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.

Empiric Student Property Announces Interim Dividend

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.

Empiric Student Property Reports Strong 2024 Results with Strategic Growth

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.