HIGHLIGHTS
Continued strong financial performance built around high levels of service
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Adjusted earnings per share of 9.3 pence (June 2012: 9.0 pence)
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Like for like rental growth for the six months since December 2012 of 1.2% and recurring profit from operations (Net Portfolio Contribution) up 12.5% to £16.2 million from £14.4 million in June 2012
- Adjusted NAV per share up 3.1% to 361 pence (Dec 2012: 350 pence), equating to a total return on opening NAV of 4.0% for the six months after taking into account the June share placing
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Service satisfaction at highest ever levels
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Strengthening of debt capital base following successful USAF refinancing - see through cost of debt reduced to 5.3%, weighted average loan maturity increased to 5 years and see through loan-to-value ratio reduced to 48% (Dec 2012: 52%)
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Growth in shareholder returns: interim dividend increased to 1.6 pence per share (2012 interim: 1.0 pence)
Well positioned for ongoing growth
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Income growth supported by high demand
Reservations for 2013/14 academic year at 90% (2012: 87%), supportive of rental growth of 3% for the full year and expect to target similar levels in 2014
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Further growth supported by attractive development pipeline
Secured development pipeline on track to add 24 pence per share to NAV and 9 pence per share to earnings by 2016 if expected returns are achieved
Equity funding in place for further £215m development programme (UNITE share of capex) in addition to secured pipeline, which could add a further 35-40 pence per share to NAV and 7-8 pence to earnings by 2018 if expected returns are achieved
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LSAV development pipeline on-track and expected returns are in-line with expectations. First regional projects to be funded from proceeds of placing expected to be secured by end of year
Mark Allan, Chief Executive commented:
"The business has continued to perform strongly in 2013 with solid growth in earnings and NAV and healthy demand for accommodation for the 2013/14 University year. We expect this positive performance to be sustained for the full year and the rental growth outlook for the remainder of 2013 and into 2014 is encouraging.
"Longer term, the business is well positioned for continued growth in earnings and NAV. The demand/supply dynamics of our sector remain supportive, our competitive position and brand are strong and we have capital available to invest selectively in attractive opportunities."
