Empiric Student Property plc LSE:ESP, the London-listed owner and operator of premium, studio-led student accommodation across the UK, has reported a solid trading performance for the 2025/26 academic year, despite a moderation in occupancy levels and a slowdown in international student demand.
The company, which specialises in accommodation for postgraduate and international students, said occupancy had reached 89 per cent for the current academic year, compared with 95 per cent at the same point last year.
Like-for-like rental growth, however, remained in line with guidance at 4.5 per cent, reflecting the company’s continued pricing discipline and resilient demand from UK students.
Duncan Garrood, Empiric’s chief executive, said the company had seen a shift in the composition of its customer base.
“The booking cycle for academic year 2025/26 has seen an increase in reservations from UK students and a reduction in the number of Chinese students staying with us, potentially the result of geopolitical events,” he said. “Rental growth remains in line with guidance and we are well positioned for January sales activity.”
Garrood added that Empiric had continued to improve the quality of its portfolio and deploy capital effectively, even as it works through the next stage of its proposed acquisition by The Unite Group, the UK’s largest student accommodation provider. Following shareholder approval in October, the Competition and Markets Authority has commenced a Phase 1 investigation into the merger, with completion expected in the first half of 2026.
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Moderation in bookings
Empiric noted that the 2025/26 booking cycle had continued to normalise after record occupancy levels during the post-pandemic years. Between mid-August and early September, the company experienced a rapid increase in reservations, with occupancy rising seven percentage points in four weeks. However, that momentum has since slowed, in line with the wider market.
The company acknowledged that achieving its initial occupancy target of 97 per cent “will be challenging” under current conditions, but said it expects further progress from the January intake, particularly among postgraduate students. The shorter-term lettings market for spring courses, Empiric added, continues to grow in importance and will remain a focus area.
Regional dynamics have also played a role in the softer occupancy. Supply and demand imbalances in Nottingham, Sheffield and Glasgow accounted for over five percentage points of lost occupancy, the company said. Elsewhere, the portfolio has performed more strongly, supported by rising domestic student demand. UK students now represent 43 per cent of reservations, compared with 30 per cent from China and 27 per cent from other international markets.
Portfolio management and sustainability
The company reported further progress on its capital deployment programme, with three postgraduate refurbishments completed in Bath, Sheffield and Southampton, and a fourth in Bristol on track to open in early 2026. The sale of Pavilion Court in Canterbury was completed in August for £7.5 million, marking a continued exit from non-core, non top-tier cities.
Empiric said it is pressing ahead with its refurbishment and decarbonisation strategy, with around 300 beds scheduled for upgrade before September 2026. All newly refurbished properties are now being returned to operation free from onsite carbon production, while smart heating systems (now installed across 55 per cent of the portfolio) are helping to cut energy consumption per bed.
Empiric Student Property debt, liquidity and dividends
As of 30 September, Empiric’s loan-to-value ratio stood at 27.3 per cent, based on June valuations, with a weighted average cost of debt of 4.4 per cent and an average maturity of 3.9 years. The company reported cash and available facilities totalling £101.8 million.
The board reaffirmed its full-year dividend target of 3.7 pence per share and declared a third-quarter dividend of 0.925 pence per share, payable on 5 December 2025.
While market conditions remain mixed, Empiric’s focus on quality, sustainability, and targeted postgraduate demand positions it well ahead of its planned merger with Unite Group in 2026.
