Empiric Student Property plc Annual Report and Accounts 2024
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Annual Report and Accounts 2024
Empiric Student Property plc | Annual Report and Accounts 2024
Strategic Report
Who We Are
Values
The customer
comes first
Our customer
experience is
of paramount
importance to the
development of our
strategic priorities.
We take ownership
We are reliable,
respectful, and
responsive. We do
what we say we will do.
Culture
Our people are key to
delivering a high-quality,
personalised service
to our customers.
We work tirelessly to
create a team who are
diverse and inclusive,
agile, proactive,
thoughtful,
and responsive.
Our
purpose
To help students make the most of
their university life by creating and
managing some of the highest quality
and most thoughtfully designed
accommodation, which is secure,
modern and homely.
Underpinned by our values and culture
Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 01
1 An alternative performance measure.
See page 48 for further details.
The business has delivered another year of great progress against its
strategic objectives, most pleasingly in respect to our growth agenda.
Having successfully concluded the Company’s first equity raise since
2017, our focus remains squarely on its deployment and delivery.
2024 saw us add three fantastic new sites to the portfolio growing our existing clusters in
Bristol, Glasgow and Manchester. We also unlocked value from existing sites with planning
consent achieved at Victoria Point in Manchester, and have continued to make good progress
on our programme of refurbishment, driving enhanced rental growth.
Highlights
Financial
5.6p
IFRS Earnings Per Share (basic)
2023 | 8.8p
Change | -36%
3.7p
Dividend per Share
2023 | 3.5p
Change | +6%
70%
Gross Margin
1
2023 | 69%
Change | +1% pt
119.6p
EPRA NTA Per Share
1
2023 | 120.7p
Change | -0.9%
27.2%
EPRA Loan to Value
1
2023 | 30.6%
Change | -3.4% pts
£1.1bn
Property Valuation
2023 | £1.1bn
Change | +1.6% (LfL)
£801.3m
IFRS NAV
2023 | £734.2m
Change | +9.1%
4.2p
EPRA Earnings Per Share
1
2023 | 4.0p
Change | +5%
6.6%
Total Return (3 year, annualised)
1
2023 | 7.4%
Change | -0.8% pts
Strategic report
01 Highlights
02 At a Glance
04 Our Market
08 Business Model
10 Our Strategy
16 Chairman’s Statement
20 Chief Executive Officer’s Review
28 Monitoring our Performance (KPIs)
32 Operating Review
38 Principal Risks and Viability
44 Financial Review
48 EPRA and other Alternative Performance
Measures
52 ESG Report
Governance report
94 Chairman’s Introduction
to Corporate Governance
98 Board of Directors
100 Board Overview
110 Nomination Committee Report
116 ESG Committee Report
118 Audit and Risk Committee Report
123 Remuneration Committee Report
142 Directors’ Report
145 Directors’ Responsibilities
Financial statements
146 Independent Auditor’s Report
153 Consolidated Statement of Comprehensive
Income
154 Consolidated Statement of Financial Position
155 Company Statement of Financial Position
156 Consolidated Statement of Changes in Equity
157 Company Statement of Changes in Equity
158 Consolidated Statement of Cash Flows
159 Notes to the Financial Statements
185 Glossary
186 Company Information and Corporate Advisers
Contents Generation – Section
Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 02
At a glance
Where we operate
Beds by region as at
31 December 2024
Scale is representative
of beds by region
97%
The Empiric portfolio is well aligned
to high-growth locations with
As at 31 December 2024:
74
Operational Assets
31 December 2023 | 79
7,685
Beds
31 December 2023 | 7,908
23
Cities and Towns
31 December 2023 | 27
North East
152
South East
535
Scotland
1,259
North West
1,448
West
Midlands
1,086
Wales
519
Yorkshire
1,345
South West
1,341
Home
from
Home
by value classified as either
Super Prime Regional or
PrimeRegional by our valuer
Contents Generation - Section
Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 03
Financial snapshot
As at 31 December 2024
1 An alternative performance measure.
See page 48 for further details.
£1.1bn
Portfolio valuation
£1.1bn
£1.1bn
2024
2023
4.2p
EPRA EPS
1
4.2p
4.0p
2024
2023
6.6%
Total Return (3 year, annualised)
1
6.6%
7.4%
2024
2023
3.7p
Dividend per share
3.7p
3.5p
2024
2023
119.6p
EPRA NTA
1
2024
2023
119.6p
120.7p
27.2%
EPRA LTV
1
27.2%
30.6%
2024
2023
Differentiated
Business Model
within the Popular
PBSA Property Sector
Responsible and
Industry-Leading
Operating Brand
Sustainable
Long-Term
Business Model
Delivering
Attractive Sustainable
Shareholder Returns
Socially and
Environmentally
Responsible
Progressive Culture
Embedded by Core
Values and Purpose
We target investment in prime regional cities which attract students from the
growing pool of affluent international, postgraduate and returning undergraduates,
whose premium accommodation requirements are relatively under-served by
the PBSA market. This segmented supply and demand imbalance drives both
occupancy and rental growth, creating relatively high-yielding investments
providing attractive total returns.
Hello Student, our operating brand, has become one of the most effective,
responsible and recognisable in the sector. In the 2024 Global Student Living
Index, Hello Student was awarded Gold Operator Certification, with an NPS score
of +32, well exceeding the average for University and Private Halls (+12 and +19
respectively), and a further improvement on 2023 when we scored +30.5. We pride
ourselves on high quality customer service and amenities.
There has been consistently strong growth in student numbers over the past
decade, with strong demand set to continue for the foreseeable future.
We target a gross margin of over 70% and annualised total returns of 7%-9%.
We are a company who is socially and environmentally responsible. We have set
an ambitious Net Zero target of no later than 2033 and have allocated significant
capital to invest in decarbonisation initiatives aimed at reducing energy
consumption and managing future EPC risk.
Our culture and values are embedded in our business and in our team.
Investment proposition
Contents Generation – Section
Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 04
Our market
“ The UK is the most sought after
European location for investors
looking to deploy capital into
student accommodation.”
Will Atkinson | Chief Investment Officer
+14.7%
in 2024
Super Prime Regional PBSA reported
the highest capital growth of
During 2024, the UK Purpose-
Built Student Accommodation
sector continued to demonstrate
its resilience in the face of wider
macroeconomic headwinds,
underpinned by the sustained
student demand for modern
accommodation. Investor appetite
continues to evolve and diversify,
fuelled by the undersupply of high-
quality operational beds, long-term
predicted growth in demand and
a reduced delivery of new supply.
Strengthening investor appetite for the sector
was evident in the year’s transaction volumes, with
Savills reporting growth of 13 per cent year on year,
and £3.5bn traded
(1)
. The UK is the most sought after
European location for investors looking to deploy
capital into student accommodation, despite the relative
maturity of UK PBSA
(2)
.
PBSA continues to outperform the wider UK property
sector with the CBRE PBSA Index 2024 showing robust
returns, delivering annual total returns (to September
2024) of 9.8 per cent. This compares favourably to
Industrials which delivered annual returns of 9.7 per cent
and the overall UK commercial property sector which
delivered a total return of 7.7 per cent (to December
2024). The CBRE PBSA Index reports that capital values
rose faster than in 2023, increasing on average from
2.4 per cent to 4.0 per cent in 2024.
Last year’s highest capital growth was in Prime Regional
assets with this switching in 2024 to the Super Prime
Regional markets which increased by 14.7 per cent
(3)
.
Our portfolio is well aligned to both these sub-sectors
with 97 per cent by value classified as Super Prime
Regional or Prime Regional at December 2024.
97%
aligned to Super Prime or Prime
Regional locations.
Our portfolio is
The UK PBSA
sector continued
to demonstrate
its resilience in
the face of wider
macroeconomic
headwinds
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Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 05
612,000
Full-time postgraduate students,
now represent over one quarter of
the total student population.
75%
since academic year 2017/18.
Postgraduate student numbers
have increased
Occupational demand
The growth of students accelerated immediately after
the pandemic and has since eased, aligning with the long-
term trend. The number of university students studying
full-time in the UK has risen by nearly a quarter to 2.4
million in the five years to 2022/23 (the most recently
reported academic year), with a further 580,000 students
attending part-time.
Overall undergraduate applications in 2024 according
to UCAS were down 0.3 per cent to 594,940 with a
continuing trend of declining demand for nursing courses
down 10 per cent contrasted by growing demand in
STEM courses with engineering and technology courses
having seen 10 per cent growth, and applications to both
mathematical sciences and computing experiencing an
increase of 7 per cent. The application rate for UK 18-year-
olds was 41.3 per cent, down from 41.5 per cent in 2023,
but up from 38.2 per cent recorded in 2019. International
applications increased by 0.7 per cent showing the
continued attraction of the UK higher education sector.
The highest increases were from China (+3 per cent),
Turkey (+37 per cent) and Canada (+14 per cent)
(4)
.
Applications from other countries, such as Nigeria,
have seen a significant drop, largely due to the country’s
high inflation rates
(5)
and changes in the UK student visa
scheme in respect of dependants.
The trend in undergraduate acceptances in 2024 reported
by UCAS shows a slightly different result. Overall there
has been an increase in students placed onto full-time
undergraduate courses by 0.9 per cent to 493,940
which included a record 277,790 UK 18-year-olds being
accepted. This coincides with a lower acceptance rate for
international students, with the number of acceptances
marginally dropping by 0.6 per cent from 61,470 last
year to 61,110. From those international undergraduate
applicants, China has remained the largest international
market even after a 1.9 per cent decline since the
prior year
(6)
.
Postgraduate students studying full-time in their first year
increased by 56,990 to 444,320 in 2022/23 which reflects
a 75 per cent increase in postgraduate student entrants
since 2017/18. Overall there were 612,000 full-time
postgraduate students in 2022/23 representing 25 per
cent of the overall UK student population and consisting
of 67 per cent international, 30 per cent UK and 4 per cent
originating from the EU
(7)
.
PBSA sector’s occupancy is very similar to last year, at
91.7 per cent, showing only a marginal decrease from 92.6
per cent in the prior year. Studio flats were the first to let,
remaining the preferred offering for international students
as with previous years
(5)
, benefitting from a target
market in a higher price bracket, setting it apart from
the competitive cluster flat market. Looking forward, the
StuRents Annual Report 2024
(5)
predicts the continuation
of steady growth into 2024/25 and then beyond driven by
the growing number of the 18-year-old population which
is forecast to increase year on year until 2030. Similarly,
UCAS has reported that the increase in tuition fees from
£9,250 to £9,535
(8)
is not expected to affect application
numbers, in line with the last time fees were increased.
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Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 06
Our market | continued
beds completed in 2024.
Development of PBSA beds
remains at a decade low
11,270
PBSA supply
It is anticipated that the sector will continue to have a
significant shortfall of beds in 2025, with several factors
constraining supply
(13)
. Viability remains a key challenge
for developers, with higher build costs, enhanced building
safety requirements, sustainability demands, increased
financing costs and increasingly difficult planning
environments all discouraging development. Material
and labour costs are expected to increase further, with
the BCIS Building Forecast expecting building costs to
increase 17 per cent over the next 5 years
(14)
. Delivery dates
have been delayed by the introduction of the Building
Safety Act, particularly the Gateway Two process
(13)
.
A two-tier market is developing in UK PBSA. Knight Frank
report that 65 per cent of existing PBSA supply was built
before 2012
(15)
, with the majority of stock ageing and
requiring refurbishment or repositioning. Knight Frank
report that just under 260,000 new student beds have
been delivered since 2012. In the same period, almost
470,000 full-time students have been added to the
UK university population, exacerbating the supply
demand imbalance for high-quality accommodation
(15)
.
Development remains at a decade low, with under
9,950 beds completing in 2023 and only 11,270
delivered in 2024
(16)
. By comparison over 30,000 beds
were completed each year between 2016 and 2020, with
delivery peaking at 38,600 in 2018
(13)
. Developer sentiment
is improving in certain cities, reflected in more PBSA
planning applications brought forward. In the year to
September 2024, developers sought planning consent for
30,900 with 25,700 beds approved
(5)
. Supply is becoming
increasingly focused on the best performing markets
with 71 per cent of all planning applications in just ten
UK locations including Bristol, Glasgow and Manchester,
driven by favourable student demand and higher rents
improving viability. The shortage of housing options for
students is also being compounded by a continued loss
of Houses in Multiple Occupation (“HMO”), with landlords
due to pay surcharges on additional properties, as
announced in the October 2024 Budget
(13)
.
Investor activity and transactions
The interest rate environment during 2023 stifled
transactional activity, but improving sentiment has
led to higher transaction volumes in 2024, with Savills
reporting a 13 per cent year on year increase to £3.5bn
(1)
.
Portfolios traded in the year, including Project Aqua,
711-beds in Exeter and Glasgow bought by LGIM for
£122 million reflecting 5.3 per cent and Project Jade, a
4,335-bed regional portfolio acquired by PGIM for £184
million, reflecting 6.25 per cent. Standing assets traded in
London and the regions. Pavilion Court, a 699-bed asset
in London sold for £125 million to Apollo, reflecting 4.65
per cent and 99-bed True Student Glasgow West End was
purchased by Aviva Investors and Curlew for £23 million,
reflecting £232,000 per bed. In December 2024, Goldman
Sachs and Generation Partners purchased two assets
totalling 900 beds in Bournemouth and Cardiff for £108.5
million, reflecting 6.0 per cent
(18)
.
The year saw a limited number of traditional forward funds
but some large scale land transactions did transact, with
Greystar purchasing a 1,014-bed site, One Medlock in
Manchester, from Dominus, and the 836-bed Triangle site
in Selly Oak from Apsley Capital and Galliard. In London,
Unite acquired the 444-bed King’s Place in Southwark
(20)
.
Transaction volumes increased to
£3.5bn
Representing a 13% year-on-year
increase on 2023.
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Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 07
Date
CBRE Benchmark Investment Yields
Dec 22 (%) Mar 23 (%) Jun 23 (%) Sep 23 (%) Dec 23 (%) Mar 24 (%) Jun 24 (%) Sep 24 (%) Dec 24 (%)
Yield
9.00
8.00
7.00
6.00
5.00
4.00
3.00
Student – Central London
Direct let
Student – Prime Regional
Direct let
Student – Secondary Regional
Direct let
Industrial – Prime Distribution
Offices – Regional Cities
Key
Direct-let yields best in class
Benchmark direct let investment yields reported by
CBRE have remained unchanged in 2024, with Central
London, Prime Regional and Secondary Regional yields
stable at 4.25 per cent, 5.0 per cent and 8.5 per cent
respectively
(21)
. This reflects investor demand for prime
properties, with investors seeking discounts for assets
which do not meet best-in-class criteria. The Bank of
England base rate sharpened 50 basis points in the
second half of 2024, with a 25 basis point cut from 5.25
per cent to 5.0 per cent in August, and further 25 basis
point cut to 4.75 per cent in November
(22)
. Savills report
strong demand from lenders to deploy capital on high-
quality PBSA opportunities. Although underlying interest
rates remain elevated, competition is exerting downward
pressure on margins, with lenders becoming more flexible
on financing packages to secure opportunities
(1)
.
Looking ahead, the continued growth in 18-year-olds and a
forecast recovery in non-EU students is expected to further
drive demand for PBSA beds. Occupancy is expected to
remain strong and rental growth is forecast to remain in-
line with the long-term average
(13)
. This is however highly
nuanced in some markets, with higher supply driving
price sensitivity. The supply of PBSA will continue to be
constrained by several factors, underpinning PBSA’s
position as a top-performing sector, attracting new
entrants and underpinning investor confidence.
Sources:
1 Savills. UK PBSA investment hits £3.5bn in 2024, according
to Savills. Savills News. [Online] 2025. [Cited: 21 January
2025.] https://www.savills.co.uk/insight-and-opinion/savills-
news/371418/uk-pbsa-investment-hits-%C2%A33.5bn-in-
2024--according-to-savills
2 https://pdf.euro.savills.co.uk/uk/spotlight-on/european-
pbsa-investment-barometer-report---2024.pdf
3 CBRE. CBRE Purpose-Built Student Accommodation Index
2024. 2024.
4 Advance HE. UCAS - 2024 sees more 18-year-olds apply for
higher education. Governance News Alert. [Online] [Cited: 22
January 2025.] https://www.advance-he.ac.uk/knowledge-
hub/2024-sees-more-18-year-olds-apply-for-higher-
education.
5 StuRents. Annual Student Accommodation Report 2024.
2024.
6 UCAS. Record Acceptances for UK 18 Year Olds as
International Growth Flattens Out. [Online] 2024. [Cited:
5 December 2024.] https://www.ucas.com/corporate/news-
and-key-documents/news/record-acceptances-uk-18-year-
olds-international-growth-flattens-out.
7 HESA. Higher Education Student Statistics: UK, 2021/22.
HESA. [Online] 2023. [Cited: 22 January 2025.] https://www.
hesa.ac.uk/news/19-01-2023/sb265-higher-education-
student-statistics
8 UCAS. Undergraduate Tuition Fees and Student Loans.
[Online] 2024. [Cited: 5 December 2024.] https://www.ucas.
com/money-and-student-life/money/student-finance/
undergraduate-tuition-fees-and-student-loans.
9 CBRE. UK Real Estate Market Outlook 2024. 2023.
10 Bank of England. Official Bank Rate history. [Online] 2024.
[Cited: 10 December 2024.] https://www.bankofengland.
co.uk/boeapps/database/Bank-Rate.asp.
11 Savills. The number of applications to UK universities shows
the demand for Purpose-Built Student Accommodation
(PBSA) remains positive. The Savills Blog. [Online] 2024.
[Cited: 20 December 2024.] https://www.savills.co.uk/blog/
article/365003/commercial-property/ucas-application-
numbers-and-the-impact-on-purpose-built-student-
accommodation.aspx.
12 JLL. Where next for student housing? 2024.
13 Knight Frank. Knight Frank Student Accommodation Survey
2024. 2024.
14 CBRE. UK Real Estate Market Outlook 2025. 2024.
15 BCIS. BCIS building forecast. BCIS. [Online] 2025. [Cited: 22
January 2025.] https://bcis.co.uk/news/bcis-construction-
industry-forecast/.
16 Knight Frank Next Gen 2025.
17 CBRE 2024 Investment Evidence Schedule 22012025.
18 Shakespeare Martineau. Purpose-Built Student
Accommodation (PBSA) is increasingly being developed
in city centres up and down the UK to meet the growing
demand from the student population. [Online] 2024. [Cited:
5 December 2024.] https://www.shma.co.uk/our-thoughts/
renters-reform-bill/.
19 CBRE 2024 Investment Evidence Schedule 22012025.
20 JLL. UK Living Capital Markets Q3 2024. 2024.
21 Savills. UK PBSA investment hits £3.5bn in 2024, according
to Savills. Savills News. [Online] 2025. [Cited: 21 January
2025.] https://www.savills.co.uk/insight-and-opinion/savills-
news/371418/uk-pbsa-investment-hits-%C2%A33.5bn-in-
2024--according-to-savills.
22 CBRE. Investment Yields December 2024. 2024.
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Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 08
Business model
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Creating
homely, modern,
vibrant communities
for discerning
customers
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Our culture
Our customers and our people are our key focus. We aim
to deliver stand-out customer service, which in turn drives
occupancy and financial returns through working together.
Our business model
combines a high-quality,
characterful portfolio of
Purpose-Built Student
Accommodation with
an efficient in-house
operational platform,
designed to grow and
create long-term
sustainable returns
for our Stakeholders.
Key strengths
Portfolio
We have an attractive, characterful
portfolio that offers high-quality,
well located accommodation for
our customers.
Our people
Our people are key to our customers’
journey. Our passionate and committed
colleagues allow us to deliver hassle-free
student accommodation with a sense of
community and belonging that supports
mental health and wellbeing.
Specialist knowledge
We have the knowledge to acquire,
develop and operate high-quality,
sustainable student accommodation.
Brand
Hello Student® is a leading
brand providing clear identity
in the PBSA market.
Data analytics
We drive improvements in customer
experience and performance through
data analytics. We seek to understand
behavioural characteristics using
both geographic and demographic
segmentation.
Financing
We have an appropriately leveraged
balance sheet with strong liquidity,
allowing the business to be proactive
and capitalise on opportunities as
they arise.
How we add value
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Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 09
Locations/specifications
We are selective about where we invest, with a focus on
the towns and cities that are home to the most successful
universities and where student numbers are rising faster
than average. We select sites based on their compatibility
with the types of accommodation we provide and their
proximity to universities and amenities.
Our buildings have on average around 100 beds, which
helps to foster a more homely, collegiate feeling to living.
However, through our clustering strategy we are able to
yield the economies of scale which are generated from
larger buildings.
Operate
Our assets are marketed through our Hello Student®
platform, a clear and identifiable brand. Encouraging
our people to live our values helps ensure that customers
have the best experience possible, driving improved
occupancy and returns. We have a student Wellbeing
Manager and welfare programme in place to ensure that
we provide the 24/7 support that our customers can
expect when they stay with us.
Acquire/develop
We acquire standing assets when an opportunity
arises which complements our portfolio and
core strategy.
We consider developing assets when we can acquire them
at a higher yield on cost than acquiring standing assets.
Forward-funded projects are typically less complex than
direct developments and have a lower risk profile, as the
planning and construction and risk lies with the third-
party developer. However, we have a strong and proven
track record in direct development too.
Recycle
We invest in our portfolio for the long term, however
we continually review the portfolio to ensure capital
is effectively allocated. Where an opportunity
exists to create improved returns for shareholders
we are unemotive about recycling capital to create
greater value.
Customers
Our customers benefit from having a great
home to live in during their studies, at all-in
rent that represents best value.
NPS in the Global Student Living Index
+32
Higher than PBSA private hall average +19
Shareholders
Shareholders benefit from Total Returns
which are underpinned by income and
continued rental growth.
6.6%
Annualised 3 year
2.0%
1 year
Our people
Our people have the opportunity to develop
their careers in an exciting and growing sector.
Colleague Engagement Score
78%
Suppliers
Fostering long-term relationships with high
performance, service-oriented suppliers and
service providers who align with our values.
Communities
The communities in which we operate
benefit from increased employment,
reduced pressure on local housing stock,
and from the improvements we fund to
social infrastructure in the surrounding area.
Outcomes
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Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 10
Our strategy
1
Customers
2
Brand
3
Our People and Operations
4
Building
5
Shareholders
Delivering
against our
strategic
objectives
KPI links
A. Rebooker Rate
B. Net Promoter Score
C. Revenue Occupancy
D. Safety – Number
of Accidents
E. Colleague
Engagement
F. Energy consumed
per bed
G. EPC risk mitigation
H. Gross Margin
I. EPRA earnings per
share
J. Dividend Cover
K. EPRA Net Tangible
Assets per share
L. Total Return
Risk links
External risks
E1. Revenue Risk
E2. Property Market Risk
E3. Climate Change Risk
E4. Financing Risk
E5. Inflation Risk
Internal risks
I1. Health and Safety Risk
I2. Information
Technology Risk
I3. People Risk
I4. Safe and Sustainable
Buildings Risk
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Strategic report 11
1
Customers
Principal Risks | page 38
Strategy in Action | page 26
#1
Best Student Wellbeing 2024
Awarded by GSLI
69%
now resolved within 72 hours
Customer queries
Monitoring our Performance (KPIs) | page 28
Associated KPIs
A B C
D
F
Associated risks
E1 E4E3
I3 I4
Strategic objective
Our customers are at the heart of what we
do. We want our customers to have a great
experience and stay with us year after year
and to recommend us to their friends.
We aim to achieve customer satisfaction
by creating vibrant communities in our
homes and by giving our customers a sense
of safety, wellbeing and belonging in an
environment of high-quality communal
areas and facilities.
We aim to deliver a friendly personalised
service and be there when our customers
need us.
Progress in the year
î Our net promoter score was +32,
compared to PBSA private halls
average +19.
î 69% of customer queries now resolved
within 72 hours.
î 20 properties ranked within top three by
StudentCrowd in cities across the UK.
î Awarded Best Student Wellbeing
by GSLI.
Key aims for 2025
î Continued progression in NPS.
î Drive improving StudentCrowd ranking
and happiness score.
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Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 12
Our strategy | continued
2
Brand
Progress in the year
î Launched new website improving
booking experience.
î Launched WeChat mini programme to
engage directly with Chinese students.
î Refreshed research into ‘What students
want’ from their rooms and their
buildings and how they want to live
together, helping to inform brand
evolution.
Strategic objective
We want to raise awareness of the
Hello Student® brand among students,
to support our premium accommodation
and service offering. We want to be known
as a responsible provider.
Key aims for 2025
î Continue brand roll-out.
î Launch ‘Out of Home’ student podcast.
î Refine customer experience roadmap.
+32
compared to PBSA private halls
average +19
Our net promoter score
#1
in six cities in which we operate
StudentCrowd ranking
Principal Risks | page 38
Monitoring our Performance (KPIs) | page 28
Associated KPIs
A B C
D
G H
Associated risks
E1 E3
I1 I2 I3 I4
Contents Generation - Section
Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 13
3
Our people and operations
Principal Risks | page 38
Strategic objective
We are committed to making Empiric
“a great place to work” and destination
of choice for candidates wanting to work
in the student accommodation sector;
through this we will be able to deliver
a high standard of customer service.
We will continually enhance our in-house
functions and performance coach our
colleagues to help themprovide the
best and most efficient customer
service experience.
Progress in the year
î Launched ‘Hello Future Stars’ leadership
development programme.
î Employee retention maintained at 78%.
î Diversity target set for Senior
Leadership Team.
61%
of eligible vacancies filled
by internal promotions
Vacancies and promotions
21%
of responding employees identify
as being from an ethnic minority
Ethnic minorities
Monitoring our Performance (KPIs) | page 28
Associated KPIs
Associated risks
E1 I1E3 E4 I2 I3 I4
A B C
D E
Key aims for 2025
î Review and enhance reward and recognition
offering.
î Implement diversity strategy.
î Rationalise operating model for city structure
to drive efficiencies.
Contents Generation – Section
Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 14
Our strategy | continued
4
Building
Principal Risks | page 38
Monitoring our Performance (KPIs) | page 28
Associated KPIs
Associated risks
Strategy in Action | page 36
Strategic objective
We will maximise the value from the asset
portfolio by actively managing the portfolio
to recycle capital and to improve returns
and sustainability. This is achieved by
maintaining a portfolio of well located
investments with attractive yields and
rental growth opportunities.
Progress in the year
î Three acquisitions completed in
top-tier cities.
î Completed full refurbishment of
Brunswick Apartments, Southampton.
î 73% of portfolio EWS1 certified.
î Detailed planning consent achieved
forthe addition of 310 new beds at
Victoria Point, Manchester.
173
rooms across the portfolio in 2024
Refurbishment of
£45m
generated from sales in 2024
Non-core disposal programme
A B C
D F G H
E1 E2 E3 E5 I1 I2 I4
Key aims for 2025
î Continue to grow beds under management.
î Develop implementation plan for Victoria
Point, Manchester.
î Continue roll-out of Postgrad product in three
further cities.
Contents Generation - Section
Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 15
5
Shareholders
Principal Risks | page 38
Strategic objective
We want to provide our shareholders
with attractive sustainable returns.
This is achieved through improving the
profitability, performance and scale of
our portfolio.
Progress in the year
î Delivered 6% increase in total dividend
paid for year.
î Improved engagement on ESG matters
placing targets to advisory vote at AGM.
î Expanded investor relations programme
with engagement in corporate access
days and hosting property tours in
Bristol, Glasgow and Edinburgh.
3.7p
+6% on 2023
Dividend
6.6%
annualised 3 year
2.0%
for the year
Total accounting return
Monitoring our Performance (KPIs) | page 28
Associated KPIs
Associated risks
A B C
D F G I K
H J L
E1 E2 E3 E4 E5 I1 I2 I3 I4
Key aims for 2025
î Deploy proceeds from equity raise in line with
commitments and demonstrate accretion.
î Engage with shareholders on new
remuneration policy.
î Improve diversity.
Contents Generation – Section
Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 16
Given the backdrop of challenging
market conditions presented by
changes in government policy and
ongoing inflationary cost pressures,
the Company has delivered another
strong operational performance in
2024, with like for like rental growth
across the financial year in excess of
nine per cent, strong occupancy and
improving customer service scores.
Chairman’s statement
“ Despite challenging market conditions,
good progress has been made this year
on our growth agenda.”
Mark Pain | Non-Executive Chairman
Macro-outlook
remains
positive for the
foreseeable
future
Contents Generation - Section
Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 17
The business has made good progress on its growth
agenda. In the first half of the year, we acquired two
well-located properties in top-tier university cities where
we had an existing operational presence, allowing us to
exploit the benefits of our clustering model.
In October, a successful capital raise was concluded
raising £56.1 million, over half of which has been
deployed or committed into accretive acquisitions and
refurbishment opportunities as at 31 December 2024.
I would like to thank our existing and new shareholders
for their support and confidence in the Company’s
proposition and strategy.
In December, in line with plans outlined to investors
alongside the capital raise, a third new site was acquired
in Manchester and the team remain focused on the timely
deployment of residual proceeds. Also in Manchester,
in support of our growth agenda, we achieved planning
consent for a comprehensive redevelopment at Victoria
Point, which when implemented will add over 300 beds
to this strong operational cluster and acutely
undersupplied city.
Performance & dividend
With occupancy of 99 per cent for the 2023/24
academic year and 97 per cent for the 2024/25 academic
year, demand remains strong for our high-quality
accommodation. Like for like rental growth comfortably
exceeded inflation at 10.5 per cent and 7.0 per cent
respectively.
Pleasingly, our customer service scores continue
to surpass many of our competitors with further
improvement achieved on NPS, which now sits at +32,
considerably ahead of All Private Halls of +19. We were
also pleased to be voted number one on Student Crowd
in two cities in which we operate.
Having set a dividend target for the financial year of
3.5 pence per share, we are pleased that despite the
challenges faced, the performance of the business
continues to support a progressive dividend and we have
increased our payment for the 2024 financial year to
3.7 pence per share, a six per cent increase on 2023.
The Board intends to continue to make quarterly
payments to shareholders throughout 2025. It is the
Board’s intention that dividends remain fully covered
by recurring earnings and are progressive in nature.
The Board will initially target a minimum dividend of
3.7 pence per share for the financial year to
31 December 2025.
Governance
Although the Board had a schedule of regular meetings
and informal calls throughout the year, a number of
additional meetings were held to discuss a prospective
joint venture to promote growth and accelerate the roll
out of the Group’s postgraduate product. However, after
careful consideration the Board decided to end these
discussions, noting that the timing of implementation
was at risk and the associated disruption to the
Company’s business plan was not in the best interests
of shareholders. With a change in market sentiment the
Board recognised an opportunity to conduct a capital
raise allowing the Company to pursue these objectives
independently.
Further details regarding the Board, its operations and
the reports from its various Committees can be found on
pages 100 to 141.
Building a sustainable business
The Board is committed to creating a sustainable business
with a positive social, environmental and economic legacy
for all stakeholders and has set clear targets in order to
achieve Net Zero as a business by 2033. We have been
pleased to see the impact of energy efficiency initiatives
beginning to feed through to falling average energy use
per bed. Our 2025 EPC target has already been exceeded
with 64 per cent of the portfolio categorised as EPC B
or above.
In order to further improve transparency, and in response
to requests from shareholders, the Board will participate
in an ESG disclosure and benchmarking process with
CDP annually from 31 December 2025, with the first set of
findings from this exercise due to be published in 2026.
We are also pleased to report that our Scope 3 emissions
and carbon balance sheet are disclosed for the first time
this year, details of which can be found on page 89.
97%
occupancy rate for the
2024/25 academic year, with
99% occupancy achieved for
the 2023/24 academic year
Contents Generation – Section
Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 18
Chairman’s statement | continued
The wellbeing of our customers and employees is always
paramount and we were delighted to win the Best Student
Wellbeing award for UK and Ireland at this year’s GSLI
Awards. With the mental health of our students remaining
a key focus area, we introduced mental health first aid
training at many of our sites and it’s pleasing to see this
being recognised within the industry.
Health and Safety
Health and Safety is the responsibility of the Board and
reports are regularly provided to keep Directors updated
of incidents or improvements. Health, safety and fire
audits were conducted and completed during the year
and a three-year plan is currently being progressed to
enhance our monitoring and investment to ensure all our
buildings are as safe and secure as possible.
Diversity, succession and culture
There have been no changes to the Board this year,
extending a period of stability and resulting in another
solid Board evaluation. However, with no change in Board
membership, it has not been possible to address the
diversity targets set by the Parker and the FTSE Women
Leaders Review. Steps have been taken to improve
diversity within the wider business, and this is discussed
further on page 114. The results of the Board evaluation
can be found on page 112.
Succession plans for the Executive Directors and
Executive Committee have been prepared on both a short
and long-term basis, prospective internal candidates
identified, and a bespoke leadership development
programme introduced to help prepare them for their
potential future role.
The Company has identified a number of metrics which
will help it monitor and improve the culture within the
business and for its customers. These include the NPS and
eNPS scores, which we consider to be interlinked and will
support our purpose, values and strategy. Further details
can be found on page 101.
Annual General Meeting
Although all resolutions were passed at the Annual
General Meeting held on 22 May 2024, the advisory vote
regarding the ESG commitments for 2024 and 2025
received a 25 per cent vote against. In order to better
understand the result, and inform future decision making,
engagement with shareholders was sought post the
Annual General Meeting (“AGM”) and directly with certain
shareholders during the Company’s results roadshows
during August and September. It appears in part that
shareholders would prefer to see a clearer articulation
between cost and returns that can be expected for each
of the targets set and this will be addressed when the
targets are next put to shareholder vote in 2026.
The Company’s 2025 AGM will be held on 4 June 2025.
Shareholders are encouraged to take the opportunity to
meet with and pose questions to members of the Board.
Further details about the time and location of the meeting
are provided in the Notice of AGM which will be published
separately and available on the Company’s website.
Looking ahead
With student demand remaining strong and
attractiveness of the UK’s top-quality universities
continuing to attract international appeal, the macro-
outlook remains positive for the foreseeable future.
However, in the short term we, like many businesses,
continue to face challenges. Higher employment related
costs, significant increases in minimum wage and the
sustained rebasing of energy costs all require careful
management and strategic thought.
We remain steadfast in our commitment to our shareholders.
We will continue to focus on growth, offering top quality
accommodation alongside improving customer service.
This allows us to drive rental growth whilst continuing to
offer value for money to discerning students.
Finally, on behalf of the Board, I would like to thank our
employees and all our stakeholders who have continued
to support the Company during the year. With your
support, we look to the future with continued optimism.
Mark Pain | Non-Executive Chairman
12 March 2025
3.7p
The Board will target
a minimum dividend
payment of
per share for 2025
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Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 19
24/7
Students have access
to our welfare programme
“ The Company has identified a
number of metrics which will help
it monitor and improve the culture
within the business and for its
customers.”
Contents Generation – Section
Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 20
Chief Executive Officer’s review
Delivery of
growth agenda
remains our
strategic focus
The business has delivered another
strong financial and operational
performance during 2024.
“ 2024 saw us add three fantastic new sites to
the portfolio, growing our existing clusters
in Bristol, Glasgow and Manchester. We
also unlocked value from existing sites with
planning consent achieved at Victoria Point in
Manchester, and have continued to make good
progress on our programme of refurbishment,
driving enhanced rental growth.”
Duncan Garrood | Chief Executive Officer
Contents Generation - Section
Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 21
53%
Record eligible re-booker
performance
In validation of our strategy, student demand for
high-quality accommodation aligned to the UK’s best
universities has remained strong. Rental growth captured
for the academic year 2024/25 lettings cycle exceeded
our initial expectations and delivered growth of seven
per cent on a like for like basis.
Reflecting the continued strong demand for our product,
occupancy of 97 per cent was achieved across the
portfolio for the 2024/25 academic year. Occupancy
was slightly below the exceptional levels achieved in the
previous two academic years of 99 per cent, but in line
with our target.
Leeds and Sheffield, where eight per cent of our beds are
located, experienced a decline in occupancy this year.
A trend witnessed across the wider purpose built student
accommodation (“PBSA”) market. In Leeds this was
partly as a result of an increase in the number of new Buy
to Let properties coming onto the market in the middle
of the lettings cycle, which were widely reported as
being let to students. We do not expect this to continue
as the letting window settles into a full year cycle and
investors focus on longer stay occupants at higher rates.
Furthermore, the prospective changes within the Renters
Rights Bill could make letting to students considerably
less attractive for non-PBSA operators, including HMOs.
In Sheffield, the University of Sheffield experienced a
fall in international student numbers this year, however
universities have experienced success in taking a more
active approach to international student recruitment and
this should continue to drive student numbers toward
the country’s top-tier universities. Our expectation is
that this disruption should not impact the longer-term
attractiveness of these two cities given their Universities
are both ranked in the 2025 Times Top 30 universities in
the UK.
Despite widespread publicity about international student
numbers, created in part by the previous government’s
amendment to student visa rules, strategic review of the
graduate route and negative rhetoric around student
immigration, our market share of international students
has increased in the current sitting academic year.
Demographically, international students now represent
69 per cent of all bookings (up from 51 per cent in
academic year 2023/24), with Chinese students remaining
our largest international market at 40 per cent, up from
32 per cent in the prior year.
The 2024/25 sales campaign delivered another record
re-booker performance, with 23 per cent of our rooms
sold to students who were already staying with us.
Adjusting for those students who were not eligible to
rebook, for example where their course concluded in
academic year 2023/24, we achieved an eligible re-booker
rate of 53 per cent. This is a great achievement and
tangible endorsement of customer satisfaction and the
value inherent in our service proposition.
Underpinned by strong rental growth and stable yields,
our portfolio valuation grew a further 1.6 per cent like for
like, 4.2 per cent when the abolition of Multiple Dwellings
Relief is disregarded. The balance sheet remains in good
shape with prudent gearing of 27.2 per cent which sits
comfortably within our long term target, providing a
degree of headroom. All near-term refinancing risk has
been removed.
Our October 2024 equity raise was well received and I
thank our long standing shareholders for their continued
support and also welcome new shareholders to the
register. We raised gross proceeds of £56.1 million at
a four per cent discount to the closing share price the
day prior to launch, which are being used to pursue
an independent growth strategy of acquisition and
refurbishment, negating the need for a prospective joint
venture as was initially considered.
We have been pleased to grow our dividend again this
year, delivering progression of six per cent year on year
for shareholders.
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Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 22
Chief Executive Officer’s review | continued
+32
NPS improved further to
Resilient market fundamentals
The PBSA market continues to demonstrate resilience
in the face of wider macroeconomic headwinds,
underpinned by sustained student demand for
prestigious UK universities and modern accommodation.
Investor appetite is fuelled by the undersupply of high-
quality operational beds, long-term predicted growth
in demand and constrained delivery of new supply with
reducing supply of the traditional [alterative] HMO
accommodation.
Overall the demand and supply imbalance in PBSA
continues unabated, however this is highly nuanced in
some markets, which have greater supply, demonstrating
a level of price sensitivity. Participation rates in the
UK’s higher education sector remains historically high
with over 2.4 million full-time students. The UK remains
an attractive, high quality, and relatively affordable
destination of choice for international students compared
to other markets, with students of Chinese origin
continuing to dominate the UK’s international
student market.
The growth in student numbers, which accelerated post
pandemic has since normalised, aligning with longer
term trends. The continued growth in domestic 18-year-
olds and a forecast recovery in international students is
expected to ensure this continues to remain robust.
The recent three per cent increase in the tuition fee cap
to £9,535 is not expected to impact application numbers
from UK domestic students.
A clear flight to quality continues with higher tariff,
typically the Russell Group’s research-led, universities
experiencing year on year growth in applications to the
detriment of medium and lower tariff universities.
This validates our strategy of focusing our portfolio on
these cities, which deliver growth and investment.
It is anticipated that the sector will continue to have a
significant shortfall in supply, with only 11,270 new beds
delivered in 2024. Viability remains a key challenge
for developers, with higher build costs, increased
development periods, enhanced building safety
requirements, sustainability demands, increased financing
costs and a challenging planning environment continuing
to discourage development.
Supply will therefore be increasingly focused on the
best performing markets which are fuelled by continued
favourable student demand where higher rents improve
development viability. The shortage of housing options
for students is also being compounded by the continued
loss of HMOs, exacerbated by the recent Autumn Budget
and proposals within the Renters Rights Bill which
currently continues its way through Parliament.
Portfolio growth and active property management
It has been an active and successful year from a portfolio
management perspective. Eight residual non-core
properties were disposed of during 2024, generating
£45.2 million and reducing the number of cities in
which we operate by four. These sales represented
433 operational beds and have improved our portfolio’s
alignment to prime and super prime locations to
97 per cent.
Since March 2021, including the above, the Company has
generated £146.4 million from the disposal of non-core
assets, 0.2 per cent below book value in aggregate, which
considering the challenging market conditions during this
period, is a strong endorsement of our portfolio valuation.
In February 2024, we acquired a small development
opportunity in Bristol for £5.6 million. This former office
building is located adjacent to our existing College
Green building. A planning application was submitted to
facilitate a change in use to student accommodation and
the delivery of over 50 new PBSA beds into this strong
operational cluster. Preparatory works have also begun at
two sites in Southampton and Bath which are earmarked
for conversion to the Company’s postgraduate product.
A planning application was submitted in May 2024 to
facilitate an extension and full refurbishment of our
existing operational site at Victoria Point in Manchester.
In December, Manchester City Council granted detailed
planning permission fully in line with our application,
which once fully implemented will add 310 new beds into
this acutely undersupplied city.
In July 2024, the Company acquired a 94-bed operational
asset in the heart of Glasgow’s west end for £9.7 million.
The property is well located, near our Willowbank hub site
Contents Generation - Section
Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 23
in the city, and acquired almost entirely pre-let for the
2024/25 academic year, delivering an effective net initial
yield of over 7.5 per cent. The property benefits from
refurbishment potential, which together with the benefits
of clustering is expected to unlock an enhanced rental
tone and deliver improved operating margins for the city.
In December 2024, following our equity raise, we
acquired a 136-bed all studio scheme in Manchester for
£19.75 million. Again, the property is well located close
to Manchester University and opposite our existing
Victoria Point hub site in the city, delivering the same
value enhancing opportunities that can be delivered in
Glasgow. The operational asset is expected to deliver a
7.0 per cent net initial yield from September 2025.
A second acquisition, linked to the equity raise
deployment plan, is under offer with advanced
negotiations anticipated to conclude shortly.
We will provide a further update once concluded.
One of our larger properties, Brunswick Apartments,
Southampton, which had been closed for the duration
of the 2023/24 academic year, reopened to students in
September 2024. This 173 bed property received a full
room and amenity refurbishment, alongside fire safety
and Net Zero related works and has delivered strong
rental growth, double digit IRR performance and received
excellent customer feedback.
Delivering high-quality, consistent customer service
Our key performance indicator for the delivery of this
strategic priority is Global Student Living’s Net Promoter
Score (“NPS”).
In both surveys conducted during 2024, our operating
brand, Hello Student, achieved an improved NPS relative
to 2023. We end the year with an NPS score of +32 (2023:
+30.5), significantly outperforming the benchmark All
Private Halls score of +19.
Of all respondents, 86 per cent rated their level of
satisfaction as either good or very good with 78 per cent
of our customers responding that their accommodation
had a positive impact on their overall well-being.
This important aspect of our service proposition was
recognised at this year’s Global Student Living awards,
when Hello Student was awarded the accolade for Best
Student Wellbeing.
The delivery of superior service requires a high performing
and engaged team and we therefore monitor employee
engagement as a key non-financial performance indicator.
In 2024, the Company celebrated its tenth anniversary
since establishment and to mark the occasion, the
executive team hosted a series of team engagement
days around the country celebrating this milestone but
also setting out its vision for the future and providing
all employees with the opportunity to engage with the
executives on a one-to-one basis. Our engagement
scores benchmark well amongst some of the top
performing UK companies.
We have invested in a new end to end ERP system and
launched a new customer facing website during 2024,
which has improved the booking experience, making it
even easier for customers to secure their room with us.
Safety
We are responsible for ensuring that everyone who is
living, working in or visiting our buildings is kept safe.
We ensure that our buildings comply with not only all
relevant regulations but strive to align to best practice
within the industry.
Having allocated £46 million toward a five year
programme of initiatives which began in 2021, we have
continued to progress works on a risk-based basis.
In 2024 we invested a further £13.2 million towards
attainment of the latest EWS1 certification standard, an
investment which is fully reflected in property valuations.
By 31 December 2024, 73 per cent of the portfolio had
achieved this certification standard.
Our buildings continue to be inspected on a regular
basis to ensure that we identify and eliminate hazards.
To assess the buildings, we have engaged with specialist
consultants to undertake thorough assessments of
general safety, hazards, prevention of fire risks and
water systems.
“ We remain encouraged
by the outlook for student
numbers for the 2025/26
academic year and beyond,
from both a domestic and
international perspective.”
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Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 24
Chief Executive Officer’s review | continued
The business conducted its first externally supported
crisis management test in 2024, simulating a serious
wellbeing concern alongside a fire in a vacant building.
Good feedback was received from our primary authority
fire service on our partnership and approach to incident
management.
Creating a sustainable business
The business remains committed to achieving Net Zero
by 2033. As part of this journey, our plan, including
interim targets for the next two years, was put to an
advisory shareholder vote at the 2024 Annual General
Meeting, helping foster transparency and engagement
with shareholders on this important topic. Although
the resolution was passed, the result was somewhat
disappointing, with 25 per cent of responding
shareholders voting against. In order to better understand
the result, and inform future decision making, we sought
engagement with shareholders. From those shareholders
that provided feedback, it appeared in part that they
required a clearer articulation between the cost and
return that could be expected for each target. This will be
addressed when next put to shareholders in 2026.
The key performance indicators we monitor are EPC risk
management and energy consumption per bed. Great
progress has been made in the management of EPC
risk this year, with 64 per cent of our sites rated EPC B
or better, a target achieved more than a year earlier as
envisaged in our Net Zero strategic plan. Our like for
like energy consumption per bed has fallen by three per
cent to 4,351 kwh per bed, reflective of our investment in
energy efficiency initiatives.
Further details are set out in the ESG Report on page 52.
Strategy and outlook
As we look forward into 2025, we remain encouraged
by the outlook for student numbers for the 2025/26
academic year and beyond, from both a domestic
and international perspective. Growth in the number
of UK 18 year olds is set to continue through to 2030,
and internationally, we have seen a considerably more
welcoming rhetoric from the new education minister
and greater focus by universities on international
student recruitment.
We are therefore confident of achieving another
successful year from an occupancy perspective and
believe our strategy of refurbishment and our focus on
continually improving levels of customer satisfaction will
deliver like for like rental growth in excess of inflation.
Our strategic focus will remain on driving operational
efficiencies through growth. First and foremost, the
continued deployment of proceeds from our October
2024 equity raise, the continued roll out of our Postgrad
by Hello Student brand, completing our undergraduate
refurbishment programme, but also as opportunities
arise, selectively recycling capital to further strengthen
our alignment to top-tier universities.
The year ahead will, however, not be without its
challenges. The sustained rebasing of energy costs looks
set to continue for the foreseeable future and this will be
coupled with the impact of the autumn budget and annual
review of the national Real Living Wage, both of which
are set to drive compensation related costs significantly
higher from April. This has precipitated a review of our
operating model and will likely result in some amount of
restructuring. Our decision not to pursue a joint venture
also enables us to reduce resources pre-recruited in
its anticipation.
Despite the challenges faced this past year, we are
delighted to be in a position to declare a dividend in
excess of our initial 3.5 pence target for 2024. Today we
have announced our final quarterly dividend for 2024
of 1.075 pence per share taking the total dividend paid
and payable in respect of 2024 to 3.7 pence per share, an
increase of six per cent on 2023. With the Board remaining
committed to a progressive dividend policy, we will
therefore initially target a minimum dividend of 3.7 pence
per share for the 2025 financial year.
Duncan Garrood | Chief Executive Officer
12 March 2025
“ We believe our strategy
of refurbishment
and our focus on
continually improving
levels of customer
satisfaction will deliver
like for like rental
growth in excess
of inflation.”
Contents Generation - Section
Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 25
3.7p
Dividend
minimum target for 2025
Contents Generation – Section
Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 26
Strategy in action
Mental health and wellbeing are
of the utmost importance to us
as a business both commercially
and as a duty of care for the
continued safety of our customers
and our people.
Training
Two Mental Health First Aid courses were delivered by our
Wellbeing Manager who is a qualified Mental Health First
Aid instructor. The aggregated scores demonstrated an
impressive increase in confidence and knowledge among
participants. Reported confidence in addressing mental
health incidents rose from 6.1 to 8.8, and knowledge
scores improved from 5.9 to 9.2. These outcomes are a
testament to the effectiveness in empowering attendees
to handle mental health concerns with greater assurance
and competence.
Improving provision for customers with
additional needs
To improve the handling of reasonable adjustments, eight
new documents were created and launched to assist team
members in supporting our customers with disabilities.
These included guidance for writing Personal Emergency
Evacuation Plans and how to handle assistance animal and
reasonable adjustment requests.
These developments ensure that customers receive
accurate information and feel supported from the
moment they book, while also bringing the Company
into full compliance with the Equality Act.
Mitigating risk
Amendments to our standard form tenancy agreement
were made to mitigate operational risks. Key changes
included implementing a minimum age requirement for
overnight guests, addressing safeguarding concerns, and
introducing a clause to prohibit accommodation
of individuals with unspent criminal convictions.
These improvements have been adopted and aid
enhanced customer wellbeing within our buildings,
while reducing the organisation’s exposure to risk.
Leadership
in
wellbeing
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Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 27
78%
of Hello Student customers stated
that their accommodation has an overall
positive impact on their wellbeing.
GSLI survey results
Supporting wellbeing in a 24 hour business
In our 24-hour business, we understand that customers
can face significant wellbeing challenges outside of
typical working hours. These situations can place unique
demands on our team members, especially when they are
working alone. To provide comprehensive support, the
Operational Risk and Wellbeing team has developed a
dedicated SharePoint site offering:
î Mental health guidance to help our teams spot the
warning signs of mental ill health;
î Signposting information to help connect customers
with appropriate resources; and
î A repository of newly created documentation outlining
how we assist customers during times of crisis.
This site is a cornerstone of our commitment to ensuring
that team members have the guidance and tools needed
to provide effective support, even during the most
difficult situations.
Raising the profile
Our Wellbeing Manager was invited to be a panel
member at the 2024 GSLI conference, where our
commitment to promoting wellbeing provision at
our sites was showcased. Our efforts were reflected
in the GSLI survey results, where customers rated
whether they considered their accommodation team
cared about their wellbeing. Hello Student scored
well at 74 per cent, with 78 per cent stating that their
accommodation has an overall positive impact on
their wellbeing.
We were delighted to have our
efforts recognised within the
industry and awarded Best
Wellbeing Provision for UK &
Ireland at the 2024 GSLI awards.
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Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 28
Non-Financial KPIs
Our strategy
Performance
Performance
+32
23%
23%
22%
2024
2023
+32
+30.5
Purpose
The rebooker rate demonstrates our ability to retain
customers within the Hello Student® brand, which is an
indicator of the quality of service we provide.
How we measure
Percentage of students staying with us in the previous year
who chose to stay with us this year in either the same room
or another room in the same site or city, expressed as a
percentage of total rooms sold.
Associated KPIs
1 2 3
4 5
A
Rebooker Rate (%)
2024
2023
Purpose
Allows us to benchmark against our peers.
How we measure
Calculated by the Global Student Living Index from
responses received from students staying with us and
submitting answers to a standardised questionnaire.
Associated KPIs
1 2 3
4 5
B
Net Promoter Score
Our key performance indicators
are central to our business and
allow us to monitor our performance
against commitments made to
our stakeholders.
Linked to strategic priorities and
management incentives, these are
designed to align with shareholder
returns and drive accountability.
Monitoring
our
performance
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Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 29
Performance
64%
Performance
Performance
51%
4,351kWh
2024
78%
4,351kWh
4,481kWh
2023
Performance
2024
2023
78%
Purpose
A key metric to monitor the progress towards achieving
2,000 kWh per bed by 2033.
How we measure
Total building energy intensity divided by the number of
operational beds on a like for like basis
85%
Associated KPIs
Performance
2 3
F
Energy consumed per bed (kWh)
0
2024
2023
Purpose
A key metric to allow us to monitor progress towards
improving average EPC ratings and delivery of this aspect
of our Net Zero strategy.
How we measure
Percentage of properties by value which have been certified
EPC B or better.
Associated KPIs
3 5
97%
Purpose
Colleague engagement scores provide an insight into the
happiness of our people across a range of topics regarding
their working environment.
How we measure
Satisfaction rated based on a standardised questionnaire
sent to all employees.
G
EPC risk mitigation
(EPC B or better) (%)
Associated KPIs
0
64%
1 2 3
4 5
E
Colleague Engagement (%)
97%
2024
2023
99%
Purpose
This is a key reporting metric to the Health & Safety
Executive as well as a measure of our health and safety
strategy and procedures.
How we measure
The number of reportable incidents throughout the
Group each year.
Associated KPIs
AY 2024/25
AY 2023/24
1 2 3
4 5
Purpose
Revenue occupancy demonstrates the quality and location
of our assets, the strength of our sales process and our
ability to set appropriate rents.
How we measure
Calculated as a percentage of gross annualised revenue we
have secured for a given academic year.
Associated KPIs
1 2 3
4 5
C
Revenue Occupancy (%)
D
Safety – Number of Accidents
Strategic Links
1. Customers
2. Brand
3. People and Operations
4. Buildings
5. Shareholders
Definitions
For definitions see page 185.
1
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Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 30
Purpose
The gross margin reflects our ability to drive occupancy
and to control our operating costs.
How we measure
Gross profit expressed as a percentage of rental income.
Associated KPIs
2 3 5
2024
Purpose
Change reflects the aggregate value created or lost during
the year, through both change in retained capital value and
value returned to shareholders in the form of dividends.
How we measure
Percentage change in EPRA Net Tangible Assets per share
across the financial year plus dividends paid during the
financial year.
Associated KPIs
5
2024
2023
6.6%
7.4%
6.6%
Performance
L
Total Return (3 year, annualised)
2023
70%
69%
Purpose
A consistent measure of recurring earnings which provides
comparability and a measure upon which dividend
payments are based and assessed.
How we measure
Industry standard earnings metric, calculated in line with
EPRA best practice recommendations.
70%
Performance
H
Gross Margin (%)
Associated KPIs
Purpose
Movement in EPRA Net Tangible Assets per share provides
a measure of the Company’s value attributable to each and
every share on issue.
How we measure
Industry standard calculation of net tangible assets as set
out in the EPRA Best Practice Recommendations divided by
the diluted number of shares on issue.
Associated KPIs
5
2024
2023
119.6p
120.7p
119.6p
Performance
K
EPRA NTA per share (p)
1 2 3
4 5
2024
2023
4.2p
4.0p
4.2p
Performance
I
EPRA earnings per share (p)
Purpose
Illustrates our ability to pay dividends from recurring,
current year, earnings.
How we measure
EPRA earnings per share expressed as a percentage
of dividends paid and declared in respect to the
financial year.
Associated KPIs
5
114%
114%
114%
Performance
J
Dividend Cover (%)
2024
2023
Financial KPIs
Strategic Links
1. Customers
2. Brand
3. People and Operations
4. Buildings
5. Shareholders
Definitions
For definitions see page 185.
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Strategic report 31
“ A gorgeous modern accommodation which
makes me feel safe while in the busy city of Bristol.
Although located on the bustling Clifton Triangle,
the site remains quiet and tucked away from the
night life. The team are always on hand to help
with issues and are always smiley and friendly.”
Resident | St Mary’s, Bristol
“ The attention to detail in the
amenities, the cleanliness of
the accommodation and the
promptness in addressing any
requests were truly beyond
my expectations.”
Resident | Bath Street, Glasgow
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Strategic report 32
The business has continued to demonstrate a degree of
resilience in the face of increasingly challenging wider
market conditions, achieving good rates of occupancy
whilst delivering strong like for like rental growth,
comfortably above the rate of inflation.
Demand continues to exceed supply in most of the key
cities in which we operate. New supply of high quality, well
located accommodation remains limited and continues to
be outpaced by increasing demand, exacerbated by the
continued decline in private landlords particularly HMO
operators and Buy-to-Let investors while the cohort of
UK 18 year olds continues to increase. The prospective
changes within the Renters Rights Bill have the potential
to amplify this issue, making letting to students
considerably less attractive for non-PBSA operators.
Another strong re-booker performance was achieved for
the current sitting 2024/25 academic year, with 23 per
cent of our rooms sold to students who were already living
with us, providing a tangible endorsement of our product
and of the service we provide.
Portfolio overview
A summary of the Group’s portfolio is set out below,
segmented in line with our valuer’s view of quality.
Almost 97 per cent of the portfolio is now invested in
Prime or Super Prime locations.
Since 31 December 2023, the portfolio has grown in value
by 1.6 per cent, like for like. This includes the impact of the
removal of Multiple Dwellings Relief in March, which had
it remained in place, would have resulted in like for like
growth of 4.2 per cent. With the portfolio’s net initial yield
unchanged at 5.5 per cent, this is the result of income
growth achieved for the 2024/25 academic year.
The reversionary yield was also held at 5.7 per cent,
providing confidence that as the letting cycle advances
for the new 2025/26 academic year, a further valuation rise
could be expected if investment yields remain as stable as
we have seen over the past 18 months.
Operating review
Valuer’s quality segmentation
Properties
Operational
beds
Market value
£m
Market value
%
Super prime regional 23 2,443 538.7 47.5
Prime regional 45 4,579 558.1 49.2
Super Prime and Prime Regional 68 7,022 1,096.8 96.7
Secondary 7 663 38.2 3.3
Total 75 7,685 1,135.0 100.0
Strategic segmentation
Total
market value
£m
NIY
%
Operational portfolio 1,114.0 5.5
Commercial portfolio 16.5 8.0
Development portfolio 4.5
Total 1,135.0
Deployment of proceeds following equity raise
In October 2024, the Company raised £54.3 million, net of
costs, in order to pursue an independent growth strategy
of acquisition and refurbishment, negating the need for a
prospective joint venture as had been initially considered.
Proceeds were earmarked for deployment into two well
aligned acquisition opportunities in top-tier university
cities and to accelerate the roll out of the Group’s
Postgraduate exclusive product.
In December 2024, the first of two acquisitions, Tatton
House in Manchester, was acquired for £19.75 million.
This 136 bed, all-studio scheme is well located, being
less than ten minutes’ walk to the Manchester University
campus and directly opposite our existing Victoria
Point Hub. This location allows us to instantly unlock
operational efficiencies and during the letting cycle
for academic year 2025/26, by offering the full amenity
provision of our wider cluster to prospective residents of
Tatton House, which currently has no on-site amenity.
This operational PBSA asset is expected to deliver a seven
per cent net initial yield from September 2025.
A second acquisition is under offer and currently
expected to conclude in early April 2025, in line with
our deployment assumptions.
Preparatory works have begun at three existing sites
earmarked for conversion to the Group’s Postgraduate
product, with over £10 million on track for investment
during 2025. Furthermore, our academic year 2025/26
sales programme has been amended with planning and
design underway to facilitate the refurbishment of a
further four Postgraduate exclusive sites during 2026.
We continue to expect these Postgraduate
refurbishments to deliver unlevered IRRs in excess of
12 per cent.
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Strategic report 33
Portfolio management
With overall investment market activity up 13 per cent
on 2023, there has been greater opportunity to progress
the tail of our non-core disposals, with eight relatively
small properties sold during the year for £45.2 million
representing 433 beds. Importantly, the sales represented
four further non-core city exits, improving the portfolio’s
alignment to both prime and super prime locations and
top-tier universities, complimenting the improvement in
the portfolio’s overall gross margin to 70 per cent.
Three acquisitions were completed during the year.
All three were well aligned, located in top-tier cities which
cluster well with our existing sites. All three acquisitions
present further opportunities to add value through future
development or refurbishment.
In February 2024, we acquired College House in Bristol.
Adjacent to our College Green site, this former office
building was acquired for £5.6 million. The property is
arranged over five floors with a small retail parade at
street level, occupied by tenants who are complementary
to our customer base having re-let or regeared all three
units. The property will be transformed into a new 57-bed
student accommodation scheme, which will cater to post-
grad students. This all studio scheme will incorporate
a library and co-working space in the basement while
offering access to other amenities including gyms and
private dining rooms within our Bristol cluster. The
property is expected to open to students in early 2026.
Once complete, we anticipate this development will
comfortably exceed our target five year IRR of 12 per cent.
A second acquisition, Claremont House in Glasgow was
acquired in July for £9.7 million. Located in the heart of
Glasgow’s supply constrained West End, and in close
proximity to the university and our existing hub site of
Willowbank. The property which clusters extremely well
with our other sites in the city, was acquired fully let for
the current sitting academic year and has delivered a
net initial yield of over 7.5 per cent since September.
The property benefits from an ability to unlock further
rental growth from future refurbishment.
In December 2024 we acquired Tatton House in
Manchester for £19.75 million, in line with the deployment
plan outlined in the Company’s October 2024 equity
raise, outlined above. This operational asset delivers many
of the same value enhancing opportunities that can be
delivered at Claremont House and is expected to deliver
a 7.0 per cent net initial yield from September 2025.
A planning application was submitted in May 2024 to
facilitate an extension and full refurbishment of our
existing operational site at Victoria Point in Manchester.
In December, Manchester City Council granted detailed
planning permission, which once implemented will add
310 new beds while allowing a masterplan refurbishment
of all existing rooms including reconfiguration to
create more studio units. The city continues to suffer an
acute under supply of PBSA beds and has consistently
performed well for us from an occupancy and rental
growth perspective given the site’s location and open
green space. An implementation and funding plan will
now be established with a view to starting work on site
in late 2026.
Refurbishment & development
Our annual refurbishment programme continues to target
the delivery of 200 to 300 beds annually, with an IRR
return hurdle of between 9-11 per cent.
The 2024 refurbishment programme was focused on
one of our larger properties, Brunswick Apartments
in Southampton.
This 173 bed scheme was closed for the duration of the
2023/24 academic year to facilitate fire safety works
which allowed for a full building refurbishment and
reconfiguration. The works involved refurbishment of
all rooms and the creation of a new amenity provision.
Although total bed count was unchanged, a greater
studio focus was achieved, including adding some
new large one bed apartments alongside full building
decarbonisation work.
The Company’s decision to close the property was made
following consideration of the impact on our customers
and site teams of a more staggered multi-year works
programme. It was concluded that closure would allow all
works to be carried out concurrently, thereby accelerating
the programme of fire safety and decarbonisation work
alongside the refurbishment programme, ultimately
delivering the property’s potential considerably earlier
and improving longer term customer satisfaction.
Upon reopening in September 2024, the scheme
delivered an increase in average weekly rents of over 50
per cent when compared to its pre-refurbishment year of
operation. Notwithstanding an element of market rental
growth which is now captured, this performance has
surpassed expectations delivering a yield on cost above
6.5 per cent and an IRR in excess of 12 per cent, inclusive
of the impact of the removal of Multiple Dwelling Relief
during 2024.
The 2025 refurbishment plan is expected to deliver
approximately 200 refurbishment rooms for the start
of the 2025/26 academic year. Three of the four sites
undergoing refurbishment will reopen as postgraduate
exclusive accommodation from September 2025.
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Strategic report 34
Operating review | continued
Commercial portfolio
The commercial estate continues to grow in quality,
now comprising 34 units across a diverse mix of uses,
including retailers, restaurants, bars, and telecoms
infrastructure. A series of new agreements have
strengthened the portfolio, including a 25-year lease
in central Nottingham to a large UK-based hospitality
group which opened its premium Manhattan bar concept.
Additionally, a reversionary lease agreement was made
with a national Japanese inspired restaurant operator
in Selly Oak, Birmingham. Terms included a new 10-year
lease and significant rental uplift, securing a popular
offering and breakout space for our customers.
We have also progressed strategic asset management
initiatives to unlock further value. One example is the
replacement of a non-strategic tenant in Nottingham
with a national restaurant operator, which has agreed
to take the space on a 15-year term-certain lease while
maintaining similar rent terms of the former tenant.
Another initiative involves a national supermarket chain,
where we are set to re-gear several of their convenience
store leases to increase length of tenure, enhancing long-
term income stability whilst being complementary to our
student customers and the wider community.
Looking ahead, the focus within the commercial estate
will be on re-gearing leases with strong tenants, filling all
vacant units, and exploring opportunities to repurpose
underutilised spaces to generate additional revenue.
Capital expenditure programme
Progress against our five year programme of
refurbishment, fire safety works and green initiatives is
set out below.
In respect to our programme of fire safety works, all
properties have been surveyed with 73 per cent of the
portfolio now EWS1 certified. In arriving at the portfolio’s
market value, the valuer applies a pound for pound
deduction for the forecasted cost of the remaining works
as well as, if applicable, a revenue disruption cost.
Like many other real estate investors, we have submitted
compensation claims against companies involved in
the assets’ construction. Given the size and repurposed
nature of a large number of our properties, the likelihood
of success is less certain, but a modest contribution has
been assumed against the costs of remediation.
Undergraduate
refurbishment
(£m)
Fire safety
works
£m
Green
initiatives
£m
Five year plan
(2021 – 2025)
36.0 46.0 12.0
Invested to date 32.5 30.5 4.1
Forecast 2025
investment
3.5 10.1 4.2
In addition to the above, ongoing capital life cycling works
continue to require around £4.0 million per annum.
2025 is the final year of the original capital expenditure
works programme. Although the quantum of future capital
expenditure is anticipated to be significantly lower than
that set out in this original programme, there will be a
need to revisit the forecasted spend for 2026 and beyond.
Certain newly acquired properties have been purchased
with the benefit of refurbishment potential which, given
the attractive rental growth anticipated, refurbishment
remains firmly within the Group’s strategic plan of
capital works.
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“ Perfect location, extremely
well trained and responsive staff,
clean and good facilities, and the
studios are big, with big beds
and a good layout.”
Resident | Metrovick House, Newcastle
“ I’ve been living here for almost
3 years now, and I must say, it’s been
a fantastic experience. The location
is absolutely spot on, it is convenient
for everything I need. The facilities
are perfect, and the price is really
reasonable for what you get, it’s
definitely great value for money.
The reception staff are always
friendly and welcoming, and more
than happy to help with any issues.
Honestly, it’s been such a pleasant
place to live.”
Resident | St. Peters Studios, Aberdeen
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Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 36
Unlocking
value through
refurbishments
Following a strategic review of
the Company’s portfolio in early
2021, a number of properties were
identified as fundamentally meeting
our key criteria of building type
and location, but were in need of
extensive refurbishment in order
to fully align to the Hello Student
core offering. In March of 2021,
16 per cent of the portfolio fell into
this category and was subject to a
viability review to ensure accretive
returns were achieved.
The Company’s decision to close the property for
the entirety of an academic year was made following
consideration of the impact on our customers and site
teams of a more staggered multi-year works programme.
It was concluded that closure would allow all works to
be carried out concurrently, thereby accelerating the
programme of fire safety and decarbonisation work
alongside the refurbishment programme, ultimately
delivering the properties potential considerably earlier
and improving longer term customer satisfaction.
In the four years that have followed, over 800 rooms have
been extensively refurbished at a cost of £32.5 million,
which have provided returns in line with our refurbishment
target of 9-11 per cent, on an unlevered IRR basis.
Brunswick Apartments, Southampton
One significant refurbishment which completed in 2024
was Brunswick Apartments in Southampton.
This 173 bed scheme was closed for the duration of the
2023/24 academic year to facilitate fire safety works which
allowed for a full building reconfiguration. The works
involved full room refurbishment whilst creating a greater
studio focus, including adding some new large one bed
apartments alongside full building decarbonisation.
>800
rooms have been extensively
refurbished at a cost of £32.5 million
Strategy in action
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“ Staff are nice and the building is
so beautiful and clean and tidy.”
Resident | Brunswick Apartments, Southampton
The property’s closure was well trailed and communicated
in a thoughtful manner. No interruption was experienced
by our customers, with a reprovision plan in place for
those that wished to remain with us during the year of
closure. Our employees were also redeployed to ensure
they could be retained during the period of closure.
This extensive refurbishment programme progressed
both to plan and budget. The site reopened to students in
September 2024, having sold extremely well.
The property delivered an increase in average weekly
rents of over 50 per cent when compared to its pre
refurbishment year of operation. Notwithstanding an
element of market rental growth which is now captured,
this performance has surpassed expectations delivering a
yield on cost above 6.5 per cent and an IRR in excess of
12 per cent, inclusive of the impact of the removal of
Multiple Dwelling Relief during 2024.
This now fully amenitised building is well positioned
to further exploit the benefits of our clustering model.
The nearby property of London Road, which will open
as a postgraduate exclusive scheme in Autumn 2025 is
amenity light by design with access to the Brunswick
House Hub driving a notably improved rental tone.
Given the success of the refurbishment programme to
date, our investment strategy favours the acquisition of
well-located properties that present an opportunity for us
to unlock further value through refurbishment.
+50%
increase in average weekly rents compared
to pre refurbishment year of operation
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Strategic report 38
Low Medium High
High Medium Low
Impact
Probability
E5
I4
I1
E4
E2
Adapting risk management in a changing environment
External Risks
E1 Revenue Risk
E2 Property Market Risk
E3 Climate Change Risk
E4 Financing Risk
E5 Inflation Risk
Internal Risks
I1 Health & Safety Risk
I2 Information Technology Risk
I3 People Risk
I4 Safe and Sustainable
Buildings Risk
Principal risks and viability
The Group seeks to
minimise, control and
monitor the impact of risks
on profitability, reputation
and strategic priorities,
whilst maximising the
opportunities they present
in the context of longer-
term viability.
The Board regularly assesses the risk
appetite of the Group, with the Audit and
Risk Committee formally reviewing the
effectiveness of our risk management
process and internal control systems.
We recognise that a number of risks
are faced which could impact on the
achievement of our strategy. While it
is not possible to identify or anticipate
every risk, we have established a robust
risk management process to identify,
manage and mitigate risk. The Group’s
process for identifying and managing
risk is set by the Board. The Board has
delegated the oversight of risk to the
Audit and RiskCommittee.
Risks are identified by applying a dual
approach, ‘bottom up’ at the operational
level having established responsible risk
owners throughout the business and
layered with a ‘top down’ or corporate
overlay as determined by the Board.
Identified risks are assessed by rating
each risk gross and net of mitigating
controls. The Board considers emerging
risks and uncertainties which may
prevent the Group achieving its strategic
objectives and tracks the evolution of
existing and emerging risks throughout
the year.
The Audit and Risk Committee reviews
the plan biannually with the design,
implementation and monitoring being
the responsibility of management on a
day-to-day basis. Risks, both principal
and emerging, are considered in terms
of their impact and likelihood across a
property cycle from both a financial and
reputational perspective.
Although not exhaustive, risks facing
the Group are categorised into three
categories being; external risks; internal
risks and emerging risks.
The Audit and Risk Committee considers
emerging risks. These are new or
unforeseen risks, of which the Committee
is aware, however their potential impact
is not fully known. The Committee
reviews these biannually alongside the
principal risks and uncertainties. The
Audit and Risk Committee has detailed
below the risks it believes are emerging
and the potential impact it may have on
our principal risks:
Changes to our risks profile
The Group's risk profile has remained
relatively stable during the year.
Continued rental growth, coupled with
strong occupancy mitigates against
the likelihood of a material downturn
in property valuations, however
government policy and disruption
caused by alternative accommodation
providers has increased revenue risk.
Refinancing related activity completed
during the year continues to reduce
financing related risk.
E3
I3
E1
I2
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Strategic report 39
External risks
Strategic Links
1. Customers
2. Brand
3. People and Operations
4. Buildings
5. Shareholder Outcomes
Strategic Links
Increasing
No change
Decreasing
Risk and brief description Potential impact Mitigation in place Trend
E1
E1
Revenue risk
Owner: Chief Customer Officer
There is a risk that the student
demand for our product will
decrease, e.g. inconsistent brand
proposition, governmental
intervention, competition from
alternative accommodation
providers or affordability concerns.
—
Link to Strategy
3 5
î Loss of revenue
î Erosion of asset values
î Void costs or increasing
level of bad debts
î Potential breach of
bankcovenants
î Customers not
meeting contractual
commitments
î Executive Committee and the Board closely monitor government policy,
studentnumbers and other micro and macro-economic factors.
î Monitoring restrictions and ensuring marketing is targeted to key
internationalanddomestic markets.
î We ensure our assets are well located serving established leading
universitieswitha higher proportion of Post Grad occupiers.
î Standard operating procedures and expanded mechanical and
electricalprogramme.
î Substantial domestic student demand and management of demographics.
Heightened
due to various
challenges faced
by government
policy, and
interruption
caused by
alternative
accommodation
providers.
E2
E2
Property market risk
Owner: Chief Investment Officer
Increasing yields across the
property sector impacting
valuations.
—
Link to Strategy
4 5
î Erosion of asset values
î Potential breach in
bankcovenants
î Lower Total Return for
shareholders
î Our assets are in prime locations, diversifying risk. CBRE classifies over 90%
oftheportfolio as prime or better.
î We maintain prudent levels of gearing, with an LTV limit of 40% and a long-term
target of 35%.
î The higher education sector comprises both domestic and international
students,which helps to underpin the student accommodation market.
î Of the UK property sub-sectors, direct-let PBSA is currently expected to be
oneofthe most resilient sectors.
Stable due to
expectation that
interest rates have
peaked.
E3
E3
Climate change risk
Owner: Chief Financial
& Sustainability Officer
Climate change has the potential
to impact every business in the
world. For our business, it could
impact planning legislation
restricting supply of PBSA, create
physical risks such as flooding and
increase government legislation and
regulation, for example.
—
Link to Strategy
1 2 3 4 5
î Financial and reputational
risk associated with
inappropriate action
î Cost of transition
î Net zero commitment and plans established.
î Behavioural training to be carried out with tenants during 2025.
î Specialist advisers appointed internally and externally to ensure plans are
implemented in line with Net Zero pathway.
Stable, with
continued
significant focus
by the business
with no significant
change from prior
year.
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Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 40
Principal risks and viability | continued
Risk and brief description Potential impact Mitigation in place Trend
Ex
E4
Financing risk
Owner: Chief Financial
& Sustainability Officer
The availability of debt or equity
on acceptable terms, particularly if
capital deployment commitments
are not met.
—
Link to Strategy
1 2 3 4 5
î Limiting future growth
potential
î Price-taker in fire sale
scenario
î Reduced shareholder
returns
î Average maturity of debt of 4.7 years with £75.4 million in cash and undrawn
committed facilities as at 31 December 2024.
î We maintain prudent levels of gearing, with an LTV limit of 40% and a long-term
target of 35%.
î Strong relationships with key lending institutions.
î Specifically identified deployment opportunities.
î Credit approval received on £35 million revolving credit facility.
Reduced following
extended
debt maturity,
successful
capital raise and
continued lender
appetite for the
PBSA sector.
Ex
E5
Inflation risk
Owner: Chief Financial &
Sustainability Officer
Inflationary pressure on staffing,
operational costs, utilities and
costs associated with development,
refurbishment works, fire safety or
other regulatory requirements.
—
Link to Strategy
1 2 3 4 5
î Reduced profitability and
dividend capacity
î Inability to deliver
desired return on
investments
î Consumption related utility costs hedged beyond 2025.
î Reassessment of capital expenditure and acquisition plans.
î Resilient revenue stream.
î Inflationary pressures have eased.
Stable.
Inflationary
pressures have
eased but offset
by concerns in
respect to the
longer-term
impact of the 2024
Autumn Budget.
Risk and brief description Potential impact Mitigation in place Trend
Ex
I1
Health & safety risk
Owner: Chief Executive Officer
The occurrence of a major health
and safety incident including
terrorism, fire or infectious
outbreak.
—
Link to Strategy
1 2 3 4 5
î Injury and impact on
customers, contractors,
staff and visitors
î Compensation costs
incurred
î Reputational impact
î Loss of life in a worst-
case scenario
î Health and safety metrics are reported to executive committee monthly.
î Policies, procedures and training for all staff.
î Ultimate Board responsibility involving regular Board reporting from the
Executive with Head of Health and Safety.
î Live compliance dashboard which is monitored daily.
î Regular review of fire safety regulations to ensure our buildings remain
compliant with standards, going above and beyond requirements.
Stable due to
minimal change
in the health
and safety
environment.
External risks | continued
Internal risks
Contents Generation - Section
Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 41
Internal risks | continued
Strategic Links
1. Customers
2. Brand
3. People and Operations
4. Buildings
5. Shareholder Outcomes
Strategic Links
Increasing
No change
Decreasing
Risk and brief description Potential impact Mitigation in place Trend
I2
I2
Information technology risk
Owner: Chief Financial &
Sustainability Officer
The Group suffering from a
cyber security breach, loss or
mismanagement of personal
customer data, wider IT or
infrastructure failure.
—
Link to Strategy
1 2 3
î Reputational damage
î Deteriorated customer
experience
î Higher costs and reduced
profitability
î Financial impact due to
potentially significant
fines under GDPR
legislation
î A business continuity plan is in place to enable Group operations to continue in
the event of a failure or breach.
î The IT network is centralised across the Group with an in-house IT team.
î Security training programme for all staff.
î Data monitoring system to protect our platforms across the IT estate and strong
Data Protection Office in place.
î Regular penetration testing.
Stable.
No significant
change in risk
profile during
the year.
I3
I3
People risk
Owner: Chief Operating Officer
Loss of front-line staff and the
knock-on impact on customer
service.
Inability to retain key employees or
attract specialists.
—
Link to Strategy
1 2 3 5
î Impact on customer
service due to low rates
of retention
î Loss of key business
knowledge
î Inability to complete
refurbishment
programme
î We are a Real Living Wage Employer ensuring that we attract and retain talent
where possible.
î Employee engagement at 78%.
î Ongoing training and development programme designed to upskill staff
regularly and progress forward with their career within the business.
î Succession planning and early supply chain engagement.
î Exit interviews are used to identify any areas for improvement within the
business.
Reduced
following
improvement in
retention rates
and development
of key employee
succession plans.
I4
Safe and sustainable
buildings risk
Owner: Chief Executive Officer
How our buildings will withstand
increased legislation around fire
safety as well as increasing minimum
energy performance standards.
—
Link to Strategy
1 2 3 4 5
î High compliance costs
î Reputational impact
î Potential challenges
around insuring our
buildings
î Compensation claims
î Decreased liquidity of
our buildings
î Significant capital expenditure plan allocated to ensure our buildings comply
with future fire safety legislation.
î Regular review of fire safety regulations and checks to ensure our buildings, at a
minimum, remain compliant with standards.
î Continuous assessment of our buildings and allocating significant resource
toward future green initiatives.
î Mandatory health and safety training.
Stable.
Our focus on
fire safety and
potential upcoming
legislation
remains high.
Contents Generation – Section
Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 42
Principal risks and viability | continued
Emerging risks
Risk and brief description
Impact on principal risk
probabilities Mitigating factors
Geopolitical crisis
A geopolitical dispute between China, or
any other sovereign state who generates a
significant amount of student revenue, and
the UK could result in foreign governments
placing embargoes on their students
coming to study in the UK.
î Revenue Risk
î Property Market Risk
î Financing Risk
î Broad marketing campaigns targeted to both the domestic and international market with a particular
focus on underweight international locations.
Restrictions in international
students
Immigration restrictions imposed by the
UK Government could substantially reduce
revenue from international students.
î Revenue Risk î Substantial domestic demand.
î Marketing focus on expanding domestic reach and diversifying away from reliance on
international markets.
Contents Generation - Section
Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 43
Viability statement
Assessment period
The Directors have considered a three year time horizon
in assessing longer term viability. A three year period to
31 December 2027 has been selected for the following
principal reasons:
î the Board reviews budgets and plans that extend to
three years; and
î the Group’s revenue is annual in nature, with typical
lease terms of 51 weeks. At any given balance sheet date
there is revenue visibility of approximately 20 months,
with an extension to 36 months not unreasonable given
a number of the Group’s customers choose to stay
during their higher education journey, which is usually
three years.
In concluding on the appropriateness of a three
year viability term, the Directors were mindful of any
significant events that may reasonably be expected to fall
immediately after 31 December 2027, the Group’s current
position and business plan projections, financial forecasts
and the potential impact of the principal risks set out on
page 38.
The Group has no debt facilities falling due during the
viability period. The first maturity of £120.0 million falls in
April 2028. With over three years remaining to refinance
or extend this facility, continued lender appetite for the
sector, modest gearing, currently at 27.2 per cent and
low quantum of capital commitments, the Group remains
confident that this future risk can be planned for and well
managed within the timeframe remaining.
Assumptions
The Group’s three year business plan incorporates the
following key assumptions:
î occupancy remains stable, given the current demand
for student accommodation in top-tier cities, to which
the Group is increasingly aligned;
î revenue growth of at least four per cent annually;
î utilities costs at hedged rates, with projected market
rates applied to residual exposure thereafter;
î cost inflation assumed at three per cent throughout
the forecast period;
î valuations remain stable;
î only acquisitions linked to the Company’s equity raise
go ahead, with no further acquisitions or disposals
completed;
î a Revolving Credit Facility of £35 million is secured
against a pool of unencumbered assets on terms set out
in a credit approved term sheet; and
î exercising substitution rights under a facility agreement
to release £18 million of restricted cash from disposals.
The Group’s three year business plan was stress
tested using both specific and cumulative “downside”
assumptions to model a general deterioration in
market conditions and operational performance.
All of the Group’s risks could have an impact on viability.
Climate change is considered by the Directors to
be a risk requiring investment to enhance environmental
performance and to meet the commitment to achieve
Net Zero Carbon by 2033, however the costs anticipated
within the viability period are not expected to be
significant.
The Board placed particular emphasis on those risks
which could result in reduced income and valuations or
a shortfall in liquidity. Sensitivity analysis was carried out
which involved flexing a number of downside assumptions
to consider alternative macroeconomic conditions and
the impact of these principal risks both individually
and in combination. This included flexing key base case
assumptions as set out above.
Key assumptions underlying the downside scenario were
as follows:
î occupancy falls to 90 per cent for the 2025/26, 2026/27
and 2027/28 academic years;
î revenue growth reduced to as low as two per cent in
academic year 2027/28;
î significant increase in the level of bad and doubtful
debts;
î exposure to utility cost volatility increased to 1.5 times
projected market rates;
î inflation increased to five per cent, significantly above
the Bank of England target rate of two per cent;
î floating interest rates rise a further one per cent;
î property valuations suffer a shock decline of ten
per cent;
î certain of the Group’s non-committed and non-
regulatory capex programmes are curtailed or paused
during the forecast period.
Downside analysis was carried out to evaluate the
potential impact on the Group’s financing covenants.
Under the downside scenario, the Group is expected to
remain in compliance with the loan-to-value and interest
cover covenants of its individual financing arrangements.
In addition to considering a downside scenario, reverse
stress testing has also been undertaken, indicating the
point at which debt covenants would be breached. No
facility interest cover ratios are expected to breach unless
occupancy rates fall below 77% for two consecutive
academic years, with all facilities breaching if occupancy
rates were to fall below 60 per cent. The first loan to value
breach would not be expected unless lender valuations
fell by more than 17 per cent, with all loan to value
covenants breaching if valuations were to fall by more
than 46 per cent.
Mitigants
The Directors considered what mitigants to the downside
scenarios were available. These include, but are not
limited to, pausing uncommitted capital expenditure,
utilising cash generated in a fire sale scenario from those
assets remaining unsecured or subject to debenture and a
temporary suspension of the dividend.
Conclusion
As a result of the work performed and the mitigants
available, in the unlikely event that the stress tests
performed prove to be insufficient, the Directors are of
the view that the Group’s strategy will provide a sound
platform upon which to continue to be viable.
The Directors therefore conclude that there is a
reasonable expectation that the Group can continue
in operation and is capable of meeting its debts and
obligations as they fall due during a period of not less
than three years from the balance sheet date.
Contents Generation – Section
Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 44
Financial review
Another
strong
operational
result
In October 2024, the Group successfully
completed its first equity raise since 2017,
raising £56.1 million, (£54.3 million net
of costs).
“ A £124.9 million seven year
refinancing was completed during
the first half of 2024, consolidating
four smaller facilities which were
scheduled to mature in 2024 and 2025
and removing refinancing risk for the
near term.”
Donald Grant | Chief Financial & Sustainability Officer
Contents Generation - Section
Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 45
Financial review
In October 2024, the Group successfully completed its
first equity raise since 2017, raising £56.1 million, (£54.3
million net of costs) following the placement of 60.4
million new ordinary shares representing ten per cent of
the Company’s issued share capital prior to the placing
announcement. Proceeds are earmarked to accelerate
growth through deployment into two new acquisition
opportunities and to fund refurbishment works required
to roll out the Group’s Postgraduate product across
16 identified assets. The latter had previously been the
subject of a potential joint venture, the plans for which
were terminated given market conditions at the time
provided the Company with the opportunity to take an
independent path. Abortive costs were £0.5 million.
A £124.9 million seven year refinancing was completed
during the first half of 2024, consolidating four smaller
facilities which were scheduled to mature in 2024 and
2025 and removing refinancing risk for the near term.
The weighted average cost of debt now stands at 4.5
per cent, an increase of 20 bps from 31 December 2023
and in line with guidance provided. Following the equity
placement, EPRA LTV has fallen to 27.2 per cent.
Blending like for like rental growth across the 2023/24
and 2024/25 academic years of 10.5 per cent and 7.0 per
cent respectively, the financial year of 2024 has delivered
growth of 9.3 per cent. Occupancy remained strong
throughout with 99 per cent for 2023/24 and 97 per cent
for 2024/25.
Growth in revenue coupled with the exit of four further
non-core cities has increased the Group’s overall gross
margin to 70 per cent from 69 per cent in the prior year,
despite ongoing cost challenges, in particular with
respect to utility costs. Following the 2024 expiry of
an historic fixed cost arrangement, we have once
again largely fixed utility costs for 2025 to mitigate
future volatility.
Administrative expenses were £15.4 million, including
a £0.5 million charge relating to abortive joint venture
arrangement costs. Once removed, underlying costs of
£14.9 million were in line with expectation, increasing
6.4 per cent on the prior year.
Income statement
2024
£m
2023
£m
Revenue 84.2 80.5
Property expenses (25.6) (25.2)
Gross profit 58.6 55.3
Gross margin 70% 69%
Administrative expenses (15.4) (14.0)
Operating profit 43.2 41.3
Revaluation 15.4 30.1
Losses on disposals (4.2) (0.6)
Derivative mark to market loss (1.3) (0.2)
Net finance costs (18.7) (17.2)
IFRS Profit 34.4 53.4
EBITDA 43.9 42.1
Weighted average ordinary shares (m) 616.2 603.4
IFRS EPS (pence) 5.6 8.8
EPRA EPS (pence) 4.2 4.0
Net debt to EBITDA (times) 6.8 7.6
Balance sheet
2024
£m
2023
£m
Property (market value) 1,135.0 1,097.9
Bank borrowings drawn (374.3) (360.3)
Cash on hand 75.4 40.5
Net debt (298.9) (319.8)
Other net liabilities (34.8) (43.9)
Net assets 801.3 734.2
Diluted number of shares 669.6 608.0
EPRA NTA per share (pence) 119.6 120.7
EPRA LTV 27.2% 30.6%
Contents Generation – Section
Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 46
Financial review | continued
Notwithstanding the abolition of Multiple Dwellings Relief, the portfolio valuation
increased by £15.4 million, 1.6 per cent on a like for like basis. This is primarily income
led, with no overall change in the portfolio’s yield of 5.5 per cent. The valuer has taken a
more cautious approach to future income growth this year, providing the potential to
outperform the current reversionary potential of 5.7 per cent.
Eight non-core assets were disposed of during 2024, generating £45.2 million at an
overall loss of £4.2 million. Funds are earmarked for redeployment into the Group’s core
capital expenditure programme. Since launching the Company’s programme of non-core
asset disposals, £146.4 million has been generated at an overall discount of 0.2 per cent
to book values.
Net finance costs of £18.6 million include a charge of £0.9 million related to accelerated
debt issue cost amortisation following refinancing activity completed in the first half
of the year. On an underlying basis, net finance costs of £17.7 million were 2.9 per cent
higher than the prior year, reflecting the higher weighted average cost of debt. All drawn
debt is currently either fixed or subject to interest rate protection.
EPRA earnings per share has increased by five per cent to 4.2 pence per share,
comfortably covering dividends paid and proposed for 2024 of 3.7 pence per share.
EPRA net tangible assets per share has reduced by 0.9 per cent to 119.6 pence.
The reduction in NTA per share is primarily due to the dilutive impact of the placement
of 60.4 million new ordinary shares at a 93 pence per share. Although initially dilutive,
it is anticipated that the deployment of placing proceeds will result in NTA per share
accretion beyond 2025.
Evolution of net asset value £m
31 December 2023 734.2
EPRA earnings 25.9
Revaluation 15.4
Capital raise (net of costs) 54.3
Dividends paid (22.0)
Loss on disposals (4.2)
Other (2.3)
31 December 2024 801.3
Portfolio valuation
2024
£m
2023
£m
Gain
1
£m
Change
%
Like for like property portfolio 1,063.9 1,031.7 16.2 1.6
Acquisitions 36.2 – (2.2)
Disposals – 49.5 (1.6)
Other non-like for like (development) 34.9 16.7 3.0
Portfolio valuation 1,135.0 1,097.9 15.4
1 Net of capital expenditure and headlease amortisation
On a like for like basis the portfolio increased in value by 1.6 per cent during the year.
This includes the impact of the abolition of Multiple Dwellings Relief which has materially
increased purchaser cost assumptions inherent in the valuations of our English and Welsh
properties. For comparability, the like for like valuation gain would have been 4.2 per cent
had Multiple Dwellings Relief continued to be in place at 31 December 2024.
Cities with particularly strong demand such as Bristol, Edinburgh, Glasgow and
Manchester performed well. The latter includes our site at Victoria Point on which
planning permission has been granted to add 310 new beds to the scheme. The weakest
performance was from those cities experiencing lower demand, such as Sheffield and
Leeds which have tempered the overall like for like valuation increase.
Three acquisitions were concluded during the year in Bristol, Glasgow and Manchester.
The latter being the first of two acquisitions funded from the proceeds of the October
2024 equity raise. Acquisitions have favoured operational assets in top-tier university
cities where the Group has an existing operational presence and can therefore benefit
from the efficiencies realised through clustering.
Eight assets were disposed of during the year, achieving an exit from four non-core cities;
Stoke, Reading, Oxford and London. The latter two being non-core by virtue of scale.
Our Brunswick Apartments scheme in Southampton underwent a significant
refurbishment during 2024 and was closed to students for the duration of the
2023/24 academic year. A net valuation uplift of £3.0 million has been recorded post
refurbishment. Given the quantum invested and associated disruption to income, this
property is classified in the table above as ‘other non-like for like’.
Contents Generation - Section
Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 47
Debt
In March 2024, we refinanced four small near term debt facilities into one consolidated
seven year £124.9 million facility. Following refinancing, the Group’s weighted term to
maturity has been extended to 4.7 years from 3.9 years at December 2023. The weighted
average cost of debt is currently 4.5 per cent, with all drawn debt subject to interest rate
protection. The next debt maturity is not now scheduled until April 2028.
Compliance with all covenants was maintained throughout the year. With a weighted
average LTV covenant of 63 per cent and a weighted average ICR covenant of 1.9 times,
good headroom continues to remain.
Cashflow
2024
£m
2023
£m
Operating cash flow 43.0 43.7
Property disposals 42.6 42.6
Property acquisitions and capital expenditure (74.9) (34.0)
Finance income 0.8 0.2
Net cash flows from investing activities (31.5) 8.8
Capital raise (net of costs) 54.3 –
Dividends paid (22.5) (20.2)
Net borrowings drawn/(repaid) 14.1 (31.0)
Finance costs (22.5) (16.6)
Financing cash flows 23.4 (67.8)
Net cash flow 34.9 (15.3)
The disposal of eight small non-core assets during 2024 generated proceeds net of
disposal costs of £44.0 million. Proceeds have largely been reinvested in the Group’s core
capital expenditure programme of undergraduate refurbishments and ongoing fire safety
works. Capital expenditure, together with the acquisition of three new properties during
2024 has resulted in the deployment of £73.1 million.
The Group’s October 2024 equity raise generated £54.3 million, net of costs.
These proceeds were earmarked for acquisitions and to fund refurbishment related
capital expenditure, facilitating the transformation of 16 properties to the Group’s
postgraduate specification, with associated cash deployment to fall during 2025.
Proceeds earmarked for acquisition related activity were partly deployed toward the
December 2024 acquisition of Tatton House in Manchester, which was acquired for
£19.75 million, before costs.
Cash applied toward dividend payments in the year totalled £22.5 million, including
£0.5 million of withholding tax due on the final dividend payment in 2023, settled in
January 2024.
Cash applied to the settlement of finance costs has increased compared to 2023.
The Group held higher overall drawn debt at a marginally higher cost, with the weighted
cost of debt increasing from 4.3 per cent at 31 December 2023 to 4.5 per cent this year,
increasing finance costs by approximately £2.5 million. Finance cost payments also
include £3.9 million paid toward arrangement fees and hedging costs associated with
the Group’s £124.9 million refinancing which was completed earlier in the year.
Going concern
The Board places particular focus on the appropriateness of adopting the going concern
assumption when preparing the Company’s and the Group’s financial statements.
In light of the Group’s liquidity position, its modest level of capital commitments of £2.8
million, weighted average unexpired debt term and overall level of gearing, the Directors
have concluded that, in reasonably possible adverse scenarios, there remains adequate
resources and mitigants available to continue to operate until at least 31 December 2026,
being a period of not less than 12 months from the date of approval of these financial
statements. The Directors therefore concluded that it remains appropriate to adopt the
going concern basis of preparation when compiling the Annual Report and Accounts for
the year ended 31 December 2024.
Attention is drawn to Note 1.4 to the financial statements for further details surrounding
the conclusion reached.
Dividends
A final interim dividend of 1.075 pence per share has been declared for the final quarter
of 2024, bringing total dividends paid and payable in respect of 2024 to 3.7 pence.
This represents a six per cent increase on the total dividend paid in respect of 2023
and an 88 per cent pay-out on EPRA EPS.
With all recent dividends having been paid entirely as Property Income Distributions,
there is sufficient headroom to pay this final dividend of the year as an ordinary company
dividend. Payment will be made on 11 April 2025 to shareholders on the register at
28 March 2025.
Donald Grant | Chief Financial & Sustainability Officer
12 March 2025
Contents Generation – Section
Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 48
EPRA and other alternative performance measures
Our performance in line with industry standard measures
The following is a summary of the EPRA performance measures included in the Group’s results. As defined by the EPRA Best Practice Recommendations, these are a set of standard
disclosures for the property industry designed to drive consistency in reporting.
EPRA measure Definition of measure
Note/
reference 2024 2023
Earnings (£m) The Company’s underlying earnings from operational activities 8 25.9 24.1
Net tangible assets (“NTA”) The underlying value of the Company assuming it buys and sells assets 9 119.6 120.7
Net disposal value (“NDV”) The value of the Company assuming assets are sold, and the liabilities are settled, not held to maturity 9 122.8 124.2
Net reinstatement value
(“NRV”)
The value of the assets on a long-term basis, assets and liabilities are not expected to crystallise under
normal circumstances
9 129.6 126.8
Net initial yield Rental income less operating costs divided by the market value of the property, increased with purchasers
costs
Opposite 4.9% 5.0%
Cost ratio (incl. direct vacancy
costs)
Administrative & operating costs including costs of direct vacancy divided by gross rental income. Opposite 49% 49%
Cost ratio (excl. direct vacancy
costs)
Administrative & operating costs excluding costs of direct vacancy divided by gross rental income Opposite 48% 48%
Like for like rental income (in
respect of academic year)
Compares the growth in rental income that has been in operation and not under development, throughout
both the current and comparative year
Financial
review
7.0% 10.5%
Like for like capital Compares the growth in capital values of the Group’s portfolio which was controlled by the Group at both
balance sheet dates, net of capital expenditure and excluding development properties
Financial
review
1.6% 3.0%
Loan to value Ratio of net debt, including net payables, to the sum of the property-related assets, including net
receivables, of the Group, expressed as a percentage
Page 50 27.2% 30.6%
Vacancy rate Estimated Market Rental Value (“ERV”) of vacant space divided by ERV of the whole portfolio Page 50 3.4% 0.7%
Other alternative performance measures
An alternative performance measure (“APM”) is a financial measure of historical or future financial performance, financial position or cash flows of an entity which is not a financial
measure defined or specified in International Financial Reporting Standards (“IFRS”).
APMs are presented to provide useful information to readers and have been, or are still, consistent with industry standards. The table below sets out the additional non-EPRA derived
APMs included within the Annual Report and Accounts.
Measure Definition of measure
Note/
reference 2024 2023
Total Return Growth in EPRA NTA plus dividends paid as a percentage of opening EPRA NTA 31 2.0% 7.6%
Net debt (£m) Borrowings less cash and cash equivalents
Financial
Review 298.9 319.8
Dividend cover EPRA earnings relative to dividends declared for the year 31 114% 114%
Dividend pay-out ratio Dividends declared relative to EPRA earnings 31 88% 88%
Contents Generation - Section
Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 49
Group
EPRA Net Initial Yield (“NIY”) and topped-up NIY
Year ended
31 December 2024
£m
Year ended
31 December 2023
£m
Investment property 1,135.0 1,097.9
Less: development (5.7) (3.0)
Completed property portfolio 1,129.3 1,094.9
Allowance for purchaser’s cost 67.3 37.1
Grossed up completed property portfolio valuation 1,196.6 1,132.0
Annualised cash passing rental income 84.1 81.7
Property outgoings (25.6) (25.2)
Annualised net rents 58.5 56.5
Add: notional rent expiration of rent-free periods or other lease incentives 0.1 0.1
Topped-up net annualised rent 58.6 56.6
EPRA NIY 4.9% 5.0%
EPRA “topped-up’’ NIY 4.9% 5.0%
EPRA Cost ratios
Operating expense line per IFRS income statement 25.6 25.2
Administration costs 15.4 14.0
Ground rent costs - -
EPRA Costs (including direct vacancy costs) 41.0 39.2
Direct vacancy costs (0.2) (0.4)
EPRA Costs (excluding direct vacancy costs) 40.8 38.8
Gross Rental Income less ground rents – per IFRS 84.2 80.5
Less: service fee and service charge costs components of Gross Rental - -
Gross Rental Income 84.2 80.5
EPRA Cost Ratio (including direct vacancy costs) 49% 49%
EPRA Cost Ratio (excluding direct vacancy costs) 48% 48%
Contents Generation – Section
Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 50
EPRA and other alternative performance measures | continued
Group
EPRA Loan to Value (“LTV”)
Year ended
31 December 2024
£m
Year ended
31 December 2023
£m
Bank borrowings drawn 374.3 360.3
Net payables 11.4 16.8
Less cash held at the year end (75.4) (40.5)
Net borrowings 310.3 336.6
Investment property at fair value 1,118.6 1,072.5
Property held for sale 10.7 22.4
Property under development 5.7 3.0
Intangible assets 5.5 3.1
Property value 1,140.5 1,101.0
EPRA LTV 27.2% 30.6%
EPRA capital expenditure analysis
Group
EPRA capital expenditure analysis
Year ended
31 December 2024
£m
Year ended
31 December 2023
£m
Acquisitions 37.2 –
Development 0.9 0.3
Investment properties
Incremental lettable space – –
No incremental lettable space 31.9 32.2
Total capex 70.0 32.5
Conversion from accrual to cash basis 2.1 (0.1)
Total capex on cash basis 72.1 32.4
EPRA vacancy rate
EPRA vacancy rate 2024 2023
Estimated rental value of vacant space (£m) 3.0 0.7
Estimated rental value of whole portfolio (£m) 87.9 86.2
EPRA vacancy rate (%) 3.4% 0.8%
Contents Generation - Section
Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 51
“ It’s been a really good experience,
the staff are very friendly and you
definitely get a good value for your
money , highly recommend if looking
for anywhere to stay for uni.”
Resident | London Road, Southampton
Contents Generation – Section
Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 52
ESG report
We believe that ESG should be fully
embedded throughout the Company
for us to succeed as a sustainable
business. We have therefore
developed a robust and transparent
management framework and strategy
that has a positive impact for all
our stakeholders.
We set ambitious and challenging goals that guide
our strategy and operations for the future and in
2022, we published our Net Zero Strategy which
outlined our target of achieving Net Zero for
Scopes 1 and 2 by 2033 and for Scope 3 by 2050.
The publication of our annual ESG Report reflects
our commitment to transparency, measuring our
progress each year against both short and long-
term targets.
Our commitment
to Stakeholders
Contents Generation – Page Contents Generation – Sub Page
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Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 53
2024
2023
4
4
2
Board
2
Employees
369
56% males; 44% female
Conflicts of interest policy
We recognise the importance of maintaining the
highest ethical standards and avoiding situations where
a Director’s personal interests may conflict with their
duties to the Company. To this end, we have a Conflicts of
Interest policy designed to identify, manage, and resolve
potential conflicts. This policy is intended to ensure that
all decisions made by the Board are made in the best
interests of the Company and its stakeholders.
Materiality
Working alongside our third-party ESG consultants,
we have collated all ESG data from around the business
and completed a materiality assessment matrix, to
determine the ESG topics that were material to us and to
our stakeholders. The matrix is reviewed annually by our
ESG Committee, and the latest version is included in the
latest ESG Report, available on our website.
As we operate within the Real Estate Industry, we utilised
the Sustainability Accounting Standards Board (“SASB”)
framework and guidance on materiality.
The SASB Standards help companies identify, measure,
and manage the sustainability-related risks and
opportunities that most directly affect cash flows, access
to finance and cost of capital. Providing this comparable
and standardised framework also allows information to
be clearly communicated to our stakeholders, specifically
our investors. This framework highlighted that ‘Physical
Impacts of Climate Change’, and ‘Water & Wastewater
Management’ were deemed as key areas of importance to
our business.
We and our investor audience are aware of the changing
landscape around materiality and as we develop and build
out our ESG reporting each year, we will take guidance and
direction from the International Sustainability Standards
Board’s (“ISSB”) financial materiality guidance.
Governance and strategy
The ESG strategy is aligned to our overall business
strategy and reinforced by the Company’s Board of
Directors. To improve efficiency and focus on ESG
matters, the Board has delegated specific responsibilities
to a formal ESG Committee, which comprises all Board
Directors. This Committee operates within defined terms
of reference and presents recommendations to the Board.
The executive Directors manage day-to-day operations,
following Board-approved policies and authorities.
However we believe that we need the collaboration of all
our people to successfully deliver on our ESG strategy
and have developed an ESG Management Framework that
has embedded the management of climate change issues
within all areas of our business. This is outlined further in
the report of the ESG Committee on page 116.
Board diversity
Female representation on the Board during 2023 and
2024 was 33%, being two out of six Board members in
total. There are currently no Directors of ethnic origin
on the Board and this is discussed further on page 114.
As diversity remains an important topic for our business,
and within the Real Estate sector, the Board is mindful of,
and reviews annually, gender and ethnic diversity across
the entire workforce, within the senior leadership team
and at Board level.
Male
Female
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Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 54
ESG report | continued
Over
300
days invested by our team members
in charitable or community initiatives
Key 2024 ESG-
related highlights
Governance
î Placed short term targets to shareholder vote at
the Company’s Annual General Meeting improving
transparency and stakeholder engagement
î Published our first comprehensive standalone
ESG Report
î Concluded on CDP as the Company’s appropriate
benchmark for reporting ESG credentials
Environmental
î Like for like energy consumption per bed reduced
three per cent
î 64 per cent of the portfolio now rated EPC B
or better, comfortably ahead of target
î Improved Scope 3 emissions data collection
with first time Scope 3 reporting alongside our
first carbon balance sheet
î Improved behaviours through two well received
energy awareness campaigns across all sites in
both summer and winter
Social
î Launched apprenticeship scheme and leadership
development programme for future leaders
î Set diversity target for the Senior
Management Team
î Mental Health First Aid training provided across
all sites
î Awarded Best Student Wellbeing 2024 by GSLI
î Over 300 days invested by our team members in
charitable or community initiatives
2024 ESG commitments Description Key areas of progress in 2024
Governance
Climate Risk
Management
î Monitor and review climate-related risks
and mitigation controls.
î Conduct a climate scenario analysis on our
supply chain and supply routes.
î Climate-scenario modelling year-on-year
comparisons.
î Financial modelling to understand
the impact of identified risks and
opportunities.
î In 2024 we continued to monitor and
review our climate-related risks and
mitigation controls through an updated
climate scenario analysis and risk register.
î In 2024, we conducted a climate scenario
analysis of our supply chain and supply
routes, which helped us better understand
its vulnerability to climate change.
Conflict
Management
î Launch bespoke conflict management
training to employees with a focus on risk
mitigation. Identify sources of conflict and
address them proactively, reducing the risk
of escalated disputes and legal issues.
î Rollout lone worker devices.
î Conflict management training launched
& lone worker devices issued to all
appropriate site-based employees.
External
Benchmarking
î Consider and conclude on an appropriate
external benchmarking study for the
Company to participate in from 2025
onwards.
î In 2024 we concluded on CDP as the
Company’s appropriate benchmark for
reporting our ESG credentials.
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Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 55
25%
of our portfolio has been
decarbonised, representing
21 assets
2024 ESG commitments Description Key areas of progress in 2024
Environmental
Net Zero
Operations
î Over 40% of the portfolio by floor area to
be fossil fuel-free.
î Lower like for like energy consumption to
below 4,250 kWh per bed.
î Complete the conversion of a further 12
buildings to Net Zero operations.
î Commission decarbonisation studies on
all remaining properties.
î We have decarbonised 25% of our portfolio
by area, representing 21 assets.
î Like for like energy consumption per bed
was reduced by 2.9% to 4,351 kWh (2023:
4,481 kWh), significantly driven by the
rollout of smart heating systems in over
3,000 rooms.
î In 2024 two buildings (Summit House,
Cardiff and Brunswick Apartments,
Southampton) became sites powered by
on-site renewable electricity generation,
utilising both solar PVs and ASHPs.
Conversions are planned for a further
seven sites - these will be powered by
either PV panels or a combination of PV
and ASHP technology.
î So far we have installed energy-creating
plant at 28 sites. 13 sites have had solar PV
systems installed, a further seven now have
ASHPs in place and ten have combined
heat and power (“CHP”) systems.
î Decarbonisation surveys are confirmed
for 14 sites.
Greener Solutions
Installation
î Record all onsite energy creation (PVs)
across the portfolio.
î The recording of onsite energy creation has
started at certain sites, with coverage to be
improved upon during 2025.
Emissions data
collection and
SBTi targets
î Improve Scope 3 emissions data collection.
î Refine the emissions target, aligning to
SBTi within the next two years.
î We continue to work to improve our
emissions data collection process actively.
In 2024 we reported on our Scope 3 data
for the first time alongside our first carbon
balance sheet.
î We remain committed to refining our
emissions target within the next two years.
We will be aligning with the SBTi and its
definition of Net Zero (a minimum of a 90%
reduction in absolute emissions with a
maximum of 10% abated through offsets).
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ESG report | continued
1,500
rooms sub-metered in 2024, providing
us with further data for future training
and behavioural adjustment.
2024 ESG commitments Description Key areas of progress in 2024
Environmental continued
Green capex
î Install air source heat pumps (“ASHP”s)
and PVs at >10 sites.
î Roll out >3,000 in-room heating controls
(Smart Panels, Smart TRVs or meters).
î Full LED and PIR upgrades on >20 buildings
that include plug and play fitting to help
with future maintenance costs.
î Set climate related investment thresholds.
î ASHPs and PVs have been installed at
two sites (Summit House, Cardiff and
Brunswick Apartments, Southampton).
î ‘Smart’ Radiator Valve Actuators (TRVs)
have now been installed in over 3,000
rooms. Smart in-room heating systems
were installed at Brook Studios and
Summit House in 2024 as part of energy
efficiency refurbishments at both sites.
î 167 Atamate and 1,653 SmarterDM smart
heater units were installed and 1,285
EcoSync ‘smart’ TRV units.
î Estimated carbon savings of over 400
tonnes (Atamate - 19,654kg; SmarterDM
- estimated 280,000kg; EcoSync -
100,673kg).
î Full LED and PIR upgrades have now been
planned for >20 buildings. 2024 saw LED
upgrades at five sites: Windsor House,
Cardiff; Maritime Studios; Ayton House;
Centro Court; and St Peter.
î Climate-related investment thresholds
linked to investment decision-making
will be considered further in the next
reporting cycle.
Data gathering
î Use data to inform planned summer and
winter education programmes to support
energy efficiency behavioural change.
î We ran two well-received energy awareness
campaigns across all sites in both summer
and winter, leading to improved energy-
saving behaviours.
î We sub-metered over 1,500 rooms again
in 2024, providing us with further data for
future training and behavioural adjustment.
Contents Generation - Section
2024 ESG commitments Description Key areas of progress in 2024
Environmental continued
Building Energy
Management
System (“BEMS”)
î Conduct BEMS surveys and upgrades
at >30 sites.
î Execute comprehensive Building
Management System (“BMS”) upgrades
across the portfolio, allowing for remote
monitoring, data collection and control.
î Record all onsite energy creation (PVs)
across the portfolio.
î BEMS surveys have now been completed
for >30 sites and our next target is to carry
out upgrades and repairs to 5-10 BMS.
EPC Ratings
î >55% of portfolio to be rated EPC B
or better.
î The percentage of our sites with EPC
ratings of B or better has continued to
increase, reaching 64% in 2024 (2023: 51%)-
comfortably ahead of target. We plan to
extend this target to >65% of the portfolio
in 2025.
Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 57
64%
of portfolio rated EPC B or better
Social
Health and Safety
î Establish Legal Register.
î Deliver Wellbeing Management System
and Framework, including lone working.
î Deliver Incident Management Guides
to ensure consistent management and
escalation of site-based incidents.
î Complete dynamic risk assessments of
all sites, specific to local area.
î Create a Security Self-Assessment tool
which will require teams to objectively
review the security in our properties and
identify opportunities for improvements
to physical and personal security.
î Eight new documents were created and
launched in 2024 to assist team members
when supporting our customers with
disabilities, including guidance for writing
Personal Emergency Evacuation Plans
and how to handle assistance animal
and reasonable adjustment requests.
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Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 58
ESG report | continued
2024 ESG commitments Description Key areas of progress in 2024
Social continued
Opportunities
for all
î Launch apprenticeship scheme.
î Complete bespoke leadership
development programme for
future leaders.
î Define diversity focus areas and targets.
î Provide training and accreditation to
maintenance operatives.
î Apprenticeship scheme and leadership
development programme for supporting
future leaders, “Hello Future Stars”
launched.
î Diversity target set for the Senior
Management Team.
Enhance mental
health and
wellbeing
î Achieve a net promoter score of +33.
î Achieve employee engagement scores
within the top 25th percentile of an
externally benchmarked comparator group.
î Mental Health First Aid training for all sites.
î Our net promotor score (“NPS”) has
improved and continues to rise. Our Q4
2024 Global Student Living Index (“GSLI”)
survey results showed an NPS of +32.
î We achieved our goal to provide Mental
Health First Aid training across all sites.
Eight new documents were created and
launched to assist team members in
supporting our customers with disabilities.
Operations
î Improve customer response times
targeting resolution within 72 hours on
70% of cases raised via the Student App.
î Invest over 300 days in community or
charitable support initiatives.
î Our team members reached our target of
over 300 days invested in charitable and
community initiatives. Customer response
times improved to 69% within 72 hours.
Engagement
î Launch behaviour programme to engage
employees and customers and measure
impact on energy use across a sample
of sites.
î During 2024, we launched and completed
an engaging energy awareness campaign
which received great customer feedback
and drove improved energy-saving
behaviour.
NPS
+32
our Net Promoter Score
continues to improve
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Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 59
Physical impacts of climate change
As part of our TCFD reporting, we assess physical climate
risks that could impact our operations. More information
about which physical risks we identified as a business can
be found in the TCFD section of this report. As climate
change intensifies, it is imperative for businesses to
incorporate climate risk assessments into their strategies.
This is particularly crucial for our assets located in
vulnerable areas, where adaptation measures like flood
insurance, physical asset resilience, and strategic lease
terms are essential to ensure long-term sustainability.
Sustainable properties
We installed energy creating plant at 28 sites. Thirteen of
which have had solar PV (photovoltaic) systems installed,
a further seven properties have air source heat pumps in
place, with combined heat and power systems in place
at ten. Two sites have both air source heat pumps and PV
systems installed.
To improve heating efficiency, ‘smart’ Radiator Valve
Actuators (TRVs) have been installed in 3,105 rooms,
contributing to a significant five per cent reduction in
energy use per bed in 2024. The system collects data
every five minutes, allowing for continuous improvement.
Efforts to optimise boiler operation and reduce energy
costs are underway and will continue in 2025.
In 2024, waste management practices focused on
recycling, with initiatives like local mattress recycling.
Mattresses are now reconditioned and recycled every
three to four years. Valuable materials such as foam, metal
springs and textiles are also reclaimed and repurposed for
other uses, helping divert additional waste from landfills.
Biodiversity initiatives included creating meadows,
installing beehives, and incorporating green roofs at
various sites. The living green walls at St Mary’s contribute
to our environmental impact, and bird and bat boxes
support local wildlife. In 2025, we hope to continue our
focus on preserving green spaces and actively improving
environmental practices.
“ Biodiversity initiatives included
creating meadows, installing
beehives, and incorporating green
roofs at various sites. The living
green walls at St Mary’s contribute
to our environmental impact,
and bird and bat boxes support
local wildlife.”
3,105
rooms have , ‘smart’ Radiator Valve
Actuators (TRVs) installed to improve
heating efficiency.
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Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 60
ESG report | continued
Employee health and safety
The Board defines our Health and Safety Policy, which
outlines the organisational structures responsible for
its implementation. Our Head of Health, Safety and Fire
and our Security and Business Continuity Manager take
responsibility for our Health and Safety Management
Systems within the Company.
We are committed to conducting all our activities in a safe
and secure manner, which is underpinned by our health
and safety management standards and our commitment
to continual improvement. Our Safety Blueprint details
the governance structure we have to drive accountability,
how we communicate with our teams to involve them
in the proactive management of health and safety and
how we manage health and safety risks. The Board is
responsible for reviewing the Health and Safety Blueprint
and the annual Health and Safety Plan for all areas of
the business. They ensure that the Health and Safety
Management System is proportionate, implemented
and reviewed annually. Continuing throughout 2024, the
Board has received monthly reports to help monitor the
Company’s safety performance.
We promote a culture of continuous improvement, to
prevent any major incidents. Our aim is to eliminate
significant accidents. The robust reporting system
ensures that all accidents and near misses are logged
and reported. Safety and professionalism are of
utmost importance across all our sites. We extend
this commitment to our onsite subcontractors,
mandating their participation in the evaluation process
for SafeContractor accreditation. This ensures they
meet essential criteria and adhere to industry-specific
regulations, to ensure a secure and dependable
partnership.
“ We are committed to
conducting all our activities
in a safe and secure manner,
which is underpinned
by our health and safety
management standards
and our commitment to
continual improvement.”
Asset health and safety
The implementation of SafetyNet, a custom low-code
incident reporting system, revolutionised our approach
to health and safety. SafetyNet includes functionalities
like Fire Risk Assessment, Audits, Compliance Checklists,
Dashboards, and Contractor Management. Safety and
professionalism are of utmost importance across all
our sites.
Since its launch, SafetyNet has significantly increased
reported incidents, leading to thorough investigations
and risk reduction measures. The transition to digital
reporting has streamlined ease of completion, facilitating
timely and enhanced compliance monitoring. The
reported incidents cover Security, Wellbeing, and Fire,
providing a comprehensive view of overall risk. We
extend the above safety commitment to our onsite
subcontractors, mandating their participation in the
evaluation process for SafeContractor accreditation.
This ensures they meet essential criteria and adhere to
industry-specific regulations, to ensure a secure and
dependable partnership.
Health and Safety Statistics
Description 2024
Injury Rate (“IR”) 2.7
Lost Day Rate (“LDR”) 1.8
Accident Severity Rate (“ASR”) 0.009
Absentee Rate (“AR”) 2.4
Work-related fatalities for all
direct employees Nil
% of assets for which H&S impacts are
assessed or reviewed for compliance
or improvement 100
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Strategic report 61
Stakeholder Why We Engage How We Engage Topics Outcome
Customers
The needs of our customers drive our
brand and service offer. They provide
vital feedback on how we can improve
and better fulfil their needs. We have a
responsibility to provide a secure and
homely living environment and to care
for their wellbeing. This is central to
the Board’s strategic decision-making
and any associated operational
change.
î On a day-to-day basis within
our buildings.
î Through biannual customer surveys.
î Through our social media presence.
î Through building relationships with
universities in the towns and cities in
which we operate.
î Safety in their homes.
î Customer service.
î Value for money.
î Building
configuration.
î Wellbeing.
î Energy saving.
î Birthday Card
initiative.
î Introduction of Mental
Health First Aiders.
î Global Student Living awarded our
operational brand, Hello Student,
the accolade of Best Student Wellbeing
2024.
î Improving net promoter score.
î 20 properties ranked within top three
sites available in cities in which we
operate (rated by our customers on
Student Crowd).
î Engaging energy awareness campaign
completed receiving great customer
feedback.
Employees
Our people are vital to the successful
delivery of our business plan. We
have a responsibility to provide our
people with a safe place to work and
to care for their wellbeing to enable
them to prosper and succeed in their
professional lives.
The values and culture of our
organisation is embedded within
our teams.
î On a day-to-day basis we use Workplace
as an internal communication tool.
î Quarterly townhalls are held where
our people can raise questions and
provide feedback.
î Through the One Team Collective.
î One Team Tour, engagement
programme completed by the executive
team providing an opportunity for
employees to engage directly with
the Executives.
î Safety at work.
î Pay and reward.
î Fair and equal
treatment.
î Business updates.
î Real Living Wage Employer with a
focus of improving the compensation
arrangements for our lowest paid
employees.
î Strong employee retention rate of
78% per cent.
î Diversity target set for senior leadership
team.
î 98% of employees have completed all
of their essential training modules.
Communities
The communities in which we operate
help us fulfil our purpose of enhancing
the university experience of our
customers. We aim to understand each
unique local community in which we
drive decision making of how best we
can make a difference.
î Through on-site communication
with members of the public and
local communities.
î We have membership with the British
Property Federation where we can
interact with communities and
government on a wider basis.
î Interaction through the property
licensing disclosures we have
to undertake.
î Local job creation.
î Provision of
appropriate
housing stock.
î Supporting local
charities.
î Support provided to Switch 180 and the
British Heart Foundation nationally.
î Programme of charitable and community
work across all sites with over 300
days provided and over £4,000 raised
by the workforce toward charitable or
community initiatives during 2024.
Our stakeholders and how we engage with them
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Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 62
See also the Section 172 statement on page 96.
ESG report | continued
Stakeholder Why We Engage How We Engage Topics Outcome
Shareholders
Our shareholders are key stakeholders
in our business. The Board has
a responsibility and desire to
communicate key matters relating
to the Group openly and honestly
to our shareholders.
The Group also has a wider
responsibility to shareholders to
enhance the value of the business
and fulfil its purpose ethically.
î Face-to-face meetings with investors
typically following annual and interim
results.
î The publication of our Annual Report
which presents a comprehensive
update of the Company.
î At our Annual General Meeting.
î When significant change is proposed,
for example, material transactions or
changes to the remuneration structure.
î Financial results,
business performance
and significant
transaction.
î Dividend payments.
î ESG.
î Remuneration policy.
î Diversity.
î Capital Raise.
î Numerous meetings with current
and prospective shareholders held
throughout the year.
î Property tours conducted in Bristol,
Edinburgh and Glasgow.
î Attendance at industry conferences.
î Consultation on equity raise.
î Shareholder vote on future ESG strategy.
Environment
Our environment is fundamental to our
future. We have a duty to operate our
business in an energy efficient way,
giving specific regard to the impact
of our operations on the environment
and utilising methods throughout our
properties that mitigate the risk of
environmental damage.
î Biannually we provide a detailed ESG
update within our Annual and Interim
Reports.
î Reduction in
greenhouse gas
emissions.
î Becoming a
sustainable business.
î Published stand-alone ESG Report.
î Improving our energy efficiency per bed
with a 5 per cent reduction achieved.
î Managing EPC risk with over 60 per cent
of the portfolio now EPC B or better.
î Energy hedging contract secures
electricity procured 100 per cent from
renewable sources.
î Scope 3 emissions disclosed for the
first time.
Lenders
Our lending partners are key to our
financing strategy. They support the
delivery of our day-to-day business
plan through the extension of
financing arrangements to facilitate
developments, capital expenditure or
acquisitions.
î Open and regular dialogue with
relationship managers. Proactive
engagement in respect of sale and
acquisition pipelines and early dialogue
on refinancing requirements.
î Ongoing covenant reporting.
î Refinancing and
hedging needs.
î Update on asset
management
initiatives and related
impact.
î Covenant compliance
and related security
pool.
î Prudent management of maturing
debt with refinancing of all near dated
maturities.
î Quarterly covenant compliance reporting
and regular engagement throughout the
year.
î Site visits.
Agents and
Consultants
These stakeholders act on the
Company’s behalf, therefore it is
fundamental that we ensure they
understand our business requirements
and meet the high standards of
conduct that we expect of ourselves.
î Regular meetings and day to day
communication.
î Disposals, acquisitions
and leasing.
î Summer turnaround.
î External tenders.
î Review of ERP
provision and
appointment.
î Non-core disposal programme and
annual refurbishment activity.
î Tender of external valuation contract
resulting in the appointment of Cushman
& Wakefield.
î Appointment of Yardi Systems as the
Company’s ERP provider.
Contents Generation - Section
Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 63
Employee wellbeing
In respect to our people, we have established several
forums, to offer colleagues a variety of ways to share their
views with the executive committee. For example, a formal
employee representative group, the ‘One Team Collective’
(“OTC”); an anonymous ‘Talk To Us’ online suggestion
box; and internal service surveys or annual engagement
surveys. We conducted an engagement survey and
completed a series of roadshows with the executive team
who made themselves available to all employees at three
separate venues around the UK.
The OTC, now in its third year of formation, is a workforce
advisory panel consisting of 11 employee representatives
from across the Group. Its focus is to support meaningful
dialogue on topics raised by our employees. The OTC met
four times during 2024. All meetings were attended by
Alice Avis, the Company’s Senior Independent Director
who maintains regular dialogue with the Collective’s Chair
throughout the year.
Wellbeing standard
We have a ‘Wellbeing Standard’, which works to monitor
and assess hazards and risks that could impact the
wellbeing of team members. We work to identify all
points of workplace stress and conduct risk assessments,
to eliminate or control the risks caused by stress.
The risk assessment will include the six key management
standards; demands, controls, support, relationships,
role, and change. The risk assessment process will include
consultation with the One Team Collective on issues
relating to the prevention of work-related stress.
Access is then provided to confidential counselling for
team members affected by stress, caused either
by work or external factors. Managers and supervisors
are provided with training and where applicable,
access to resources, to help identify and address
wellbeing concerns.
Customer wellbeing
Customer experience, mental health and wellbeing are of
utmost importance to us as a business, both commercially
and as a duty of care for the continued safety of our
customers. External data completed by students via
the Global Student Living Index and general feedback
received from site teams has helped us to identify areas
for improvement. A programme of work was built and
implemented, based on the above sources and resulted
in improvements in our customer survey scores which led
to being awarded Gold Operator certification officially in
2024 from the Global Student Living Index.
We understood from regular third-party customer surveys
that a student’s accommodation, in terms of the quality,
design of the building and the service they experience
can have a marked impact on their mental health
and wellbeing.
In 2024, as a result of feedback received, we have
continued to build on and develop a programme of events
for students to engage with and encourage a sense of
community. This included existing students welcoming
new students to their new home from home on check
in day and improved amenity space for residents to be
able to socialise or study in a communal environment as
part of our refurbishment of Brunswick Apartments in
Southampton site in 2024.
“ We have also designed
improved amenity space
for residents to be able
to socialise or study in a
communal environment as
part of our refurbishment of
Brunswick Apartments in
Southampton site in 2024.”
Contents Generation – Section
369
Total employees at
31 December 2024,
with two individuals
non-specified.
Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 64
Key Male Female
2024
2023
201
163
147
Total employees
204
2024
2023
17
14
7
Senior Management
8
2024
2023
3
3
2
Executive Management
2
ESG report | continued
Gender Pay Gap Mean 2024 Mean 2023 Median 2024 Median 2023
Group Gender Pay Gap
13.45%
(Male paid
more than
female)
10.1%
(Male paid
more than
Female)
3.17%
(Male paid
more than
Female)
1.85%
(Male paid
more than
Female)
Group Gender Bonus Gap
44.76%
(Male paid
more than
Female)
29.33%
(Male paid
more than
Female)
-47.08%
(Female paid
more than
Male)
-15.50%
(Female paid
more than
Male)
Gender diversity statistics
Diversity and inclusion
We believe in creating a diverse and gender-balanced
workforce which reflects the customers and communities
we serve. Our employees are committed to promoting
an inclusive, positive and collaborative culture. We treat
everyone equally irrespective of age, gender, sexual
orientation, race, colour, nationality, ethnic origin,
religion, religious or other philosophical belief, disability,
gender identity, marital or civil partner status,
or pregnancy or maternity. Our workforce and customers
are from diverse backgrounds so we need to ensure that
our workplace remains inclusive and allows our people
and our customers a place where they can thrive. We are
an equal-opportunity employer and will always aim to
extend diversity as vacancies arise.
Investing in future talent
In 2024, we launched a leadership development
programme “Hello Future Stars” designed to support our
businesses future leaders.
We have a Reward Policy across the business to ensure we
are paying and rewarding all team members in a fair and
transparent way based on clearly communicated rationale.
We review pay for all team members on an annual basis
(effective 1 January). The purpose of this policy is to set a
fair and equal approach across the business.
The average hours of training that employees have
undertaken in 2024.
2024 2023
Average number of training
hours completed per employee 8 hours 21 hours
Percentage of total employees who received a regular
performance and career development review in 2024
2024 2023
% of total employees who
received a regular performance
and career development review
in 2024 100% 100%
Employee turnover and new hires
We aim to ensure our employees are proud and happy
to work with us. The average percentage of voluntary
employee turnover across the Group was 22% in 2024.
Employee turnover in 2024
2024 2023
Total Group 22% 15%
Number of permanent new hires in 2024
2024 2023
Under 30 44 43
Between 30 – 50 48 42
Over 50 14 17
Total 106 102
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Raised over
£63,000
for the British Heart Foundation
Modern slavery
Protecting human rights and preventing modern slavery
is important to us. We are fundamentally opposed to
slavery and committed to understanding the risk of it and
ensuring it does not occur anywhere within our business
or supply chain.
Our most significant risk area in relation to slavery and
human trafficking is within our supply chain, particularly in
connection with the sourcing by suppliers of construction
material, certain goods and the provision of manual labour
in property development and management services.
While most of our direct suppliers are based in the UK,
we are aware that some of their materials are sourced
from around the world. However, all of our service
suppliers are based in the UK and are SafeContractor
accredited and are therefore regarded as low risk.
As part of our broader initiative to identify and
mitigate risk in our supply chain, we have updated our
consideration of factors such as:
î reviewing our current contractors and suppliers,
particularly in relation to supply chain, with a view to
developing preferred supplier list arrangements based
on robust selection;
î centralising more contracts as a core part of our
supplier management strategy;
î strengthening our compliance review processes within
procurement practices; and
î developing strong relationships with UK-based
suppliers and contractors that align to our business
code of conduct expectations.
Furthermore, with nearly 7,700 students and 369
employees under our care, we have a duty to ensure their
safety, which includes freedom from modern slavery.
Prior to recruiting staff, we complete checks on all Right
to Work documents, including passports, share codes
and overseas VISAs. We also complete DBS checks on all
front-line operational staff. On appointment, employees
are expected to familiarise themselves with our policies
which they must confirm they have read and understood.
The policies are available on an internal intranet site
and include:
î Data Protection
î Whistleblowing and Grievance Policies
î Anti Bribery
î Anti Money Laundering
î Diversity, Equality and Inclusion
î Duty to prevent Sexual Harassment
Additionally, employees must complete training to
ensure they have a high level of understanding of the
risks throughout our business. For modern slavery they
are provided with practical guidance and ‘red flags’
they should identify in the workplace or within the
student accommodation.
Any concerns or grievances may be raised using the
Whistleblowing policy which can be found on the website.
The policy applies to all employees, suppliers, agents,
contractors and customers of Empiric Student Property
plc, and its subsidiary Hello Student Management Limited.
We continue to believe there is a low risk of slavery and
human trafficking in our colleague base. We regularly
review this risk assessment and monitor our activity
as part of our broader approach to ensuring we are a
responsible and sustainable business.
For our full Modern Slavery statement please refer to
www.hellostudent.co.uk or www.empiric.co.uk
Communities
In our third year partnering with the British Heart
Foundation (“BHF”), its #PackForGood campaign saw
Hello Student collect and donate nearly 3,000 bags of
preloved clothing and household items, raising over
£63,000 for the BHF’s life-saving research. Through our
donations, we also helped divert 23,994 kg worth of waste
headed for landfills, up 25 per cent on the previous year –
highlighting our ongoing commitment to reducing waste
at our student property sites. We will continue to support
the #PackForGood campaign throughout the 2024 and
2025 academic years.
Our team members invested over 300 days toward
charitable or community initiatives during 2024.
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About the TCFD
The Group supports the Taskforce on Climate-related
Financial Disclosures (“TCFD”) and believes it provides a
strong foundation for developing our climate strategy.
We understand that climate change presents potential
risks to our property portfolio, business continuity
and capital expenditure plans. There is a need for
comparability in reporting across sectors, as businesses
collectively tackle climate change. In 2024, we
continued to follow the recommendations of the TCFD
framework, assessing and improving our understanding
of how climate-related risks and opportunities impact
our business. This report aims to align with the TCFD
recommendations to the greatest extent possible.
While significant progress has been made in
incorporating climate-related considerations into our
governance, strategy, risk management, and metrics and
targets, we are committed to continuous improvement
in our TCFD reporting and are actively working to
address identified gaps. Our most recent standalone
TCFD report is available on our website.
Complying with the TCFD
UKLR 6.6.6R(8) requires mandated companies to include
a Task Force on Climate-related Financial Disclosures
(TCFD) statement in their annual report. As a premium-
listed Company, we have complied with the requirements
of UKLR 6.6.6R(8) by including climate-related financial
disclosures consistent with all 11 TCFD recommendations.
In preparing these disclosures, we undertook a detailed
assessment, taking into account Section C (‘Guidance
for All Sectors’) of the TCFD Annex. Regarding progress
against climate-related targets, we acknowledge that
comprehensive progress reporting is pending which will
be addressed in 2025. Current targets, based on current
assessments, guided our actions for 2024. Our strategic
resilience to climate-related risks is addressed through
detailed risk mitigation strategies, as presented in our
Risk and Opportunity Tables. We also acknowledge that
our reporting on strategic resilience to climate-related
risks can be further enhanced. We will provide more
specific data on how our strategies perform under various
climate scenarios, including those consistent with a 2°C
or lower warming pathway.
Governance
Overview
The Group is committed to good governance and
management of climate-related risks and opportunities
in a responsible and transparent manner. We believe we
need the collaboration of all our people to successfully
deliver our ESG strategy, which is aligned with our overall
business strategy and reinforced by the Company’s
Board and senior leadership team. The Group has a well-
developed ESG Management Framework that embeds
the management of climate change issues within
our business.
Board-level oversight
The Board has overall responsibility for the oversight
of climate-related risks and opportunities. The Board
monitors and oversees progress against climate-
related goals and targets through delegation to the
ESG Committee. All Board members are members of
the ESG committee, which met three times during the
year (March, August and December). Climate change is a
standing agenda item at these meetings. These meetings
included discussions of risks and opportunities related to
climate change, climate disclosures, monitoring progress
against climate-related targets and the integration of
sustainability practices into business strategy. Future
topics will include regulatory compliance, stakeholder
engagement, carbon footprint reduction strategies,
renewable energy initiatives, and the development of
long-term climate goals. The Board considers climate
change when reviewing business strategy, when making
investment decisions and when setting annual budgets.
The remuneration policy was updated in 2023, creating a
clear linkage to ESG performance indicators and linking
variable compensation arrangements to Health and Safety
compliance objectives. All objectives remain subject to
the discretion of the Remuneration Committee.
Non-financial and Sustainability Information Statement
Task Force on
Climate-related
Financial Disclosures
(“TCFD”)
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The Board
To assist in the effectiveness of the Board, it delegates certain matters to formal Board Committees to review and make
recommendations back to the Board. All Committees must operate within their terms of reference which are set by the Board.
Day-to-day operations are carried out by the executive Directors, who must adhere to policies and authorities set by the Board.
Nomination
Committee
Considers the composition,
skills and succession
planning
of the Board.
Audit and Risk
Committee
Ensures the Group’s
financial reporting and risk
management is properly
monitored, controlled
and reported.
Remuneration
Committee
Reviews remuneration
of executives and
senior leadership team
in accordance with
shareholder approved
policy.
ESG
Committee
Safeguards the interests,
and monitors engagement
with, stakeholders to
ensure the Company
demonstrates sound social
and environmental risk
management.
Senior Leadership Team
Working with the executive Directors, the senior leadership team ensure Company policies are embedded in the business
and its operations and that strategic decisions are executed appropriately.
Governance structure
The Board structure for overseeing climate risks and opportunities
Read more on | page 116Read more on | page 123Read more on | page 118Read more on | page 110
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Task Force on Climate-related Financial Disclosures (“TCFD”) | continued
The Chief Financial and Sustainability Officer ensures
that climate-related risks and opportunities are assessed,
identified and managed, including management of
the wider ESG projects on a monthly basis.
Taking responsibility that the potential climate-related
impacts are formally reported to the ESG Committee and
the Board. In August 2024, our ESG advisors facilitated
a workshop providing refresher training for the Board
and management on climate change matters, including
climate-scenario analysis to support the Board in fulfilling
their duties to identify and monitor climate change
risks and opportunities. All Board and ESG Committee
members were in attendance. Subsequently, the Board
and ESG Committee reviewed climate-scenario modelling
to assess risks and opportunities related to climate
change, which were then consolidated into a
climate-risk register.
The Board reviewed the climate risk register in its
December 2024 meeting and approved the inclusion
of significant climate-related risks into the Group’s
comprehensive risk register. Climate-related investment
thresholds linked to investment decision-making will be
considered further in the next reporting cycle.
Management-level oversight
The Board ensures the dissemination of strategic
priorities to senior management, who are responsible
for implementing the Company’s ESG strategy within
the business, including climate-related matters. The
Board entrusts the ESG Committee and, in respect of
risk management, the Audit and Risk Committee, with
overseeing the ESG strategy and monitoring progress
toward goals and targets related to climate issues.
Both committees report to the Board three times a year.
The ESG committee reviews climate change as a standing
agenda item in its meetings and incorporates the climate
change lens into reviewing business strategy.
In 2024, our external ESG advisors attended the August
meeting to provide support in assessing and addressing
climate-related issues. They attend ESG Committee
meetings as necessary to update the Board on the
progress of climate modelling and the results from the
climate scenario analysis.
Strategy
We recognise that climate change is a complex issue and
acknowledge our responsibility to minimise our impact
on the planet. In 2022, we identified climate change as
an emerging risk; however, following further discussions
in ESG Committee meetings, its status was updated
to a principal risk in 2023 and remained so for 2024.
Climate change is a dynamic process, and its impacts
are constantly evolving. Extreme weather events are
becoming more frequent and intense, and other
climate-related changes, such as sea-level rise and
shifting weather patterns, are also occurring. Assessing
climate change as a risk annually has enabled us to stay
ahead of such changes and adapt our risk management
strategies accordingly.
This year, we have conducted and updated a climate
scenario analysis to gain meaningful insight into
climate-related risks and opportunities for our business
over the short, medium and long term. We utilised the
TCFD framework to develop our understanding and
management of climate-related risks and opportunities
relevant to our business, incorporating these into the
strategic and financial planning process for the business.
Climate scenario analysis
Climate scenario analysis is a powerful tool that visualises
various future scenarios using potential global warming
pathways. By understanding these potential scenarios,
we can better assess the risks and opportunities that may
impact our operations, both directly and indirectly in
various ways, such as new regulations, shifting
market dynamics, or acute weather events like storms
and wildfires.
In a world of uncertainty, climate scenarios are intended
to explore a range of potential futures scenarios that may
significantly alter the basis for business-as-usual.
Multiple scenarios are used to analyse how different
variables can result in varying outcomes. The climate
models used for this analysis include data from the
Intergovernmental Panel on Climate Change’s (IPCC)
Representative Concentration Pathways (RCP), the
International Energy Agency’s (IEA) World Energy Model
(WEM), the Network for Greening the Financial System
(NGFS) and other existing models.
The TCFD recommends the use of climate scenarios that
are plausible and credible. Each scenario focuses on a
different combination of key factors. The scenarios used
in our 2024 analysis are in alignment with the ISO 14091
standard. Climate scenarios are used to differentiate a
range of possible scenarios rather than a single theme.
Each climate scenario should contribute insight into
the future that relates to strategic and/or financial
implications of climate-related risks and opportunities.
Scenarios provide a common reference point for
understanding how climate change could evolve under
different scenarios. Each was chosen to show a range
of higher and lower-risk outcomes. It is important to
remember that climate scenarios make projections on
hypothetical situations and, as such, come with a degree
of uncertainty. While some of the information obtained
from existing climate models have a high degree of
accuracy, there is still a level of uncertainty. As a result,
scenario analysis is only used as a guide for climate-
related risks and opportunities.
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The Group has considered climate-related impacts
under three primary scenarios:
î Proactive Scenario (Below 2°C by 2100): this scenario
reflects a future where significant global action is taken
to limit global warming to below 2°C by 2100, in line
with the Paris Agreement. In this scenario, transition
risks will become more prominent, and regulatory
pressure will increase. As a business, we are committed
to adapting to a low-carbon economy by investing in
renewable energy sources, reducing emissions, and
adopting sustainable practices.
î Reactive Scenario (2-3°C by 2100): this scenario is
associated with a future where global climate action is
inconsistent, leading to a moderate increase in global
temperature. In this scenario, we will prioritise risk
management and adaptation strategies. This includes
assessing and managing potential climate-related
threats, developing contingency plans to address
disruptions, and diversifying supply chains to
reduce vulnerability.
î Inactive Scenario (Above 3°C by 2100): this scenario
reflects a future where global climate action is limited
or delayed. It necessitates a proactive approach to
risk management for long-term sustainability.
We will prioritise crisis management, survival, and
long-term viability.
We have adopted a three-tiered approach to our analysis,
extending beyond standard business timelines to
encompass a long-term perspective up to and beyond
2050. This enables us to identify emerging future risks and
opportunities. The time horizons we have selected align
with the UK’s 2050 Net Zero target and beyond, ensuring
our analysis is relevant to the long-term sustainability of
our business.
î Short Term (2024-2027): We will demonstrate a
proactive approach to sustainability through public
commitments and progress towards our targets.
To ensure ongoing compliance, we will constantly
assess the legal landscape and regularly review
environmental regulations and permits.
The Board will actively oversee risk management
and compliance efforts. The short-term will help us
prioritise immediate action and demonstrate early
progress while ensuring compliance and building a
foundation for long-term success.
î Medium Term (2028-2037): As the physical
impacts of climate change become more
pronounced, we will focus on building resilience
in our operations. By diversifying supply chains,
investing in resilient infrastructure, and adopting
sustainable practices, we will be better prepared
for extreme weather events and resource scarcity.
We will implement flood insurance, fire safety
standards, and heat-resistant building materials
to mitigate climate change risks. This timeframe
will help focus on adapting to climate change and
building operational resilience, engaging in long-
term planning, and continuously improving upon
the foundation laid in the short term.
î Long Term (2038-2050): In the long term, we
will drive a transformative shift towards a low-
carbon economy. Key strategies include investing
in renewable energy, adopting circular economy
principles, building climate-resilient infrastructure,
exploring carbon capture and storage technologies,
and supporting innovation and research. This
extended horizon allows for implementing
ambitious, long-term strategies such as investing
in renewable energy and building climate-resilient
infrastructure. By embracing these long-term
strategies, we will position ourselves as leaders in
sustainable business practices and contribute to a
more resilient and sustainable future.
Analysis of results
We have thoroughly assessed climate-related risks
and opportunities aligned with the TCFD framework.
A comprehensive climate risk register captured all
identified climate-related risks and opportunities.
We identified thirteen transition risks, six physical risks,
with five opportunities across 26 key locations. Ten of
these risks (eight transition and two physical risks) were
deemed material to our business. The ESG Committee
reviewed these findings and presented them to the
Board for final approval in December 2024.
Each climate-related issue is classified using our Group-
level standardised rating system. We assess the likelihood
and impact of each risk to determine an inherent risk
score. This inherent risk score is calculated by multiplying
the likelihood and impact ratings. We calculate an overall
net risk score by considering the effectiveness of our
mitigating controls. Risks with a significant (inherent risk
between 9 and 15) or high (inherent risk between 16 and
25) are deemed material to the business. Only short-term
material climate-related risks will be integrated into the
Group’s risk register, as these risks have a more immediate
impact on the business. Medium- and long-term risks,
while significant, will be monitored annually in the climate
risk register but will not be actively managed within the
Group Risk Register.
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Task Force on Climate-related Financial Disclosures (“TCFD”) | continued
Table 2: Climate-related transition risks and mitigations
Climate Risk
Category Climate-Related Risk Description of Climate-related Risk
Timeline, Scenario
and Risk Rating Financial Impact Mitigating Controls in Place
Policy &
Legal
T1: Enhanced
emissions-
reporting
obligations
The UK’s commitment to Net Zero
emissions by 2050 is driving increased
regulatory pressure on businesses.
This includes stricter emissions
reporting requirements and higher
energy efficiency standards for
commercial properties. We are already
impacted by increased emissions
reporting regulations in the UK (e.g.
TCFD, SECR, ESOS). To comply with
these regulations, businesses must
invest in energy efficiency measures,
carbon reduction strategies, and
potential carbon offsets. However,
relying too heavily on offsets can hinder
direct emissions reduction efforts.
Therefore, a balanced approach is
crucial to achieve Net Zero goals while
managing potential risks and costs.
Short - Medium
Term (2024-2037)
<2°C, 2-3°C
Gross Risk: 20,
Increased
operating costs
(higher compliance
costs)
We already consider both existing and emerging
(e.g. Minimum Energy Efficiency Standard (MEES))
legislation when assessing climate-related risks.
Through our existing risk management programme and
evolving environmental activities, we have dedicated
internal resources and commenced collaboration with
our ESG advisors to ensure we remain compliant with
current and emerging regulations.
Costs on the business to remain complaint will
be relatively low as a proportion of our revenue.
Additionally, we have allocated £12m toward ESG
initiatives aimed at reducing energy consumption and
emissions and improving EPC ratings with the aim to
meet the UK Government’s 2030 EPC B or better target.
We plan to mitigate the risks associated with
overreliance on offsets by prioritising emission
reduction strategies and using carbon offsets
judiciously. Additionally, engaging with industry and
policymakers can help shape a regulatory environment
that supports the responsible use of carbon offsets and
accelerates the transition to a low-carbon economy.
Covering all emission scopes prepares us for future
reporting requirements. Establishing near-term and
long-term targets demonstrates a proactive approach
to emissions reduction, mitigating compliance risks.
Plans to align with SBTi ensures targets will provide
credibility, align with best practices and reduce the risk
of regulatory misalignment. Exploring internal carbon
pricing will further prepare us for potential future carbon
pricing regulations.
We have achieved carbon reductions in both Scope
1 and Scope 2 emissions. Please see the metrics and
targets section for a full report on our Targets, Scopes 1,
2, and 3 emissions, and future plans.
Transition risks
Transition risks arise from indirect impacts of climate change, including changes in government policy, technology, and market conditions. Climate-related transition risks refer to
risks associated with transitioning to a low-carbon economy. Several climate-related transition risks are listed in Table 1, which were identified as having a significant and high gross
risk potential at our sites. We are responding to these risks and will continue to develop our controls over the next two years.
Risk rating
Significant
High
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Climate Risk
Category Climate-Related Risk Description of Climate-related Risk
Timeline, Scenario
and Risk Rating Financial Impact Mitigating Controls in Place
Policy &
Legal
continued
T2: Mandates on
and regulation of
existing products
and services
Mandates/regulations, such as the
Building Safety Act and Building Safety
Regulator, may become more difficult
to adhere to/meet if climate change-
related events (e.g., supply chain issues)
hinder the capacity of our operations.
The UK Government’s increasing focus
on sustainability is driving stricter
regulations and standards for the real
estate industry. New regulations like
Biodiversity Net Gain (BNG) mandate
a 10% increase in biodiversity value
for new developments. Failure to
comply with such regulations can halt
development projects. This highlights
the importance of understanding and
adapting to the evolving regulatory
landscape to ensure project viability
and environmental sustainability.
Sector-specific decarbonisation
strategies (Heat and Buildings
Strategy and Future Homes Standard)
require us to meet the targets and
recommendations outlined by the
frameworks (e.g., EPC grading by 2030).
Real Estate Investment Trusts (REITs)
may be exposed to energy-related
regulations even though energy costs
are often the occupants’ responsibility.
.
Short - Medium
Term (2024-2037)
<2°C, 2-3°C
Gross Risk: 12,
Decreased revenue
due to reduced
demand for current
products and
services
We have identified several risks associated with
compliance with regulatory mandates so that mitigation
measures can be established (e.g., H&S, External Wall
System (EWS), Electricity Safety Rules, etc.). The Group’s
capital allocation plans incorporate remedial work to
ensure compliance. Good progress continues to be
made, and the Group’s lenders and insurers remain
comfortable with the progress made.
Our 12.5 per cent reduction in Scope 1 emissions
and 5.1 per cent reduction in Scope 2 emissions
are directly linked to our strategy of mitigating
regulatory compliance risks and proactively addressing
decarbonisation mandates (Heat and Buildings,
Future Homes Standard, EPC improvements).
Achieving Net Zero targets (2033 for operational
emissions, 2050 for all emissions) strengthens
operational resilience against climate change-related
disruptions (e.g., supply chain issues), making it easier
to meet mandates like the Building Safety Act.
The 2033 Net Zero target for operational emissions
(Scopes 1 and 2) directly addresses the requirements
of sector-specific decarbonisation strategies like
the Heat and Buildings Strategy and Future Homes
Standard, including the push for improved EPC gradings
by 2030. This target directly mitigates the risk of non-
compliance. Our 2033 operational emissions target
is particularly relevant for addressing energy-related
regulations that may impact REITs, even if energy
costs are typically passed on to occupants. Reducing
operational emissions helps mitigate these regulations’
financial and reputational risks.
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Climate Risk
Category Climate-Related Risk Description of Climate-related Risk
Timeline, Scenario
and Risk Rating Financial Impact Mitigating Controls in Place
Market
T5: Changing
customer
behaviour
We may be at risk of loss of revenue, reduced
profitability and reduced growth if unable
to keep pace with changing consumer
behaviour. Consumers may choose
accommodation that is more energy efficient
(higher EPC rating) to save on utility costs.
With sustainability growing in importance,
customers may change sentiment
towards other Purpose-built Student
Accommodation (PBSA) operators who
provide more sustainable alternatives or
may decide that it is more environmentally
friendly and cost-effective to study at home
compared to student accommodation.
We have identified the potential for
geopolitical events to cause supply/demand
issues, e.g., international students being
unable to study in the UK can result in up to
50% revenue loss. Increased living, travel and
utility costs as a result of carbon pricing may
also result in fewer international students
choosing to study in the UK.
Medium Term
(2028-2037)
<2°C, 2-3°C
Gross Risk: 9,
Decreased revenue
due to reduced
demand for current
products and
services
Our sustainability commitments are set out in the
sustainability section of our website and our 2023
ESG Report. We have demonstrated resilience and
adaptability to customers’ changing demands by
differentiating within the PBSA market with a highly
efficient, low-embodied carbon product and efforts
to attract climate-conscious customers. We have
invested in and committed to an extensive capital
investment plan to improve technologies that
lower the carbon intensity of our accommodation
to ensure sites are more sustainable. We have
introduced annual energy awareness campaigns
for our customers.
The 2033 Net Zero target for operational emissions
(Scopes 1 and 2), which will drive improvements
in energy efficiency and EPC ratings. Strong ESG
credentials are likely to become a point of difference
to our customers. The overall commitment to Net
Zero emissions, including the 2050 target for all
emissions (Scope 3), signals a strong commitment
to sustainability, which is crucial for attracting
environmentally conscious customers.
This addresses the risk of students choosing
alternative PBSA providers or opting to study
from home due to environmental concerns.
It demonstrates that we are taking
sustainability seriously.
Risk rating
Significant
High
Task Force on Climate-related Financial Disclosures (“TCFD”) | continued
Table 2: Climate-related transition risks and mitigations
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Climate Risk
Category Climate-Related Risk Description of Climate-related Risk
Timeline, Scenario
and Risk Rating Financial Impact Mitigating Controls in Place
Market
continued
T6: Uncertainty
of market signals
The absence of robust sector transition
plans to Net Zero poses a significant risk
to accessing capital. New sectors and
competitors may form, offering customers a
range of companies to take their business to.
New financing from government schemes
and green investment opportunities may
be missed if we do not progress on our
decarbonisation plans. Future financial
planning and budgeting may become
increasingly difficult as the market
becomes more volatile and reactive to
climate-driven events.
We may need to become more adaptive
and flexible to the changes in the market to
ensure we can continue to generate revenue
and profit.
Market behaviour can often be volatile
but can also present the Group with
opportunities if we can adequately align our
business model.
Short - Medium
Term (2024-2037)
<2°C, 2-3°C
Gross Risk: 10,
Decreased access
to capital
The Group is already taking a proactive approach,
evidenced by public commitments and progress
towards targets. Our Net Zero targets, especially
the near-term 2033 operational emissions target,
demonstrate a proactive approach to the sector’s
transition to Net Zero. This reduces the risk of
being outpaced by new competitors offering
more sustainable alternatives and helps maintain
access to capital as investors increasingly prioritise
companies with clear decarbonisation strategies.
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Risk rating
Significant
High
Task Force on Climate-related Financial Disclosures (“TCFD”) | continued
Table 2: Climate-related transition risks and mitigations
Climate Risk
Category Climate-Related Risk Description of Climate-related Risk
Timeline, Scenario
and Risk Rating Financial Impact Mitigating Controls in Place
Market
continued
T7: Increased
cost of energy
and raw materials
Energy: Risk of increased energy costs as
carbon prices are introduced on oil and
gas imports. The unit cost of renewable
electricity is more constant than that of
electricity from fossil fuel sources. However,
it can be more expensive, resulting in an
increased cost of energy for the Company.
As more businesses switch to renewable
energy contracts, energy costs could also
increase (supply vs demand).
Raw Materials: The EU has identified plastic,
steel, ceramics, hydrogen and fertilisers
as high-impact materials. High-impact
products will be forced to decarbonise –
as a result, new processes and technology
may be introduced, increasing the cost of
the raw material. Increased costs of raw
materials such as steel and plastic may have
unforeseen impacts on products purchased
through our supply chain. Increased costs
of raw materials can also only be passed on
so much before the consumer searches for
cheaper alternatives. Material alternatives
can be sourced; however, they may have
fewer desirable qualities, making products
inferior and risking reputational damage.
Supply Chain: Unpredictable climate
change impacts could significantly affect
supply chains, with increased pressure
on operations and labour in the form of
contractors and subcontractors. Reliance on
an undiversified supply chain can result in
significant damage to business operations
and profitability.
Medium - Long
Term (2028-2050)
<2°C, 2-3°C
Gross risk: 15,
Increased indirect
(operating) costs
One of the main measures taken to mitigate against
the rising cost of energy is price fixing, which is
already a part of our energy procurement strategy.
There is recognition that sustainable materials and
technology may lead to increased costs. However,
wide spread Net Zero targets should drive demand
toward these solutions, decreasing their cost over
the longer term.
The Group is actively transitioning a number of its
sites to all-electric power, significantly increasing
the proportion of energy derived from on-site
renewable generation. In 2024, Summit House in
Cardiff and Brunswick Apartments were successfully
converted and now utilise both photovoltaic
(PV) panels and air source heat pumps (ASHPs).
Looking ahead, planned conversions include
College House and College Green in Bristol,
The Exchange in Bath, St Marks in Leeds, Brook
Studios in Birmingham, Claremont House in
Glasgow, and Foss Studios in York. These sites
will also feature either PV panels or a combination
of PV and ASHP technology, further driving our
commitment to renewable energy and reducing its
carbon footprint. Converting to all-electric and on-
site renewables directly reduces Scope 2 emissions
(emissions from purchased electricity). Please see
the overall energy consumption (kWh) and total
Scope 2 emissions in Tables 5 and 6 in the Metrics
and Targets section.
As we continue our journey to become Net
Zero, we will aim to substitute our materials with
lower-emission alternatives wherever possible.
We have sub-metered over 1,500 rooms again in
2024, providing richer data to enable training and
behavioural adjustment.
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Climate Risk
Category Climate-Related Risk Description of Climate-related Risk
Timeline, Scenario
and Risk Rating Financial Impact Mitigating Controls in Place
Market
continued
T7: Increased
cost of energy
and raw materials
Full LED and PIR upgrades have now been planned
for >20 buildings, including plug-and-play fittings
to help with future maintenance costs. Additional
initiatives that progressed during 2023 and were
advanced further in 2024 included: a feasibility
study for the implementation of solar panels at 13
sites; a full portfolio survey to determine which
buildings will benefit from PV, and 14 sites which
will undergo decarbonisation surveys, contributing
to the planned design to remove all gas boilers. We
have created action plans for 14 of our least energy-
efficient properties, including disposals and works
undertaken. The percentage of our sites that have
EPC ratings of B or better continues to increase
and is comfortably ahead of our stated targets at
64 per cent.
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Climate Risk
Category Climate-Related Risk Description of Climate-related Risk
Timeline, Scenario
and Risk Rating Financial Impact Mitigating Controls in Place
Reputation
T9: Shifts in
consumer
preferences
Our business is sensitive to consumers’
changing climate perspective. A reduction
in consumer numbers and spending could
have an adverse effect on our revenue and
profitability. With sustainability growing in
importance, customers may change their
market sentiment towards other PBSA
operators as more sustainable alternatives.
The potential loss of business to more
sustainable competitors could be harmful
to revenue. Capital spend on technologies
that lower the carbon intensity of student
accommodation could be increased to
ensure sites are more sustainable.
Medium Term
(2028-2037)
<2°C, 2-3°C
Gross risk: 15,
Reduced Revenue
and Profitability
Utilising green marketing strategies and
collaborating with agencies specialising in
sustainability can enhance brand image and
improve public perception. These efforts can help
communicate the Company’s commitment to
environmental initiatives, align with stakeholder
expectations, and potentially mitigate reputational
risks. Implementing green marketing techniques
can also differentiate the brand in a competitive
marketplace by showcasing its proactive
approach to environmental issues. By prioritising
sustainability initiatives, implementing transparent
communication, leveraging innovation and
technology, fostering partnerships, investing in
employee training, and conducting regular risk
assessments, we can effectively mitigate the risk
of losing business due to customer preference for
sustainable PBSA operators.
Our Net Zero targets act as a driver for the
necessary capital expenditure to remain
competitive in a market increasingly driven by
sustainability concerns. By investing in low-carbon
technologies and demonstrating a commitment
to emissions reduction, we can attract and retain
customers who prioritise sustainability, ultimately
protecting its revenue and profitability.
Risk rating
Significant
High
Task Force on Climate-related Financial Disclosures (“TCFD”) | continued
Table 2: Climate-related transition risks and mitigations
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Climate Risk
Category Climate-Related Risk Description of Climate-related Risk
Timeline, Scenario
and Risk Rating Financial Impact Mitigating Controls in Place
Reputation
continued
T10: Increased
stakeholder
concern
As the world transitions to a decarbonised
economy, stakeholders are likely to have an
increased focus on environmental impacts,
climate change and Net Zero targets.
Failing to properly communicate the way we
will proactively reduce our environmental
impact is likely to then negatively impact
investor sentiment/ratings, potentially
limiting access to capital.
Should the Company not meet its climate
targets, shareholders may decide to sell their
shares, lending partners may be less likely to
provide financial services, and the Company
may not be eligible for green loan deals or
opportunities, leading to a decreased
market share and lost revenue growth.
If the Company were not able to access
green debt issuance, this could also result
in higher finance costs. Therefore, there is a
reputational risk associated with not meeting
publicly committed targets.
Short - Medium
Term (2024-2037)
<2°C, 2-3°C
Gross risk: 12,
Decreased access
to capital, reduced
Company valuation
We have allocated internal resources through a Net
Zero strategy and engagement programme. We have
also engaged with a third-party advisor to ensure
compliance with current and emerging regulations.
Our aptitude for engaging with climate change is
outlined in the business’s ambitious climate-related
goals/targets for both 2033 and 2050.
We have also published a standalone ESG Report to
communicate our efforts to stakeholders, including
customers. We intend to continue to publish an
annual standalone ESG Report to communicate
efforts to stakeholders, including customers.
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Risk rating
Significant
High
Task Force on Climate-related Financial Disclosures (“TCFD”) | continued
Table 2: Climate-related transition risks and mitigations
Climate Risk
Category Climate-Related Risk Description of Climate-related Risk
Timeline, Scenario
and Risk Rating Financial Impact Mitigating Controls in Place
Technology
T11: Substitute
existing products
and services with
lower-emission
alternatives
Products and Services: Customer
preferences are changing as people are
increasingly considering the environment
when making purchasing decisions.
Listed buildings may have restrictions on
renovations and the installation of low-
carbon technologies, which could have an
impact on the EPC ratings these buildings
could achieve. For instance, replacing
traditional windows with energy-efficient
ones might require special permits or
alterations that are not allowed. This could
have an impact on the EPC ratings that they
are able to achieve. There are also financial
implications. The inability to modernise
existing assets can lead to write-downs.
Financials: The costs needed to ensure our
services are sustainable are likely to increase,
as we may need to invest in more technology
and resources. Sustainable materials
and services currently have a higher cost
compared with traditional alternatives.
Due to reduced demand for existing
products/services, which are associated with
high emissions, the shift to more efficient
technology and sustainable products/
services may present future opportunities.
Short - Medium
Term (2024-2037)
<2°C, 2-3°C
Gross risk: 12,
Increased direct
costs
Revenue – decrease
in revenue
opportunities as a
result of reduced
market share
We have been proactive in our efforts to incorporate
sustainability into the core of our operations.
This has included the establishment of our Net
Zero strategy and emission reduction targets with
specific KPIs. As we are on the journey to reducing
our carbon emissions, we can position ourselves as
being prepared for changing customer demands.
This directly contributes to our commitment
to achieving Net Zero across our operations,
developments, property portfolio, and energy
consumption (Scopes 1 and 2) by 2033. The KPIs
provide measurable milestones that allow us to
track progress and ensure we are on track to meet
this near-term goal. Furthermore, this work lays
the foundation for achieving our broader target of
absolute Net Zero emissions (including Scope 3) by
2050 or earlier. The reductions achieved through
our current initiatives will reduce our overall carbon
footprint, making the 2050 target more attainable.
Please refer to the overview of our progress and
future plans for improving energy performance
across our portfolio under the energy efficiency
narrative in the Metrics and Targets section of
the report.
We have good experience of working with listed
buildings and heritage offices to maximise them.
Heritage England are being more accepting of
building upgrades to heritage sites.
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Physical risks
Physical risks can be categorised as either chronic or acute. One-off events, for example, storms or floods, are considered acute. Ongoing changes, such as higher annual mean
temperatures or rising sea levels, are classified as chronic risks. There are five potential physical risks of differing magnitudes which may impact our sites. For example, flooding, rising
mean temperatures, water stress, coastal flooding and wildfires. These physical risks were assessed using the same scoring methodology as transitional risks. In this report, we have
listed only the risks that scored 9 or above on our inherent risk scoring methodology, which were classified as material. Non-material risks and their assessment can be found in our
standalone TCFD report.
Risk rating
Significant
High
Table 3. Climate-related physical risks and mitigations.
Climate Risk
Category Climate-Related Risk Description of Climate-related Risk Timeline Scenario Mitigating Controls in Place
Acute
P3: Heatwaves/
Extreme heat
26 out of 26 sites will experience heatwaves in the
short-long term in the Reactive and Inactive scenarios.
People: Extreme heat/heatwaves may adversely impact
our employees, causing a decrease in productivity.
Employees may subsequently want to work for other
companies that provide cooling during extreme heat
events. Students may also be impacted. Students may
decide to reside in different housing with adequate
air conditioning. To maintain optimal temperatures
for students, there may be an increased demand for
cooling through AC units, driving increased energy
costs and Scope 1 & 2 emissions. Additional costs
of cooling solutions could be passed onto students,
leading to the site being less desirable/out of their
price range.
Property & Infrastructure: Certain construction
materials and their properties may change under
extreme heat conditions. Changes to material
properties, such as improved glazing and ventilation,
may require additional refurbishment work and
costs. However, if not changed, the building may
be less valuable as refurbishments will be required.
Extreme heat can cause power outages, equipment
malfunctions and infrastructure failure, leading
to business disruptions. Back-up power systems
can enhance our resilience but require high costs.
Electrical efficiency decreases as temperature
rises, resulting in an increased demand for energy
at potentially a higher cost – energy costs can
rise by as much as ~400% during a heatwave.
This could be passed on to students, reducing the
property’s desirability.
Short - Long
Term (2024-
2050)
2-3˚C, >3˚C
Gross risk: 9,
Increased direct
costs
We will target the establishment of
questionnaires for employees and students,
to understand the level of comfort, the impact
experienced and improvement suggestions.
Our summer occupancy rate is relatively low,
which acts as mitigation against heatwave
impacts on students using the accommodation
during the highest risk periods.
A heat impact survey has been drafted and
will be circulated to students in affected areas
following the next extreme heat event.
The 2033 Net Zero target for operational
emissions (Scopes 1 and 2) drives
improvements in energy efficiency and building
design. This can lead to better insulation, more
efficient cooling systems, and potentially even
on-site renewable energy generation.
These improvements create more comfortable
living and working environments for employees
and students, reducing the negative impacts
of heatwaves and making our properties more
attractive. This helps with both employee
retention and student occupancy rates.
The broader commitment to sustainability,
including the 2050 target for Scope 3
emissions, encourages us to work with
our supply chain partners to improve their
resilience to climate change impacts.
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Climate Risk
Category Climate-Related Risk Description of Climate-related Risk Timeline Scenario Mitigating Controls in Place
Acute
continued
P3: Heatwaves/
Extreme heat
As roads melt and rails buckle under extreme heat,
there is an increased risk of some supply chain
disruption. Disruption to transportation could lead
to students moving to housing in closer proximity to
their place of study.
Short - Long
Term (2024-
2050)
2-3˚C, >3˚C
Gross risk: 9,
Chronic
P4: Sea level rise 19 out of 26 of sites are in potential sea level rise
risk zones
Direct Impacts: Sea level rise could directly
impact operating sites through erosion, flooding
or subsidence. Closure of sites would result in a
loss of revenue. Sea water inundation can damage
properties, leading to an increase in renovation,
repair and maintenance costs. Damaged stock and/
or machinery may need to be replaced, leading to an
increase in capital spend. Building structures may be
compromised, resulting in higher repair costs and
possible site closures. Loss of revenue could also
result from all ground-floor students being put up
in hotels while repairs occur in the event of
coastal flooding.
Indirect Impacts: Insurance coverage may decrease
for sites known to be at risk of sea level rise. Future
building upgrades, renovations or extensions may
not be covered by insurance premiums.
Research shows that sites near high flood-risk zones
are expected to see around a 30% rise in insurance
premiums by 2040 without climate action.
Long Term
(2038 – 2050)
>3˚C
Gross risk: 10,
Increased direct
and indirect
costs
Most of our sites are in close proximity to city
centres and university campuses, meaning
mitigation for our sites at risk of sea level rise
will be directly dependent on the overall flood
defences (both installed and planned) in the
towns and cities they are located.
In the next two years, we are aiming to have
case study calculations to evaluate the financial
implications of flooding on one of our sites to
estimate the loss per day.
The Group’s insurance policy would currently
respond to a flooding event.
The long-term nature of the 2050 Net Zero
target is particularly relevant to the risk. By
working towards decarbonisation, we are
contributing to a future where the most
severe impacts of climate change, including
sea level rise, are less likely. This reduces the
long-term risk of structural damage, transport
disruptions, and other negative consequences.
Furthermore, the focus on energy efficiency
and renewable energy sources (underpinned by
our targets) can help reduce the vulnerability of
energy networks to climate-related disruptions.
Risk rating
Significant
High
Task Force on Climate-related Financial Disclosures (“TCFD”) | continued
Table 3. Climate-related physical risks and mitigations.
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Climate Risk
Category Climate-Related Risk Description of Climate-related Risk Timeline Scenario Mitigating Controls in Place
Chronic
continued
P4: Sea level rise Long-term effects could cause a building’s physical
structure to be damaged, resulting in lengthy ongoing
repairs. Transport networks around a site may be
inundated, leading to supply disruptions. Employees
and students may be unable to reach the site, leading
to reduced productivity levels and reduced occupancy
levels, respectively. Sea ports may be forced to build
sea defence improvements or relocate, leading to
increased handling fees for goods.
Energy networks connecting to a site may be
compromised, resulting in business disruptions.
Power and water outages from storm events and
coastal flooding can lead to high revenue costs.
Students may be reimbursed due to a lack of adequate
living conditions. IT infrastructure – which is vital
for students to study in their accommodation –
may be impacted, leading to reduced connectivity,
communication delays and possible disruption to
online website services. Reduced availability of IT
services could lead to student relocation should the
problem persist.
Long Term
(2038 – 2050)
>3˚C
Gross risk: 10,
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Climate Opportunity
Category
Climate-Related
Opportunity Impact description Timeline and Scenarios Financial Impact Opportunity response strategy
OP1: Energy
Resources
Use and
installation of
low-emission
energy
technology
The TCFD and International Energy
Association agree that a growing
proportion of energy generation must
come from low-emission alternatives to
reach carbon targets. Using low-emission
technology to power business operations
also has reputational benefits and may
lead to financial gain.
Short - Medium
Term (2024-2037)
<2°C, 2-3°C
Self-generated
electricity can be
used in business
operations, and
excess sold to
the grid
Possible options such as installing Solar PV would allow
us to generate electricity on-site and transition away
from grid reliance, helping to mitigate any potential
carbon tax. On-site energy generation would reduce
energy costs significantly, therefore reducing annual
operational spend. On-site generation would also
help to significantly reduce our direct emissions,
which may help in mitigating any carbon price risks.
We could also make use of several financing schemes
and investment opportunities to help subsidise the
upfront costs of low-emission technology.
2033 Net Zero Target (Scopes 1 & 2): This target
directly incentivises the adoption of low-emission
energy technologies. The targets support the financial
benefits of on-site energy generation.
By reducing reliance on grid electricity, we can
mitigate the impact of potential future carbon
taxes and reduce overall energy costs.
OP 2:
Resource
Efficiency
Use of energy-
efficient
technology
The TCFD emphasises the need for a
significant increase in low-emission
energy generation to achieve
carbon reduction goals. Whilst the
implementation of energy-efficient
technology may have a high capital cost,
the technology will improve the efficiency
of processes. As a result, less energy will
be used to do the same work, reducing
energy costs. The savings in energy will
also lead to fast payback times for the
technology, resulting in net financial gain
over the technology’s lifetime. Installing
energy-efficient assets poses higher
commercial value, resulting in higher
portfolio valuation.
Short - Medium
Term (2024-2037)
<2°C, 2-3°C
Reduction in
operating expenses
because of
increased efficiency
(e.g., energy costs)
We are committed to decarbonising operational
emissions, aiming to be Net Zero across
operations, developments, property portfolio
and energy consumption by 2033. Currently, we
have decarbonised 25 per cent of our portfolio by
area, representing 21 assets. While the initial 2025
decarbonisation plan has been adjusted to prioritise
end-of-life or failed plant replacements with more
sustainable alternatives, the subsequent phase will
focus on eliminating all gas-powered hot water
systems from plant rooms. This strategic approach
allows for a systematic transition to cleaner energy
sources and demonstrates progress toward the
ambitious 2033 Net Zero target.
We have also set a wider target of being Net Zero in all
emissions (Scope 3) by 2050 or before.
Task Force on Climate-related Financial Disclosures (“TCFD”) | continued
Table 4. Climate-related opportunities and response.
Climate-related opportunities
We are eager to seize the opportunities presented by the transition to a low-carbon economy. These opportunities, identified as material at our September 2024 climate risk
workshop, were selected following a rigorous assessment of their potential impact, alignment with our strategic goals, and feasibility of implementation. By investing in lower-
emission technologies, we can reduce operational costs and enhance our market position. Furthermore, our proactive and transparent approach to environmental sustainability
strengthens our reputation with stakeholders, providing a competitive edge.
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Climate Opportunity
Category
Climate-Related
Opportunity Impact description Timeline and Scenarios Financial Impact Opportunity response strategy
OP 3:
Products
and Services
New low-
emission product
and service lines
Organisations that innovate and develop
new low-emission products and services
may improve their competitive position
and capitalise on shifting consumer and
producer preferences.
Consumers are increasingly placing a
greater emphasis on a product’s carbon
footprint in its marketing and labelling.
Short - Medium
Term (2024-2037)
<2°C, 2-3°C
New revenue
streams
We recognise that customer preferences have
not fully aligned yet and lower emissions are not
currently the main reason for selecting our sites.
However, over time, customer preferences are likely
to shift towards services with greater importance
placed on sustainability credentials alongside other
aspects such as cost of living, location and quality
of accommodation and service. We can, therefore,
increase our market share by decarbonising our
operations through new energy-efficient buildings
and retrofitting obsolete buildings to highlight the
reduction in emissions of our sites.
We anticipate that the upfront cost of sustainable
products will outweigh the potential increase in
revenue associated with demand for sustainable
services in the short term. However, we expect that
increased demand and long-term efficiencies will
ultimately result in the revenue impact of inactivity
exceeding associated cost.
We exceeded our 2024 target to have over 55% of our
portfolio rated EPC B or higher, achieving 64 per cent
by year-end. Building on this success, our 2025
target is to have over 65% of the portfolio rated EPC B
or higher.
Our Net Zero targets allow them to capitalise on the
growing demand for sustainable accommodations,
strengthening their competitive position. Also, our
transparent emissions reporting enables us to credibly
showcase reduced carbon footprint, appealing to
environmentally conscious consumers.
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Task Force on Climate-related Financial Disclosures (“TCFD”) | continued
Table 4. Climate-related opportunities and response.
Climate Opportunity
Category
Climate-Related
Opportunity Impact description Timeline and Scenarios Financial Impact Opportunity response strategy
OP 6:
Reputation
Increased
reputational
profile and
investment
opportunities
Adhering to new sustainability
standards and regulations can enhance
our reputation as a responsible and
forward-thinking Company. This can
attract environmentally conscious
stakeholders, differentiate the Company
from competitors, and potentially open
new business opportunities. Additionally,
compliance with regulations can unlock
access to green financing options,
providing a competitive advantage.
Refined SBTi-aligned targets and
submission within the next year could
also enhance reputational benefits.
Short - Medium
Term (2024-2037)
<2°C, 2-3°C
New revenue
streams
Increased market
share
Our transparency in communicating environmental
values and strategy regarding climate change and Net
Zero creates a strong market-leading reputation.
Our expertise in extensive refurbishment and
repurposing of existing building stock continues
to create high-quality PBSA operations with a low
environmental impact and associated embodied
carbon via the repurposing of existing buildings.
The 2033 and 2050 Net Zero targets significantly
enhance our reputation as a responsible and forward-
thinking Company. This attracts environmentally
conscious stakeholders, including investors, students,
and employees. Demonstrating a commitment to
science-based targets signals credibility and ambition.
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Supply chain
The Group has comprehensively assessed the physical
risks associated with its top ten suppliers. Key risks
identified include:
î Heatwaves and Rising Temperatures: All ten
suppliers are exposed to the risk of heatwaves and
rising temperatures, which can lead to operational
disruptions, reduced productivity, and increased
energy costs.
î Flooding: Seven suppliers are in areas vulnerable
to flooding, which can cause significant damage to
facilities, equipment, and inventory.
î Wildfires: Three suppliers are at risk from wildfires,
which can result in supply chain disruptions, property
damage, and potential loss of life.
î Sea-level rise and Coastal Flooding: Three suppliers
are situated in regions that may be affected by sea-level
rise and coastal flooding, which can lead to increased
insurance costs, operational challenges, and potential
relocation expenses.
We will conduct regular vulnerability assessments and
scenario planning exercises to assess the resilience of
our current business processes. These assessments will
analyse potential disruptions, such as climate change,
pandemics, geopolitical instability, and supply chain
bottlenecks. We will identify critical dependencies, assess
the potential impact of disruptions on our operations, and
develop mitigation strategies. This proactive approach
will enhance our resilience and sustainability by enabling
us to anticipate and respond effectively to unforeseen
events, ensuring business continuity, and minimising the
impact of disruptions on our operations and our students.
Risk management
Effective risk management is paramount to our business
success. We have established a robust process for
identifying, assessing, documenting and mitigating
potential risks, recognising the challenges that could
hinder our strategic goals. The Board sets the Group’s
risk management framework, and the Audit and Risk
Committee oversees its implementation annually.
Please refer to page 38 for a detailed overview of our
risk management process.
With support from our third-party consultants, climate-
related risks were identified through climate-scenario
modelling and reviewed and assessed at a Board-level
workshop in August 2024. These risks were compiled into
an internal climate-risk register, aligned with the Group’s
risk register structure but with the appropriately modified
risk timeframes used in the climate-scenario modelling.
Please see the Strategy section for a detailed description
of the timeframes used.
Each climate-related issue is assessed and classified using
our standardised Group-level rating system. We assess
the likelihood and impact of each risk to determine an
inherent risk score. This score is calculated by multiplying
the likelihood and impact ratings. Specific individuals
or teams are assigned ownership of climate-related
risks to ensure effective risk management. This clear
accountability structure facilitates the implementation
of appropriate mitigation strategies.
Table 4 presents a risk assessment matrix that
categorises risks based on their likelihood and impact.
Impact of Risk: The impact of risk refers to the potential
consequences or effects that a risk event could have on
the Group. It assesses the severity of the outcomes if
the risk materialised, which could include financial loss,
reputational damage, operational disruptions, regulatory
penalties, or strategic setbacks.
Likelihood of Risk: The likelihood of risk refers to the
probability or chance that a specific risk event will occur.
It evaluates how probable it is that the risk will materialise,
ranging from highly unlikely to almost certain. This helps
prioritise risks based on their potential frequency
and significance.
Likelihood Factor Rating Impact Factor Rating
Unlikely / Rare 1 Negligible / Insignificant 1
Possible / Seldom 2 Low / Marginal 2
Probable / Occasional 3 Medium / Serious 3
Very Likely / Moderate 4 Significant / Critical 4
Almost Certain / Very Frequent 5 High / Catastrophic 5
Net inherent risks factor
Negligible (Dark green) – Inherent risk is equal to or lower than 2.
Low (Light green) – Inherent risk is between 3 and 5.
Medium (Yellow) - Inherent risk is between 6 and 8.
Significant (Amber) – Inherent risk is between 9 and 15 and qualifies as material.
High (Red) – Inherent risk is between 16 and 25, qualifies as material.
Table 4: Risk Rating Criteria
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The matrix assigns numerical values to these factors,
ranging from 1 to 5, where 1 represents the lowest
level and 5 is the highest. Risks are classified into five
categories with corresponding colour codes: negligible,
low, medium, significant, and high, depending on
their inherent risk score. This categorisation aids in
prioritising risks and allocating resources for effective
risk management. By understanding and assessing risks
in this manner, organisations can proactively mitigate
potential threats and support business continuity.
Risks with a significant (inherent risk between 9 and 15)
or high (inherent risk between 16 and 25) are deemed
material to the business.
We also consider various mitigation measures to reduce
the impact of these risks. By evaluating the effectiveness
of these controls, we calculate a net risk score. This net
risk score reflects the residual risk after accounting for
mitigation measures. It is important to note that while
we assess the effectiveness of our mitigation measures,
our materiality threshold is based solely on the inherent
risk score. This ensures that we prioritise risks with the
highest potential impact, irrespective of the strength of
our current controls.
Metrics & targets
At the Group level, we are committed to ongoing annual
reporting on environmental performance. Where possible,
we strive to reduce greenhouse gas (GHG) emissions
across all sites. We calculate and report on Scope 1, 2,
and 3 GHG emissions to provide full transparency to
stakeholders. The operational control approach is used to
consolidate the Company’s organisational boundary.
No progress against targets has been recorded yet, as we
aim to align our targets with SBTi in the next two years.
This approach allows us to gather sufficient data to ensure
that targets subsequently set are both ambitious and
feasible, grounded by comprehensive data analysis.
We have compiled the data presented in this report
based on internal records and calculations. While
reasonable care has been taken to ensure the accuracy
and completeness of the information, it has not been
externally verified. Verification is currently under
consideration by the ESG Committee.
Our targets
î We are committed to decarbonising operational
emissions, aiming to achieve Net Zero across our
operations, developments, property portfolio, and
energy consumption (absolute Scopes 1 and 2)
by 2033. This ambitious near-term target reflects
our commitment to rapid progress in emissions
reduction.
î We have set a broader target of being Net Zero
in all our emissions (including absolute Scope 3)
by 2050 or sooner.
We are currently focused on refining our data collection
and analysis methodologies for measuring progress
against our targets. We will be aligning with the SBTi and
its definition of Net Zero which is a minimum of a 90 per
cent reduction in absolute emissions with a maximum of
10 per cent abated through offsets. As part of the SBTi
alignment process, we will assess our baseline year and
re-baseline if needed to ensure consistency with SBTi
criteria. Once this process is complete, we will be well-
positioned to report on our progress against our targets.
Year-on-year comparisons are currently available in our
SECR reporting, though not yet in the Carbon Balance
Sheet. We expect to expand our reporting capabilities
following the SBTi alignment.
The targets differ between scopes due to the difficulty
compiling and calculating Scope 3 data. Data collection
for Scope 3 emissions is complex, involving gathering
information from numerous suppliers, customers, and
other stakeholders. This complexity makes setting
specific and quantifiable targets for Scope 3 emission
reductions within the same timeframe as Scope 1 and 2
more challenging. The 2033 target focuses on directly
controllable emissions (Scopes 1 and 2) where data
availability and control are more controllable.
Our targets have been explicitly linked back to the
identified risks detailed in Tables 1, 2, and 3, where
relevant. Additionally, we will seek to incorporate an
internal carbon price within the next two years.
We will also consider purchasing credits representing
removals of carbon emissions from external projects.
Streamlined Energy and Carbon Reporting (SECR)
This report details our energy usage, emissions, energy
efficiency measures, and performance in accordance
with the UK government’s Streamlined Energy & Carbon
Reporting (SECR) policy. SECR disclosures are mandatory
for listed and large unlisted UK companies with reporting
periods starting on or after 1 April 2019. This reporting
obligation stems from the Companies (Directors’
Report) and Limited Liability Partnerships (Energy and
Carbon Report) Regulations 2018. As a UK-incorporated
and main market-listed Company, we are required to
disclose our energy consumption, associated emissions,
intensity metrics, and implemented energy efficiency
improvements for all our UK operations. For the purposes
of this report, an operational boundary has been defined.
To ensure complete data coverage, 18.5 per cent of the
consumption data used in this SECR report has been
estimated. Scope 3 transport emissions have been
calculated and included for the first time in 2024.
Scope 1 consumption and emissions include direct
combustion of natural gas, and fuels utilised for
transportation operations, such as Company vehicle
fleets. Scope 2 consumption and emissions cover indirect
emissions related to the consumption of purchased
electricity in day-to-day business operations. Scope 3
consumption and emissions cover emissions resulting
from sources not directly owned by us i.e., grey fleet
business travel undertaken in employee-owned vehicles.
î Our Scope 1 direct and Scope 3 indirect emissions
(combustion of natural gas and transportation fuels) for
this reporting year are 2,859.24 tCO
2
e, resulting from
the direct combustion of 15,608,664 kWh of fuel.
This represents a carbon reduction of 12.5 per cent
from 2023.
î Scope 2 indirect emissions (purchased electricity, heat
& steam) for this reporting year are 3,831.32 tCO
2
e,
resulting from the consumption of 18,580,162 kWh of
electricity purchased and consumed in day-to-day
business operations. This represents a carbon reduction
of 5.1 per cent from 2023.
î Our operations have an intensity metric of 0.857 tCO
2
e
per bed for this reporting year. This represents an
increase in the operational carbon intensity of 6.5 per
cent since 2023.
Task Force on Climate-related Financial Disclosures (“TCFD”) | continued
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*Scope 3 transport emissions have been calculated and included for the first time in 2024.
*Scope 3 transport emissions have been calculated and included for the first time in 2024.
Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 87
Year-on-year changes
Building energy: Both electricity and gas consumption,
and therefore emissions, have fallen between 2023 and
2024. The number of beds in operation this year fell,
meaning fewer students were occupying rooms. In turn,
this will have reduced the demand for electricity and gas
use, reducing overall consumption.
Transport: While Scope 1 emissions remained at zero
in 2024, this year was the first year that data had been
collected for Scope 3 transport. This introduction has
caused an apparent rise in transport emissions, however
year-on-year comparisons will be much more normalised
going forward.
Intensity metric: Emissions per bed have increased this
year. This is due to number of beds decreasing further
than electricity consumption, increasing the electricity
emissions per bed. The introduction of transport
emissions have also contributed to the overall increase
in emissions intensity.
Energy efficiency and consumption
As a business we are resolute in decarbonising our
operations. We aim to be Net Zero across our operations,
developments, property portfolio, and energy
consumption by 2033 (Scopes 1 and 2). A more extensive
objective is set to attain Net Zero emissions across
all scopes, including Scope 3, by 2050 or earlier.
To meet this target, we have devised several initiatives.
For example, the organisation currently sources 100
per cent of our electricity requirements from renewable
sources, achieved through requirements within energy
contracts to procure 100 per cent from renewable
sources. We have achieved our 2024 target to have over
55 per cent of the portfolio awarded an EPC rating of B or
higher, and plan to extend this to >65 per cent in 2025.
This is achieved by improving the property’s energy
performance as part of our refurbishment plans. This is
complemented by ensuring ESG metrics are considered
when deciding to acquire or develop new schemes. We
have allocated internal resources through a Net Zero
strategy and engagement programme, to meet these
targets. Furthermore, we aim to validate our Net Zero
target with the Science Based Targets initiative (SBTi)
within the next two years.
Utility and Scope
2024 Consumption kWh
UK
2023 Consumption kWh
UK
Scope 1 Total 15,498,346 17,860,825
Natural Gas (Scope 1) 15,498,346 17,860,825
Scope 2 Total 18,580,162 19,955,946
Grid-Supplied Electricity (Scope 2) 18,007,162 19,353,562
Heat, Steam & Cooling (Scope 2) 573,000 602,384
Scope 3 Total 110,318
n/a
Transportation (Scope 3)* 110,318 n/a
Total 34,188,826 37,816,7 7 1
Table 5: Total Energy Consumption (kWh)
Table 6: Total Location-based Emissions (tCO
2
e)
Utility and Scope
2024 Consumption tCO
2
e
UK
2023 Consumption tCO
2
e
UK
Year on year
% change
Scope 1 Total 2,834.65 3,267.00 -13.23%
Natural Gas (Scope 1) 2,834.65 3,267.00 -13.23%
Scope 2 Total 3,831.32 4,038.95 -5.14%
Grid-Supplied Electricity (Scope 2) 3,728.38 4,007.63 -7.00%
Heat, Steam & Cooling (Scope 2) 102.94 31.32 +228.67%
Scope 3 Total 24.59
n/a n/a
Transportation (Scope 3)* 24.59 n/a n/a
Total 6,690.56 7,305.95 -8.42
Table 7: Total Emissions Intensity Metric
Location-Based Market based
2024 2023 2024 2023
Total Beds 7,808 9,078.00 7,808 9,078.00
All Scopes tCO
2
e per Bed 0.857 0.805 0.551 n/a
Percentage Change +6.47% N/A
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Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 88
Energy efficiency narrative
The following table provides an overview of our progress and future plans for improving energy performance across
its portfolio. It highlights key initiatives undertaken in 2024, demonstrating progress towards established goals,
and outlines strategic objectives for 2025, including targets for renewable energy procurement and building energy
performance. This narrative demonstrates our commitment to energy efficiency and carbon reduction. Please also refer
to our Key 2024 ESG-related highlights and key areas of progress in 2024 on page 54.
Table 8: Measures Undertaken
Measures Undertaken In 2024 Measures Planned for 2025
Energy Awareness Campaign:
With the aim to educate students about energy saving
in a fun and engaging way, the team hosted a Student
Energy Awareness Week. This included providing
student competitions, a social media awareness
campaign, and an interactive learning space.
Renewable Energy Procurement:
We source 100% of our electricity from renewable
sources. This will continue to be achieved through
requirements in energy contracts to procure 100%
renewable energy during 2025.
2024 EPC Target Reached:
We achieved our target to have over 55 per cent of the
portfolio awarded an EPC rating of B or higher by the
end of the year.
2025 EPC Target:
In 2025, we target over 65 per cent of the portfolio
to be awarded an EPC rating of B or higher.
Building Efficiency Projects:
Brook Studios and Summit House have both recently
been renovated to improve energy efficiency, with the
addition of solar panels, air source heat pumps, and
smart in-room heating systems.
SBTi Validation:
We aim to align and validate our Net Zero strategy and
targets to the Science Based Targets initiative over the
next two years.
Also see page 29 for the Group’s ESG related Key
Performance Indicators.
Our methodology
This report (including the Scope 1, 2 and 3 kWh
consumption and CO
2
e emissions data) has been
developed and calculated using the GHG Protocol –
A Corporate Accounting and Reporting Standard
(World Resources Institute and World Business Council
for Sustainable Development, 2004); Greenhouse Gas
Protocol – Scope 2 Guidance (World Resources Institute,
2015); ISO 14064-1 and ISO 14064-2 (ISO, 2018; ISO,
2019); Environmental Reporting Guidelines: Including
Streamlined Energy and Carbon Reporting Guidance
(HM Government, 2019). Government Emissions Factor
Database 2024 version 1 has been used, utilising the
published kWh gross calorific value (CV) and kgCO
2
e
emissions factors relevant for the reporting period
01/01/2024 – 31/12/2024. Estimations were undertaken
to cover missing billing periods for properties.
These were calculated on a kWh/day pro-rata basis at
the meter level. These full-year estimations were applied
to two electricity supplies and one gas supply. The
December 2024 billing period has been estimated based
on average consumption across the January to November
2024 billing period. All estimations equated to 18.5 per
cent of reported consumption. For the market-based
emissions reporting methodology, an emissions factor of
0 tCO
2
/kWh was applied to all electricity supplied from
renewable energy contracts. Intensity metrics have been
calculated using total tCO
2
e figures and the selected
performance indicator for the relevant report period:
Bed count for 2024 (2023) 7,808 (9,078).
Carbon balance sheet 2023
This Carbon Balance Sheet contains our full greenhouse
gas (GHG) emissions inventory for 2023 (01/01/2023
- 31/12/2023). Due to data availability and quality
constraints, we are a year behind in reporting.
However, we are actively working to improve data
availability. Next year’s report will include Scope 3
emissions for 2024 and 2025 to align our reporting with
the current period. Our emissions are reported using a
consolidation, operational control approach defined by
the GHG Protocol. All emissions have been calculated
following the GHG Protocol’s Corporate Accounting
and Reporting Standard.
Emissions analysis
All fifteen Scope 3 categories were assessed for relevance
to the business, and nine were found applicable and
quantified. The remaining six categories were deemed
non-applicable due to the nature of our operations.
Category 9: Downstream Transportation and Distribution
– The business does not engage in downstream
transportation or distribution of goods, Category 10:
Processing of Sold Products – Only finished properties
are leased, with no further processing involved. Category
11: Use of Sold Products – The Company leases properties
rather than selling products that require further use-
phase emissions analysis, Category 13: Downstream
Leased Assets – we do lease out properties, but they
remain under our operational control so they are captured
as part of Scope 1 &2, Category 14: Franchises –
The business does not operate under a franchise model,
and Category 15: Investments – Investments outside
of operational activities are not material to Scope 3
emissions reporting.
Emissions from Category 3 Fuel and Energy-related
Activities and Category 1 Purchased Goods & Services
account for nine per cent and six per cent of the total
carbon footprint, respectively. The most significant
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Table 9: Carbon Balance Sheet
Empiric Student Property plc | Annual Report and Accounts 2024
Strategic report 89
source of Scope 3 emissions is from Category 2 Capital
Goods. This category accounts for 44 per cent of our
total carbon footprint. Due to the large proportion of
emissions attributed to Category 2, it will become the
primary focus of the emission reduction strategy going
forward. The refurbishment of properties represents the
majority of Category 2 spend, so strengthening upstream
client relationships and working in partnership to reduce
associated emissions will be our priority.
Scope 1 emissions account for 16 per cent of total GHG
emissions. Scope 1 includes direct emissions from
sources controlled or owned by the reporting Company.
100 per cent of our Scope 1 emissions are from natural gas
consumption. Scope 2 (Location-based) emissions are
also significant, accounting for 19 per cent of total GHG
emissions. These emissions are predominantly attributed
to the use of electricity, with 0.1 per cent attributed to the
use of district heating.
EPRA sustainability disclosures
The following tables provide a summary of the EPRA
sustainability performance measures as defined by the
EPRA Sustainability Best Practice Recommendations.
These are a set of standard disclosures for the property
industry designed to drive consistency in reporting.
EPRA Indicator Page
Diversity-Emp Employee gender diversity 64
Diversity-Pay Gender pay ratio 64
Emp-Training Employee training
and development 64
Emp-Dev Employee performance
appraisals 64
Emp-Turnover New hires and turnover 64
H&S-Emp Employee health and safety 60
H&S-Asset Asset health and safety
assessment 60
H&S-Comp Asset health and safety
compliance 60
Comty-Eng Community engagement,
impact assessments and development
programmes 61
Gov-Board Composition of the highest
governance body 53
Gov-Selec Process for nominating and
selecting the highest governance body 53
Gov-COI. Process for managing conflicts
of interest 53
Emissions Scope & Category Greenhouse gas emissions inventory
Emissions tCO
2
e %
Scope 1 3,267 15.6%
Natural Gas 3,267 15.6%
Scope 2 (Location-based) 4,039 19.1%
Electricity 4,008 19.1%
Purchased Heat 31 0.1%
Scope 3 13,655 65.1%
1. Purchased Goods & Services 1,266 6.0%
2. Capital Goods 9,195 43.9%
3. Fuel- and Energy-related Activities 1,878 9.0%
4. Upstream Transportation and Distribution 14 0.1%
5. Waste Generated in Operations 886 4.2%
6. Business Travel 90 0.4%
7. Employee Commuting 229 1.4%
8. Upstream Leased Assets 27 0.1%
9. Downstream Transportation and Distribution N/A N/A
10. Processing of Sold Products N/A N/A
11. Use of Sold Products N/A N/A
12. End-of-life Treatment of Sold Products 0.1 0.0004%
13. Downstream Leased Assets N/A N/A
14. Franchises N/A N/A
15. Investments N/A N/A
Total Emissions (Location-based) 20,963 100%
All tCO
2
e (Location-based) per Bed 2.68
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Strategic report 90
Energy-Abs, Energy - LfL Energy
Absolute (Total) Like for like (LFL)
EPRA Indicator Environmental Performance Measures 2023 2024 % Change 2023 2024 % Change
Elec-Abs Total energy consumption from electricity/
Elec-LFL Like for like total electricity consumption
Total energy consumption
from electricity (kWh) 19,353,562 18,007,162 -7.0 17,496,466 16,798,323 -4.0
DH&C-Abs Total energy consumption from district
heating & cooling/DH&C-LFL Like for like total
district heating & cooling consumption
Total energy consumption
from district heating &
cooling (kWh) 602,384 573,000 -4.9 602,384 573,000 -4.9
Fuels-Abs Total energy consumption from fuels/
Fuels-LFL Like for like total fuel consumption
Total energy consumption
from fuels (kWh) 17,860,825 15,498,346 -13.2 14,912,196 14,400,998 -3.4
Proportion of electricity consumption
data estimated (%) 0 19 19 0 19 19
Proportion of district heating
& cooling consumption data
estimated (%) 0 0 0 0 0 0
Proportion of fuels consumption
data estimated (%) 0 18 18 0 18 18
Energy-Int Building energy intensity Building energy intensity (kWh/Bed) 4,166 4,365 4.8 4,481 4,351 -2.9
GHG-Dir-Abs Total direct GHG emissions
Total direct GHG emissions (Scope 1)
(tCO
2
e) 3,267 2,835 -13.2 2,728 2,634 -3.4
GHG-Indir-Abs Total indirect GHG emissions
Indirect GHG emissions (Scope 2)
(tCO
2
e) 4,039 3,831 -5.1 3,654 3,582 -2.0
Indirect GHG emissions (Scope 3)
(tCO
2
e) 13,656
Not
Calculated N/A 12,734
Not
Calculated N/A
GHG-Int Greenhouse gas intensity from
building energy
Greenhouse gas intensity from building
energy (tCO
2
e/Bed) 0.80 0.85 6.7 0.87 0.85 -2.2
Table 9: Consumption Data 2024
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Strategic report 91
Water & wastewater management
Water stewardship efforts involved implementing low-
usage water taps and setting specific targets for each site.
Transportation is environmentally conscious, with a fleet
of electric vans being renewed and updated during the
year. These vans provide green transport alternatives to
our site teams who travel between our properties in the
largest cities in which we operate.
As part of our commitment to TCFD compliance, we have
assessed physical risks that may impact our business,
including water stress. To better understand our supply
chain’s vulnerability to climate change, we conducted a
climate scenario analysis of our supply chain and supply
routes in 2024. In 2025, we aim to establish a water
consumption baseline and set a water reduction target
within the next two years. To mitigate water stress risks,
our York site employs an independent water collection
system. Furthermore, we are actively optimising water
usage through the implementation of low-flow taps and
efficient water management systems. Our St Mary’s site
in Bristol serves as an exemplary model, demonstrating
the lowest water consumption of any known comparable
living wall system. More information of which can be
found in our latest ESG Report.
We actively promote recycling within our properties,
implementing waste segregation practices to ensure
responsible disposal. By providing bins and educating
our students, we contribute to a culture of environmental
consciousness. Waste segregation at select sites
is managed through collaboration with our waste
management broker, facilitating efficient recycling
processes and further enhancing our sustainability
initiatives. We actively seek student feedback on
recycling practices and initiatives, such as partnering
with reputable waste management brokers to ensure
responsible waste monitoring and disposal. The data
available from private waste collections significantly
increased in 2024, allowing for a more accurate
representation of waste intensity.
In the tables below, during 2024, there was a transition
to a new water data provider, resulting in a temporary
decrease in data completeness as site information was
transferred to the new system. A significant portion of
private waste collections that were previously sent to
landfill has been redirected to waste recovery facilities
this year, with the amount of total waste sent to recovery
increasing substantially.
Table 10: Waste data 2024
Waste-Abs, Waste - LfL Waste
Absolute (Total) Like for like (LFL)
EPRA Indicator Environmental Performance Measures 2023 2024 % Change 2023 2024 % Change
Waste-Abs Proportion of waste by disposal route/
Waste-LFL Proportion of waste by disposal route
Total weight of waste to landfill
(tonnes) 1623 828 -49.0 1294 669 -48.3
Total weight of recycling waste
(tonnes) 822 594 -27.7 637 482 -24.3
Total weight of waste to energy
recovery facility (ERF) (tonnes) 121 531 338.8 111 501 351.4
Waste-Abs Total weight of waste by disposal route/
Waste-LFL Total weight of waste by disposal route
Total weight of waste (tonnes)
2566 1953 -23.9 2042 1652 -19.1
Proportion of waste consumption data
estimated (%) N/A 787 N/A N/A 63 N/A
Waste intensity (tonnes/Bed) 0.28 0.25 -10.7 0.28 0.23 -19.2
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Strategic report 92
Table 11: Water data 2024
Water-Abs, Water - LfL Water
Absolute (Total) Like for like (LFL)
EPRA Indicator Environmental Performance Measures 2023 2024 % Change 2023 2024 % Change
Water-Abs Total water withdrawal by source/
Water-LFL Like for like total water consumption
Total water consumption (m
3
) 294,017 258,004 -12.2 252,418 218,023 -13.6
Proportion of water consumption
data estimated (%) 17 44 158.8 14 41 192.9
Water-Int Building water intensity Water intensity (m
3
/Bed) 32.39 33.04 2.0 34.26 29.86 -12.9
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Strategic report 9393
Governance
report
Empiric Student Property plc | Annual Report and Accounts 2024
Governance report
Contents Generation – Section
Empiric Student Property plc | Annual Report and Accounts 2024
Governance report 94
Chairman’s introduction to corporate governance
“ The Company is focused on
growth and this momentum
is set to continue into 2025,
with further acquisitions
anticipated.”
Mark Pain | Non-executive Chairman
I am delighted to introduce the Corporate Governance
section of this year’s Annual Report. This has been an
exciting year for the Company, with a successful capital
raise undertaken, our disposal programme completed,
three well located properties acquired, planning
applications approved and further refurbishments
completed. The Company is focused on growth and this
momentum is set to continue into 2025, with further
acquisitions anticipated.
The main focus for the Board this year has been exploring
routes to growth. Given market conditions, a Joint
Venture had initially been considered the best way
to accelerate the roll out of our Postgraduate brand.
However, with a change in market sentiment in the second
half of the year, the Board recognised an opportunity
to raise the equity ourselves and remove the inevitable
complication a joint venture would bring. With a small
agile Board, we were able to complete the equity raise
in a swift, timely and cost-effective manner, successfully
raising £56.1 million in October.
Proceeds have been deployed in line with the Company’s
strategy, focusing on cities where we can exploit the
benefits of clustering, promoting the long-term success
of the Company and generating sustainable value for our
shareholders, with the Company’s performance resulting
in an improved dividend of 3.7pps, a six per cent increase
on 2023.
To ensure we maintain an appropriate strategy, which
delivers to all stakeholders, we need to have an effective
Board with the right mix of skills supported by good
systems and a strong governance structure.
Corporate Governance Code
The Board has adhered to the Corporate Governance
Code 2018 throughout the year. From 1 January 2025,
the Corporate Governance Code 2024 will apply to the
Company, and its Committees have already discussed
the new requirements, reviewing diversity and inclusion,
culture, and Provision 29 (effective 1 January 2026).
The terms of reference of the Committees have been
updated accordingly and are available on the website
https://www.empiric.co.uk/. Some of the 2024 Code
additions have been introduced into this Annual Report,
and the Company will seek to build on these so we are fully
prepared when all the new provisions come into force.
Board composition, diversity and inclusion
There have been no changes to the Board during the year,
which currently comprises two male executives, and four
NEDs consisting of two women and two men. The Board
performance review in 2023 and again in 2024, has shown
that the Directors consider the Board to operate well
with the NEDs providing a diverse mix of skills, age and
experience, constructive challenge to management and
contribute well to Board meetings. The relatively small
size allows the Board to be opportunistic, as
demonstrated by this year’s capital raise, quickly taking
advantage of the change in market sentiment. However,
the size of the Board has been prohibitive in addressing
the diversity targets.
Diversity on the Board had been the subject of
correspondence with Shareholders and much discussion
by the Nomination Committee, which aspires to meet
the targets set by the Parker and FTSE Women Leaders
Reviews. To address these targets, there are two options:
(i) to increase the size of the Board or (ii) replace a
Director by either removing them or waiting for normal
rotation and seeking to select the very best candidate
from a fully diverse list. Given Board performance, we
do not wish to increase the number of Directors, as
the current structure works extremely well. But with no
Directors currently due to retire, we will only be able
to address the matter of diversity once a Director
steps down.
Within the wider Group, we have looked at ways to
improve diversity. Our Senior Leadership Team currently
includes no members of ethnic origin, so the Company
has sought to reach a 10 per cent ethnicity target by 2027
and has partnered with DIAL Global, Business Disability
Forum, Stonewall and Inspiring Diversity in Real Estate in
order to achieve this. We are making progress, but with
high retention rates, and a policy to promote talent from
within, this will take time.
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Empiric Student Property plc | Annual Report and Accounts 2024
Governance report 95
Culture
The boardroom culture is good natured and constructive.
The Chairman and the Chief Executive Officer set a tone of
openness and thoroughness, which is upheld by the Board
with Directors holding themselves to high standards
of integrity. The Chairman encourages debate and the
views from all of the Directors to generate stimulating
conversations concerning the Company’s operations.
The culture of openness is promoted throughout the
Group by the CEO, who is always keen to improve
communication and make employees feel valued. With the
Company celebrating its tenth anniversary this year, over
240 team members joined events in London, Birmingham
and Edinburgh to hear from the Executive team, and to
work collaboratively to complete certain challenges.
Feedback hailed the event a great success, enjoyed by
all the attendees. In addition, the CEO holds quarterly
meetings with the entire workforce to communicate the
financial results and the progress against key performance
indicators. The meetings are always well attended and
offer the chance for employees to ask the CEO questions
directly regarding all aspects of the Company.
In preparation for reporting against the Corporate
Governance Code 2024, the Nomination Committee has
set the KPIs on page 28 to embed and monitor culture in
the Group. Progress on these will be shared in the Annual
Report going forward.
Establishing a strategy for long term success
The annual strategy day was held in June, attended by all
the Directors and members of the executive team.
The meeting was carefully structured to achieve a balance
between presentation, debate and discussion.
With a general election imminent, advisors were invited
to present on the potential policy changes from the
anticipated new Labour government and how these could
affect the Company, the universities, the Company’s
target market and the property portfolio. There was a
focus structured towards providing in-depth analysis and
diligence on the UK’s post-graduate market, including
those universities that had the strongest fundamentals
for post-graduates and identifying their priorities when
selecting accommodation.
In light of the political backdrop, executive Directors and
the non-executive Directors reviewed the strengths and
weaknesses of the Company’s current corporate strategy
to ensure that the Company’s strategy to invest in areas of
growth remained appropriate and to consider emerging
opportunities. During the year the Company exited from
four cities and now has 97 per cent of its portfolio aligned
to prime and super prime locations.
Engaging with stakeholders
The executive Directors and the Board as a whole make
themselves available at various points during the year to
provide a forum to understand the views of the Company’s
key shareholders and ensure these are taken into account
in strategic discussion and decision-making. Road shows
were undertaken after the publication of both annual
and interim results, property tours were conducted in
Edinburgh, Glasgow & Bristol and management attended
the corporate access days hosted by EPRA and Peel Hunt
in June.
The Board’s approach to corporate governance is also
determined by, and takes account of, the interests of
various other stakeholders, not least of all our customers,
our people and the communities in which we operate.
Surveys are sent to employees and customers, with
appropriate actions taken to address any concerns
expressed. Site visits were undertaken by the Board in
York and Southampton during 2024, where Directors
could meet employees and customers, and regular
updates were provided from the property, operations and
marketing departments to keep Directors up to date with
developments and views from a wide stakeholder base.
It was also decided, as part of our commitment to
achieving Net Zero by 2033, to put our 2024 and 2025
ESG targets to an advisory shareholder vote at our Annual
General Meeting in May 2024. Although the resolution
was passed, the result was somewhat disappointing, with
25 per cent of responding shareholders voting against.
In order to better understand the result, and inform
future decision making, we sought engagement with
shareholders. From those shareholders that provided
feedback, it appeared in part that they required a clearer
articulation between the cost and return that could be
expected for each target. This will be addressed when
next put to shareholders in 2026.
Further details of stakeholder engagement can be found
on page 61.
Looking forward
The Company faces a number of challenges in 2025,
many of which are outside of its control. Higher costs
in National Insurance, a further material increase in
minimum wage and ongoing energy price inflation
present cost challenges for the business. But with the
number of students increasing and the attractiveness
of the UK’s top-quality universities continuing to appeal
both internationally and domestically, there remains a
positive outlook for the mid to long term future, with many
opportunities open to PBSAs to grow their market share
which we too will continue to pursue.
Annual General Meeting
The Board looks forward to welcoming you to the
Annual General Meeting to be held on 4 June 2025 and
recommends that you vote in favour of the proposed
resolutions.
All Directors intend to stand for re-election and their
biographies are set out in the notice of meeting in the
separate document accompanying this report. If you
are unable to attend, but would like to ask your Board
a question, please send your message to
CoSec@Empiric.co.uk.
Finally, on behalf of the Board I would like to thank the
whole team for their hard work and dedication and our
shareholders who have supported us throughout the year.
Mark Pain | Non-executive Chairman
12 March 2025
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Empiric Student Property plc | Annual Report and Accounts 2024
Governance report 96
Section 172(1) statement
The Board openly accepts its obligation to operate as a good corporate citizen and recognises that broader stakeholder recognition is integral to the long-term success of the
Company. For the year under review, the Board has had due regard for the following:
Section 172 requirements Disclosures
The likely
consequences of any
decision in the long
term
The Board oversees the Company’s performance and gives guidance as to the long-term strategy of the Company. The day-to-day management and decision-
making is delegated by the Board to the Executive Committee which provides regular updates to the Board. This allows the Board to monitor the performance
of the Company and ensure that the Company is progressing in line with the long-term strategy. The KPls reported on page 28 are the key metrics which the
Board reviews, which are supplemented by further detailed reporting.
Also see details surrounding stakeholder engagement on page 61 and Board activities and principal decisions taken as set out on page 106.
The interests of
the Company’s
employees
Our people are crucial to the Company’s success; they provide our customers with exceptional service to ensure they feel at home.
The Board recognises the relationship between employee happiness and customer satisfaction and has sought to monitor these through the eNPS and
NPS scores, which are derived from surveys undertaken during the year. The wellbeing of our staff is paramount and as such all decisions taken by the Board
consider the interests of the Group’s employees. The Company’s activities surrounding mental health & wellbeing are discussed on page 26.
The Board has designated Alice Avis (Senior Independent non-executive Director) to liaise with the One Team Collective as a representative body of our
workforce. This allows a direct conduit between the Board and our people. This gives the Board insight into the views and concerns of our people and allows
them to ensure their decisions are aligned with the interests of the Group’s employees.
The CEO also holds quarterly meetings with the entire workforce to communicate the financial results and the progress against key performance indicators
Should employees have a concern, this can be raised through a number of routes, directly with their manager or via the whistleblowing or grievance policy.
The need to foster
the Company’s
business
relationships with
suppliers, customers
and others
The Company has a few key suppliers and the Board reviews and approves any key contracts. As such the Board provides oversight and challenge to key
suppliers. In order to assess the compliance of our supply chain, all of our key operational suppliers and contractors are SafeContractor accredited as part of
the onboarding process. This scheme verifies that these contractors and suppliers have the required QHSE policies in place and meet the requirements of a UK
leading SSIP standard. Day-to-day relationships with Company suppliers are delegated to the Senior Leadership Team to ensure a close relationship is fostered.
Without customers the Company could not exist, and as such the Board takes great interest in fostering relationships with customers. The Board reviews the
results of the biannual customer survey, as well as receiving and reviewing other ad hoc reports on our customers’ preferences and wishes. The Board believes
that fostering a close relationship and a deep understanding of our customers is key to the Company’s success and should be part of the Company’s culture. For
this reason it has chosen to include the NPS score in its culture KPIs, indicating the level of customer satisfaction and providing a view on the customer journey.
Further information on the Company’s culture can be found on page 101 and details surrounding stakeholder engagement on page 61.
The impact of
the Company’s
operations on the
community and the
environment
The community and environment in which the Company operates is a key priority for the Board. The Board takes the impact of the Group’s operations on the
community and environment into account in each decision. The decisions which the Board take can have widespread ramifications. Reviewing this impact is
not a perfunctory exercise but one which the Board believes is a key responsibility, which includes robust challenge of all decisions. The decision has been
taken this year to take part in the CDP ESG benchmarking platform with reporting to commence in 2026.
The desirability of the
Company maintaining
a reputation for high
standards of business
conduct
The Board recognises the importance of maintaining a reputation for high standards of business conduct. The Board always seeks to make the best decision
for the Company which, while taking into account the needs of all of our stakeholders, also reflects morally on our obligations as a Company.
The Board encourages this principle throughout the business through its policies and compulsory training, which support the Company’s purpose and values.
The need to act fairly
between members
of the Company
The Board believes transparency and accountability of the business is paramount to encourage shareholder confidence. The Board listens to and reviews the
views across our shareholder base and encourages shareholders to attend the AGM. The need to act fairly between all of our shareholders underpins the Board’s
decisions and the Board receives regular feedback from shareholders after our annual and interim results release. The Board also receives feedback from research
analysts throughout the year which helps the Board identify key shareholder trends. The capital structure of the Company as a REIT, limits individual shareholdings
to a maximum of 10 per cent of issued share capital and helps to ensure there are no dominant shareholders and all are treated equally.
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Application of the Principles of the UK
Corporate Governance Code 2018 can
be found on the following pages
Empiric Student Property plc | Annual Report and Accounts 2024
Governance report 97
Board compliance statements
Diversity and Inclusion
In accordance with UKLR6.6.6R (9) the Company can
confirm that as at 31 December 2024:
1. the Company has two women on the Board, equating
to 33.3% representation;
2. Alice Avis holds the position of Senior Independent
Director, and is also the employee’s representative on
the Board; and
3. no Board Directors are from an ethnic background.
Furthermore, pursuant to the Parker Review, as no
members of the senior Leadership Team are currently from
an ethnic background, a target 10 per cent ethnicity has
been set to be achieved by the end of 2027.
Further information can be found on page 114.
Compliance with UK Corporate Governance Code 2018
During the financial year the Company has complied with
the Principles of the UK Corporate Governance Code 2018
published by the Financial Reporting Council (“FRC”), a
copy of which can be found on their website www.frc.org.
uk. The application and reporting on the Code’s Principles,
and the supporting provisions, are set out in the table
opposite.
Going Concern
The Group is well placed to manage its financing and
other business risks. The Board is therefore of the opinion
that it is appropriate to adopt the going concern basis of
accounting in preparing the Annual Report and Accounts
(see page 159 for more information).
Viability Statement
Taking into account the Group’s current position and the
impact of the principal risks documented in the Strategic
Report, the Directors have a reasonable expectation that
the Company will remain viable and continue to operate
and meet its liabilities as they fall due, over the period
to 31 December 2027. Further details are set out in the
Viability Statement on page 43, and in the Principal Risks
and Uncertainties section on page 38.
Principal Risks and Uncertainties
The Directors have carried out a robust assessment of the
principal risks facing the Company, including those that
would threaten its business model, future performance,
solvency or liquidity. The principal risks, and the
procedures for managing or mitigating them, are set out
on pages 38 to 42.
Audit, risk and internal control
Grant Thornton LLP was appointed as the Internal
Auditor in 2023. Internal controls include the systems
of operational and compliance controls maintained by
our finance team. Regular reports from both the Internal
Auditor and management are provided and reviewed by
the Boards Audit and Risk Committee and reported on to
the Board. Further details can be found in their report on
pages 118 to 122.
Fair, Balanced and Understandable
The Annual Report and Accounts, taken as a whole, is
fair, balanced and understandable and provides the
information necessary for shareholders to assess the
Group’s position, performance, prospects, business
model and strategy.
1. Board Leadership and Company Purpose Page
A Effective Board 98 & 112
B Purpose, Values and Culture 101
C Governance Framework
102
D Stakeholder Engagement 61
E Workforce policies and practices 64 & 65
2. Division of Responsibilities Page
F Board roles and operations
103 & 104
G Independence 111
H External Appointments and
Conflicts of Interests
98 & 111
I Key Activities of the Board in 2024 105
3. Composition, succession and evaluation Page
J Appointment and Succession
111
K Board Skills, experience
and knowledge
98–100
L Annual Board Evaluation 112
4. Audit, Risk and Internal Control Page
M Financial Reporting, External
Auditor and Internal Audit
118–122
N Review of 2024 Annual Report
and Accounts
122
O Internal Financial controls and
Risk Management
120
5. Remuneration Page
P Linking Remuneration with
purpose and strategy
127
Q Remuneration Policy 127
R Performance outcome in 2024 131
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Empiric Student Property plc | Annual Report and Accounts 2024
Governance report 98
Board of directors
Mark Pain Duncan Garrood Donald Grant Alice Avis MBE Martin Ratchford Clair Preston-Beer
Non-executive Chairman Chief Executive Officer Chief Financial and SustainabilityOfficer Senior Independent non‑executiveDirector Non-executive Director Non‑executiveDirector
Appointed 1 September 2018 28 September 2020 12 September 2022 1 March 2019 1 October 2021 1 July 2022
Independent Yes No No Yes Yes Yes
Committee
Memberships
N
E
R
E E
A
R
N
E
A
R
N
E
A
R
N
E
Relevant Skills
and Experience
î Chartered accountant
î Strong financial, customer and shareholder focus
î Extensive experience of executive and
non-executive roles in the real estate, financial
services and consumer/leisure sectors
î Strong operational, sales and marketing skills
î Extensive experience of executiveroles in the
consumer/leisure sectors
î Significant expertise in the consumer/leisure
sectors
î Chartered accountant
î Over 20 years’ experience in the listed real estate
and financial services sectors, covering finance,
tax, regulatory compliance, HR, IT and
company secretarial
î Extensive experience in marketing, e-commerce,
strategy and operations in the consumer
goods/retail sectors
î Executive and non-executive expertise in FTSE 100/
UK and international entrepreneurial organisations
î Chartered accountant
î Over 20 years’ experience in executive and
leadership roles in the UK/international listed real
estate, funds and student accommodation sectors
î Expertise in structured real estate debt and equity
financing and systems and control environments
î Significant expertise in large hospitality/
retail businesses
î Extensive experience in international franchising/
business transformation
Principal External
Appointments
î Chairman – AXA UK plc
î Senior Independent Director
– Close Brothers Group plc
î Non-executive Director
– The Brighton Pier Group PLC
î None
î Non-executive Director – BGF Group plc
î Non-executive Director – iPulse Limited
î Director – Knoops Holdings Limited
î Chief Finance Officer at Frasers Property (UK)
Limited, a Frasers Property group company
î Chief Operating Officer – Greene King Limited
Significant
Previous External
Experience
î Group Finance Director – Abbey National PLC
î Group Finance Director – Barratt Developments PLC
î Non-executive Directorships – Ladbroke Coral
Group PLC, Aviva Insurance Limited, Spirit Pub
Group PLC, Johnston Press PLC, Northern Rock,
LSL Property Services and Punch Taverns PLC
î Vice Chairman and Senior Independent Director
– Yorkshire Building Society
î CEO – Ten Entertainment Group Plc
î CEO – Bills Restaurants
î CEO – Punch Taverns plc
î President – M.H. Alshaya
î Commercial Director – BAA plc
î Chief Financial Officer – RDI REIT P.L.C
î Group Financial Controller
– Capital & Counties Properties PLC
î Head of Finance – Liberty International PLC
î Head of Financial & Regulatory Control (EMEA)
– BCG Partners / Cantor Fitzgerald
î Executive chairman – Lumene Oy
î CEO – Sanctuary Spa Group
î Marketing and E-Commerce Director
– Marks and Spencer PLC
î Global brand Director, Johnnie Walker – Diageo PLC
î Non-executive Director – The Edrington Group
Limited
î Finance Director, Real Estate andFunds
– Thomas Cook plc
î Head of Europe, Finance – BritishLand PLC
î Finance Director – The Unite GroupPLC
î Managing Director – Costa Coffee,
Middle East & Asia
î Chief Operating Officer – Costa Coffee, UK
î Franchise Director – Costa Coffee, UK
Committees
N
Nomination
A
Audit and Risk
R
Remuneration
E
ESG
Chair
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Empiric Student Property plc | Annual Report and Accounts 2024
Governance report 99
R
N
E
A
Mark Pain Duncan Garrood Donald Grant Alice Avis MBE Martin Ratchford Clair Preston-Beer
Non-executive Chairman Chief Executive Officer Chief Financial and SustainabilityOfficer Senior Independent non‑executiveDirector Non-executive Director Non‑executiveDirector
Appointed 1 September 2018 28 September 2020 12 September 2022 1 March 2019 1 October 2021 1 July 2022
Independent Yes No No Yes Yes Yes
Committee
Memberships
N
E
R
E E
A
R
N
E
A
R
N
E
A
R
N
E
Relevant Skills
and Experience
î Chartered accountant
î Strong financial, customer and shareholder focus
î Extensive experience of executive and
non-executive roles in the real estate, financial
services and consumer/leisure sectors
î Strong operational, sales and marketing skills
î Extensive experience of executiveroles in the
consumer/leisure sectors
î Significant expertise in the consumer/leisure
sectors
î Chartered accountant
î Over 20 years’ experience in the listed real estate
and financial services sectors, covering finance,
tax, regulatory compliance, HR, IT and
company secretarial
î Extensive experience in marketing, e-commerce,
strategy and operations in the consumer
goods/retail sectors
î Executive and non-executive expertise in FTSE 100/
UK and international entrepreneurial organisations
î Chartered accountant
î Over 20 years’ experience in executive and
leadership roles in the UK/international listed real
estate, funds and student accommodation sectors
î Expertise in structured real estate debt and equity
financing and systems and control environments
î Significant expertise in large hospitality/
retail businesses
î Extensive experience in international franchising/
business transformation
Principal External
Appointments
î Chairman – AXA UK plc
î Senior Independent Director
– Close Brothers Group plc
î Non-executive Director
– The Brighton Pier Group PLC
î None
î Non-executive Director – BGF Group plc
î Non-executive Director – iPulse Limited
î Director – Knoops Holdings Limited
î Chief Finance Officer at Frasers Property (UK)
Limited, a Frasers Property group company
î Chief Operating Officer – Greene King Limited
Significant
Previous External
Experience
î Group Finance Director – Abbey National PLC
î Group Finance Director – Barratt Developments PLC
î Non-executive Directorships – Ladbroke Coral
Group PLC, Aviva Insurance Limited, Spirit Pub
Group PLC, Johnston Press PLC, Northern Rock,
LSL Property Services and Punch Taverns PLC
î Vice Chairman and Senior Independent Director
– Yorkshire Building Society
î CEO – Ten Entertainment Group Plc
î CEO – Bills Restaurants
î CEO – Punch Taverns plc
î President – M.H. Alshaya
î Commercial Director – BAA plc
î Chief Financial Officer – RDI REIT P.L.C
î Group Financial Controller
– Capital & Counties Properties PLC
î Head of Finance – Liberty International PLC
î Head of Financial & Regulatory Control (EMEA)
– BCG Partners / Cantor Fitzgerald
î Executive chairman – Lumene Oy
î CEO – Sanctuary Spa Group
î Marketing and E-Commerce Director
– Marks and Spencer PLC
î Global brand Director, Johnnie Walker – Diageo PLC
î Non-executive Director – The Edrington Group
Limited
î Finance Director, Real Estate andFunds
– Thomas Cook plc
î Head of Europe, Finance – BritishLand PLC
î Finance Director – The Unite GroupPLC
î Managing Director – Costa Coffee,
Middle East & Asia
î Chief Operating Officer – Costa Coffee, UK
î Franchise Director – Costa Coffee, UK
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Empiric Student Property plc | Annual Report and Accounts 2024
Governance report 100
Board overview
Board Attendance AGM (1) Scheduled Board
meetings, update calls
and strategy day (8)
Ad Hoc Board and
Committee Meetings
(meetings eligible to attend
in brackets)
Director
Attendance
100% 100% 98%
Mark Pain 1 8 8 (8)
Duncan Garrood 1 8 21 (21)
Donald Grant 1 8 21(21)
Alice Avis
*
1 8 4
*
(5)
Martin Ratchford 1 8 5 (5)
Clair Preston-Beer 1 8 5 (5)
* Alice Avis was unable to attend an ad hoc Board meeting due to holiday commitments.
She however reviewed the papers in advance and passed on her comments and
questions to the Chairman.
Board Attendance
Main Focus for the year
£45.2m
Disposals
£35.0m
Acquisitions
£56.1m
Capital raise
3.7p
Dividends
Industry (PBSA) knowledge
Technology/digital media expertise
Cyber/Data experience
Risk management expertise
Financial expertise/ literacy
Banking/private equity/venture capital
Marketing expertise
Legal expertise
Cross-border expertise
Human resources expertise
Property expertise
Hospitality and customer service expertise
Operational expertise
Sustainability
Regulatory expertise
Male
Female
Board Composition
67%
33%
Independent
Executive
Board Independence
67%
33%
<3yrs
<4yrs
<5yrs
<6yrs
<7yrs
Board Tenure
2
1
1
1
1
40-50
50-60
60-65
65+
Board Ages
2
2
1
1
Skills Matrix
83%
100%
50%
100%
100%
67%
67%
0%
100%
100%
67%
83%
100%
100%
100%
Results of Internal Board Evaluation (More information on page 112)
Performance during 2024
Composition of the Board
Meetings and Board Packs
Board Objectives
Strategy and Strategic Foresight
Decision Process
100%
87%
90%
81%
87%
78%
Male roles – Chair, CEO, CFSO
Female roles – SID and employee
representative
Board roles
60%
40%
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Empiric Student Property plc | Annual Report and Accounts 2024
Governance report 101
Our Purpose, Strategy, Values and Culture
Embedding and monitoring culture are critical for
ensuring alignment across the organisation and
supporting the delivery of the organisation’s purpose
and strategy and our ways of working are underpinned
by our values.
Purpose: To help students make the most of their
university life by creating and managing some of
the highest quality and most thoughtfully designed
accommodation, which is secure, modern and homely.
Our refurbishment programme continued during 2024,
and further works are planned for 2025/26 to upgrade
current rooms on offer.
Strategy: In order to achieve our Purpose, we aim to grow
a portfolio of high-quality buildings in top-tier University
locations where student accommodation remains acutely
undersupplied. Acquisitions this year have been made in
Bristol, Glasgow and Manchester.
Values: Our values (“Respectful”, “Supportive”,
“Collaborative”, “Responsive” and “Fun”) are key to
delivering the brand experience for our customers.
As an employer, our goal is to create a “great place to
work” where our people can grow and excel.
Culture: Our people are key to delivering a high quality,
personalised service to our customers. We work tirelessly
to create a team who are diverse and inclusive, agile,
proactive, thoughtful and responsive. The culture in
the Group is largely driven by the CEO and, as part of
his short-term remuneration targets, he has been set
an objective to develop workplace engagement and
culture, which relates to the results for the employee
survey, internal promotions and community and charity
initiatives. Details of these targets are set out on
page 133. In order to further understand how our culture
is being embedded across the organisation, the Board
reviewed a number of metrics that could be used to
measure and monitor culture within the Group.
The following metrics were considered the most
appropriate for our business.
Employee net promoter score (eNPS): To deliver a high-quality service to
our customers, we must look after our employees. The eNPS and NPS scores were
therefore considered the most appropriate method of measuring our culture.
The eNPS score is derived from the employee survey undertaken during the year.
This provided the level of happiness and satisfaction of our employees, and the
likelihood of them staying and promoting our Company to others. Recent research
found that, companies with a highly engaged workforce are 21 per cent more
profitable and 17 per cent more productive than those with disengaged peers.
+44
UK Median eNPS Score (+7)
Net Promoter Score (NPS): is regarded as the gold standard of measuring
and tracking how a company is perceived by their customers and provides
a snapshot of overall customer experience; indicating the level of customer
satisfaction and a positive customer journey. This KPI therefore helps us not only
monitor culture but how we are fulfilling our purpose and maintaining our values.
The Board believes that a happy workforce will lead to a better experience for
our customers and therefore the eNPS and NPS should be correlated.
+32
All Private Halls (+19)
Female Representation and Ethnic Diversity
in Senior Leadership Team:
The Company wishes to improve its culture by promoting a diverse and
inclusive culture. A number of initiatives are currently being undertaken
to increase diversity, and these metrics will allow the Company to monitor
its progress.
Female Representation
32%
Target: 50%
Leadership Ethnic Diversity
0%
Target: 10%
Internal progression: We value our people and work hard to retain,
train and promote people from within the Company. We currently
have a retention score of 78 per cent.
61%
Target: +55%
Training: The Company’s policies are all available via an intranet portal and
employees must confirm that they have read and understood these documents.
To complement and embed these policies, training must be undertaken by all
the staff during their probationary period and on an annual basis thereafter.
Training covers such matters as health and safety, diversity and inclusion,
duty to prevent sexual harassment and a range of compliance matters.
98%
Target: 100%
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Governance report 102
Corporate governance framework
The Board
The Board is responsible for the long-term success of the Company
To assist in the effectiveness of the Board, committees have been established which operate within terms of reference set by the Board.
These outline their role to review appropriate matters and make recommendations back to the Board.
The terms of reference are reviewed every two years, or as necessary, and are available on our website.
Senior Leadership Team (“SLT”)
Reporting directly to the Executive Committee, the SLT ensure that Company policies
are embedded into the business and its operations and that strategic decisions are executed appropriately.
The Senior Leadership Team comprises 25 members, excluding the Executive Committee and meet four times a year
with the Executive Committee to share information and raise and discuss issues within the Group.
ESG Working Group
Chaired by the CFSO, invited members of the senior leadership team meet
monthly and ensure the ESG strategy is embedded throughout the business.
The Group comprises representatives from Operations, Property, Finance,
People team, Facilities Management, and Sales and Marketing.
One Team Collective (“OTC”)
Attended by Alice Avis, Chaired by a member of the Senior Leadership Team,
and comprising representatives from each UK region of the business, the
OTC meets on a quarterly basis. They discuss matters that have been raised
by their ‘constituents’ and bring issues to the attention of the SLT.
Executive Committee
The Board leads and provides direction for the Executive Committee, by setting our Company strategy and objectives
and overseeing the implementation of key operational policies throughout the business.
Day-to-day operations are carried out by the Executive Committee, who must adhere to policies and authorities set by the Board.
The Executive Committee comprises the CEO, CFSO, Chief Investment Officer, Chief Operating Officer and Chief Customer Officer.
Nomination Committee
Considers the composition,
skills, diversity and succession
planning of the Board and
evaluates its effectiveness.
Audit and Risk Committee
Ensures the Group’s financial
reporting and risk management
is properly monitored,
controlled and reported.
Remuneration Committee
Reviews remuneration of
the executives and senior
leadership team in accordance
with shareholder approved
policy.
ESG Committee
Safegaurds the interests of,
and monitors engagement with,
stakeholders to ensure the
Company demonstrates sound
social and environmental risk
management.
Read more on | page 110 Read more on | page 118 Read more on | page 123 Read more on | page 116
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Governance report 103
Roles and responsibilities
The Board comprises the Chairman, two executive Directors and three non-executive Directors, supported by the Company Secretary. The Directors biographies are set out
on page 98.
There is a clear division of responsibilities between the Chairman and Chief Executive Officer. Their roles are clearly set out and agreed by the Board. The primary responsibilities of
the Directors are as follows:
Board position Primary Responsibilities
Chairman • Leading the Board, ensuring its effectiveness and that Board members actively engage, challenge and contribute to discussions.
• Upholding the highest standards of integrity and Corporate Governance;
• Reviewing the Company’s general progress and long-term sustainability; and
• Ensuring the Company is meeting its responsibilities to all stakeholders.
Senior Independent non-executive
Director and employee representative
Director
• Acting as a sounding board for the Chairman and intermediary for other Directors when required;
• Leading the evaluation of the Chairman on behalf of the other Directors; and
• Being available to shareholders to raise their concerns if they cannot be resolved through other channels.
• To engage and understand the views of the workforce through the One Team Collective
Non-executive Directors • Providing constructive challenge and independent oversight;
• Determining the appropriate levels of remuneration of executives;
• Overseeing the Senior Leadership Team’s progress on implementing strategy and meeting objectives; and
• Monitoring the reporting of performance.
Chief Executive Officer • Leading and developing the Company’s strategy, profitable operation and development;
• Overseeing all activities of the business and leading the sales, marketing and operations functions;
• Developing workplace engagement and culture
• Ensuring the objectives are in line with operational activities; and
• Creating shareholder value over the long term.
Chief Financial and Sustainability Officer • Overseeing sustainability across the business;
• Leading the finance and IT functions;
• Producing timely and accurate financial information and analysis;
• Raising and managing debt;
• Ensuring tax and regulatory compliance; and
• Maintaining financial control and managing the Company’s risk profile.
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Governance report 104
Board meetings
Day-to-day management and decision-making is
delegated to the Executive Committee which report on
their activities to the Directors at the Board meetings and
calls. KPIs are provided to enable the Directors to easily
identify where targets have been met, or where there are
areas of underperformance. This allows the independent
non-executive Directors to ensure that the Company
is progressing in line with the long-term strategy, hold
management to account, but also provide guidance
and advice.
Board meeting schedule
The 2024 Board schedule included four Board meetings,
each aligned to the Company’s financial calendar and
a strategy day held in June, attended by advisers and
management, to scrutinise the current strategy and
to ensure that it remained appropriate. Three update
calls were scheduled between Board meetings to keep
Directors abreast of operational matters and to prevent
Directors becoming overloaded with information.
There was 100% attendance by Directors of all scheduled
Board meetings, Board calls and the strategy day in 2024.
Details can be found on page 100.
Additional Board meetings were called on short notice
to approve or discuss such matters as re-financing, the
joint venture or the capital raise. Committees of the Board
were appointed to approve any final details or to approve
certain matters, such as SAYE share issues, in accordance
with the delegated authority.
At least once a year, the non-executives hold informal
meetings without the executives present.
Board operations
Board meetings operate under a formal quarterly calendar
to ensure that the Company’s strategy, objectives, risks,
operations, controls and policies are all addressed or
reviewed by the Board throughout the year.
The agenda for the scheduled meetings and calls is
typically agreed by the Chairman, with assistance from
the Company Secretary and executive Directors.
The agenda, along with the Board papers, is usually sent a
week in advance allowing sufficient time for the Directors
to digest and consider the content, thereby enabling
discussion and effective decision making within meetings.
Any decisions and actions arising from the meetings
are recorded and actioned by the executive Directors
with progress monitored by the Company Secretary.
Management and advisers may be invited to attend
meetings to provide further information or guidance
on specific matters. PWC advised on the joint venture
negotiations, and our brokers and lawyers advised on the
capital raise in October.
Meetings are minuted, with discussions, challenges and
concerns recorded to demonstrate due consideration has
been given by the Directors on each matter discussed.
Quarterly Board agenda items
The formal agenda for regular Board meetings includes,
amongst other matters:
î sales and marketing activities, including
pricing strategy
î Health and Safety, and insurance claims
î Operational risk
î Wellbeing of customers and employees
î People team report
î Operations
î review of the Property portfolio – sales, acquisitions,
capital expenditure, refurbishments
î macro and sectorial update;
î an assessment of our progress with new investment
opportunities (the detailed proposals are prepared by
the executive Directors and reviewed and approved by
the Board, as appropriate);
î consideration of strategy and strategic opportunities;
î review of financial performance, financial and liquidity
forecasts, debt management and IT;
î an update on investor relations and shareholder
analysis;
î a report on shareholder feedback and engagement;
î reports from the Committees;
î updates on regulatory, compliance or governance
matters advised by the Company Secretary or other
advisers; and
î a report on public relations and press commentary.
Corporate governance framework | continued
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Month Board activity
February • Remuneration Committee considers the outcome of the
Executives’ Remuneration and reviews Senior Leadership
Team rewards
• Acquisition of College House Bristol for £5.6m
• SID attends employee action group: One Team Collective
March • Aareal £124.9m Refinance
• Review of prospective joint venture partners
• 2023 Full Year Results announced
• 2023 Q4 Dividend of 0.9375 pence per ordinary share
• Road shows undertaken with over 45 investor meetings held
• Remuneration Chair contacts major shareholders and proxy
agencies to discuss Remuneration in advance of the AGM
April • Road shows continue
• New Company Secretary appointed
May • Trading Update published
• Correspondence with proxy agencies regarding the AGM
resolutions
• Annual General Meeting including approval of ESG targets for
next two years.
• SID attends employee action group: One Team Collective
June • Board Strategy Day
• Board visit sites in York
• 2024 Q1 Dividend of 0.875 pence per ordinary share
• EPRA Investor Day
• Peel Hunt Conference
• Bristol and Glasgow property tours with selected shareholders
and analysts
Month Board activity
July • Acquisition of Claremont House, Glasgow for £9.7m
August • 2024 Interim Results announced
• Road show undertaken with over 40 investor meetings held
• SID attends employee action group: One Team Collective
• Review of students feedback from GSLI survey
September • 2024 Q2 Dividend of 0.875 pence per ordinary share
• Road show continued
October • Joint venture discussions terminated
• Wall crossing meetings with major shareholders
• Capital raise completed, raising £56.1m
November • SID attends employee action group: One Team Collective
December • Board site visit to newly refurbished Brunswick Apartments,
Southampton
• Acquisition of Tatton House, Manchester for £19.75m
• Remuneration Committee review Executive objectives for 2025
• 2024 Q3 Dividend 0.875 pence per ordinary share
• Cushman & Wakefield appointed as Valuer
• Company policies reviewed
• Review of Employee survey results
2024 Board activity
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Board decision making
A formal schedule of “Matters Reserved for the Board” provides clarity as to which matters must be considered and approved by the Board and cannot be undertaken by management.
These include strategy setting, budget approval, investment transactions over £10 million, and raising new capital. In reaching decisions, the Board must consider the balance of
interests between shareholder, employees, customers and wider stakeholders.
A delegated authority policy, approved by the Board, allows executives and senior staff to approve certain matters, within specified limits, such as issuing shares for SAYE share plans.
To ensure conflicts are avoided, Directors are asked to disclose their interests before each meeting. The Articles of Association permit a Director who has disclosed an interest in a
transaction to vote and count in the quorum in relation to any resolution of the Board concerning the related transaction, subject to certain conditions and providing that the Board
so approves.
Principal Decisions
taken by the Board
in 2024 Termination of Joint Venture Capital raise of £56.1m
Acquisition of Claremont House, Glasgow and
Tatton House, Manchester
Link to Strategy The Group could pursue its postgraduate
accommodation refurbishments independently
and in line with the Company's business plan.
Provided the Group with additional funds to invest
and accelerate growth.
Located close to Russell Group Universities.
Clustered within short walking distance of other
ESP properties.
Long term success
of the Company
Discussions were terminated as the timing of
implementation was placing wider strategic plans
at risk.
Change in market sentiment presented opportunity
to pursue an independent path.
Providing investors with stable and long-term
returns driven by increasing scale and trading
margins in cities serving top-tier universities.
The acquisition of well-priced, near-term investment
opportunities, as well as the unlocking of potential
refurbishment gains, are expected to be earnings
accretive within the calendar year 2025.
Greater scale in key cities and improved quality
of accommodation within the Group’s existing
portfolio, enhancing the strength of the Group’s
operating brand.
Shareholders The associated disruption to the Group’s business
plans was not considered to be in the best interest
of the Company’s shareholders.
Increased market capitalisation should make
the Company more attractive to a wider base
of investors and improve market liquidity in
ordinary shares.
The planned acquisitions and refurbishments
works will enhance shareholder returns and
therefore be accretive to EPRA NTA per share
over the medium term.
Provide the Group with valuable economies of scale,
both on a local level by growing clusters in key cities
which will help to increase operational margins,
but also at the corporate level where the existing
structure is capable of supporting a growing
asset base.
Customers The capital raise allowed shareholders to capture
the full benefit of projected returns in a more timely
manner with refurbishment plans completed earlier
than would be anticipated.
The Company has identified approximately £10
million of refurbishment works at three properties
that can commence in early 2025.
Clustering allows the Group to share amenities
across properties offering the customer a wider
choice of facilities.
Employees Certain employees had been secured in anticipation
of the joint venture causing decisions to be revisited
with related communication and engagement.
Deployment will grow the operational base of the
company, providing greater opportunity for current
and prospective new employees.
Grows the operational base of the Company,
providing greater opportunity for current and
prospective new employees.
Corporate governance framework | continued
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Other Board activities and stakeholder impact
Strategic topic Area of focus Key decisions taken and key stakeholders impact
Customer Ensure the continued safety, wellbeing and
satisfaction of our customers;
2024 Global Student Living results and customer
feedback.
NPS score
Decision taken
Refurbishment and EWS programme, related timing and impact on customers.
Internal Auditor review of Health & Safety practices.
Upgrade of IT services.
Mental Health First Aid programme rolled out.
Stakeholder impact considerations
Customers: Communication plan and tenancy length.
Consideration of feedback received, overall satisfaction and available support.
Lenders: The impact on covenants and income security offered.
Shareholders: The speed of implementation and potential impact on revenues and distributions.
Employees: Redeployment of our people to ensure they remain motivated and engaged.
People Engagement survey and eNPS score
Improve employee retention through
inhouse training.
Protection of information and data
Diversity and Inclusion
Decisions taken
2024 eNPS engagement survey providing feedback and points to be addressed.
Launch of Hello Future Stars apprenticeship scheme.
Internal Auditor review of GDPR.
Appointment of partners to assist with diversity improvements.
Stakeholder impact considerations
Employees: Ensuring our people feel valued and addressing any issues quickly.
Encouraging internal progression.
Customers: Quality and continuity of service.
Shareholders: Impact on returns and distributions.
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Strategic topic Area of focus Key decisions taken and key stakeholders impact
Strategy Residual non-core disposal programme, including
consideration of offers received.
Acquisitions and refurbishments.
Validation of Post-Graduate strategy including
related due diligence and financial modelling.
Decisions taken
£45.2m disposal of non-core assets in 2024.
Acquisition of College House, Bristol, Claremont House, Glasgow and Tatton House in Manchester.
Approval of refurbishment programmes.
Planning permission at Victoria Point, Manchester.
Stakeholder impact considerations
Shareholders: Growth and total return enhancement, coupled with a compelling equity story.
Customers: Communication and continuity of service provision, improving amenities on offer.
Community: Developmental impacts; engagement with local residents.
Employees: TUPE transfer considerations, communication and engagement.
Capital allocation Refinancing and capital allocation to ensure ongoing
liquidity and covenant headroom.
Investor engagement.
Deployment of funds raised.
Decisions taken
Consolidation of debt facilities and refinancing short dated facilities.
Capital raise of £56.1m.
Dividend payments.
Stakeholder impact considerations
Lenders: Maintaining prudent covenant compliance and management of refinancing risk.
Shareholders: Ensuring appropriate deployment of funds in line with expectations.
Agents/consultants: Long-term liquidity planning providing for prompt and fair payment terms.
Other Board activities and stakeholder impact continued
Corporate governance framework | continued
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Strategic topic Area of focus Key decisions taken and key stakeholders impact
Marketing
and sales
Review of pricing approach for launch of academic
year 2025/26.
In-depth review of customer feedback.
Decision taken
Pricing strategy approved with the aim of achieving balance between inflationary pressure and
affordability, informed by lessons learnt from previous years data and customer feedback.
Upgrade of customer website improving interface with customers.
Continued roll-out of Hello Student branding and new sharing proposition.
Stakeholder impact considerations
Customers: Affordability; cost of living pressures; engagement.
Shareholders: Impact on sustainable returns and related earnings and distribution guidance.
ESG Implementation of Net Zero strategy, target setting
and stakeholder engagement.
Capital allocation to green initiatives.
Wellbeing of our customers and our people.
Improved transparency.
Decision taken
Interim targets agreed and two year plan put to shareholder vote at AGM.
Commitment to enhance capital allocation to green initiatives to accelerate implementation.
Benchmarking commitment agreed.
Reporting on Scope 3 emissions.
Stakeholder impact considerations
Environment: Becoming a sustainable business and contributing to the communities in which we operate.
Shareholders and Lenders: Responding to requests to participate in annual CDP benchmarking.
Customers/employees: Impact of implementation plans on wellbeing.
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Nomination committee report
Committee composition and operations
Led by the Chairman, the Board is responsible for the
overall effectiveness in directing the Company. It is
therefore appropriate that the Nomination Committee,
which is responsible for the composition of the Board,
is led by the Company’s Chairman, Mark Pain. He is
assisted by three independent Directors, all of whom have
significant experience as Directors of listed companies.
The Committee met three times during the year and was
attended by all relevant Committee members, the COO,
the Head of the People team and the Company Secretary.
The Committee’s primary objectives are to review the
current Board capability and structure, lead the process
for appointments, ensure plans are in place for the orderly
succession of both the Board and the Group’s Senior
Leadership Team, to promote diversity and inclusion and
to evaluate the performance of the Board. In addition, the
Board reviewed culture and the results of the Employee
survey. No appointments were made to the Board or to
the Executive Committee this year, but all other matters
were addressed.
Current Board structure
The current Board comprises the Chair, two executives
and three independent Directors. Appointment terms for
Directors are shown overleaf. The 2024 Board evaluation
considered the size of the Board to be an appropriate
size for the business, being focused and effective. A skills
assessment conducted during the year confirmed that
there was a good range of experience provided by the
Directors, as seen in the skills matrix, found on page 100,
which align with the critical risks of the Company. It was
noted that AI and Legal were skills lacking on the Board,
but Directors were comfortable that they had access to
advisers should they require additional guidance to assist
them in their duties. Furthermore, the Chief Investment,
Chief Operating, Chief Customer and IT Directors,
although not appointed to the Board, share their
knowledge through regular updates and presentations
and attend by invitation to present reports such as
valuation summaries, operational strategies, pricing
proposals, AI opportunities and IT strategy documents.
The annual Board evaluation raised two areas of concern
for the Committee, these being succession planning and
diversity. Although succession plans have been drawn up,
the size of the business was thought to restrict the ability
to have a full plan in place for the Executive Committee,
as there is not always sufficient depth of expertise. The
size of the Board was considered to restrict the ability
to improve diversity amongst the Directors, albeit that
the Company has made strides to improve diversity
throughout the business including target setting for
senior management.
Succession planning
The table overleaf shows the tenure of the Board
members. Although the independence of non-executives
is compromised after nine years, it cannot be assumed
that all non-executives will remain on the Board for the
maximum tenure and that there will not be an orderly
succession plan implemented earlier. Therefore, before
standing for re-election at the AGM, Directors confirm
their commitment to the Company for the year ahead.
If a Director indicates a preference to step down in the
near future, this potential vacancy is reviewed against
the context of the Company’s strategy, the Board and
the Committee requirements, to ensure stability and
continuation, refresh skills and experience, and any
necessary qualification requirements. The process for
appointments, shown overleaf, is then followed.
Succession plans for the executive Directors and
Executive Committee have been prepared on both a short
and long-term basis, identifying roles with perspective
internal candidates, or where there are currently gaps,
when external applicants might need to be considered.
With a policy of encouraging promotions from within,
and a strong, gender diverse, Senior Leadership Team
in place, the Committee acknowledged that there is a
pool of internal candidates who could, in time, present
succession opportunities for the Executive Committee
members. A bespoke leadership development programme
was therefore introduced during 2024 for those
employees one compensation band below the Executive
and the succession plans are regularly reviewed to identify
and develop ‘rising stars’.
“ The Board evaluation concluded
that, overall, the Board
continued to operate effectively
throughout 2024.”
Mark Pain | Nomination Committee Chairman
Committee membership and meetings
Meetings
Mark Pain 3 (3)
Alice Avis 3 (3)
Martin Ratchford 3 (3)
Clair Preston-Beer 3 (3)
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Tenure
Directors Tenure To step down by
Independent non-executive
Mark Pain 6 years September 2027
Alice Avis 5 years March 2028
Martin Ratchford 3 years October 2030
Clair Preston-Beer 2 years July 2031
Executive
Duncan Garrood 4 years n/a
Donald Grant 2 years n/a
Appointments to the Board
When considering the appointment of new Board
members, the Nomination Committee will develop
a specification brief of the required attributes.
An external agency, who have adopted the Voluntary
Code of Conduct for Director Search Firms, is engaged
to assist in compiling a diverse list of candidates with the
appropriate requirements. This long list is reviewed by
the Nomination Committee, and a shortlist of candidates
invited for a formal interview. Such candidates will have
the most appropriate experience, who can offer additional
skills to those already on the Board, bring diversity
and independence of thought, whilst being aligned to
our values and culture. After being interviewed by the
Nomination Committee, the preferred candidates will
meet with the other Directors, references sought, and
conflicts assessed before a decision is taken.
Terms of Appointment of Directors
The executive Directors have contracts with the
Company which include a six-month notice period and
restrictive covenants.
The non-executive Directors have letters of appointment,
which can be terminated in accordance with the Articles
of Association and do not specify a notice period.
The terms and conditions of appointment for the
non-executive Directors are available for inspection at
the Company’s registered office and at each Annual
General Meeting.
Directors who are appointed to the Board during the
year are required to be elected by shareholders at the
next Annual General Meeting. Thereafter, all Directors are
submitted for annual re-election at each Annual General
Meeting, subject to continued satisfactory performance
assessed by the Board at the end of each year and
confirmation of their commitment.
Board induction and training
All Directors receive a thorough formal induction upon
appointment. This includes meeting members of the
Board, the Senior Leadership Team, and key advisers.
The Chairman reviews and discusses each Director’s
individual training and development needs. The Board as
a whole also receives briefings and training on relevant
topics. The Company benefits from the non-executive
Directors’ membership of other boards. This provides
experience that can be applied to our business.
In addition, the Board receives regular publications on
key topics from our advisers and other professional
services firms. Regulatory and corporate governance
updates are provided by the Company Secretary at each
Board meeting. Opportunities are also provided for
Directors to meet and discuss projects with members
of the senior management team and property tours are
undertaken to enable Directors to view the Company’s
assets, to hold discussions with the responsible asset
managers and meet some of our customers.
Director independence
The Board reviews the independence of the Chairman
and non-executive Directors on an annual basis.
For the financial year ending 31 December 2024, all of
the non-executive Directors, including the Chairman, are
considered to be independent in line with the provisions
set out in the Code.
Advice for Directors and D&O Insurance
If circumstances arise where it is necessary for a Director
to seek legal or professional advice in the furtherance
of their duties, they are encouraged to consult with the
Company’s advisers or the Company Secretary. Should
they deem it necessary to take independent professional
advice, agreed procedures must be followed.
The Company maintains liability insurance which covers
Directors and Officers of the Company and all subsidiaries
of the Empiric Student Property plc Group. Should
Directors leave the Company, insurance cover is provided
for a period of 12 years from the date of termination.
Time commitment of Directors
Directors are required to devote sufficient time to fulfil
their responsibilities to the Group, to attend and prepare
for Board, Committee and Annual General meetings,
and to regularly refresh and update their skills and
knowledge. The Chairman has reviewed the availability
of the Directors and is satisfied that each Director is able
to, and in practice does, devote the necessary amount
of time to the Group’s business. The Senior Independent
Director has reviewed the availability of the Chairman and
considers that he is able to, and in practice does, devote
the necessary amount of time to the Group’s business.
External appointments
On appointment, and before each Board meeting
thereafter, all Directors are asked to disclose any
directorships, relevant shareholdings or any other
potential conflict of interest. Directors may not, without
the prior consent of the Board, accept any other non-
executive appointment or a consultative role to any
investment business with materially similar investment
objectives to the Company. Prior to accepting an external
appointment, the Committee will consider the demands
that are likely to affect the Director, and the expected time
commitment involved, ensuring that it will not be to the
detriment of the Company. No Directors are considered
to be over boarded, and all devote sufficient time.
During the year Duncan Garrood, CEO, was invited to
join the board of the Brighton Pier Group PLC as a non-
executive Director. Following confirmation that this new
role would not impact on his position at Empiric Student
Property plc, the appointment was approved by the Board.
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Board Evaluation
The annual Board review provides an opportunity to consider ways of identifying
efficiencies, strengths and areas of further development to enable the Board and its
Committees to continuously improve their own performance and the performance of
the Group.
In line with Corporate Governance recommendations, an external evaluation is
conducted every three years and is due to be performed again in 2025.
The 2024 internal Board evaluation was established by the Chairman and the Company
Secretary, incorporating questions from the internal evaluation held in 2023. The
evaluation assessed the effectiveness of the Board in the delivery of the 2024 Board
objectives and also reviewed the Committees, and individual Directors. The software
used provided an effectiveness score for the Board and Committees, which are shown
below along with the key topics covered. Any matters requiring attention are indicated
with a ‘
*
’
100% Overall performance of the Board
87% Composition of the Board (size, skills, culture, leaderships, succession planning
*
and diversity
*
)
90% Meetings and Board Packs (structure and content of Board packs, meetings,
teamwork, contributions, challenges and relations between Directors)
81% Board objectives (purpose and vision, strategy, customer service
*
, workforce
engagement, culture, diversity, ESG
*
and shareholder value creation
*
)
87% Strategy (appropriateness, implementation, measurement, exploring
opportunities
*
and emerging issues)
78% Decision Process (information provided, risks, consideration of stakeholders,
conflicts, advice received
*
, review of past decisions
*
)
The Board evaluation concluded that, overall, the Board continued to operate effectively
throughout 2024. Directors agreed that a huge amount of work had been conducted, the
Board had performed well and had navigated some complex issues in challenging market
conditions. Following the review, further enhancements were proposed for 2025 which
are set out in the table opposite.
It was disappointing that succession planning and ESG were raised as issues in the 2023
and 2024 evaluations, although these had already been flagged by the Committees as
matters they wished to explore further in 2025 and are due to be discussed at the next
Committee meetings in quarter one.
Actions arising from the 2024 Board evaluation
The table below outlines the improvement areas identified following the Board Evaluation
in 2024, together with the proposed action plan.
2024 Key findings 2025 action plan
More focus on succession planning and
reviewing diversity on the Board and in
the workforce.
Further succession plans to be reviewed by
the Committee and diversity targets to be
monitored on a regular basis .
Female Representation and Ethnic Diversity
in Senior Leadership Team has been set as
a Culture related KPI to be monitored
and tracked.
Improvement of our NPS score to further
widen the gap with our competitors.
The eNPS and NPS scores have been
chosen as culture related KPIs and,
although the scores are above benchmarks,
the Board would like to have an increased
focus on raising employee and customer
satisfaction levels.
Raise Importance and clarity of our ESG
agenda to all of our stakeholders.
The Company intends to participate in
an ESG benchmarking study from 2026
which should improve transparency for
stakeholders and create enhanced focus
and comparability.
Unlocking longer term value creation. Ensure that our growth strategy accelerates
value creation.
Exploring new opportunities. To be addressed at the annual strategy day
in June.
Review of past decisions. Discussion to be held to reflect on the
impact of passed decisions made and
lessons that could be learnt, in particular
with regards to the joint venture
proposition undertaken in 2024.
Additional external advice for Committees. Committees to receive additional advice on
specific topics requested.
Nomination committee report | continued
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Update on actions arising from the 2023 Board evaluation
The table below outlines the improvement areas identified following the Board evaluation
in 2023, together with the progress made on these during 2024.
2023 Key findings 2024 action taken
Increased focus on delivering ESG strategy
with further development, and validation of
ESG key performance indicators.
Net zero strategy KPIs were assessed
throughout the year to ensure the Company
remained on track to achieve the targets set.
The ESG targets were put to a shareholder
advisory vote at the AGM in May 2024.
Review succession plans to cover Board
succession and talent management of the
executive team.
Succession plans were reviewed by the
Committee during the year, and a similar
exercise is to be undertaken for the Senior
Leadership team.
Further time to be allocated to discussing
the Group’s organisational culture.
KPIs have been set to enable the
Committee to track culture. These are
reported on page 101.
Committee Evaluation
Committee effectiveness scores are shown below. The matters evaluated covered
leadership, information provided, advisers, and committee specific topics
97% The Audit and Risk Committee was regarded as being well managed, but more
focus was needed on addressing risks.
92% The Remuneration Committee’s leadership was deemed to be first class, but more
support was requested from the external adviser.
84% The Nomination Committee review highlighted the need to spend more time
addressing diversity and succession, as shown in the 2025 action plan.
77% The ESG Committee was regarded as less effective, with greater clarity of strategy
and implementation required.
Directors Evaluation
The performance of the individual Directors was reviewed by the Chairman, and by each
of the other Directors as part of the Board evaluation.
The non-executive Directors understanding of the business, their integrity and time
commitment all scored highly.
The CEO was regarded as setting an excellent example to employees, upholding the
Company’s values and setting its culture, with communication being open and honest
and stakeholder management being strong.
The CFSO was regarded as dedicated to his role and a true business steward delivering
high quality information to the Board and shareholders.
The Chair’s performance was reviewed by the SID, with questionnaires completed
by each of the other Board Directors. The SID then discussed responses received in
private meetings with each Director providing them the opportunity to elaborate on
their answers and to offer any further comments. The review concluded that the Board
was highly supportive of the Chairman and believed his leadership to be clear, inclusive
and extremely effective, investing quality time to build his relationship with his fellow
Board members. A strong ‘tone from the top’ promoted effective decision making
and constructive debate, with the Chair proactively seeking out the views of the non-
executive Directors and encouraging contributions from all. Mark Pain’s expert guidance
and decisive leadership during the JV termination and equity raise were highlighted and
greatly appreciated. Good progress had been made against all areas of opportunity for
improvement which were identified during the prior year review.
Independence and re-election
All Directors are subject to annual re-election at the Annual General Meeting, and the
Board will recommend reappointment as part of the Notice of Meeting.
Prior to recommending the reappointment of any Director to the Board, the Committee
assesses their continued independence, the time commitment required, any over
boarding concerns and whether their reappointment would be in the best interests
of the Group. The Board is satisfied that each of the four non-executive Directors
remain independent in both character and judgement and that they comply with the
independence criteria of the Code.
Biographies for each Director can be found on pages 98 to 99 and are included in the
Notice of the Annual General Meeting to be held on 4 June 2025.
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Employee Survey and Culture
The Committee reviewed the outcome of the employee engagement survey, comprising
54 questions, which had been conducted using the Culture Amp platform. This allowed
the results to be benchmarked against other organisations with an aim of being in the top
25% of organisations in the UK with 200 – 500 employees. The survey resulted in a 78%
engagement score, against a benchmark rate of 75%, and the outcome was very positive
with 90% of people proud to work at ESP. The platform also provided an Employee Net
Promoter Score (eNPS) of +44, which was +18 above the comparator group benchmark
and +37 above the median UK eNPS score. The Committee requested that the survey be
conducted again in 2025 which would track any trends and show any progress made.
In preparation for the 2024 Corporate Governance Code, the Committee considered
how it would monitor and embed culture throughout the business. It was noted that the
student survey produced an NPS score, measuring the customer service received, which
the Committee considered to be a reflection of the Company’s culture and happiness
score. The Committee therefore recommended to the Board that, as the eNPS and
NPS scores were correlated and underpinned the Company’s values, they be used to
monitor culture.
The Committee also recognises the benefits of diversity on the Company’s culture and
is currently looking at ways of improving this throughout the Group. The Committee
therefore recommended that two diversity KPIs be used to provide focus and allow
the Company to monitor its progress. Further information on culture can be found on
page 101.
Diversity and inclusion
The Nomination Committee review the composition of the Board and diversity of the
Group at least annually. A summary of the Company’s Diversity Policy can be found on
page 97 and has been applied throughout the year. When considering diversity across
the Group, the Committee mainly focus on gender and ethnicity, but the strategy also
considers sexual orientation, disability, neurodiversity, age and generation and the
Company has partnered with a number of organisations to help address these areas.
With regards to diversity of the Board, and in accordance with UKLR 6.6.6R (9), the
Company can confirm that as at 31 December 2024:
1. the Company has two women on the Board, equating to 33.3% representation;
2. Alice Avis holds the position of Senior Independent Director, and is also the
employee’s representative on the Board; and
3. no Board Directors are from an ethnic background.
Nomination committee report | continued
The Committee is aware that it has not met the targets for Board diversity for (1) and (3)
above and, in order to address these targets, the Nomination Committee considered
two options: (a) to increase the size of the Board or (b) to replace a Director by either
removing an existing Director or upon normal rotation.
The internal Board evaluation outlined above showed that the Directors considered the
Board to be the right size with a good range and diversity of age, skills and experience
allowing the Board to operate effectively. The relatively small size allows the Board to be
agile and take advantage of situations such as the successful capital raise completed in
October. The Chairman is therefore reluctant to add any further Directors, and further
cost, to the Board, or to remove any current Directors, in order to meet diversity targets.
Therefore, as vacancies arise, we will seek to select the very best candidate from a fully
diverse list. This is not expected to occur in the near term due to the length of the current
Board member’s individual tenures and should therefore be appreciated that
this may take time.
The table below shows representation on the Board, within Executive Management and
across the Group as at 31 December 2024. There have been no changes to the Board or
to the executive team during the year or since the date on which this Annual Report was
approved. The executive management team comprises the CEO, CFSO, Chief Investment
Officer, Chief Operating Officer and Chief Customer Officer.
Gender representation on the Board and across the Group
Number
of Board
members
Percentage
of the Board
Number
of Senior
positions on
the Board
(CEO, CFO,
SID and
Chair)
Number in
Executive
Management
Percentage
of Executive
Management
Numbers
across the
Group
Men 4 66.6 3 3 60 204
Women 2 33.3 1 2 40 163
Other – – – – –
Not specific
– – – – –
2
Below the Board, 32 per cent (FY23: 29 per cent) of the senior leadership team, are
female, with females representing 44 per cent (FY23: 42 per cent) of all employees, which
has increased year on year. Furthermore, the gender Pay Gap data reported in April 2024
showed that females were paid higher than males in the business for pay and bonus.
This continues to illustrate the level of female representation in the upper middle and
upper quartiles, with increases of four per cent and five per cent respectively with a six
per cent reduction in female representation in the lower quartile.
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Gender representation on the Board Committees
The level of gender diversity is exceeded on all the Board Committees, except on the ESG
Committee, which is attended by all Directors.
Nominations
Committee
Audit and Risk
Committee
Remuneration
Committee
ESG
Committee
Men 2 (Chair) 1 (Chair) 2 4 (Chair)
Women 2 2 2 (Chair) 2
The Chairs are chosen according to appropriate qualification or experience.
The Chairman leads the Nomination Committee, to ensure an effective Board, and also
chairs the ESG Committee, to highlight his commitment and that of the Company to this
matter. Martin Ratchford as a chartered accountant, chairs the Audit and Risk Committee,
and Alice Avis, having the requisite experience, chairs the Remuneration Committee.
No changes to the membership of the Committees have occurred during the year.
Ethnicity representation on the Board and across the Group
Number
of Board
members
Percentage
of the Board
Number
of Senior
positions on
the Board
(CEO, CFO,
SID and
Chair)
Number in
Executive
Management
Percentage
of Executive
Management
Numbers
across the
Group
*
White British
or other White
6 100 4 5 100 158
Mixed/multiple
ethnic groups
– – – – – 12
Asian Black/
Africa
– – – – – 21
Caribbean/
Black British
– – – – – 7
Other – – – – – 1
Not specified
– – – – – 190
* It should be noted that the reference date for the Group ethnicity data is 31 August 2024 and therefore does not
align with the gender figures which were taken at 31 December 2024. All gender and ethnicity data is collected
from each employee by the People team during the onboarding period, on an optional basis. In order to improve
the quality of data, a survey is to be undertaken in 2025, with an explanation provided to the employees as to
why the data is required. All employees are based in the UK.
Across the Group, there is currently 21 per cent (FY23: 21 per cent) of responding
employees identified as being from an ethnic minority. When the data is reviewed by
remuneration band, it shows that we have representation across all ethnicity groups in
Bands 2 (housekeeper, maintenance operative) to Band 4 (deputy multisite manager)
groups, which are typically customer facing roles. This data also highlights that there is
no representation of ethnic minorities on the Board or Senior Leadership Team, although
a target has been set for the latter, to achieve at least 10 per cent ethnic membership by
the end of 2027. In order to achieve this, and improve diversity in general throughout the
Company, we are working with DIAL Global, Stonewall and Inspiring Diversity in
Real Estate to ensure our policies and recruitment procedures are more inclusive.
An assessment has also been completed with the Business Disability Forum and their
suggested action points are being implemented.
In addition, the Company has invested in support and career pathways to increase
diversity in the workforce by launching an accredited Institute of Leadership and
Management (ILM) qualification, 60 of those who completed the qualification were
female. The organisation has since launched an inhouse pathway to management
programme which is supported by an externally accredited apprenticeship with
the first cohort comprising 75 per cent female aspiring future leaders from across
the organisation.
We value the benefits of diversity and intend to maintain an appropriately diverse Board
and Senior Leadership Team and we will continue to actively seek diversity amongst
candidates where vacancies arise. We are also confident that our new partnerships will
assist in improving our diversity, but with an 80% retention rate, and a policy to promote
talent from within, we are aware that this will take time.
The Board Evaluation highlighted the Board’s desire to improve diversity across the
Company, with two diversity KPIs set to monitor culture and track the Company’s
progress to achieve a more diverse workforce. Diversity is therefore very much on the
Board’s and Committee’s agenda for 2025.
Mark Pain | Nomination Committee Chairman
12 March 2025
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Environmental social governance committee report
ESG Committee Chair’s overview
I am pleased to present the report of the ESG committee,
which was established in 2021, to ensure good
governance and management of climate-related risks
and opportunities in a responsible and transparent
manner. The ESG strategy is aligned with our overall
business strategy and reinforced by the Committee and
management team, although we believe that we need the
collaboration of all our people to successfully deliver our
ESG strategy.
The Board considers climate change when reviewing
business strategy and when setting annual budgets. The
remuneration policy, which was updated in 2023, created
a clear linkage to the Executive performance and the ESG
key performance indicators, with both Executives having
personal ESG targets within their bonus objectives.
All objectives remain subject to the discretion of the
Remuneration Committee.
Committee composition and operations
All Board Directors are members of the ESG committee
which met three times during the year (March, August and
December). Meetings were attended by all members and
when applicable, our ESG advisers, Inspired PLC.
The Chief Financial and Sustainability Officer oversees the
day-to-day responsibilities of climate-related projects
and ensures that climate-related risks and opportunities
are identified, and the potential impacts are accurately
and formally reported to the ESG Committee, Audit & Risk
Committee and the Board.
An ESG Working Group, led by the Chief Financial and
Sustainability Officer, comprises representatives from
numerous departments throughout the business. The
Group meets on a regular basis and has established a
well-developed ESG Management Framework that has
embedded the management of climate change issues
within our business.
“ The Group is making good
progress against its targets,
with 64 per cent of the portfolio
already rated at EPC B or above.”
Mark Pain | Environmental, Social Governance
Committee Chairman
Committee membership and meetings
Meetings
Mark Pain 3 (3)
Alice Avis 3 (3)
Martin Ratchford 3 (3)
Clair Preston-Beer 3 (3)
Duncan Garrood 3 (3)
Donald Grant 3 (3)
ESG Management Framework
The Board
Has overall responsibility for the Group’s ESG strategy
and its direction.
ESG Committee
Chaired by the Company’s Chairman, the Committee
oversees the creation of the overall ESG strategy for
the Group, ensuring that there is Board level discussion
and input.
Our People
The successful delivery of our ESG strategy across the
business, requires the collaboration and support of
all our people.
ESG Working Group
Chaired by the CFSO, invited members of the senior
leadership team meet monthly and ensures the ESG
strategy is embedded throughout the business.
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Responsibilities of the Committee
The Committee operates within terms of reference
approved by the Board, which outline the responsibilities
of the Committee, these being:
î To assist the Board in defining and regularly reviewing
the Group’s strategy relating to ESG matters and in
setting relevant KPIs;
î To develop and review regularly the policies,
programmes, practices, targets and initiatives of the
Group relating to ESG matters ensuing they remain
effective and up to date and consistent with good
industry practice;
î To provide oversight of the Group’s management of
ESG matters and compliance with relevant legal and
regulatory requirements, including applicable rules and
principles of corporate governance, and applicable
industry standards;
î To report on these matters to the Board and, where
appropriate, make recommendations to the Board; and
î To report as required to the shareholders of the
Company on the activities and remit of the Committee.
Activities and matters discussed during 2024
The March meeting primarily focused on the draft
disclosures for the Annual Report and the more detailed
ESG Report which was published separately on the
Company’s website. It was also decided, as part of our
commitment to achieving Net Zero by 2033, to put our
shorter-term targets for 2024 and 2025 to an advisory
shareholder vote at our Annual General Meeting in May
2024. Although the resolution was passed, the result was
somewhat disappointing, with 25 per cent of responding
shareholders voting against. In order to better understand
the result, and inform future decision making, we sought
engagement with shareholders. From those shareholders
that provided feedback, it appeared in part that they
required a clearer articulation between the cost and
return that could be expected for each of target. This will
be addressed when next put to shareholders in 2026.
I am pleased to report that we are making good progress
on most of our targets. The portfolio’s EPC ratings are
comfortably ahead of the target having 64 per cent of
the portfolio already rated at EPC B or above.
Over 2,000 smart heating controls have been installed
and the decarbonisation of our sites continues, with one
of our larger sites completed this year. Our decarbonised
portfolio currently stands at 25 per cent by area, which is
a little behind where we would have hoped to be given our
interim target of 40 per cent by the end of 2025. Greater
focus will be given to this important target in 2025,
however it is very pleasing to see our initiatives continuing
to drive our energy consumption per bed lower year on
year, with a further five per cent consumption saving
achieved in 2024.
The Committee recognises the importance of education
to influence behavioural change. Energy awareness
campaigns were held in the summer and winter across all
sites for both employees and students. Impact analysis is
being conducted to measure the effect of our training on
behaviour in light of greater awareness. More details on
our progress made against targets can be found on
page 54.
Our advisers provided an overview of Climate Change to
help build the Committee’s capacity and understanding.
The presentation explained the pillars of TCFD, the three
approaches to Climate Scenarios, and the actions that
could be taken to offset climate change and achieve
Net Zero.
The ESG risk register was reviewed and subsequently,
the Board approved the inclusion of significant climate-
related risks into the Group’s comprehensive risk
register. Climate-related investment thresholds, linked to
improved investment decision making, will be considered
further in the next reporting cycle.
In response to requests from shareholders the Committee
considered six benchmarking platforms, looking at
the disclosure requirements for each, the benefits that
would be gained and whether other PBSA companies
participated. It was noted that CDP appeared to be
increasing in popularity and was well respected
amongst our shareholders base. CDP was therefore
recommended as the Company’s benchmark for
reporting its ESG credentials. The aim is to start reporting
against these requirements in 2026 for the year ended
31 December 2025.
The Board evaluation considered the ESG Committee
required greater clarity of strategy and implementation.
I believe that participation in the CDP benchmark will go
someway to improving transparency for stakeholders
and create enhanced focus and comparability for the
Committee going forward.
Mark Pain | ESG Committee Chairman
12 March 2025
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Audit and risk committee report
Audit and Risk Committee Chair’s overview
The Committee has continued its role of governance
and oversight of the Group’s financial reporting, risk
management, internal controls, assurance processes
and external audit. This is conducted on behalf of the
Board, as set out in the Committee’s terms of reference,
serving to protect the interests of shareholders. Following
the Company’s promotion to the FTSE 250 in 2023, the
Committee revisited the Financial Reporting Council’s
Minimum Standard for Audit Committees and the External
Audit and was satisfied that its activities and operations
throughout the year complied.
The Committee oversaw a formal tender process,
conducted in late 2024, for the external property valuation
contract. In line with the requirements of the Royal
Institution of Chartered Surveyors, valuation houses are
no longer able to conduct valuations for regulated entities
for more than ten consecutive years. The Committee has
unanimously agreed with management’s recommendation
to appoint Cushman & Wakefield as the Company’s Valuer
from 2025. A summary of the process followed is set
out below.
In preparation for the year ahead, the Committee’s terms
of reference were updated in line with the 2024 Corporate
Governance Code and can be found on the Company’s
website www.empiric.co.uk. With the implementation
date of Provision 29 of the new Code approaching,
the Committee spent time with management planning
how the Group would identify, monitor and test the
effectiveness of material controls, and the related
attestations that would be required from 2026.
Committee composition and operations
The Committee comprises three independent non-
executive Directors. The Board continues to be satisfied
that Martin Ratchford has the recent and relevant financial
experience required to chair the Committee and the
Committee as a whole has the competence relevant to the
sector in which the Group operates.
The Committee met three times during the year, in March,
August and December. Meetings were attended by all
relevant members and were aligned to the Company’s
financial reporting and risk management cycles.
All meetings were attended by the Company’s Chairman,
the CEO, the CFSO, the Financial Controller and the
Company Secretary. In March and August the External
Auditor and Valuer were invited to attend and present
their respective reports and valuations to the Committee,
which the committee reviewed and challenged.
The Committee holds private meetings with the external
and Internal Auditor without management being present,
in order to ensure open and direct feedback is possible,
and to ensure the auditor has had sufficient access to
management and to confirm how they have exercised
professional scepticism.
The Internal Auditor also attended to present reports
and findings from their work throughout the year and in
December, following the conclusion of the Group’s risk
management review, which the Committee reviewed and
challenged. They presented their internal audit plan for
the forthcoming year for the Committee’s consideration
and approval.
Responsibilities of the Committee
The Committee has delegated responsibility from the
Board and is primarily responsible for discharging
governance responsibilities in respect to oversight of
financial reporting, audit, risk and the internal control
environment and to report to the Board as appropriate.
Specifically the Committee:
î reviews the work of both the External and Internal
Auditor and the Group’s independent Valuer;
î monitors the integrity of the Group’s annual and interim
financial statements and any formal announcements
or correspondence in respect of the Group’s financial
information;
î considers significant financial reporting issues,
judgments and estimates exercised by management in
the preparation of financial information;
î advises the Board on various statements made in the
Annual Report, including those on viability, going
concern, risk and internal controls and whether, when
read as a whole, the Annual Report can be considered
fair, balanced and understandable and is considered to
provide the information necessary for shareholders to
“ The Committee continues to
monitor quality and integrity,
providing stakeholders with
responsible and transparent
oversight of the Group’s
financial reporting, internal
control and risk management
procedures.”
Martin Ratchford | Audit and Risk Committee
Chairman
Committee membership and meetings
Meetings
Martin Ratchford 3 (3)
Alice Avis 3 (3)
Clair Preston-Beer 3 (3)
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Governance report 119
assess the Group’s performance, its business model
and strategy;
î considers and approves the remuneration of the
External Auditor, assessing effectiveness and making
recommendations to the Board on the appointment of,
and the policy for, non-audit services provided by the
External Auditor;
î oversees the tender process for auditors and the
Valuer and recommend appointments;
î considers and approves audit plans;
î reviews the risk management framework and ensures
that risks are carefully considered, ranked and that a
system of risk management and mitigating controls
are in place and operating effectively; and
î reviews whistleblowing arrangements and any
matters arising.
The Board delegates these duties to the Committee so
they can receive suitably focused attention, however the
Committee acts on behalf of the Board, and the matters
reviewed and managed by the Committee remain the
responsibility of the Directors as a whole.
Activities and matters addressed during 2024
During the year the following matters were considered:
î reports from the Company’s Valuer, CBRE;
î the impact of the abolition of Multi Dwelling Relief;
î reports from the Company’s External Auditor, BDO LLP,
regarding the 2023 full year results, the 2024 interim
results and the 2024 year end audit plan;
î reports from the Company’s Internal Auditor, Grant
Thornton LLP, including the 2025 internal audit plan;
î reports from the Financial Controller;
î risk management process, outcome and related
disclosures;
î financial stress testing and covenant compliance;
î viability and going concerns assessment and
related disclosures;
î 2023 report and accounts;
î 2024 interim statement;
î recommendation of dividend payments;
î effectiveness of internal controls and the process for
defining and testing material controls;
î independence, effectiveness and quality of the external
and Internal Auditor;
î significant areas of estimation and judgement;
î review of accounting policies;
î REIT compliance;
î consideration of parental guarantee to facilitate audit
exemption of 104 subsidiary entities;
î review of whistleblowing policy and procedures;
î review of Company’s policy in respect of non-audit fees;
î review of the related parties register;
î review of terms of reference; and
î tenders for valuation services from Knight Frank and
Cushman & Wakefield.
External Auditor independence and non-audit services
The Committee considered BDO LLP’s engagement,
compensation and independence during the year.
The Committee met with key members of the audit team,
including the lead audit engagement partner. As part of
the annual reporting process, BDO LLP formally confirmed
its independence, through its compliance with the FRC’s
Ethical Standard and the IESBA Code of Ethics, and
further assurances obtained from independent auditors
and external audit experts. Confirmation was also given
that the necessary safeguards were in place to limit the
amount of non-audit services they can provide, and a
policy of gradual rotation covering the senior audit team
members, further protecting their independence.
The Committee and management regularly liaise with
the lead audit partner to discuss any issues arising from
the audit in a timely manner to aid cost effectiveness.
I continue to have dialogue with the external audit partner
throughout the year, outside the formal schedule of
Committee meetings.
The Group’s policy in regard to non-audit services is
reviewed by the Committee annually and continues to
align to the Financial Reporting Council’s ethical guidance
which sets out acceptable services which are sufficiently
related to the audit and caps total fees for such services
to be limited to no more than 70 per cent of the average
audit fees paid in the last three financial years.
During the year, other than the review of the Group’s
interim statement, (being an activity required for
regulatory purposes), BDO LLP did not provide any
non-audit services.
The following fees were paid to the External Auditor
during the year and are included within administrative
expenses in the Group’s Statement of Comprehensive
Income.
£m
Year ended
31 December
2024
Year ended
31 December
2023
Audit and related fees
1
0.4 0.5
Non-audit fees
2
0.1 0.1
Total 0.5 0.6
1 Audit and related fees for the year ended 31 December 2023 included
£0.1 million arising in respect of the audit for the year ended 31
December 2022
2 Non-audit fees of £56,000 relate to the review of the Group’s interim
statement (2023: £53,500)
KPMG LLP continues to support the Group with the
provision of tax compliance and advisory services.
Effectiveness and quality of the External Auditor
The Committee reviewed the effectiveness and quality of
the new External Auditor. In doing so, consideration was
given to the following:
î review of the auditors Audit Quality Plan, and
assurances from BDO LLP of their ongoing
independence, in line with the Financial Reporting
Council’s ethical standards;
î review of, and discussion with, the External Auditor in
respect of the Financial Reporting Council’s Annual
Review of Audit Quality and Audit Quality Inspection
and Supervision report;
î quality of written reports submitted to the Committee,
were considered clear and concise with presentations
at meetings being considered balanced, clear and
understandable;
î consultation with management that demonstrated the
auditor’s competency and experience necessary to
perform their role effectively;
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î audit queries that demonstrated professional scepticism were raised and dealt with in
a proactive and timely manner and there was sufficient challenge with regard to areas
of judgement, estimate, internal controls and areas of heightened risk;
î challenge management’s judgements. The Committee specifically requested BDO to
challenge management’s assumptions on valuations, and demonstrate professional
scepticism. BDO held meetings with management and the external Valuer on this topic
and reported the findings back to the Committee; and
î publications were provided to management throughout the year on emerging issues
and financial reporting updates.
After due consideration the Committee concluded that the External Auditor had
continued to provide a high quality and effective audit during a year in which there had
been a change in audit partner which followed retender in 2023. The Committee was
therefore satisfied that a recommendation to reappoint BDO LLP as External Auditor
could be made to the Board.
Internal Auditor and the control environment
The Group is committed to a process of continual improvement of its internal control
environment. The Internal Auditor acknowledged that the quality of the Group’s finance
function had improved and confirmed that critical controls were now well embedded
throughout the business. Although some areas of weakness were identified, none
were considered to materially impact the overall control environment with adequate
segregation of duties and controls with appropriate fraud detection measures in place.
The Committee reviewed the effectiveness of the internal control environment
throughout the year through reports prepared by the Internal Auditor, the Financial
Controller and the CFSO. The Committee also met with the lead partner at Grant
Thornton LLP without management to provide the opportunity for open and
transparent feedback.
The Committee was satisfied that no significant weakness was identified and concluded
that the Internal Auditor and the control environment were effective and that the internal
control environment was appropriate for a Group of our size and complexity.
During the financial year the Company’s Internal Auditor, Grant Thornton LLP, reported on
the following internal audits:
Audit area Key risk considered Summary of scope
Data
protection
Compliance with GDPR
regulation
• Collection and use of personal data;
• Policies and procedures in place to maintain
DPIAs and ROPAs;
• Governance and training; and
• Record and breach management.
Payroll Protect against
inappropriate payments
and fraud
• Controls surrounding changes to standing
data, adding and removing employees; and
• Segregation of roles.
Council Tax Compliance with
framework
• Recognition of liabilities and appropriate use
of exemption status; and
• Identification and processing of refunds.
All audits received a low to medium risk grade. In all cases appropriate management
responses were provided to findings and the status of outstanding actions monitored
and reported to the Committee. At the end of the year all actions had either been
completed or were in progress in line with agreed plans.
The Internal Auditor’s plan for 2025 was reviewed and agreed in late 2024.
The Committee was satisfied that the plan was designed to provide external assurance
on the control environment pertinent to key risk areas in the context of the Group’s
overall risk management system, including the operational effectiveness of critical
mitigating controls.
Audit and risk committee report | continued
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Significant accounting estimates and judgements.
The Committee reviews significant judgements and estimates exercised in the
production of the Group’s financial information and related disclosures.
Consistent with the prior year, the valuation of investment property remains one of
the most significant judgments in the Group’s financial statements. The valuations are
scrutinised by both the Committee and the External Auditor. The External Auditor’s
specialist valuation adviser considers the appropriateness of the procedures undertaken
and whether the valuations can be considered to fall within an acceptable range. In each
case, no issues were raised.
The Valuers have confirmed, and have demonstrated, that they are appropriately qualified
to carry out the valuations and that fees received are not a material part of their overall
fee income. The Committee monitors the objectivity and independence of the Valuer
through both formal Committee and informal one to one meetings. The Committee is
satisfied that the Valuer remains objective and independent.
The treatment of operating lease contracts remains a key judgement. Student leases do
not exceed a term of 51 weeks in length and the Committee remains satisfied, following
an evaluation of the Group’s commercial lease contracts, that these can continue to be
accounted for as operating leases as the Group continues to retains all significant risks
and rewards of ownership.
Tender process for the external Valuer
In 2024 CBRE valued a number of the Group’s properties for the tenth consecutive year.
In line with the requirements of the Royal Institution of Chartered Surveyors, mandatory
rotation of the Valuer is required for regulated entities after ten years. A competitive
tender process was therefore carried out during 2024. The Committee met with two
valuation houses recommended by management. Particular attention was paid to the
depth of experience, quality of research and reporting, alignment of approach with the
outgoing Valuer and approach to fees.
After due challenge and consideration, the Committee concurred with management’s
recommendation to appoint Cushman & Wakefield as the Company’s external Valuer
from 2025 and recommended their appointment to the Board.
Going concern and viability
The appropriateness of preparing the Group’s financial statements on a going concern
basis remains a significant area of judgement. The Committee reviews and considers
whether management’s assessment of the Group’s long-term viability appropriately
reflects the prospects of the Group and covers an appropriate period of time.
Specifically, the Committee considered whether the assessment reflected the Group’s
low risk appetite, its principal risks, strategy and the current operating environment.
The Committee then reviewed the assumptions and sensitivities applied in stress
testing the Group’s base case plan and whether these represented severe but plausible
downside scenarios. The Committee had particular regard for the status of refinancing
activities and the related assumptions inherent in the Group’s model.
In conclusion, the Committee concurred with management’s assessment and
recommended the adoption of the going concern basis of preparation and the viability
statement to the Board. The viability statement, together with details on the assessment
undertaken and stress tests applied, are set out on page 43.
Changes in accounting policies and standards
The Committee is responsible for reviewing any proposed changes in accounting
policies and the implementation of new accounting standards.
After due consideration, no changes were proposed to the Group’s accounting
policies which have been consistently applied throughout the year to 31 December
2024. Following discussions with management and the External Auditor, no new
accounting standards or annual updates were expected to have a material impact on the
consolidated financial statements for the year ended 31 December 2024. The Auditor
confirmed that the Company has complied with all policies during the year.
Risk management
A process for identifying and recording risks has been established and is embedding
within the business. A Group risk register is compiled from the reports of the various
divisions and corporate functions. Prior to its submission to the Committee, review
meetings are held with departmental heads, and the identified risks and associated
ratings are challenged where appropriate. Guidelines ensure a commonality of approach
with thresholds set from a financial, reputational and timeframe perspective. Risks were
assessed based on a ‘gross’ and ‘net’ exposure basis, with ‘net’ exposure determined after
considering the impact of mitigating actions or controls which are currently in place.
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Results are analysed to identify the Group’s principal risks which are then compared to
the previous review and proposed disclosures then highlight any significant change or
new and emerging risks. Further potential mitigation strategies are then considered for
all principal risks.
The most notable changes this year were:
î failure to meet equity raise commitments and related impact on reputation and future
fund raising potential;
î uncertainty in government policy given the relatively new government and other
geopolitical factors;
î ongoing inflationary pressure on administrative, operational and refurbishment
related costs, together with the longer term impact of the autumn 2024 budget and its
consequence to strategic plans;
î concerns regarding utility costs which are widely expected to remain higher for longer;
and
î heightened risk of disruption to occupancy caused by alternative accommodation
providers.
Full disclosure of the Group’s principal risks are set out on pages 38 to 42.
Whistleblowing
The Committee is responsible for reviewing the arrangements by which staff can raise
concerns, in confidence, about any possible improprieties relating to financial reporting
or other matters. During the year we have reviewed the Whistleblowing Policy and
ensured it has been widely published throughout the Group and on the website.
The policy encourages disclosure internally to the line manager or the Company
Secretary. If staff wish to raise their concerns externally details of the External Auditor
and Citizens advice are provided.
The Committee has concluded that the Group has suitable arrangements for
proportionately and independently investigating such matters and for appropriate
follow-up action.
Conclusions in Respect of the Company’s Annual Report
The production and audit of the Annual Report is a comprehensive process, requiring
input from several different contributors and teams from across the business with input
from the Chief Executive Officer and Chief Financial and Sustainability Officer. There are
early opportunities for the Board to review and comment on the Annual Report during
its evolution. To reach a conclusion on whether the Annual Report taken as a whole is fair,
balanced and understandable, as required by the Code, the Board has requested that the
Committee considers whether the Annual Report fulfils these requirements.
In forming its conclusion, the Committee considered information provided to it
throughout the year, together with the following:
î the controls in place for the production of the Annual Report, including the verification
processes to confirm its factual accuracy;
î the detailed reviews undertaken at various stages of the production process by
the executive Directors, Company Secretary, legal adviser, brokers, auditor and the
Committee, which are intended to ensure consistency and overall balance;
î a cross check between Board minutes and the Annual Report is undertaken to ensure
that reporting is balanced and complete; and
î whether information is presented in a clear and concise manner to facilitate users
access and understanding of relevant information.
As a result of this work, the Committee has concluded and reported to the Board
that the Annual Report for the year ended 31 December 2024, taken as a whole, is fair,
balanced and understandable and provides the information necessary for shareholders
to assess the Group’s position, performance, business model, strategy and principal
risks. The Board’s conclusions in this respect are set out in the Directors’ Responsibilities
Statement on page 145.
Should any stakeholders wish to contact me, I can be reached via the ‘Contact us’ link on
the Company’s website and would be happy to address any questions shareholders may
have in respect to the Committee’s activities.
Martin Ratchford | Audit and Risk Committee Chairman
12 March 2025
Audit and risk committee report | continued
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Remuneration committee report
Statement from the Chair of
the Remuneration Committee
Committee composition and operations
The Committee is comprised of three non-executive
Directors and the Company’s non-executive Chairman.
The three non-executive Directors are also members
of the Audit and Risk and ESG Committees, which
ensures they have a wide appreciation of the work,
achievements or improvements required of the executive
Directors, which aids in establishing their objectives
and determining their performance in line with the
Remuneration Policy. Alice Avis was appointed Chair
of the Committee in April 2022 having had previous
experience as Chair of Remuneration committees.
The Committee is responsible for reviewing and
making recommendations to the Board regarding the
Remuneration Policy and for reviewing compliance
with Policy. The Committee met three times during the
year, with meetings attended by all relevant members,
including the Company Secretary. Deloitte are retained
to provide advice to the Committee, where required.
Key activities during 2024
î Alignment of the Company’s strategy and executive
objectives with shareholders’ interests
î Reward decisions relative to personal and Group
performance
î Employee engagement
î Benchmarking executive compensation
î Reviewing the Chairman’s remuneration
î Remuneration and benefits of wider workforce
î Gender pay report
î CEO pay ratio, internal proportionality and LTIP vesting
Dear Shareholder,
On behalf of the Board, I am pleased to present the
Directors’ Remuneration Report for the year ended
31 December 2024.
The report is divided into three parts:.
î The Annual Statement which summarises the
remuneration outcomes in 2024, the key decisions
taken and how the Remuneration Policy (“Policy”)
will be applied in the current financial year;
î A summary of the Remuneration Policy which was
approved by shareholders at the Annual General
Meeting on 24 May 2023; and
î The Annual Report on Remuneration which sets out full
details of all remuneration matters.
We greatly value engagement with our shareholders and
the constructive feedback we receive on remuneration
issues. I look forward to your continued support at the
forthcoming Annual General Meeting, and will be available
to address any questions you might have in respect to the
Committee’s activities.
ALICE AVIS MBE | Remuneration Committee Chair
“ Our remuneration Policy, and
its application, is designed to
provide alignment with the
Group’s performance, strategic
progress and stakeholder
interests, to ensure rewards are
performance-based and fair.”
Alice Avis MBE | Remuneration Committee
Chair
Committee membership and meetings
Meetings
Alice Avis 3 (3)
Mark Pain 3 (3)
Martin Ratchford 3 (3)
Clair Preston-Beer 3 (3)
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Annual Statement
2024 performance and reward
The Group delivered another strong operational performance in 2024, with like for like
rental growth across the financial year in excess of nine per cent, strong occupancy and
improved customer service scores. Market conditions have however been challenging,
in particular with respect to continued inflationary cost pressure and changes in
government policy.
In October, the Company made the decision to terminate its prospective joint venture
discussions in favour of an equity raise, which was successfully concluded. Although
a little later than envisaged, the Group has now begun to make good progress on its
growth agenda with three new acquisitions added to the Group’s portfolio and funding
in place to roll out our postgraduate exclusive product independently.
With the Company’s growth strategy secured and its delivery in sharp focus, the Board
has confirmed its intention to increase its dividend for the 2024 financial year by six per
cent, from a target of 3.5 pence per share to 3.7 pence per share.
The Group’s philosophy is to provide students with a ‘Home from Home’. Our customer-
first philosophy, coupled with a boutique, personalised experience in a safe and
welcoming environment enables them to make the most of their time at university.
During the year the Group succeeded in achieving further improvement in overall
customer satisfaction scores. This is reflected in the results from the latest annual
GSLI survey which shows our Net Promoter Score continuing to improve from +30.5 to
+32, significantly outperforming the benchmark score for All Private Halls score which
received +19. During the year, GSLI awarded our operating brand, Hello Student, with
the accolade for best student wellbeing, in recognition of the work undertaken in recent
years to address this increasingly important aspect of our service proposition.
Despite this performance and the good progress made in respect of personal strategic
objectives, inflationary challenges particularly in respect of utility and employment
related costs have resulted in a significant reduction in the formulaic outcome for
Duncan Garrood and Donald Grant’s annual bonus award to 28.9 per cent and 26.5 per
cent of maximum respectively.
The availability of the maximum Group-wide bonus opportunity for 2024 was linked
to the delivery of a targeted gross margin of 70 per cent and delivery of an inflation-
adjusted increase in underlying overhead costs. As these targets were not met in full,
the available Group-wide bonus pool was reduced and, accordingly, a discretionary
reduction was applied to the formulaic outcome of all employees’ annual bonuses. In
respect of the Executive Directors, post application of discretion by the Committee,
Duncan Garrood was awarded 13.9 per cent of his maximum annual bonus opportunity,
with Donald Grant achieving 12.7 per cent.
The three-year performance period for the LTIP award granted to Duncan Garrood on
24 March 2022 ended during 2024. The award was subject to two equally weighted
performance conditions, relative Total Shareholder Return and Total Return (being
growth in NAV per shares plus dividend paid). Taking both performance measures
collectively, overall vesting of 67.7 per cent was achieved. In line with the Remuneration
Policy, vested awards remain subject to a further two-year holding period before they
become exercisable. The Committee believes that the LTIP continues to promote the
right behaviours to support the Company’s strategy, performance and values.
Full details of the 2024 reward outcomes are set out on pages 131 to 136.
Workplace Engagement and Remuneration
Our employees play a critical role in delivering an outstanding service experience which
is central to our brand proposition. To ensure that we continue to attract and retain
talent, the Group strives to reward its employees with a compensation package that
ensures we remain competitive. We are proud to compensate our employees in line with
the Real Living Wage Foundations recommendations.
During 2024, the Committee reviewed pay and benefits across the wider workforce,
with particular consideration given to the ongoing impact of the rate of inflation and the
impact of the Real Living Wage increase. The 2024 annual pay review for the workforce
resulted in an average salary increase of 4.4 per cent. The annual review will be moved
from 1 January to 1 April from 2025 and will result in an average salary increase of 4.1
per cent, with our lowest paid employees continuing to receive increases in line with
the Real Living Wage, which for 2024 was above the rate of inflation at five per cent.
Acknowledging of the change in the effective date for annual pay reviews, we have
awarded each employee an additional day’s annual leave in 2025.
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The Company launched a three year Sharesave scheme in July 2021, allowing employees
the opportunity to buy into the success of the Company. The 2021 intake vested this year,
with 18 employees exercising their vested awards in 2024, with another 30 employees
electing into the scheme in 2024. Of all eligible employees, 18 per cent now participate in
the scheme.
Having reviewed employee compensation arrangements, the Committee is satisfied that
employee pay and conditions remain fair and proportionate.
The One Team Collective is the Group workforce advisory panel consisting of eleven
representatives from across the Group. Its focus is to support and facilitate two-way
communication and feedback between the workforce and senior leaders on topics
raised by employees. As the Company’s Senior Independent Director and Remuneration
Committee Chair, I was appointed to lead workforce engagement on behalf of the
Board. In 2024 I met with the OTC at all four meetings held to discuss key topics arising.
Relevant issues and insights from these sessions were then shared with the executive
team and Board to inform discussions.
Separately in 2024, the executive committee travelled to three locations across the UK
to facilitate one to one interaction with all Group’s employees. Last undertaken in 2022,
the format of these sessions was well received, providing an opportunity for employees
to better understand strategic plans and priorities and to provide a forum for everyone to
ask questions and engage with the executive team for a day in an informal environment.
Our new team member engagement survey launched in 2024 and delivered a three
percentage point above benchmark engagement score of 78 per cent, putting us in the
top 25 per cent of companies with 200 – 500 employees across the UK. 90 per cent of
people stated they were “proud to work for the Group” and 90 per cent stated that they
recommend the Group as a “great place to work”. Our eNPS (employee net promoter
score) was 37 points above the UK median.
Throughout the year we maintained strong retention across the Group and achieved
retention rate of 78 per cent for the year to 31 December 2024. We have invested in
leadership development opportunities for a group of senior leaders identified as
brightest stars demonstrating potential to be successors to the executive committee.
Our ‘Hello Future Stars’ programme, supported by external apprenticeship programmes,
supports the development of these aspiring leaders. Investing and supporting
development has helped us to fill 61 per cent of vacancies internally.
Gender Pay
The Group believes that creating a diverse and gender balanced workforce enhances the
customer experience and improves the experience employees have at work. We provide
learning and development opportunities for all team members and champion internal
progression for all.
We are required to report upon the gender pay gap within our subsidiary, Hello Student
Management Limited. Analysis based on data to 5 April 2024 demonstrates that the
mean gender pay gap is -0.9 per cent (with females paid more than males) and the mean
gender bonus gap is -13.1 per cent (females paid higher bonuses than males).
This represents a marginal improvement in favour of females in respect to the gender pay
gap, and in favour of males in respect of the bonus pay gap. This continues to illustrate
the level of female representation in the upper middle and upper quartiles, with increases
of four per cent and five per cent respectively with a six per cent reduction in female
representation in the lower quartile.
We are pleased with the progress made to date and remain committed to improving
our position to attract a diverse selection pool for vacancies and ensure we recruit the
most suitable candidate for a role regardless of gender. The Committee is satisfied that
equivalent roles attract equivalent remuneration, regardless of gender.
Full details with a supporting narrative are published on our Hello Student website,
www hellostudent.co.uk, and are prepared in line with the UK Equality Act 2010
(Gender Pay Gap Information) Regulations Act 2017.
CEO Pay Ratio and Internal Proportionality
Under the requirements introduced by The Companies (Miscellaneous Reporting)
Regulations 2018 we have calculated the CEO to employee pay ratio for the Group.
Using the methodology, the CEO pay ratio, when compared against the median
employee, is 36:1 with full details set out on page 138, the Remuneration Committee
believes in reward packages that are externally competitive and internally proportionate,
meaning the CEO is the employee with the highest proportion of variable pay as he has
the highest level of responsibility. The ratio includes the value of vested LTIP awards
that were granted to Duncan Garrood in March 2022, as is required by the reporting
regulations and so is higher than the years 2019-2022 when no LTIP awards vested to the
in-post CEO.
Excluding the value of vesting LTIP awards, which are subject to a further two-year
holding period before they become exercisable, the pay ratio remains below 2019 pre-
Pandemic median, 25th and 75th percentiles, demonstrating our continued investment in
the pay and reward of our workforce.
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Remuneration committee report | continued
2025 reward decisions
The Committee commissioned a benchmarking exercise to review the CEO and
CFSO’s base salary. As part of this review the Committee took advice from Deloitte,
our independent remuneration consultant. It was concluded, on the basis of Group
performance and a recommendation from management that the highest workforce pay
band receive a nil increase in salaries in 2025, that it would be inappropriate to increase
executive Director salaries in 2025. The average annual salary increase awarded to the
workforce as a whole was 4.1 per cent and will take effect from 1 April 2025.
The executive bonus plan arrangements for 2025 will follow the same structure as in
2024, with a maximum annual opportunity restricted to 110 per cent of salary. There are
three equally weighted financial measures, which when combined, account for two thirds
of the maximum opportunity. These financial measures, as in 2024, are based on revenue,
EBITDA and dividend. One third of the maximum opportunity is linked to specific
individual objectives based on strategic key performance indicators and will continue to
include ESG related objectives.
Both executive Directors will receive LTIP awards in 2025, as was the case in 2024, over
shares worth 150 per cent of salary. As in 2024, the vesting of the LTIP award will be
subject to two performance measures, relative Total Shareholder Return and Total Return,
each representing 50 per cent of the award for the performance period 1 January 2025 to
31 December 2027.
Strategic and Shareholder alignment
In setting executive remuneration in 2025, the Committee has continued to seek
alignment with the Company’s strategic priorities and shareholder interests. In particular:
î annual bonus performance measures continue to be focused on objectives critical to
delivering the improvement in corporate performance, optimising revenue, EBITDA and
dividends, together with individual specific strategic objectives;
î executives are aligned with the principle of shareholder value creation through
participation in the long-term incentive plan that rewards growth in Net Asset Value
plus dividends and relative shareholder returns;
î the executive Directors are required to build up and retain significant holdings in the
Company’s shares equivalent to 200 per cent of salary which directly align them with
other shareholders; and
î the Remuneration Committee is acutely aware of the need to align executive
remuneration, and that of the rest of the workforce, with shareholder returns while fully
recognising that remuneration should motivate and reward continued performance,
hard work and commitment.
Full details of how the Remuneration Policy will be applied during 2025, as well as how
Directors were paid in 2024, are set out on pages 131 to 136. There will be an advisory
shareholder vote on this section of the Remuneration Report at our 2025 Annual General
Meeting. During the coming year, we will review our Remuneration Policy ahead of the
standard triennial shareholder approval in 2026 and we will, as usual, consult in advance
with shareholders to discuss changes proposed.
Alice Avis MBE | Remuneration Committee Chair
12 March 2025
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Summary of the Remuneration Policy
There is no shareholder vote on the Remuneration Policy at the 2025 Annual General Meeting, but for shareholders’ reference, a summary of the policy containing the Policy Tables for
the executive Directors, the Chairman and non-executive Directors has been included below. The full Policy can be found on pages 87 to 94 of the Annual Report and Accounts 2022,
which is available on our website at www.empiric.co.uk.
It is currently envisaged that the Policy will next be presented to Shareholders for approval at the 2026 Annual General Meeting.
Remuneration Policy Table for executive Directors
Fixed pay
Component Purpose and link to strategy Operation Maximum Performance framework
Base salary Core element of
remuneration set
at a level to attract
and retain executive
Directors of the
required calibre to
deliver the Company’s
investment objectives
successfully.
Fixed cash paid monthly, generally
reviewed annually. The review takes
into consideration a number of factors,
including but not limited to:
• the individual Director’s role,
experience and performance;
• business performance;
• relevant data on remuneration levels
paid for comparable roles; and
• pay and conditions elsewhere in
the Group.
To avoid setting the expectations
of executive Directors and other
employees, there is no overall maximum
salary for executive Directors under
the Remuneration Policy. Any increase
in salaries will be determined by the
Remuneration Committee, taking into
account the factors stated in this table
and the following principles:
• salary increases for executive Directors
will typically not exceed the average
salary increase (in percentage of salary
terms) for other permanent employees.
• increases may be made above this in
certain circumstances, such as:
• progression within the role;
• increase in scope and responsibility of
the role;
• increase in experience where an
individual has been recruited on a lower
salary initially; and
• increase in size and complexity of the
Company.
None
Benefits To provide market-
competitive benefits.
Benefits are role specific and take into
account local market practice.
Benefits currently include (but are not
limited to) reimbursed travel expenses,
medical insurance, disability and life
insurance and a car allowance.
There is no overall maximum level, but
benefits are set at an appropriate level
for the specific nature of the role and
depend on the annual cost of providing
individual benefits.
None
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Component Purpose and link to strategy Operation Maximum Performance framework
Pension To provide market-
competitive retirement
benefits.
The Company either contributes
to the Directors’ personal pension
arrangements or direct to their
pension plans.
Alternatively, Directors may receive a
cash allowance in lieu of pension.
All Directors’ pension provision capped
in line with provision available to the
majority of the workforce, currently 7.5%
of salary.
None.
Variable Remuneration
Annual and
deferred annual
bonus
To link reward to the
achievement of key
business objectives for
the year.
To provide additional
alignment with
shareholders’ interests
through the operation
of bonus deferral.
The executive Directors are participants
in the annual bonus plan which is
reviewed annually to ensure bonus
opportunity, performance measures and
targets and objectives are appropriate
and support the business strategy.
The Committee will determine the level of
bonus to be awarded, taking into account
the extent to which the targets have been
met and overall business and personal
performance.
Up to 60% of an executive Director’s
annual bonus will usually be paid in cash
following the release of the audited
results of the business.
At least 40% of any bonus is usually
deferred into an award over Company
shares issued as a nil-cost option
pursuant to the terms of the LTIP, which
will usually be deferred for three years.
Dividend equivalents will be paid usually
in additional shares when the deferred
shares are released.
Malus and clawback may be applied to a
cash or deferred bonus award up to three
years from the date of determination of
the bonus or award.
The maximum annual bonus opportunity
is 150% of base salary per annum.
Each year the Remuneration Committee
will determine the maximum annual
bonus opportunity for each individual
executive Director within this limit.
The bonus is based on performance
assessed over one year using appropriate
financial, strategic, ESG and personal
performance measures.
The selected measures for the next financial
year will be set out in the Remuneration
section of the Annual Report for that year.
Remuneration committee report | continued
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Component Purpose and link to strategy Operation Maximum Performance framework
Long Term
Incentive Plan
(“LTIP”)
To link reward for the
Executive Directors
to the achievement of
long-term performance
objectives of the
Company which are
aligned to the strategic
goals and to retain
executives.
Awards under the LTIP will usually be
made in the form of a contingent award
of shares or grant of nil-cost options or
nominal value options.
Vesting of the award is dependent on
the achievement of performance targets,
typically measured over a three-year period.
Vested awards will be subject to an
additional two-year holding period.
Dividend equivalents will be paid usually
in additional shares when the LTIP awards
are released.
Malus and clawback can be applied to
LTIP awards up to five years from the date
of grant.
The maximum LTIP award that may be
made is up to 150% of base salary per
annum as provided for in plan rules, but
for the avoidance of doubt this excludes
any nil -cost options issued pursuant to
an award under the annual bonus scheme.
Vesting of LTIP awards is dependent on the
achievement of performance measures
determined by the Committee ahead of
each award. These details will be disclosed
in the Annual Report on Remuneration
section of the Remuneration Report.
Performance will usually be measured
over a three-year performance period.
For achieving a “threshold” level of
performance against a performance
measure, no more than 25% of the award
will vest.
Vesting then increases on a sliding scale to
100% for achieving a stretching maximum
performance target.
Employee Share
Option Plan (“ESOP”)
Executive Directors
will only be granted
share options
under the ESOP
in exceptional
circumstances.
To reward employees
for the delivery of long-
term shareholder value.
The ESOP permits the grant of share
options with an exercise price of not
less than the market value of a share (as
determined by the Committee) at the
time of grant. Options will usually be
exercisable between three and ten years
following the grant.
Share options may be granted under an
HMRC approved Company Share Option
Plan to the extent possible.
If ESOP awards were, in exceptional
circumstances, granted to an executive
Director, they would be subject to an
appropriate performance condition as
determined by the Committee.
All-employee
share plans
To reward employees
for the delivery of long-
term shareholder value.
Executive Directors may participate on
the same basis as other employees.
Participants may contribute up to the
relevant limits set out in the plan.
Remuneration Policy Table for the Chairman and non-executive Directors
Purpose and link
to strategy
Operation Opportunity
To attract and
retain non-
executive
Directors of
the required
calibre by
offering market-
competitive fees.
The Chairman of the Board receives an all-inclusive fee. Non-executive Directors receive a basic Board fee.
Additional fees may be payable for additional Board responsibilities such as acting as the Senior Independent
Director, chairmanship or membership of a Board Committee.
The Committee reviews the fees paid to the Chairman and the Board reviews the fees paid to the Non-executive
Directors periodically.
Additional fees may be paid to non-executive Directors on a per diem basis to reflect increased time
commitment in certain limited circumstances.
Expenses incurred in the performance of non-executive duties for the Company may be reimbursed or paid
directly by the Company, as appropriate, including any tax and social security contributions due on the expenses.
Non-executive Directors may be provided with benefits to enable them to undertake their duties.
Fees are set at an appropriate level that is
market competitive and reflective of the
responsibilities and time commitment
associated with specific roles.
The total aggregate fees payable to the
Chairman and non-executive Directors
will not exceed the £400,000 limit stated
in the Company’s Articles of Association.
Non-executive remuneration does not
include performance related pay.
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Annual Report on Remuneration
The Annual Report on Remuneration will be subject to an advisory shareholder vote at the
2025 Annual General Meeting.
Implementation of the Remuneration Policy in 2025
This section provides an overview of how the Committee intends to implement the
Remuneration Policy during 2025.
Base salary
The executives’ salaries were reviewed in December 2024. It was concluded that annual
pay reviews would be revised to take effect from 1 April 2025. The Committee reviewed
a recommendation from management that the highest workforce pay band (Band
Nine) receive a nil increase in salaries in 2025. After due consideration, it was therefore
considered appropriate that Executive Director salary adjustments be aligned to those
in Band Nine with no increase applied in April 2025. The average annual salary increase
awarded to the workforce will be 4.1 per cent.
Executive Director salaries alongside current salaries, are set out below. For information,
an annual salary increase of 3.0 per cent was awarded to both executive Directors
in 2024.
Executive Director Prior salary Current salary
Duncan Garrood £439,192 fixed
1 January 2024
£439,192 with effect from
1 April 2025
Donald Grant £310,648 fixed
1 January 2024
£310,648 with effect from
1 April 2025
Pension and benefits
Executive Directors will be provided with a standard benefits package including pension
provision of 7.5 per cent of salary, medical insurance, life insurance, and car allowance of
£15,000 for the CEO and £9,662 for the CFSO.
The pension provision of 7.5 per cent is aligned to that provided to the majority of
the workforce.
Annual and deferred annual bonus
The maximum pay out under the annual bonus scheme is unchanged at 110 per cent of
salary, with at least 40 per cent of any bonus satisfied by the issue of nil-cost options,
which will be deferred for three years.
The annual bonus will be determined by three equally weighted financial performance
measures, accounting for two thirds of the bonus opportunity. In 2025 these will
continue to be linked to revenue, EBITDA and dividend payment. The balance, being
one third of the bonus opportunity, is linked to the achievement of specific individual
objectives derived from strategic key performance indicators, including ESG-related
objectives. Notwithstanding the formulaic outcome against these measures, the
Committee will continue to consider carefully overall business performance at the
year-end and determine whether the exercise of discretion is warranted.
The targets and out turn against these measures will be disclosed in the Remuneration
Report for the year ending 31 December 2025. Any bonus pay out will be subject to the
Committee confirming that, in its assessment, the financial out turns which determined
the bonus were achieved within an acceptable risk profile. Malus and clawback may be
applied to a cash or deferred bonus up to three years from the date of determination of
the bonus or award.
LTIP
Duncan Garrood and Donald Grant will receive LTIP awards for 2025 equivalent to 150
per cent of salary, with the number of shares usually determined by the average share
price in the 12 months preceding the date of grant, or in exceptional circumstances such
other share price deemed appropriate by the Committee. As in 2024, the vesting of the
LTIP award is subject to two performance measures each representing 50 per cent of the
award.
Firstly, Total Accounting Return (“TAR”) relative to threshold and maximum targets for
the period 1 January 2025 to 31 December 2027, with TAR being the combined growth in
net asset value and dividends paid during the period. 25 per cent of the award will vest
for meeting a threshold TAR target of 6 per cent per annum, increasing to 100 per cent
vesting for meeting a maximum target of 10 per cent per annum, with straight line vesting
between threshold and maximum performance.
Secondly, Total Shareholder Return (“TSR”) relative to the FTSE All Share Real Estate
Companies peer group, with 25 per cent of the award for median performance and 100
per cent for achieving performance within the 75th percentile, with straight line vesting
between threshold and maximum performance, for the period 1 January 2025 to 31
December 2027.
Any LTIP vesting will again be subject to the Committee confirming that, in its
assessment, the vesting out turn was achieved within an acceptable risk profile. The
Committee will continue to have discretion to override formulaic outcomes.
Malus and clawback may be applied to LTIP awards up to five years from the date of grant,
which is in line with the UK Corporate Governance Code. Vested awards will be subject to
an additional two-year holding period.
Remuneration committee report | continued
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Non-executive Director remuneration
The fee structure for the remuneration of non-executive Directors from 1 April 2025 is outlined in the table below. This fee structure had, until 1 April 2024, remained unchanged
since 1 July 2016.
Non-executive Director fees are determined by the Board, except for the fee for the Chairman of the Board, which is determined by the Remuneration Committee.
Annual fee (£)
(applied from
1 April 2024)
Annual fee (£)
(to apply from
1 April 2025)
Base fee £41,200 £41,200
Audit Committee Chairman £49,440 £49,440
Remuneration Committee Chairman £49,440 £49,440
Senior Independent Director £50,470 £50,470
Senior Independent Director & Committee Chair £54,075 £54,075
Chairman of the Board £135,000 £135,000
Non-executive Directors, other than the Chairman, received a three per cent increase in fee during 2024, in line with the executive Directors. No fee adjustment has been awarded
for 2025.
During 2024, the Remuneration Committee undertook a review of the fee paid to the Company Chairman. His fee had not been increased since 2016 and, as a result, was considered
one of the lowest in the FTSE All-Share. The Committee’s view was that this was not consistent with the Company’s development into a FTSE 250 constituent or the enhanced level of
time commitment associated with the Chairman’s role as the Company has grown in recent years. In order to address this issue, the Committee had intended to align the fee to a more
market competitive level in a phased manner with an initial increase in fee of 17.4 per cent to £135,000 awarded from 1 April 2024. In light of executive and non-executive Director pay
decisions for 2025, it was considered appropriate to pause the phased increase of the Chairman’s fee in 2025 and to revisit in 2026.
Remuneration outcome in 2024
Single total figure of remuneration (audited)
The following table sets out the total remuneration for executive Directors and non-executive Directors for the year ended 31 December 2024 alongside the equivalent data for the
previous year.
Year ended 31 December 2024
Salary
and fees
(£)
Benefits
(£)
Pension
(£)
Total Fixed
(£)
Annual
bonus (£)
Long-term
incentives
(£)
Total
Variable
(£)
Total
(£)
Executive Directors
Duncan Garrood 439,192 18,601 32,939 490,732 67,070 427,506 494,576 985,308
Donald Grant 310,648 14,418 23,299 348,365 43,500 – 43,500 391,865
Non-executive Directors
Mark Pain 130,000 – – 130,000 – – – 130,000
Alice Avis 53,681 – – 53,681 – – – 53,681
Martin Ratchford 49,080 – – 49,080 – – – 49,080
Clair Preston-Beer 40,900 – – 40,900 – – – 40,900
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Year ended 31 December 2023
Salary
and fees
(£)
Benefits
(£)
Pension
(£)
Total Fixed
(£)
Annual
bonus (£)
Long-term
incentives
1
(£)
Total
Variable
(£)
Total
(£)
Executive Directors
Duncan Garrood 426,400 18,138 31,980 476,518 308,628 730,503 1,039,131 1,515,649
Donald Grant 301,600 13,490 22,620 337,710 218,298 – 218,298 556,008
Non-executive Directors
Mark Pain 115,000 – – 115,000 – – – 115,000
Alice Avis 52,500 – – 52,500 – – – 52,500
Martin Ratchford 48,000 – – 48,000 – – – 48,000
Clair Preston-Beer 40,000 – – 40,000 – – – 40,000
1 Restated to reflect the share price on date of vesting of the April 2021 award of 90.8 pence per share.
Notes to the single figure table
Salary and fees: This represents the cash paid or receivable in respect of the relevant financial year.
Benefits: This represents the taxable value of all benefits paid or receivable in respect of the relevant financial year. Executive Directors receive a standard benefits package including
medical insurance, life insurance and car allowance.
Annual bonus: Total bonus payable for the relevant financial year, whether payable in cash or as a deferred share award.
Long-term incentives: This relates to the value of long-term awards where the applicable three-year performance period ends in the year under review. The Committee determined
that the performance conditions for the awards granted in March 2022 had been met in part. The March 2022 awards have been valued at 90.0 pence (average share price for the
fourth quarter of 2024) and £11,258 of the value shown for Duncan Garrood relates to share price appreciation during the vesting period.
Pension: Duncan Garrood and Donald Grant have received a Company contribution worth 7.5 per cent of base salary in both 2024 and 2023. Both executive Directors elected to
receive a cash allowance in lieu of pension.
Additional disclosures in respect of the single figure table (audited)
2024 annual bonus
Duncan Garrood and Donald Grant participated in the 2024 annual bonus scheme with a maximum annual bonus opportunity restricted to 110 per cent of salary, based on the
performance targets set out below.
The maximum potential annual bonus that could be paid to the executive Directors in respect of the year ended 31 December 2024 was determined by three equally weighted financial
measures, which when combined account for two thirds of the maximum opportunity. These financial measures are based on revenue, EBITDA and dividend. One third of the maximum
opportunity is linked to specific individual objectives based on strategic key performance indicators, including ESG related objectives.
Remuneration committee report | continued
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Achievement against financial performance targets for both Duncan Garrood and Donald Grant are set out below:
Financial performance measure
Proportion of bonus
determined by measure
Threshold
Performance
0% payable
Maximum
performance
100% payable
Actual
performance
% of maximum
bonus payable
Absolute revenue 22.2% £83.7m £88.4m £84.2m 2.4%
EBITDA 22.2% £44.9m £47.5m £43.9m 0.0%
Dividends paid, declared and fully covered 22.2% 3.4 pence 4.0 pence 3.7 pence 11.1%
Total out turn on financial performance measures 66.6% 13.5%
Achievement against individual performance objectives are set out below:
Duncan Garrood
Objective Out turn Outcome
The delivery of the corporate strategy, including:
a) Deliver a value creating joint venture;
b) Like for like rental growth above six per cent;
c) Deliver an accelerated implementation of green capex investments with IRR
above five per cent;
d) Recycle at least £20.0 million of residual non-core properties by year.
Progressed delivery of corporate strategy with like for like rental growth of 9.3 per
cent for the 2024 financial year (10.5 per cent and 7.0 per cent for the academic
years 2023/24 and 2024/25, respectively).
Green capex of £2.4 million invested delivering returns in line with target.
Non-core disposals totalling £45.2 million achieved, with over £20.0 million
reinvested in top-tier acquisitions during the year.
Joint venture terminated in favour of pursuing growth strategy independently,
with successful equity placement concluded.
Develop workplace engagement and culture to bring an improved performance on
community and charitable support, internal talent development and health & safety
compliance, in particular:
a) Employee survey to deliver an employee engagement score of 85 per cent
or above;
b) Internal promotions to rise to 55 per cent and voluntary turnover to remain at
20 per cent of below;
c) Team members to allocate a minimum of 300 days to Community and
Charitable support.
Maintained strong workplace engagement, but fell short of target at 78 per cent.
Of all eligible vacancies in 2024, 61 per cent were filled by means of internal
promotion. Voluntary turnover was 22 per cent during the year.
The Group invested 344 days in support of community and charitable support
during 2024.
Develop and deliver tangible customer service improvements, including:
a) Year-end NPS +33 or more measured by GSLI;
b) Year end Student Crowd ranking at seven or better;
c) Drive utility consumption below 4,250 kWh per bed;
d) Resolve 70% of service requests from the customer app within 72 hours.
Further progress made on improving the customer service focus with Net
Promoter Score rising again to +32.
Hello Student achieved a December 2024 Student Crowd rating of eight.
Utility consumption per bed reduced to 4,351 kWh in 2024.
Over 17,800 maintenance requests were resolved during 2024, 68.6 per cent of
which within 72 hours.
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Remuneration committee report | continued
Donald Grant
Objective Out turn Outcome
Delivery of corporate strategy, including:
a) Overhead costs not to exceed 16.5 per cent of revenue (excluding depreciation);
b) Deliver £125 million refinancing on terms approved by the Board;
c) Deliver a value creating joint venture.
Administrative overheads, adjusted for depreciation charges represent 17.0 per
cent of revenue for 2024.
Refinancing concluded on terms approved by the Board removing near term
refinancing risk.
Joint venture terminated in favour of pursuing growth strategy independently,
with successful equity placement concluded.
Execute Net Zero implementation plan to deliver Net Zero by 2033, through:
a) Deliver an accelerated implementation of green capex investments with IRR
above five per cent;
b) Manage EPC risk achieving >55 per cent of the portfolio rated EPC B or better;
c) Drive energy consumption down to 4,250 kWh per bed, or better.
Green capex of £2.4 million invested delivering returns in line with target.
Significant improvement in EPC ratings with 64 per cent now rated EPC B or better.
Utility consumption per bed reduced to 4,351 kWh in 2024.
Develop finance and IT to become best-in-class functions, by:
a) Improved structure, capability and diversity of the finance function to be
measured by an improved internal service score, with less than ten per cent
responding that improvement is required;
b) Improved structure, capabilities and engagement of the IT function to be
measured by an improved internal service score, with less than ten per cent
responding that improvement is required and with 95 per cent of support calls
resolved within SLA;
c) Deliver new ERP system ensuring milestones achieved for go-live for 2025.
Delivery to be achieved within three per cent of budget.
Structure, capability and diversity of finance function improved. Service and
engagement target missed.
Structure and capability improvement targets for the IT function achieved.
Support calls resolved within SLA marginally below target at 92 per cent.
Implementation of new ERP system delayed until July 2025.
Key:
Some progress
Good progress
Excellent progress
The tables below summarise the annual bonus awards made in respect of the 2024 financial year. Although Policy maximum is set at 150 per cent, the Committee had committed to an
annual maximum in respect of 2024 of 110 per cent.
Duncan Garrood
Proportion of bonus
determined by measure
% of maximum
bonus payable
Total out turn on financial performance measures 66.6% 13.5%
Individual specific objectives
1
33.4% 15.4%
Total before application of Committee discretion 28.9%
Total after application of Committee discretion 13.9%
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Donald Grant
Proportion of bonus
determined by
measure
% of maximum
bonus payable
Total out turn on financial performance measures 66.6% 13.5%
Individual specific objectives
1
33.4% 13.0%
Total before application of Committee discretion 26.5%
Total after application of Committee discretion 12.7%
1 Individual objectives were subject to a dividend related unlock. This element of the annual bonus would not unlock unless a minimum 3.5 pence per share fully covered dividend had been paid or declared to shareholders in respect to
the financial year. This unlock was achieved.
The availability of the maximum Group-wide bonus opportunity for 2024 was linked to the delivery of a targeted gross margin of 70 per cent and delivery of an inflation-adjusted
increase in underlying overhead costs. As these targets were not met in full, the available Group-wide bonus pool was reduced and, accordingly, a discretionary reduction was applied
to the formulaic outcome of all employees’ annual bonuses. In respect of the executive Directors, post application of discretion by the Committee, Duncan Garrood was awarded
13.9 per cent of his maximum annual bonus opportunity, with Donald Grant achieving 12.7 per cent.
Bonus award
percentage
of 2024 maximum Bonus paid in cash
Bonus awarded in
deferred shares
1
Total bonus
Duncan Garrood 13.9% £40,242 £26,828 £67,070
Donald Grant 12.7% £26,100 £17,400 £43,500
1 To be settled in shares following a three year vesting period from date of grant.
LTIP vesting
During 2024, the performance period for the 2022 LTIP award date ended. The Committee determined that the performance conditions for awards granted on 24 March 2022 had
been partially met, as illustrated below.
Weighting
0%
vesting
25%
vesting
100%
vesting
Performance
achieved
Vesting level (% of
maximum)
TSR relative to FTSE All-Share Real Estate peer group
3 years to 31 December 2024 50% Below median Median Upper quartile Above upper quartile 100%
Total Return (CAGR)
3 years to 31 December 2024 50% Less than 6% 6% 10% 6.55% 35.4%
Overall vesting 67.7%
In line with the Remuneration Policy, vested awards remain subject to a further two year holding period before they become exercisable, however the value of the vested award is
included within the single figure remuneration table for the year ended 31 December 2024.
Scheme interests awarded during the financial year (audited)
Long-term incentive plan awards
Long-term incentive plan awards are granted over the Company’s shares with the number of shares under award determined by reference to a percentage of base salary. Vesting of
the awards is conditional upon satisfaction of performance conditions and is usually also conditional upon continued employment until the awards vest on the third anniversary of
grant. Vesting is subject to an additional two-year holding period.
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The following table provides details of the LTIP award granted to Duncan Garrood and Donald Grant on 12 April 2024
Type of award
Maximum
number
of shares
Face value
£
Threshold
vesting
End of
performance
period
Duncan Garrood LTIP 728,294 658,788 25% of award 31 December 2026
Donald Grant LTIP 515,135 465,972 25% of award 31 December 2026
Both executive Directors were entitled to an LTIP award over shares worth 150 per cent of their annual salary at the start of the year. The maximum number of shares awarded (and their
face value in the above table) was calculated using a Company share price of 90.46 pence, representing the average of the daily closing prices of the Company’s ordinary shares on the
London Stock Exchange for the 12-month period ended 31 March 2024.
Vesting of these awards is subject to two performance measures each being 50 per cent of the award. Firstly, Total Accounting Return (“TAR”) relative to threshold and maximum
targets for the periods 1 January 2024 to 31 December 2026, with TAR being the combined net asset value growth and dividends paid. 25 per cent of the award will vest for meeting a
threshold TAR target of 6 per cent per annum, increasing to 100 per cent vesting for meeting a maximum target of 10 per cent per annum. Secondly, Total Shareholder Return (“TSR”)
relative to the FTSE All Share Real Estate Companies peer group, with 25 per cent of the award for median performance and 100 per cent for 75th percentile performance
(with straight-line vesting between) for the period 1 January 2024 to 31 December 2026.
Payments to past directors (audited)
There were no payments to past Directors during 2024.
Payments for loss of office (audited)
There were no payments for loss of office to past Directors during 2024.
Statement of Directors’ shareholdings and share interests (audited)
The table below shows the Directors’ share ownership as at 31 December 2024.
The standard shareholding guideline is that executive Directors are expected to build up and retain a shareholding worth at least 200 per cent of salary. Subject to the incentive
plans delivering at least an on target level of award, the guideline is expected to be satisfied within a five-year period of their appointment to the Board. To date these shareholding
requirements have not been met as both executive Directors have less than five years’ service on the Board and are therefore currently in the build-up phase against this guideline.
Executive Directors are required to maintain their shareholding in accordance with this guideline for two years post-employment (unless the Committee considers a lower limit to be
appropriate in a particular participant’s circumstances).
Dividends received
during the year ended
31 December 2024
Beneficially
owned shares at
31 December 2024
(number of shares) % of salary
1
Vested LTIP awards not yet
exercisable
2
(number of shares)
Outstanding LTIP awards subject
to performance and employment
conditions as at
31 December 2024
3
(number of shares)
Outstanding annual bonus awards
subject to employment conditions
as at 31 December 2024
4
(number of shares)
Mark Pain £3,738 120,000 n/a – – –
Duncan Garrood
5
£3,819 150,438 28.6% 1,276,881 1,450,527 282,043
Donald Grant £1,365 54,053 14.5% – 1,025,983 96,532
Alice Avis £1,962 59,600 n/a – – –
Martin Ratchford – – n/a – – –
Clair Preston-Beer – – n/a – – –
Remuneration committee report | continued
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1 Value-based on salary effective from 1 January 2024 and the closing share price on 31 December 2024 of 83.5 pence.
2 Vested awards subject to two-year holding period. 200,000 shares will become exercisable from 10 November 2025, 601,875
shares becoming exercisable from 22 April 2026 and a further 475,006 shares exercisable from 24 March 2027.
3 These are outstanding LTIP awards subject to the performance conditions disclosed in this or previous Remuneration Reports.
4 These are outstanding deferred awards granted pursuant to the annual bonus plan.
5 Included within the beneficially owned shares of Duncan Garrood at 31 December 2024 are 25,316 shares acquired through exercise of
options awarded under the 2021 employee SAYE option plan.
Between 31 December 2024 and the date of this Report, there were no changes in the shareholdings outlined in the above table.
Performance graph and CEO remuneration table
The chart below compares the TSR performance over the past ten financial years of the Company (i.e. since 1 July 2015) to the FTSE All- Share Index and the FTSE All-Share REIT Index.
These indices have been chosen because they are recognised equity market indices of which the Company is a member.
Company Total Shareholder Return performance relative to FTSE All-Share and FTSE All-Share REIT indices
Jul-22 Jul-23Jul-21Jul-20Jul-19Jul-18Jul-17Jul-16Jul-15
Empiric Student Property FTSE 350 Real Estate Index FTSE All Share Index
60
80
100
12
0
140
160
180
200
Jul-24
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Chief Executive Officer remuneration outcomes
The table below shows the total remuneration payable to the CEO for the last ten financial periods, and variable pay out turns as a percentage of the maximum opportunity.
12 months
ended
30 June
2016
6 months
ended
31 December
2016
12 months
ended
31 December
2017
12 months
ended
31 December
2018
1
12 months
ended
31 December
2019
12 months
ended
31 December
2020
2
12 months
ended
31 December
2021
12 months
ended
31 December
2022
12 months
ended
31 December
2023
12 months
ended
31 December
2024
CEO single figure of remuneration £748,160 £314,455 £731,442 £539,500 £670,557 £361,041 £491,829 £736,453 £1,515,649 £985,308
Annual bonus pay out (% of maximum) 100% 50% 0% 25.1% 42% 0% 10% 61.6% 65.8% 13.9%
LTIP vesting n/a n/a 63.7% 0% 0% 0% 0% 0% 60.7%
3
67.7%
1 Includes Acting CEO for period 1 January 2018 to 31 October 2018.
2 Combination of Tim Attlee as CEO from 1 January 2020 to 30 June 2020 and Duncan Garrood as CEO from 28 September 2020 to 31 December 2020.
3 The performance period of two LTIP awards ended during the financial year to 31 December 2023. The first, an award of 400,000 nil-cost options, awarded on 10 November 2020, shortly after Duncan Garrood’s appointment,
achieved 50 per cent vesting. The second, an award of 800,000 nil-cost options was the standard annual grant awarded on 22 April 2021 achieved 75.2 per cent vesting. Both vesting awards are subject to a further two-year holding
period before they become exercisable, but as the performance period has ended, the value of the vesting awards are included with the single figure remuneration table for the year ended 31 December 2023. The figure shown here is
the weighted average of the two vesting percentages.
CEO Pay Ratio
The UK Companies (Miscellaneous Reporting) Regulations 2018 introduced a requirement for certain UK listed companies to publish the ratio of CEO pay it its UK employees.
The regulation uses the full year total pay and benefits for all employees and therefore the same methodology that is used to calculate the CEO’s single figure of remuneration on
page 131. The Committee assesses whether the year on year movement in the ratio is consistent with the Group’s performance and employee reward decisions.
Year Method 25th percentile pay Median pay 75th percentile pay
2024 Option A 39:1 36:1 26:1
2023 Option A 60:1 55:1 42:1
2022 Option A 32:1 30:1 23:1
2021 Option A 25:1 22:1 17:1
2020 Option A 14:1 17:1 18:1
2019 Option A 33:1 31:1 25:1
Lower quartile Median quartile Upper quartile
Method Total pay and benefits Salary Total pay and benefits Salary Total pay and benefits Salary
2024 Option A £25,263 £24,336 £27,510 £25,006 £37,493 £34,000
We have used Option A as we assess it to be the statistically preferred method for calculating the pay ratio.
Figures are calculated based on a reference date of 31 December 2024 (369 employees at this date).
Remuneration for non-executive Directors has not been included in the calculations.
The conversion for part-time colleagues to FTE equivalent uses a standard working week of 37.5 hours and 52 weeks a year.
The ratio includes the value of vested LTIP awards, as is required by reporting regulations. Consequently the 2024 ratio, which includes the value of vested LTIP awards that were
granted to Duncan Garrood in March 2022, is higher than the equivalent ratios for the years 2019-2022 when no LTIP awards vested to the in-post CEO. Excluding the value of
vesting LTIP awards, which are subject to a further two-year holding period before they become exercisable, the pay ratio remains below 2019 pre-Pandemic median, 25th and 75th
percentiles, demonstrating our continued investment in the pay and reward of our workforce.
The Group adopts a reward framework which is based on consistency with all our employees. Remuneration should remain competitive compared to comparative roles and always
equal to or more than the Real Living Wage. Our employees are paid using the same principles as the pay for our executive Directors. The median ratio is consistent with the Group’s
wider policies on pay, reward and progression.
Remuneration committee report | continued
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Percentage change in remuneration of the Directors
The table below shows the change in the various elements of Director remuneration relative to the change in average employee remuneration between 2023 v 2024 (plus the four
preceding periods) as set out in the prior year’s Remuneration Report). The table is presented for those Directors who held Board positions throughout both the current and previous year.
Percentages disclosed below are calculated to show the change in the figures within the table entitled Single total figure of remuneration (audited), appearing on page 131. Average
employee disclosure is based on the full Group because the number of employees employed by the parent company is considered too small to provide a meaningful comparison.
Year to
31 December 2024
Mark Pain
change
Alice Avis
change
Martin Ratchford
change
Clair Preston-Beer
change
Duncan Garrood
change
Donald Grant
change
Average employee
change
Base salary / fee +13.0% +2.2% +2.2% +2.2% +3.0% +3.0% +4.4%
Benefits +0% +0% +0% +0% +2.6% +6.9% +9.7%
Annual bonus +0% +0% +0% +0% -78.3% -80.1% -64.9%
Year to
31 December 2023
Mark Pain
change
Alice Avis
change
Martin Ratchford
change
Duncan Garrood
change
Average employee
change
Base salary / fee +0% +0% +0% +4.0% +8.3%
Benefits +0% +0% +0% +1.4% +5.7%
Annual bonus +0% +0% +0% +11.1% +15.8%
Year to
31 December 2022
Mark Pain
change
Alice Avis
change
1
Martin Ratchford
change
Duncan Garrood
change
Average employee
change
Base salary / fee +0% +21.0% +0% +2.5% +6.9%
Benefits +0% +0% +0% +0.3% +18.2%
Annual bonus +0% +0% +0% +531% +111.4%
Year to
31 December 2021
Mark Pain
change
Alice Avis
change
4
Martin Ratchford
change
2
Duncan Garrood
change
3
Average employee
change
Base salary +0% +5.6% +0% +0% +4.0%
Benefits +0% +0% +0% +0% +0%
Annual bonus +0% +0% +0% +100% -100%
Year to
31 December 2020
Mark Pain
change
Alice Avis
change
Martin Ratchford
change
Duncan Garrood
change
Average employee
change
Base salary +0% +0% +0% +0% +10.0%
Benefits +0% +0% +0% +0% +0%
Annual bonus +0% +0% +0% +0% +100%
1 Alice Avis assumed the Chair of the Remuneration Committee following Stuart Beevor’s retirement and her fee was adjusted accordingly
2 Alice Avis was appointed Senior Independent Director from 1 October 2021 with her fee adjusted accordingly from this date.
3 Martin Ratchford joined the Board on 1 October 2021.
4 Base salary change from the prior year is calculated with reference to an annualised prior year base salary as Duncan Garrood joined the Board part way through the prior year.
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Remuneration committee report | continued
Relative importance of spend on pay
The table below sets out the total expenditure on pay for all of the Group’s employees,
compared to distributions to shareholders by way of dividend.
Year ended
31 December
2024
Year ended
31 December
2023
Total staff costs (Note 6 to the financial statements) £16.9m £16.6m
Total dividends £22.0m £20.7m
Internal advice
No individual was present when their own remuneration was being discussed.
The Company Secretary acted as secretary to the Committee. The executives, Chief
Operating Officer and Head of People joined certain meetings to discuss relevant
matters, as required.
External advice
Deloitte LLP was appointed by the Company in 2015 to provide independent advice on
executive remuneration matters, it having no other connection with the Company or with
its Directors. Although there is no requirement for mandatory rotation of remuneration
advisers, the current engagement partner has been in post since 2019.
During the year, the Committee received independent and objective advice from
Deloitte, principally on the drafting of the Remuneration Report, benchmarking, market
practice and the valuation of share awards in line with International Financial Reporting
Standards. Deloitte was paid £24,680 in fees during the year ended 31 December 2024
for these services (charged on a time plus expense basis). Deloitte is a founding member
of the Remuneration Consultants Group and, as such, voluntarily operates under the
Code of Conduct in relation to executive remuneration consulting in the UK. Deloitte
provided no other services to the Company during this period.
Compliance with the UK Corporate Governance Code
The Committee is mindful of the UK Corporate Governance Code and considers that it
has appropriately addressed the principles of Provision 40 in the Code:
î Clarity: This Remuneration Report provides a straightforward and transparent
disclosure of our executive remuneration arrangements. Alice Avis, the Employee
Representative on the Board, has discussed the structure, role and remit of the
Remuneration Committee with the One Team Collective employee forum, explaining
how the remuneration practices help support the delivery of strategy. Shareholder
engagement was conducted during Roadshows, with particular interest around the
LTIP performance conditions. With a review of the Remuneration Policy due to be held
during 2025, shareholder engagement will be conducted ahead of the triennial vote at
the 2026 Annual General Meeting.
î Simplicity and alignment to culture: Our variable remuneration arrangements are
straightforward with individuals eligible for an annual bonus and, at more senior levels,
LTIP awards. Performance measures used in these plans are aligned with key strategic
objectives and their performance indicators and long-term sustainable value creation.
î Predictability: The Policy Tables on pages 127 to 129 contain maximum opportunity
levels for executive Directors’ bonus and LTIP awards and pension provision. The
charts on page 92 of the Annual Report & Accounts 2022 provide an illustration of the
potential total reward opportunity for the executive Directors. LTIP and Bonus awards
are subject to performance, but may also be subject to discretion and malus and
clawback provisions.
î Proportionality: Our variable remuneration arrangements are designed to provide a fair
and proportionate link between Group performance and reward. The Committee has
overriding discretion that allows it to adjust formulaic annual bonus or LTIP outcomes
so as to prevent disproportionate results. Additionally, we ensure there is a clear link
between executive remuneration and the longer-term performance of the Group
through a combination of bonus deferral into shares, five-year release periods for LTIP
awards and stretching shareholding requirements that apply during and
post employment.
î Risk: Before approving any bonus or LTIP pay out, the Committee confirms that they
were achieved within an acceptable risk profile. Should any behavioural risks arise,
malus and clawback provisions apply to both the annual bonus and LTIP awards up to
three and five years from the date of award respectively, which is in line with the UK
Corporate Governance Code.
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Shareholder voting
At the Annual General Meeting of the Company held on 22 May 2024, shareholder
support was received for the proposed resolutions on remuneration, as
summarised below:
Votes for Votes against Votes withheld
Approval of the Directors’
Remuneration Report 415,178,567 (91.2%) 39,893,651 (8.8%) 22,157
Approval of replacement Long
Term Incentive Plan 448,055,710 (98.5%) 7,008,386 (1.5%) 30,279
At the Annual General Meeting of the Company held on 24 May 2023, shareholder
support was received for the proposed resolution on remuneration, as summarised
below:
Votes for Votes against Votes withheld
Approval of the
Remuneration Policy 401,730,425 (91.9%) 35,262,666 (8.1%) 39,408
External Board appointments
Executive Directors are only entitled to accept appointments outside the Company with
the consent of the Board. Any fees received may be retained by the Director.
This report was approved by the Board on 12 March 2025.
On behalf of the Board
Alice Avis MBE | Remuneration Committee Chair
12 March 2025
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Directors’ report
Introduction
The Directors are pleased to present their Annual Report, including the Group and
Company’s audited financial statements, for the year ended 31 December 2024.
The Strategic Report on pages 2 to 51 comprise the Management Report, for the
purposes of Disclosure Guidance and Transparency Rule 4.1.5R.
Statutory information incorporated by reference
Pursuant to UKLR 6.6.4R the Company’s discloses the following information:
1. No interest was capitalised by the Group during the year;
2. No unaudited financial information was required to be issued pursuant to UK LR
6.2.23R;
3. Details of the Long-Term Incentive Plans can be found in the Remuneration
Committee Report on page 129;
4. No Director has agreed to waive any emoluments from the Company or any subsidiary
undertaking;
5. Shares issued under the share authorities approved by shareholders at the 2024 AGM
are shown below;
6. No Director was materially interested in any Contracts of Significance;
7. The Company does not have a controlling shareholder;
8. No shareholder has waived or agreed to waive any dividends.
Pursuant to UKLR 6.6.6R, and as a company listed in the United Kingdom, the Company
provides the following additional information:
1. PDMR notifiable transactions are shown in the table overleaf;
2. No further interests have been disclosed in accordance with DTR 5 between 31
December 2024 and the date of this report;
3. The Going Concern and Viability statements can be found on page 47 and 43.
4. The Company has complied with the Principles and Provisions of the UK Corporate
Governance Code and their application is laid out in the Governance section on
page 97;
5. There are no unexpired terms of Directors service contracts. Details of Directors
contracts can be found on page 111;
6. TCFD disclosures can be found in the ESG report on page 66. A separate, more
comprehensive, ESG document will be published shortly and will be available on the
Company’s website;
7. Diversity of the Board and Senior Management, as at 31 December 2024, and the
method for collecting data, are disclosed on page 114. No changes have taken place
since the end of the year and the date of this document and no Directors or Senior
Management are situated overseas.
Information required to be part of this Directors’ Report can be found elsewhere in the
Annual Report and is incorporated into this report by reference, as indicated opposite:
î Future developments and outlook are contained within the CEO report on page 20.
î Important events which have taken place since the end of the financial year are set out
on page 176.
î Likely future developments in the business are described on page 18.
î Details of financial instruments and financial risk management objectives and policies
are detailed on page 178.
î Consultation with employees is undertaken through the One Team Collective, which
comprises eleven employees and is attended by the Senior Independent Director.
Further details can be found on page 124.
î Principal and emerging risks and uncertainties pertaining to the Group and the way in
which it manages and controls these risks are outlined on page 38.
î Disclosures regarding the employment of disabled people, human rights, social
matters, employee engagement and TCFD disclosures are contained within the ESG
report on page 66 and in a separate ESG report, available on the Company’s website
www.Empiric.co.uk
î No political donations were made during the year.
Policy and practice on payment to creditors
Standard payment terms are 30 days from receipt, with 82% of invoices paid within
this period and 93% paid within 60 days. If a dispute arises in relation to an invoice, the
Company will seek to resolve the dispute within 30 days. If this is not possible then the
supplier will be notified with an explanation of the reason for the delay and a contact at
the Company who is responsible for resolving the dispute.
Financial results and dividends
The financial results for the year can be found in the Group Statement of Comprehensive
Income on page 153.
Details of dividends paid and declared for the year are set out on page 168. No dividends
were waived or were agreed to be waived by any Director or shareholder during the year.
Directors
The names of the Directors of the Company who served during the year together with
the biographical details of the current Board are on pages 98 to 99. The process for
appointing Directors is found on page 111.
Subject to the Articles, the Companies Act 2006 and any directions given to the
Company by special resolution, the business of the Company will be managed by the
Board, which may exercise all the powers of the Company.
Directors’ interests in ordinary shares, and share dealing undertaken during the year are
shown below. Dividends received are disclosed in the Annual Report on Remuneration on
page 136.
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PDMR share dealing disclosures during 2024
Shareholding as
at 31 December
2023
Percentage of
Issued Share
Capital
Number of
Shares acquired
in Capital Raise
announced on 18
October 2024
Exercise of
2021 SAYE
share options,
announced on 14
November 2024
Shareholding as
at 31 December
2024
Percentage of
Issued Share
Capital
Mark Pain 100,000 0.0166 20,000 – 120,000 0.0181
Duncan Garrood 93,122 0.0154 32,000 25,316 150,438 0.0227
Donald Grant 33,177 0.0055 20,876 – 54,053 0.0081
Alice Avis 53,600 0.0089 6,000 – 59,600 0.0090
Martin Ratchford 0 0.0000 – – 0 0
Clair Preston Beer 0 0.0000 – – 0 0
Total shares/percentage of share capital held by Directors 279,899 0.0464 78,876 25,316 384,091 0.0578
Share capital, share authorities and share issues
At 31 December 2024, the total number of ordinary shares in issue as per Note 19 to the
financial statements is 663,996,844. No shares are held in Treasury.
The Company has one class of shares, this being ordinary shares of 1p each, all of which
are fully paid. Rights of shareholders are set out in the Company’s Articles of Association
and also in the notes of the Notice of Annual General Meeting.
No person holds securities in the Company carrying special rights with regard to control
of the Company.
There are no restrictions on the transfer of securities in the Company, except pursuant to:
î the Listing Rules of the Financial Conduct Authority (the “Listing Rules”), whereby
certain individuals require approval to deal in the Company’s shares; and
î the Company’s Articles of Association, whereby the Board may decline to register a
transfer of shares or otherwise impose a restriction on shares, to prevent the Company
breaching any law or regulation.
The Company is not aware of any agreements between holders of securities that may
result in restrictions on the transfer of securities in the Company.
At the Company’s Annual General Meeting held on 22 May 2024, the Directors were
granted a general authority to allot shares or grant rights to subscribe for or convert any
securities into ordinary shares up to an aggregate nominal amount equal to £2,011,459,
as well as an additional authority to allot shares for the same amount on a rights issue
only. Of these ordinary shares, the Directors were granted authority to issue up to an
aggregate nominal amount of £603,438 of equity securities on a non-pre-emptive basis
and wholly for cash. All of these authorities will expire at the conclusion of the Company’s
2025 Annual General Meeting.
Pursuant to this general authority 107,747 ordinary shares were issued to employees and
former employees under the LTIP (nil cost options) and 100,750 ordinary shares were
issued under the 2021 SAYE Option Plan, which were priced at 71.1p. The SAYE Option
plan is open to all employees, subject to passing their induction period.
At the AGM on 22 May 2024, shareholders approved Resolution 15, which gave the Board
authority to allot shares for cash without first offering them to existing shareholders in
proportion to their existing shareholdings. On 16 October 2024, the Company exercised
this authority and conducted a capital raise. A total of 59,686,950 new ordinary shares
(the “Placing Shares”) representing approximately 10 per cent. of the Company’s existing
issued ordinary share capital were placed at a price of 93 pence per Placing Share (the
“Placing Price”) raising proceeds of approximately £55.5 million (before expenses).
Certain Directors of the Company also subscribed for new ordinary shares at the Placing
Price. In addition, a total of 663,714 new ordinary shares representing approximately
0.1 per cent. of the Company’s existing issued ordinary shares were issued to retail
customers at the Placing Price raising proceeds of approximately £0.6 million
(before expenses);
At the 22 May 2024 Annual General Meeting, the Directors were granted authority to
make one or more market purchases of ordinary shares in the Company, in accordance
with sections 693 and 701 of the Companies Act 2006, up to an aggregate number of
60,343,768 ordinary shares, within certain price parameters. No ordinary shares have
been purchased by the Company under this authority, which will expire at the conclusion
of the Company’s 2025 Annual General Meeting.
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Directors’ report | continued
Substantial shareholdings
As at 31 January 2025, the Company had been notified under the Disclosure Guidance
and Transparency Rules (“DTR 5”) of the following substantial holders who were
directly or indirectly interested in three per cent or more of the issued share capital
of the Company:
as at 31 January 2025
Number of
ordinary
shares
Percentage of
ordinary
shares
BlackRock 47,225,169 7.11%
Investec Wealth & Investment 46,588,230 7.02%
Premier Miton Investors 36,784,073 5.54%
Janus Henderson Investors 34,220,843 5.15%
Fidelity International 33,560,210 5.05%
Jupiter Asset Management 31,246,354 4.71%
East Riding of Yorkshire 28,071,731 4.23%
CCLA Investment Management 23,343,425 3.52%
Waverton Investment Management 22,733,530 3.42%
Amendment of articles
The Articles may be amended by a special resolution of the Company’s shareholders.
No amendments were made during 2024.
Independent Auditor
BDO LLP has expressed its willingness to continue as auditor for the financial year ending
31 December 2025 and a resolution relating to its reappointment will be tabled at the
Annual General Meeting on 4 June 2025.
Disclosure of information to Auditor
The Directors who were members of the Board at the time of approving the Directors’
Report have confirmed that:
î so far as each Director is aware, there is no relevant audit information of which the
Company’s auditor is not aware; and
î each Director has taken all the steps that they ought to have taken as a Director in
order to make themselves aware of any relevant audit information and to establish that
the Company’s auditor is aware of that information.
Annual General Meeting
The 2025 Annual General Meeting will be held at 11:00 a.m. on 4 June 2025. The notice of
meeting will be sent to shareholders at the end of April 2025.
This report was approved by the Board on 12 March 2025.
12 March 2025
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Directors’ responsibilities
The Directors are responsible for preparing the Annual Report and the Group and
Company financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare the Group and Company financial
statements for each financial year. Under that law the Directors are required to prepare
the Group financial statements in accordance with UK adopted International Accounting
Standards and have elected to prepare the Company financial statements in accordance
with United Kingdom Generally Accepted Accounting Practice (United Kingdom
Accounting Standards comprising FRS 101 ‘Reduced Disclosure Framework’), and
applicable law.
Under company law the Directors must not approve the financial statements unless they
are satisfied that they give a true and fair view of the state of affairs of the Group and
Company and of the profit or loss for the Group for that year.
In preparing these financial statements, the Directors are required to:
î select suitable accounting policies and then apply them consistently;
î make judgements and accounting estimates that are reasonable and prudent;
î for the Group financial statements, state whether they have been prepared in
accordance with UK-adopted International Accounting Standards, subject to any
material departures disclosed and explained in the financial statements;
î for the Company financial statements, state whether applicable UK Accounting
Standards have been followed, subject to any material departures disclosed and
explained in the financial statements;
î prepare the Group and Company financial statements on the going concern basis
unless it is inappropriate to presume that the Group and the Company will continue in
business; and
î prepare a Directors’ Report, a Strategic Report and Directors’ Remuneration Report
which comply with the requirements of the Companies Act 2006.
The Directors are responsible for keeping adequate accounting records that are
sufficient to show and explain the Group and the Company’s transactions and disclose
with reasonable accuracy at any time the financial position of the Group and the
Company and enable them to ensure that the financial statements comply with the
Companies Act 2006. The Directors are also responsible for safeguarding the assets of
the Group and hence for taking reasonable steps for the prevention and detection of
fraud and other irregularities.
Website publication
The Directors are responsible for ensuring the Annual Report and the financial
statements are made available on a website. Financial statements are published
on the Company’s website in accordance with legislation in the UK governing the
preparation and dissemination of financial statements, which may vary from legislation
in other jurisdictions. The maintenance and integrity of the Company’s website is the
responsibility of the Directors. The Directors’ responsibility also extends to the ongoing
integrity of the financial statements contained therein.
Directors’ responsibilities pursuant to DTR4
The Directors confirm that to the best of their knowledge:
î the Group financial statements have been prepared in accordance with UK adopted
International Accounting Standards in conformity with the requirements of the
Companies Act 2006 and give a true and fair view of the assets, liabilities, financial
position and profit and loss of the Group and the undertakings included in the
consolidation as a whole;
î the Annual Report includes a fair review of the development and performance of the
business and the financial position of the Group and the Parent Company, together
with a description of the principal risks and uncertainties that they face; and
î the Annual Report and Accounts, taken as a whole, is fair, balanced and understandable
and provides the information necessary for shareholders to assess the Group’s
position, performance, business model, strategy and principal risks.
Signed on behalf of the Board by
Donald Grant | Director
12 March 2025
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Financial statements 146
Independent auditor’s report to the members of Empiric Student Property plc
Opinion on the financial statements
In our opinion:
î the financial statements give a true and fair view of the state of the Group’s and of the
Parent Company’s affairs as at 31 December 2024 and of the Group’s profit for the year
then ended;
î the Group financial statements have been properly prepared in accordance with UK
adopted International Accounting Standards;
î the Parent Company financial statements have been properly prepared in accordance
with United Kingdom Generally Accepted Accounting Practice; and
î the financial statements have been prepared in accordance with the requirements of
the Companies Act 2006.
We have audited the financial statements of Empiric Student Property plc (the ‘Parent
Company’) and its subsidiaries (the ’Group’) for the year ended 31 December 2024 which
comprise the Consolidated Statement of Comprehensive Income, the Consolidated
Statement of Financial Position, the Company Statement of Financial Position, the
Consolidated Statement of Changes in Equity, the Company Statement of Changes in
Equity, the Consolidated Statement of Cash Flows and notes to the financial statements,
including a summary of material accounting policy information. The financial reporting
framework that has been applied in the preparation of the Group financial statements
is applicable law and UK adopted international accounting standards. The financial
reporting framework that has been applied in the preparation of the Parent Company
financial statements is United Kingdom Accounting Standards, including Financial
Reporting Standard 101 “Reduced Disclosure Framework” (United Kingdom Generally
Accepted Accounting Practice).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK)
(ISAs (UK)) and applicable law. Our responsibilities under those standards are further
described in the Auditor’s responsibilities for the audit of the financial statements
section of our report. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion. Our audit opinion is consistent with
the additional report to the Audit and Risk Committee.
Independence
Following the recommendation of the Audit and Risk Committee, we were appointed
by the Board of Directors on 4 August 2015 to audit the financial statements for
the year ended 30 June 2015 and subsequent financial periods. The period of total
uninterrupted engagement including retenders and reappointments is 11 years, covering
the years ended 30 June 2015 to 31 December 2024. We remain independent of the
Group and the Parent Company in accordance with the ethical requirements that are
relevant to our audit of the financial statements in the UK, including the FRC’s Ethical
Standard as applied to listed public interest entities, and we have fulfilled our other
ethical responsibilities in accordance with these requirements. The non-audit services
prohibited by that standard were not provided to the Group or the Parent Company.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Directors’ use of the
going concern basis of accounting in the preparation of the financial statements is
appropriate. Our evaluation of the Directors’ assessment of the ability of the Group
and of the Parent Company to continue to adopt the going concern basis of
accounting included:
î We assessed the appropriateness of the going concern period, being to 31 December
2026, in light of the nature of the Group’s operations being linked to the academic and
financial year cycles.
î We assessed the appropriateness of the cash flow forecasts in the context of the
Group’s and Parent Company’s 31 December 2024 financial position and expected
student occupancies and compared the Directors’ downside sensitivities against
results achieved in the current and previous years along with letting levels currently
obtained for the next student year.
î We evaluated the key assumptions in these forecasts and considered whether these
appear reasonable, for example by comparing rental revenue to expected student
occupancy, comparing the projected SONIA interest rates to forward curves, agreeing
the utility partial price fixing arrangement to the underlying position reports, and
considering the ability to pause future capital expenditure if required. We also
compared the overhead to previous years and considered the nature of spend and
challenged the Directors as to what they considered discretionary.
î We obtained covenant calculations and forecast calculations to test for any potential
future covenant breaches. We also considered the covenant compliance headroom
for sensitivity to both future changes in property valuations and the Group’s future
financial performance.
î Where facilities were refinanced during the year, we obtained supporting
documentation in the form of a facility agreement to verify this.
î We reviewed the disclosures relating to the going concern basis of preparation
and considered whether these were consistent with the Directors’ going
concern assessment.
Based on the work we have performed, we have not identified any material uncertainties
relating to events or conditions that, individually or collectively, may cast significant
doubt on the ability of the Group or the Parent Company to continue as a going concern
for a period of at least twelve months from when the financial statements are authorised
for issue.
In relation to the Parent Company’s reporting on how it has applied the UK Corporate
Governance Code, we have nothing material to add or draw attention to in relation to the
Directors’ statement in the financial statements about whether the Directors considered
it appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the Directors with respect to going
concern are described in the relevant sections of this report.
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Overview
Coverage 100% (2022: 100%) of Group profit before tax
100% (2022: 100%) of Group revenue
100% (2022: 100%) of Group total assets
Key audit matters
2024 2023
Valuation of investment property
(excluding properties under development) Yes Yes
Materiality Group financial statements as a whole
£12.25m (2023: £11.5m) based on 1% (2023: 1%) of Group Total assets
An overview of the scope of our audit
Our audit was scoped by obtaining an understanding of the Group and its environment,
including the Group’s system of internal control, and assessing the risks of material
misstatement in the financial statements. We also addressed the risk of management
override of internal controls, including assessing whether there was evidence of bias by
the Directors that may have represented a risk of material misstatement.
The Group is a single component as it invests only in UK student accommodation with
a single finance team, a common IT system and internal control framework. The audit
approach included undertaking audit work on the key risks of material misstatement
identified for the Group across the single component. The Group audit team performed
all the work necessary to issue the Group and Parent Company audit opinion.
Climate change
Our work on the assessment of potential impacts on climate-related risks on the Group’s
operations and financial statements included:
î Enquiries and challenge of management to understand the actions they have taken to
identify climate-related risks and their potential impacts on the financial statements
and adequately disclose climate-related risks within the Annual Report;
î Our own qualitative risk assessment taking into consideration the sector in which the
Group operates and how climate change affects this particular sector; and
î Review of the minutes of Board and Audit and Risk Committee meetings and other
papers related to climate change and performed a risk assessment as to how the
impact of the Group’s commitment as set out in the Task Force on Climate-related
Financial Disclosures (“TCFD”) may affect the financial statements and our audit.
We challenged the extent to which climate-related considerations, including the
expected cash flows from the initiatives and commitments have been reflected,
where appropriate, in management’s going concern assessment and viability assessment,
and in management’s judgements and estimates in relation to the investment
property portfolio.
Based on our risk assessment procedures, we did not identify there to be any key audit
matters materially impacted by climate-related risks and related commitments.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the financial statements of the current period and include
the most significant assessed risks of material misstatement (whether or not due to
fraud) that we identified, including those which had the greatest effect on: the overall
audit strategy, the allocation of resources in the audit, and directing the efforts of the
engagement team. These matters were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
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Independent auditor’s report to the members of Empiric Student Property plc | continued
Key audit matter How the scope of our audit addressed the key audit matter
Valuation of Investment
Property (excluding
commercial properties
and properties under
development)
Refer to Note 1.5
(Accounting Policies)
and Note 11 (Investment
Property).
The valuation of investment property requires
significant judgement and estimates by the
Directors and the independent external valuer
(the “Valuer”) and was therefore considered a
significant risk due to the subjective nature of
certain assumptions inherent in each valuation.
Any input inaccuracies or unreasonable bases
used in the valuation judgements (such as
capitalisation yields, future lease income,
operating costs and future capital expenditure)
could result in a material misstatement of the
financial statements.
There is also a risk that the Directors may
influence the significant judgements and
estimates in respect of property valuations
in order to achieve property valuation and
other performance targets to meet market
expectations.
For these reasons we considered the valuation of
investment property to be a key audit matter.
We met with the Group’s external valuer, who valued all the Group’s investment properties to
understand the assumptions and methodologies used in valuing these properties, the market
evidence supporting the valuation assumptions and the valuation movements in the year.
We assessed the competency, independence, and objectivity of the external Valuer, which
included making enquiries regarding interests and relationships that may have created a threat to
the Valuer’s objectivity.
We used our knowledge and experience, including the assistance of our internal RICS qualified
valuers, to evaluate and challenge the valuation assumptions, methodologies and the inputs used.
This included establishing our own range of expectations for the valuation of investment property
based on externally available metrics and wider economic and commercial factors. We assessed
the valuation for each of the investment properties against our own expectation and challenged
the external Valuer in respect of those properties where the valuations fell outside of our range
of expectation through discussion and inspection of corroborating information to determine the
appropriate valuation.
We checked the data provided to the Valuer by the Group was consistent with the data we had
audited. This data included inputs such as rent for the current academic year (which we have
assessed through evaluating the design and operating effectiveness of relevant controls which
record and calculate straight line rent over the lease term and performing a reconciliation of total
revenue for student rental income to underlying cash receipts), projected capital expenditure and
fire safety works.
We reviewed the Directors’ assessment of the future capital expenditure including fire safety
works. We corroborated a sample of costs to supporting documentation such as subcontractor
agreements and price quotes. We also obtained a copy of the report detailing the expected
works that management commissioned from an external expert. We assessed the competency,
independence, and objectivity of the external expert, which included making enquiries regarding
interests and relationships that may have created a threat to the expert’s objectivity.
Key observations:
Based on the procedures we performed, we considered the assumptions and methodologies
used to value the Group’s investment portfolio to be appropriate.
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Our application of materiality
We apply the concept of materiality both in planning and performing our audit, and in
evaluating the effect of misstatements. We consider materiality to be the magnitude by
which misstatements, including omissions, could influence the economic decisions of
reasonable users that are taken on the basis of the financial statements.
In order to reduce to an appropriately low level the probability that any misstatements
exceed materiality, we use a lower materiality level, performance materiality, to determine
the extent of testing needed. Importantly, misstatements below these levels will not
necessarily be evaluated as immaterial as we also take account of the nature of identified
misstatements, and the particular circumstances of their occurrence, when evaluating
their effect on the financial statements as a whole.
Based on our professional judgement, we determined materiality for the financial
statements as a whole and performance materiality as follows:
Group financial statements Parent Company financial statements
2024
£
2023
£
2024
£
2023
£
Materiality £12,250,000 £11,500,000 £11,025,000 £10,350,000
Basis for
determining
materiality
1% of Group Total Assets 2% of Total Assets, capped at 90%
of Group materiality
Rationale for
the benchmark
applied
We determined that Group
Total Assets would be the most
appropriate basis for determining
overall materiality as we consider
this to be one of its principal
considerations for users of the
financial statements in assessing
the financial performance of the
Group.
We determined that Parent
Total Assets would be the most
appropriate basis for determining
materiality as we consider
this to be one of its principal
considerations for users of the
financial statements in assessing
the financial performance of the
Parent. This is capped at 90%
of Group materiality given the
assessment of aggregation risk.
Performance
materiality
£9,187,500 £8,025,000 £8,268,750 £7,762,500
Basis for
determining
performance
materiality
75% of materiality - in determining performance materiality we have
considered the following factors:
• Our risk assessment, including our assessment of the Group’s and
the Parent Company’s overall control environment; and
• Our past experience of the audit and the level of corrected
and uncorrected misstatements identified in prior periods and
Management’s willingness to investigate and correct these.
Specific materiality
We also determined that for other account balances and classes of transactions that
impact the calculation of European Public Real Estate Association (“EPRA”) earnings a
misstatement of less than materiality for the financial statements as a whole, specific
materiality, could influence the economic decisions of users. We consider EPRA earnings
to be a key performance measure of the Company. EPRA earnings exclude the impact of
the net surplus on revaluation of investment properties, profit on disposal of investment
properties and changes in the fair value of interest rate derivatives. As a result, we
determined materiality for these items to be £1,150,000 (2023: £1,200,000), based on
5% of EPRA earnings (2023: 5%). This materiality was applied to test those items which do
or may impact the measurement of EPRA earnings. Disclosure matters and the cashflow
statement are subject to Group financial statement materiality. We further applied a
performance materiality level of 75% of specific materiality to ensure that the risk of
errors exceeding specific materiality was appropriately mitigated.
Reporting threshold
We agreed with the Audit and Risk Committee that we would report to them all individual
audit differences in excess of £612,500 (2023: £230,000) and for those items impacting
the calculation of EPRA earnings £57,500 (2023: £60,000). We also agreed to report
differences below this threshold that, in our view, warranted reporting on qualitative
grounds.
Other information
The Directors are responsible for the other information. The other information comprises
the information included in the Annual Report other than the financial statements and
our auditor’s report thereon. Our opinion on the financial statements does not cover
the other information and, except to the extent otherwise explicitly stated in our report,
we do not express any form of assurance conclusion thereon. Our responsibility is to
read the other information and, in doing so, consider whether the other information
is materially inconsistent with the financial statements or our knowledge obtained in
the course of the audit, or otherwise appears to be materially misstated. If we identify
such material inconsistencies or apparent material misstatements, we are required to
determine whether this gives rise to a material misstatement in the financial statements
themselves. If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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Independent auditor’s report to the members of Empiric Student Property plc | continued
Corporate governance statement
The UK Listing Rules require us to review the Directors’ statement in relation to going
concern, longer-term viability and that part of the Corporate Governance Statement
relating to the Parent Company’s compliance with the provisions of the UK Corporate
Governance Code specified for our review.
Based on the work undertaken as part of our audit, we have concluded that each of the
following elements of the Corporate Governance Statement is materially consistent with
the financial statements or our knowledge obtained during the audit.
Going concern and
longer-term viability
• The Directors’ statement with regards to the appropriateness
of adopting the going concern basis of accounting and any
material uncertainties identified set out on page 159; and
• The Directors’ explanation as to their assessment of the Parent
Company’s prospects, the period this assessment covers and
why the period is appropriate set out on page 43.
Other Code
provisions
• Directors’ statement on fair, balanced and understandable set
out on page 122;
• Board’s confirmation that it has carried out a robust assessment
of the emerging and principal risks set out on page 121;
• The section of the Annual Report that describes the review of
effectiveness of risk management and internal control systems
set out on page 120; and
• The section describing the work of the audit committee set out
on page 119.
Other Companies Act 2006 reporting
Based on the responsibilities described below and our work performed during the course
of the audit, we are required by the Companies Act 2006 and ISAs (UK) to report on
certain opinions and matters as described below.
Strategic report and
Directors’ report
In our opinion, based on the work undertaken in the course of the
audit:
• the information given in the Strategic report and the Directors’
report for the financial year for which the financial statements
are prepared is consistent with the financial statements; and
• the Strategic report and the Directors’ report have been
prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and
the Parent Company and its environment obtained in the course
of the audit, we have not identified material misstatements in the
Strategic report or the Directors’ report.
Directors’
remuneration
In our opinion, the part of the Directors’ remuneration report to
be audited has been properly prepared in accordance with the
Companies Act 2006.
Matters on which
we are required to
report by exception
We have nothing to report in respect of the following matters in
relation to which the Companies Act 2006 requires us to report
to you if, in our opinion:
• adequate accounting records have not been kept by the Parent
Company, or returns adequate for our audit have not been
received from branches not visited by us; or
• the Parent Company financial statements and the part of
the Directors’ remuneration report to be audited are not in
agreement with the accounting records and returns; or
• certain disclosures of Directors’ remuneration specified by law
are not made; or
• we have not received all the information and explanations we
require for our audit.
Responsibilities of Directors
As explained more fully in the Directors’ responsibilities statement, the Directors are
responsible for the preparation of the financial statements and for being satisfied that
they give a true and fair view, and for such internal control as the Directors determine is
necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the Directors are responsible for assessing the
Group’s and the Parent Company’s ability to continue as a going concern, disclosing,
as applicable, matters related to going concern and using the going concern basis
of accounting unless the Directors either intend to liquidate the Group or the Parent
Company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with
ISAs (UK) will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken
on the basis of these financial statements.
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Extent to which the audit was capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations.
We design procedures in line with our responsibilities, outlined above, to detect material
misstatements in respect of irregularities, including fraud. The extent to which our
procedures are capable of detecting irregularities, including fraud is detailed below:
Non-compliance with laws and regulations
Based on:
î Our understanding of the Group and the industry in which it operates;
î Discussion with management and those charged with governance (including the Audit
and Risk Committee); and
î Obtaining and understanding of the Group’s policies and procedures regarding
compliance with laws and regulations;
we considered the significant laws and regulations to be the applicable accounting
framework, Companies Act 2006, the UK Listing Rules and the REIT tax regime
requirements.
The Group is also subject to laws and regulations where the consequence of non-
compliance could have a material effect on the amount or disclosures in the financial
statements, for example through the imposition of fines or litigations. We identified such
laws and regulations to be the Fire Safety (England) Regulations 2022.
Our procedures in response to the above included:
î Agreement of the financial statement disclosures to underlying supporting
documentation to assess compliance with those laws and regulations having an impact
on the financial statements;
î Review of minutes of Board and committee meetings throughout the period and
enquiries of management and the Audit and Risk Committee as to their identification
of any non-compliance with laws or regulations;
î Obtaining an understanding of the control environment in monitoring compliance
with laws and regulations and performing our own checks of compliance with relevant
requirements, including the Companies Act 2006, the UK Listing Rules and the REIT tax
regime requirements.
Irregularities including fraud
We assessed the susceptibility of the financial statements to material misstatement,
including fraud. Our risk assessment procedures included:
î Enquiry of management and those charged with governance, including the Audit and
Risk Committee, regarding any known or suspected instances of fraud;
î Obtaining an understanding of the Group’s policies and procedures relating to:
î Detecting and responding to the risks of fraud; and
î Internal controls established to mitigate risks related to fraud.
î Review of minutes of Board and committee meetings throughout the period and
enquiries of management and the Audit and Risk Committee as to their identification
of any actual or potential claims or fraud;
î Discussion amongst the engagement team as to how and where fraud might occur in
the financial statements;
î Performing analytical procedures to identify any unusual or unexpected relationships
that may indicate risks of material misstatement due to fraud; and
î Considering remuneration incentive schemes and performance targets and the related
financial statement areas impacted by these.
Based on our risk assessment, we identified specific fraud risks with respect to the
valuation of investment property, which has been included as a key audit matter and our
audit response is set out in that section of our audit report. We also identified specific
fraud risks with respect to revenue recognition (student rental income) and management
override of controls.
Our procedures in respect of the above included:
î We addressed the risk of revenue recognition for student rental income through
involving internal IT specialists who reviewed the design and operating effectiveness
of relevant controls which automatically record and calculate straight line rent over
the lease term. We also performed a reconciliation of total revenue for student rental
income to underlying cash receipts. In addition, we tested a sample of manual journals
processed during the year to supporting documentation and evaluating whether there
was evidence of management override due to fraud; and
î We addressed the risk of management override of controls by testing a sample of
journals processed during the year to supporting documentation and evaluating
whether there was evidence of bias that represented a risk of material misstatement
due to fraud.
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We also communicated relevant identified laws and regulations and potential fraud risks
to all engagement team members who were all deemed to have appropriate competence
and capabilities and remained alert to any indications of fraud or non-compliance with
laws and regulations throughout the audit.
Our audit procedures were designed to respond to risks of material misstatement in the
financial statements, recognising that the risk of not detecting a material misstatement
due to fraud is higher than the risk of not detecting one resulting from error, as fraud
may involve deliberate concealment by, for example, forgery, misrepresentations or
through collusion. There are inherent limitations in the audit procedures performed and
the further removed non-compliance with laws and regulations is from the events and
transactions reflected in the financial statements, the less likely we are to become aware
of it.
A further description of our responsibilities is available on the Financial Reporting
Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part
of our auditor’s report.
Use of our report
This report is made solely to the Parent Company’s members, as a body, in accordance
with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been
undertaken so that we might state to the Parent Company’s members those matters
we are required to state to them in an auditor’s report and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume responsibility to anyone
other than the Parent Company and the Parent Company’s members as a body, for our
audit work, for this report, or for the opinions we have formed.
For and on behalf of BDO LLP , Statutory Auditor
London, UK
12 March 2025
BDO LLP is a limited liability partnership registered in England and Wales (with registered
number OC305127).
Independent auditor’s report to the members of Empiric Student Property plc | continued
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Consolidated statement of comprehensive income
| Year ended | Year ended | ||
| 31 December | 31 December | ||
| 2024 | 2023 | ||
| Note | £m | £m | |
| Continuing operations | |||
Revenue | 2 | ||
Property expenses | 3 | ( | ( |
Gross profit | |||
Administrative expenses | 4 | ( | ( |
Loss on disposal of investment property | ( | ( | |
Change in fair value of investment property | 11,16 | ||
Operating profit | |||
Finance costs | 5 | ( | ( |
Finance income | 5 | ||
Derivative fair value movement | ( | ( | |
Profit before income tax | |||
Corporation tax | 7 | ||
Profit for the year and total comprehensive income | |||
Earnings per share expressed in pence per share | 8 | ||
Basic | |||
Diluted |
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Financial statements 154
| At | At | ||
| 31 December | |||
| 2023 | |||
| Note | £m | £m | |
| ASSETS | |||
| Non-current assets | |||
Investment property – Operational Assets | 11 | ||
Investment property – Development Assets | 11 | ||
Property, plant and equipment | 13 | ||
Intangible assets | 12 | ||
Right of use asset | |||
Total non-current assets | |||
| Current assets | |||
Trade and other receivables | 14 | ||
Assets classified as held for sale | 15 | ||
Cash and cash equivalents | 16 | ||
Derivative fair value | |||
Total current assets | |||
Total assets | |||
| LIABILITIES | |||
| Current liabilities | |||
Trade and other payables | 17 | ||
Borrowings | 18 | ||
Lease liability | |||
Deferred income | 17 | ||
Total current liabilities | |||
| Non-current liabilities | |||
Borrowings | 18 | ||
Lease liability | |||
Total non-current liabilities | |||
Total liabilities | |||
Total net assets |
| At | At | ||
| 31 December | 31 December | ||
| 2024 | 2023 | ||
| Note | £m | £m | |
| Equity | |||
Called up share capital | 19 | ||
Share premium | 20 | ||
Capital reduction reserve | 21 | ||
Retained earnings | |||
Total equity | |||
Total equity and liabilities | |||
Net Asset Value per share basic (pence) | 9 | ||
Net Asset Value per share diluted (pence) | 9 | ||
EPRA NTA per share (pence) | 9 |
These financial statements were approved by the Board of Directors on 12 March 2025
and signed on its behalf by:
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Company statement of financial position
Note
At
31 December
2024
£m
At
31 December
2023
£m
Fixed assets
Investments in subsidiaries 30
222.6
222.6
Property, plant and equipment 13
0.8
0.7
Intangible assets 12
5.5
3.1
Right of use asset 1.0 1.2
Total fixed assets 229.9 227.6
Current assets
Amounts due from Group undertakings 14
819.4
391.4
Trade and other receivables 14
0.7
0.7
Cash and cash equivalents 16 24.7 2.4
Total current assets 844.8 394.5
Current creditors
Amounts due to Group undertakings 17
454.8
111.0
Trade and other payables 17
2.1
3.4
Lease liability 0.2 0.1
Total current creditors 457.1 114.5
Total assets less current liabilities 617.6 507.6
Net current assets 387.7 280.0
Non-current creditors
Lease liability 0.8 1.0
Total non-current creditors 0.8 1.0
Total net assets 616.8 506.6
Note
At
31 December
2024
£m
At
31 December
2023
£m
Capital and reserves
Called up share capital 19
6.6
6.0
Share premium 20
54.1
0.3
Capital reduction reserve 21
402.1
424.1
Retained earnings 154.0 76.2
Total capital and reserves 616.8 506.6
The Company made a profit for the year of £77.5 million (2023: loss of £13.1 million).
These financial statements were approved by the Board of Directors on 12 March 2025
and signed on its behalf by:
Donald Grant | Director
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Consolidated statement of changes in equity
| Capital | |||||
| Called up | Share | reduction | Retained | Total | |
| share capital | premium | reserve | earnings | equity | |
| Year ended 31 December 2024 | £m | £m | £m | £m | £m |
| Balance at | |||||
Profit for the year | |||||
Total comprehensive income for the year | |||||
| Share-based payments | |||||
| Issue of shares net of fund raising costs | |||||
Dividends | ( | ( | |||
Amounts recognised directly in equity | ( | ||||
Balance at | |||||
Balance at 1 January 2023 | |||||
Profit for the year | |||||
Total comprehensive income for the year | |||||
Share-based payments | |||||
Reserves transfer | ( | ||||
Dividends | ( | ( | |||
Amounts recognised directly in equity | ( | ( | |||
Balance at 31 December 2023 |
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Company statement of changes in equity
Year ended 31 December 2023
Called up
share capital
£m
Share
premium
£m
Capital
reduction
reserve
£m
Retained
earnings
£m
Total
equity
£m
Balance at 1 January 2024
6.0 0.3 424.1 76.2 506.6
Profit for the year – – – 77.5 77.5
Total comprehensive income for the year – – – 77.5 77.5
Share-based payments
– 0.1 – 0.3 0.4
Issue of shares net of fund raising costs
0.6 53.7 – – 54.3
Dividends – – (22.0) – (22.0)
Amounts recognised directly in equity 0.6 53.8 (22.0) 0.3 32.7
Balance at 31 December 2024 6.6 54.1 402.1 154.0 616.8
Balance at 1 January 2023 6.0 0.3 444.7 88.7 539.7
Loss for the year – – – (13.1) (13.1)
Total comprehensive income for the year – – 0.1 13.1 (13.1)
Share-based payments – – – 0.7 0.7
Reserves transfer – – 0.1 (0.1) –
Dividends – – (20.7) – (20.7)
Amounts recognised directly in equity – – (20.6) 0.6 (20.0)
Balance at 31 December 2023 6.0 0.3 424.1 76.2 506.6
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Consolidated statement of cash flows
| Year ended | Year ended | ||
| 31 December | 31 December | ||
| 2024 | 2023 | ||
| Note | £m | £m | |
| Cash flows from operating activities | |||
| Profit before income tax | |||
| Share-based payments expense | |||
| Depreciation and amortisation | |||
| Finance costs | |||
| Finance income | ( | ( | |
| Loss on disposal of investment property | |||
| Change in fair value of investment property | ( | ( | |
Change in fair value of derivative | |||
| (Increase)/decrease in trade and other receivables | ( | ||
| Decrease in trade and other payables | ( | ( | |
Increase in deferred rental income | |||
( | |||
Net cash flows generated from operations | |||
| Cash flows from investing activities | |||
| Purchases of tangible fixed assets | ( | ||
| Purchases of intangible assets | ( | ( | |
| Purchase and development of investment | |||
| property | ( | ( | |
Proceeds on disposal of asset held for sale, net of selling costs | |||
| Proceeds on disposal of investment property, net | |||
| of selling costs | |||
Finance income | |||
Net cash flows (deployed to)/from investing activities | ( |
| Year ended | Year ended | ||
| 31 December | 31 December | ||
| 2024 | 2023 | ||
| Note | £m | £m | |
| Cash flows from financing activities | |||
| Dividends paid | ( | ( | |
| Proceeds from equity raise, net of costs | |||
Bank borrowings drawn | 28 | ||
Bank borrowings repaid | 28 | ( | ( |
Loan arrangement fee paid | 28 | ( | ( |
Lease liability paid | 28 | ( | ( |
| Derivative premium paid | ( | ( | |
| Interest rate cap termination receipt | |||
Finance costs | ( | ( | |
| Net cash flows generated from/(used in) | |||
financing activities | ( | ||
| Increase/(decrease) in cash and cash equivalents | ( | ||
Cash and cash equivalents at beginning of year | 16 | ||
Cash and cash equivalents at end of year | 16 |
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Notes to the financial statements
1. Accounting policies
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1. Accounting policies continued
1.4 Going Concern continued
1.6 Summary of Material Accounting Policies
Notes to the financial statements | continued
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1. Accounting policies continued
1.6 Summary of Material Accounting Policies continued
Notes to the financial statements | continued
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| Group | ||
| Year ended | Year ended | |
| 31 December | 31 December | |
| 2024 | 2023 | |
| £m | £m | |
Student rental income | 82.6 | 79.0 |
Commercial rental income | 1.6 | 1.5 |
Total revenue | 84.2 | 80.5 |
3. Property expenses
| Group | ||
| Year ended | Year ended | |
| 31 December | 31 December | |
| 2024 | 2023 | |
| £m | £m | |
Direct site costs (income generating properties) | 5.8 | 5.0 |
Technology services | 0.6 | 0.7 |
Site office and utilities | 14.3 | 14.3 |
Cleaning and service contracts | 3.2 | 3.3 |
Repairs and maintenance | 1.7 | 1.9 |
Total property expenses | 25.6 | 25.2 |
| Group | ||
| Year ended | Year ended | |
| 31 December | 31 December | |
| 2024 | 2023 | |
| £m | £m | |
Salaries and Directors’ remuneration | 8.9 | 8.8 |
Legal and professional fees | 1.6 | 1.4 |
Other administrative costs | 1.9 | 1.3 |
Depreciation and amortisation | 0.6 | 0.8 |
IT expenses | 1.3 | 1.0 |
Internal audit fees 1 | 0.1 | – |
Abortive acquisition costs | 0.5 | 0.1 |
Administrative expenses excluding external audit fees | 14.9 | 13.3 |
Fees payable for the audit of the Group’s annual results | 0.4 | 0.3 |
Fees payable for the audit of the Group’s interim results | 0.1 | 0.1 |
Fees payable for the audit of the Group’s subsidiaries | – | 0.2 |
Total auditor’s fees 1 | 0.5 | 0.6 |
Total administrative expenses | 15.4 | 14.0 |
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| Group | ||
| Year ended | Year ended | |
| 31 December | 31 December | |
| 2024 | 2023 | |
| £m | £m | |
| Finance costs | ||
Interest expense on bank borrowings | 17.8 | 16.2 |
Amortisation of loan transaction costs | 1.7 | 1.2 |
19.5 | 17.4 | |
| Finance income | ||
Interest received on bank deposits | 0.8 | 0.2 |
Net finance costs | 18.7 | 17.2 |
6. Employees and directors
Group | Company | |||
| Year ended | Year ended | Year ended | Year ended | |
| 31 December | 31 December | 31 December | 31 December | |
| 2024 | 2023 | 2024 | 2023 | |
| £m | £m | £m | £m | |
Wages and salaries | 13.7 | 12.3 | 6.0 | 5.2 |
Pension costs | 0.9 | 0.7 | 0.4 | 0.5 |
Cash bonus | 0.5 | 1.3 | 0.3 | 0.9 |
Share-based payments | 0.4 | 0.9 | 0.4 | 0.9 |
National insurance | 1.4 | 1.4 | 0.7 | 0.6 |
16.9 | 16.6 | 7.8 | 8.1 | |
| Less: Hello Student employee costs | ||||
included within property expenses | (7.5) | (7.7) | – | – |
Less: capitalised salaries | (0.5) | – | (0.5) | – |
| Amounts included in administrative | ||||
expenses | 8.9 | 8.9 | 7.3 | 8.1 |
The average monthly number of employees: | ||||
Management – Company | 5 | 5 | 5 | 5 |
Administration – Company | 70 | 60 | 70 | 60 |
Group | Company | |||
| Year ended | Year ended | Year ended | Year ended | |
| 31 December | 31 December | 31 December | 31 December | |
| 2024 | 2023 | 2024 | 2023 | |
| £m | £m | £m | £m | |
| Operations – Hello Student | ||||
Management Limited | 299 | 293 | – | – |
374 | 358 | 75 | 65 |
Directors’ remuneration
| Group | ||
| Year ended | Year ended | |
| 31 December | 31 December | |
| 2024 | 2023 | |
| £m | £m | |
Salaries and fees | 1.0 | 1.0 |
Pension costs | 0.1 | 0.1 |
Bonus | 0.1 | 0.5 |
Share-based payments | 0.3 | 0.6 |
1.5 | 2.2 |
A summary of the Directors’ emoluments, including the disclosures required by the
Companies Act 2006 is set out in the Directors’ Remuneration Report.
7. Corporation tax
The Group became a REIT on 1 July 2014 and as a result does not pay UK corporation tax
on its profits and gains from its qualifying property rental business in the UK provided it
meets certain conditions. Non-qualifying profits and gains of the Group continue to be
subject to corporation tax as normal.
In order to achieve and retain REIT status, several conditions have to be met on entry to
the regime and on an ongoing basis, including:
î at the start of each accounting period, the assets of the property rental business (plus
any cash and certain readily realisable investments) must be at least 75% of the total
value of the Group’s assets;
î at least 75% of the Group’s total profits must arise from the tax-exempt property rental
business; and
î at least 90% of the tax exempt profit of the property rental business (excluding gains)
of the accounting period must be distributed.
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In addition, the full UK corporation tax exemption in respect of the profits of the property
rental business will not be available if the profit financing cost ratio in respect of the
property rental business is less than 1.25.
The Directors intend that the Group should continue as a REIT for the foreseeable future,
with the result that deferred tax is not required to be recognised in respect of temporary
differences relating to the property rental business.
| Group | ||
| Year ended | Year ended | |
| 31 December | 31 December | |
| 2024 | 2023 | |
| £m | £m | |
| Current tax | ||
| Income tax charge for the year | – | – |
Adjustment in respect of prior year | – | – |
Total current income tax charge in the income statement | – | – |
| Deferred tax | ||
Total deferred income tax charge in the income statement | – | – |
Total current income tax charge in the income statement | – | – |
The tax assessed for the year is lower than the standard rate of corporation tax in the year | ||
Profit for the year | 34.4 | 53.4 |
Profit before tax multiplied by the rate of corporation tax in the UK of 25% (2023: 23.5%) | 8.6 | 12.5 |
| Exempt property rental profits in the year | (8.2) | (9.1) |
| Exempt property revaluations in the year | (3.9) | (7.1) |
| Effects of: | ||
| Non-allowable expenses | 0.2 | 0.1 |
Unutilised current year tax losses | 3.3 | 3.6 |
Total current income tax charge in the income statement | – | – |
No deferred tax asset has been recognised in respect of gross tax losses of £60.6
million (2023: £48.8 million), accelerated capital allowances of £4.2 million (2023: £3.8
million) and share based payments of £2.5 million (2023: £2.1 million) on the basis that
the business is not expected to generate taxable profits in future periods against which
these amounts can be applied. Therefore, a deferred tax asset of £16.2 million (2023: £13.1
million) has not been recognised in respect of such timing differences.
8. Earnings per share
The number of shares used in the calculation of basic earnings per share is based on the
time weighted average number of shares throughout the year.
Basic EPS is calculated by dividing the earnings attributable to ordinary shareholders by
the weighted average number of ordinary shares outstanding during the year.
Diluted EPS is calculated using the weighted average number of shares adjusted to
assume the conversion of all dilutive potential ordinary shares.
EPRA EPS, reported on the basis recommended for real estate companies by EPRA, is
a key measure of the Group’s operating results, and used by the Board to assess the
Group’s dividend payments.
The Group has early adopted EPRA’s Best Practice Recommendations issued in
September 2024 for accounting periods beginning on or after 01 October 2024. The
impact of adoption has led to a refinement of the EPRA Earnings Per Share (EPS) metric,
introduced to ensure EPRA’s earnings metric remains robust, accurate and aligned to
both its original definition and applied consistently across the sector.
The primary amendment made allows Companies to make adjustments for items
considered to be non-operating, unusual or exceptional within the calculation of EPRA
EPS, thereby reducing the need for Company adjusted earnings metrics.
During the year two exceptional non-recurring charges totalling £1.4 million were made,
which have been adjusted for in arriving at EPRA Earnings and EPRA EPS, as set out below.
There were no equivalent charges in the comparative period and therefore no change to
EPRA Earnings or EPRA EPS as a result of adoption.
The calculation of each earnings measure is set out on the next page.
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8. Earnings per share continued
| Calculation | Calculation of | |||
| Calculation of | Calculation of | of EPRA basic | EPRA diluted | |
| basic EPS | diluted EPS | EPS | EPS | |
| Year to 31 December 2024 | £m | £m | £m | £m |
| Earnings per IFRS statement | ||||
of comprehensive income | 34.4 | 34.4 | 34.4 | 34.4 |
| Adjustments to remove: | ||||
Changes in fair value of investment property | – | – | (15.4) | (15.4) |
Loss on disposal of investment property | – | – | 4.2 | 4.2 |
| Loss on derivative financial | ||||
instruments | – | – | 1.3 | 1.3 |
| Accelerated debt issue cost | ||||
| amortisation on refinancing – | ||||
non-recurring | – | – | 0.9 | 0.9 |
Abortive costs in relation to prospective Joint Venture – | ||||
non-recurring | – | – | 0.5 | 0.5 |
Earnings | 34.4 | 34.4 | 25.9 | 25.9 |
Weighted average number of shares (m) | 616.2 | 616.2 | 616.2 | 616.2 |
| Adjustment for employee share | ||||
options (m) | – | 5.6 | – | 5.6 |
Total number shares (m) | 616.2 | 621.8 | 616.2 | 621.8 |
Earnings per share (pence) | 5.6 | 5.5 | 4.2 | 4.2 |
| Calculation | Calculation of | |||
| Calculation of | Calculation of | of EPRA basic | EPRA diluted | |
| basic EPS | diluted EPS | EPS | EPS | |
| Year to 31 December 2023 | £m | £m | £m | £m |
| Earnings per IFRS statement | ||||
of comprehensive income | 53.4 | 53.4 | 53.4 | 53.4 |
| Adjustments to remove: | ||||
Changes in fair value of investment property | – | – | 0.6 | 0.6 |
Loss on disposal of investment property | – | – | (30.1) | (30.1) |
| Loss on derivative financial | ||||
instruments | 0.2 | 0.2 | ||
Earnings | 53.4 | 53.4 | 24.1 | 24.1 |
Weighted average number of shares (m) | 603.4 | 603.4 | 603.4 | 603.4 |
| Adjustment for employee share | ||||
options (m) | – | 4.6 | – | 4.6 |
Total number shares (m) | 603.4 | 608.0 | 603.4 | 608.0 |
Earnings per share (pence) | 8.8 | 8.8 | 4.0 | 4.0 |
Notes to the financial statements | continued
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Financial statements 167
9. Net asset value per share
The principles of the three EPRA measures are set out below:
EPRA Net Reinstatement Value (“NRV”): Assumes that entities never sell assets and aims
to represent the value required to reinstate entity assets.
EPRA Net Tangible Assets (“NTA”): Assumes that entities buy and sell assets, which
crystalises unavoidable deferred tax.
EPRA Net Disposal Value (“NDV”): Represents the shareholders’ value under a disposal
scenario, where deferred tax, financial instruments and certain other adjustments are
calculated to the full extent of their liability, net of any resulting tax. As the Group is a
REIT, no adjustment is made for deferred tax.
The Group considers EPRA NTA to be the most relevant measure and this is used as the
Group’s primary NAV measure.
A reconciliation of the three EPRA NAV metrics from IFRS NAV is shown in the
table below:
NAV | EPRA NAV measures | |||
| EPRA | EPRA | EPRA | ||
| IFRS | NTA | NRV | NDV | |
| Year ended 31 December 2024 | £m | £m | £m | £m |
Net assets per Statement of Financial Position | 801.3 | 801.3 | 801.3 | 801.3 |
Adjustments | – | |||
Fair value of fixed rate debt | – | – | – | 20.7 |
Derivative fair value | – | (0.5) | (0.5) | – |
Purchaser’s costs 1 | – | – | 67.3 | – |
| Net assets used in per | ||||
share calculation | 801.3 | 800.8 | 868.1 | 822.0 |
| Number of shares in issue | ||||
Issued share capital (m) | 664.0 | 664.0 | 664.0 | 664.0 |
| Issued share capital plus employee | ||||
options (m) | 669.6 | 669.6 | 669.6 | 669.6 |
| Net Asset Value per share | ||||
| Basic Net Asset Value per share | ||||
(pence) | 120.7 | |||
| Diluted Net Asset Value per share | ||||
(pence) | 119.7 | 119.6 | 129.6 | 122.8 |
NAV | EPRA NAV measures | |||
| EPRA | EPRA | EPRA | ||
| IFRS | NTA | NRV | NDV 2 | |
| Year ended 31 December 2023 | £m | £m | £m | £m |
Net assets per Statement of Financial Position | 734.2 | 734.2 | 734.2 | 734.2 |
Adjustments | – | |||
Fair value of fixed rate debt | – | – | – | 20.9 |
Derivative fair value | – | (0.1) | (0.1) | – |
Purchaser’s costs 1 | – | – | 37.1 | – |
| Net assets used in per | ||||
share calculation | 734.2 | 734.1 | 771.2 | 755.1 |
| Number of shares in issue | ||||
Issued share capital (m) | 603.4 | 603.4 | 603.4 | 603.4 |
| Issued share capital plus employee | ||||
options (m) | 608.0 | 608.0 | 608.0 | 608.0 |
| Net Asset Value per share | ||||
| Basic Net Asset Value per share | ||||
(pence) | 121.7 | |||
| Diluted Net Asset Value per share | ||||
(pence) | 120.8 | 120.7 | 126.8 | 124.2 |
1 Restated to reflect full application of the equity method.
2 EPRA NTA and EPRA NDV reflect IFRS values which are net of purchaser’s costs. Any purchaser’s costs deducted
from the market value are added back when calculating EPRA NRV.
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Financial statements 168
| Group and Company | ||
| Year ended | Year ended | |
| 31 December | 31 December | |
| 2024 | 2023 | |
| £m | £m | |
| Interim dividend of 0.875 pence per ordinary share in respect | ||
of the quarter ended 31 December 2022 | 5.3 | |
| Interim dividend of 0.8125 pence per ordinary share in respect | ||
of the quarter ended 31 March 2023 | 4.9 | |
| Interim dividend of 0.8125 pence per ordinary share in respect | ||
of the quarter ended 30 June 2023 | 4.9 | |
| Interim dividend of 0.9375 pence per ordinary share in respect | ||
of the quarter ended 30 September 2023 | 5.6 | |
| Interim dividend of 0.9375 pence per ordinary share in respect | ||
| of the quarter ended 31 December 2023 | 5.7 | |
| Interim dividend of 0.875 pence per ordinary share in respect | ||
| of the quarter ended 31 March 2024 | 5.3 | |
| Interim dividend of 0.875 pence per ordinary share in respect | ||
| of the quarter ended 30 June 2024 | 5.3 | |
| Interim dividend of 0.875 pence per ordinary share in respect | ||
of the quarter ended 30 September 2024 | 5.7 | |
22.0 | 20.7 |
11. Investment property
| Group | |||||
| Investment | Investment | Total | Property | Total | |
| property | property | operational | under | investment | |
| freehold | long leasehold | assets | development | property | |
| Year ended 31 December 2024 | £m | £m | £m | £m | £m |
| As at 1 January 2024 | 940.0 | 132.7 | 1,072.7 | 3.0 | 1,075.7 |
| Capital expenditure | 25.4 | 6.1 | 31.5 | 1.3 | 32.8 |
| Property acquisitions | 31.3 | – | 31.3 | 5.9 | 37.2 |
| Sale of investment | |||||
| property | (32.7) | – | (32.7) | (3.0) | (35.7) |
Transfer to held for sale asset | (2.7) | – | (2.7) | – | (2.7) |
| Change in fair value | |||||
during the year 1 | 12.3 | 6.5 | 18.8 | (1.2) | 17.6 |
As at 31 December 2024 | 973.6 | 145.3 | 1,118.9 | 6.0 | 1,124.9 |
1 The change in fair value of investment property during the year for the Group was £15.4 million. Of this, a fair
value gain of £17.6 million has been recorded in Investment Property, and a £2.2 million loss has been recorded
in held for sale assets.
| Group | |||||
| Investment | |||||
| Investment | property | Total | Property | Total | |
| property | long | operational | under | investment | |
| freehold | leasehold | assets | development | property | |
| Year ended 31 December 2023 | £m | £m | £m | £m | £m |
As at 1 January 2023 | 920.4 | 142.0 | 1,062.4 | 3.3 | 1,065.7 |
Capital expenditure | 29.7 | 2.8 | 32.5 | – | 32.5 |
| Sale of investment | |||||
property | (12.0) | (18.2) | (30.2) | – | (30.2) |
| Transfer to held for sale | |||||
asset | (22.4) | – | (22.4) | – | (22.4) |
| Change in fair value | |||||
during the year | 24.3 | 6.1 | 30.4 | (0.3) | 30.1 |
As at 31 December 2023 | 940.0 | 132.7 | 1,072.7 | 3.0 | 1,075.7 |
Notes to the financial statements | continued
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All rental income as well as all direct operating expenses, including repairs and
maintenance, recorded in the Statement of Comprehensive Income were derived
from those assets held under Investment Property and Held For Sale Assets. No direct
operating expenses, including repairs and maintenance, arose from Investment Property
or Held For Sale Assets that did not generate rental income.
£374.3 million (nominal value) of the Group’s borrowings are secured by fixed charges
over certain investment properties held by subsidiaries, with a market value of £1,021.7
million (31 December 2023: £1,074.9 million), and by floating charges over the assets of
certain subsidiaries. There are currently no restrictions on the remittance of income from
investment properties.
In accordance with IAS 40, the carrying value of investment property is their fair value as
determined by independent external valuers. This valuation has been conducted by CBRE
Limited, as external valuer, and has been prepared as at 31 December 2024, in accordance
with the Appraisal & Valuation Standards of the RICS, on the basis of market value.
Properties have been valued on an individual basis. This value has been incorporated into
the financial statements.
The valuation of all property assets uses market evidence and includes assumptions
regarding income expectations and yields that investors would expect to achieve on
those assets over time. Many external economic and market factors, such as interest rate
expectations, bond yields, the availability and cost of finance and the relative attraction
of property against other asset classes, could lead to a reappraisal of the assumptions
used to arrive at current valuations. In adverse conditions, this reappraisal can lead to a
reduction in property values and a loss in Net Asset Value.
The valuers of the Group’s property portfolio have made enquiries to ascertain
sustainability factors which are likely to impact value and reflect their understanding
of how market participants include sustainability factors in their pricing decisions in
arriving at their opinion of market value. The valuer considers the following sustainability
considerations to have the greatest potential to impact value:
î Energy performance;
î Green certification;
î Sources of fuel and renewable energy sources; and
î Physical risk/Climate related risk
The table opposite reconciles between the fair value of the investment property per
the Consolidated Statement of Financial Position and investment property per the
independent valuation performed in respect of each year end.
| Group | ||
| As at | As at | |
| 31 December | 31 December | |
| 2024 | 2023 | |
| £m | £m | |
Value per independent valuation report | 1,135.0 | 1,097.9 |
Add: Head lease | 0.6 | 0.2 |
Deduct: Assets classified as held for sale | (10.7) | (22.4) |
Fair value per Consolidated Statement of Financial Position | 1,124.9 | 1,075.7 |
| Quoted | ||||
| prices | Significant | Significant | ||
| inputs | observable | unobservable | ||
| markets | inputs | inputs | ||
| Total | (Level 1) | (Level 2) | (Level 3) | |
| Date of valuation 31 December 2024 | £m | £m | £m | £m |
| Assets measured at fair value: | ||||
Student property | 1,118.5 | – | – | 1,118.5 |
Commercial property | 16.5 | – | – | 16.5 |
As at 31 December 2024 | 1,135.0 | 1,135.0 |
| Quoted prices | Significant | Significant | ||
| in active | observable | unobservable | ||
| markets | inputs | inputs | ||
| Total | (Level 1) | (Level 2) | (Level 3) | |
| Date of valuation 31 December 2023 | £m | £m | £m | £m |
| Assets measured at fair value: | ||||
Student property | 1,082.1 | – | – | 1,082.1 |
Commercial property | 15.8 | – | – | 15.8 |
As at 31 December 2023 | 1,097.9 | – | – | 1,097.9 |
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11. Investment property continued
| 15% increase | -3% change | +3% change | -0.25% | +0.25% | |
| in cost of EWS | in rental | in rental | change | change | |
| works | income | income | in yield | in yield | |
| As at 31 December 2024 | £m | £m | £m | £m | £m |
| (Decrease)/increase | |||||
in the fair value of investment property | (4.4) | (45.8) | 45.6 | 57.2 | (52.1) |
| 15% increase | -3% change | +3% change | -0.25% | +0.25% | |
| in cost of EWS | in rental | in rental | change | change | |
| Works | income | income | in yield | in yield | |
| As at 31 December 2023 | £m | £m | £m | £m | £m |
| (Decrease)/increase | |||||
in the fair value of investment property | (4.9) | (45.1) | 45.0 | 55.5 | (50.5) |
| Group and | |
| Company | |
| External | |
| software | |
| development | |
| Year ended 31 December 2024 | £m |
| Costs | |
As at 1 January 2024 | 4.6 |
Additions | 2.7 |
As at 31 December 2024 | 7.3 |
| Amortisation | |
As at 1 January 2024 | (1.5) |
Charge for the year | (0.3) |
As at 31 December 2024 | (1.8) |
| Net book value | |
As at 31 December 2024 | 5.5 |
Notes to the financial statements | continued
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Financial statements 171
| Group and | |
| Company | |
| External | |
| software | |
| development | |
| Year ended 31 December 2023 | £m |
| Costs | |
As at 1 January 2023 | 3.0 |
Additions | 1.6 |
As at 31 December 2023 | 4.6 |
| Amortisation | |
As at 1 January 2023 | (1.1) |
Charge for the year | (0.4) |
As at 31 December 2023 | (1.5) |
| Net book value | |
As at 31 December 2023 | 3.1 |
13. Property, plant and equipment
Year ended 31 December 2024
Group Company
Fixtures
and
fittings
£m
Computer
equipment
£m
Total
£m
Fixtures
and
fittings
£m
Computer
equipment
£m
Total
£m
Costs
As at 1 January 2024
1.8 0.6 2.4 1.7 0.3 2.0
Additions – 0.1 0.1 – 0.1 0.1
As at 31 December 2024 1.8 0.7 2.5 1.7 0.4 2.1
Depreciation
As at 1 January 2024
(1.1) (0.5) (1.6) (1.0) (0.3) (1.3)
Charge for the year – (0.1) (0.1) – – –
As at 31 December 2024 (1.1) (0.6) (1.7) (1.0) (0.3) (1.3)
Net book value
As at 31 December 2024 0.7 0.1 0.8 0.7 0.1 0.8
Group | Company | |||||
| Fixtures | Fixtures | |||||
| and | Computer | and | Computer | |||
| fittings | equipment | Total | fittings | equipment | Total | |
| Year ended 31 December 2023 | £m | £m | £m | £m | £m | £m |
| Costs | ||||||
As at 1 January 2023 | 1.7 | 0.6 | 2.3 | 1.7 | 0.3 | 2.0 |
Additions | 0.1 | – | 0.1 | – | – | – |
As at 31 December 2023 | 1.8 | 0.6 | 2.4 | 1.7 | 0.3 | 2.0 |
| Depreciation | ||||||
As at 1 January 2023 | (0.8) | (0.4) | (1.2) | (0.8) | (0.2) | (1.0) |
Charge for the year | (0.3) | (0.1) | (0.4) | (0.2) | (0.1) | (0.3) |
As at 31 December 2023 | (1.1) | (0.5) | (1.6) | (1.0) | (0.3) | (1.3) |
| Net book value | ||||||
As at 31 December 2023 | 0.7 | 0.1 | 0.8 | 0.7 | – | 0.7 |
Group | Company | |||
| 31 December | 31 December | 31 December | 31 December | |
| 2024 | 2023 | 2024 | 2023 | |
| £m | £m | £m | £m | |
Trade receivables | 2.9 | 1.4 | – | – |
Other receivables | 1.7 | 1.6 | 0.2 | 0.3 |
Prepayments | 3.2 | 3.3 | 0.5 | 0.4 |
VAT recoverable | 0.1 | 0.2 | – | – |
7.9 | 6.5 | 0.7 | 0.7 | |
| Amounts due from Group | ||||
undertakings | – | – | 819.3 | 391.4 |
7.9 | 6.5 | 820.0 | 392.1 |
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14. Trade and other receivables continued
| Group | ||
| 31 December | 31 December | |
| 2024 | 2023 | |
| £m | £m | |
| At 1 January | 2.1 | 1.9 |
Increase in provision for receivables impairment | (0.2) | 0.2 |
At 31 December | 1.9 | 2.1 |
15. Held for sale assets
| Group | ||
| 31 December | 31 December | |
| 2024 | 2023 | |
| £m | £m | |
| At 1 January | 22.4 | 13.7 |
| Capital expenditure | 0.4 | 0.4 |
| Sale of investment property | (12.6) | (14.1) |
| Transfer to held for sale assets | 2.7 | 22.4 |
Change in fair value during year 1 | (2.2) | – |
At 31 December | 10.7 | 22.4 |
1 The change in fair value of investment property during the year for the Group was £15.4 million. Of this, a fair
value gain of £17.6 million has been recorded in Investment Property, and a £2.2 million loss has been recorded
in held for sale assets.
Management considers that two properties (2023: three properties) meet the conditions
relating to assets held for sale under IFRS 5: Non-current Assets Held for Sale. The
combined fair value in these financial statements is £10.7 million (2023: £22.4 million).
One of the three assets, with book value of £2.7 million, completed on its disposal on
29 January 2025 for consideration of £2.8 million. The remaining two assets are being
actively marketed, management expects the sales to be completed in 2025.
All assets held for sale fall within ‘Level 3’ as defined by IFRS. There have been no transfers
within the fair value hierarchy during the year.
Group | Company | |||
| 31 December | 31 December | 31 December | 31 December | |
| 2024 | 2023 | 2024 | 2023 | |
| £m | £m | £m | £m | |
| Unrestricted cash and cash | ||||
| equivalents | 36.0 | 11.0 | 24.7 | 2.4 |
Restricted cash and cash equivalents 1 | 39.4 | 29.5 | – | – |
Cash and cash equivalents | 75.4 | 40.5 | 24.7 | 2.4 |
Notes to the financial statements | continued
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Group | Company | |||
| 31 December | 31 December | 31 December | 31 December | |
| 2024 | 2023 | 2024 | 2023 | |
| £m | £m | £m | £m | |
| Trade payables | 0.8 | 1.3 | 0.1 | 0.3 |
| Other payables | 4.1 | 4.2 | 0.4 | 0.2 |
| Accruals | 14.3 | 17.9 | 1.6 | 2.9 |
19.2 | 23.4 | 2.1 | 3.4 | |
Amounts owed to Group undertakings | – | – | 454.8 | 111.0 |
19.2 | 23.4 | 456.9 | 114.4 |
| Group | ||||||
| Bank | Bank | Bank | Bank | |||
| borrowings | borrowings | borrowings | borrowings | |||
| drawn | undrawn | Total | drawn | undrawn | Total | |
| 31 December | 31 December | 31 December | 31 December | 31 December | 31 December | |
| 2024 | 2024 | 2024 | 2023 | 2023 | 2023 | |
| £m | £m | £m | £m | £m | £m | |
At 1 January | 360.3 | 42.0 | 402.3 | 391.2 | 20.0 | 411.2 |
| Bank borrowings | ||||||
repaid | (150.9) | – | (150.9) | (30.9) | 24.6 | (6.3) |
| Part cancellation | ||||||
| of revolving credit | ||||||
facility | – | (2.0) | (2.0) | – | (22.6) | (22.6) |
| Unsecured facility | ||||||
refinanced | – | – | – | – | 20.0 | 20.0 |
| Bank borrowings | ||||||
drawn in the year | 40.0 | (40.0) | – | – | – | – |
New facility drawn | 124.9 | – | 124.9 | – | – | – |
At 31 December | 374.3 | – | 374.3 | 360.3 | 42.0 | 402.3 |
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18. Bank borrowings continued
| Group | ||
| 31 December | 31 December | |
| 2024 | 2023 | |
| Non-current | £m | £m |
Balance brought forward | 302.6 | 391.2 |
Total bank borrowings drawn in the year | 164.9 | – |
Bank borrowings becoming non-current in the year | – | – |
Less: Bank borrowings becoming current in the year | – | (57.7) |
Less: Bank borrowings repaid during the year | (93.2) | (30.9) |
Bank borrowings drawn: due in more than one year | 374.3 | 302.6 |
Less: Unamortised costs | (3.9) | (2.4) |
Bank borrowings due in more than one year | 370.4 | 300.2 |
| Group | ||
| 31 December | 31 December | |
| 2024 | 2023 | |
| Current | £m | £m |
Balance brought forward | 57.7 | – |
Total bank borrowings in the year | – | – |
Less: Bank borrowings becoming non-current in the year | (57.7) | – |
Bank borrowings becoming current in the year | – | 57.7 |
Bank borrowings drawn: due in less than one year | – | 57.7 |
Less: Unamortised costs | – | (1.2) |
Bank borrowings due in less than one year | – | 56.5 |
| Group | ||
| 31 December | 31 December | |
| 2024 | 2023 | |
| £m | £m | |
Repayable in less than one year | – | 57.7 |
Repayable between one and two years | – | 45.4 |
Repayable between two and five years | 206.1 | 206.1 |
Repayable in over five years | 168.2 | 51.1 |
Bank borrowings | 374.3 | 360.3 |
| Group | ||
| 31 December | 31 December | |
| 2024 | 2023 1 | |
| £m | £m | |
Nominal value of fixed rate borrowings | 257.2 | 270.9 |
Fair value adjustment | (20.7) | (20.9) |
Fair value of fixed rate borrowings | 236.5 | 250.0 |
Notes to the financial statements | continued
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Financial statements 175
Group and Company | Group and Company | |||
| 31 December | 31 December | 31 December | 31 December | |
| 2024 | 2024 | 2023 | 2023 | |
| Number | £m | Number | £m | |
Balance brought forward | 603,437,683 | 6.0 | 603,351,880 | 6.0 |
Capital raise | 60,350,664 | 0.6 | – | – |
Exercise of share options | 208,497 | – | 85,803 | – |
Balance carried forward | 663,996,844 | 6.6 | 603,437,683 | 6.0 |
| Group and Company | ||
| 31 December | 31 December | |
| 2024 | 2023 | |
| £m | £m | |
Balance brought forward | 0.3 | 0.3 |
Share premium relating to shares issued during the year | 53.8 | – |
Balance carried forward | 54.1 | 0.3 |
| Group and Company | ||
| 31 December | 31 December | |
| 2024 | 2023 | |
| £m | £m | |
Balance brought forward | 424.1 | 444.7 |
Reserves transfer | – | 0.1 |
Less interim dividends declared and paid per Note 10 | (22.0) | (20.7) |
Balance carried forward | 402.1 | 424.1 |
| Group and Company | ||
| 31 December | 31 December | |
| 2024 | 2023 | |
| £m | £m | |
Less than one year | 22.0 | 20.1 |
Between one and two years | 1.2 | 1.2 |
Between two and three years | 1.0 | 1.1 |
Between three and four years | 0.8 | 0.9 |
Between four and five years | 0.8 | 0.7 |
More than five years | 7.1 | 5.9 |
Total | 32.9 | 29.9 |
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Date | Related party | Nature of related party | Nature of transaction | Number of |
| shares | ||||
17-Oct-24 | Mark Pain | Chair of the Board | Capital Raise Share | 20,000 |
| Purchase | ||||
17-Oct-24 | Duncan Garrood | Chief Executive | Capital Raise Share | 32,000 |
| Officer | Purchase | |||
17-Oct-24 | Donald Grant | Chief Financial | Capital Raise Share | 20,876 |
| and Sustainability | Purchase | |||
| Officer | ||||
17-Oct-24 | Alice Avis | Senior | Capital Raise Share | 6,000 |
| Independent Non- | Purchase | |||
| Executive Director | ||||
14-Nov-24 | Duncan Garrood | Chief Executive | Sharesave Plan | 25,316 |
| Officer | Share Purchase |
Date | Related party | Nature of related party | Nature of transaction | Number of |
| shares | ||||
| Paid | Mark Pain | Chair of the Board | Dividends received | £3,738 |
| quarterly | on shareholding | |||
| Paid | Duncan Garrood | Chief Executive | Dividends received | £3,819 |
| quarterly | Officer | on shareholding | ||
| Paid | Donald Grant | Chief Financial | Dividends received | £1,365 |
| quarterly | and Sustainability | on shareholding | ||
| Officer | ||||
| Paid | Alice Avis | Senior | Dividends received | £1,962 |
| quarterly | Independent Non- | on shareholding | ||
| Executive Director |
Date | Related party | Nature of related party | Nature of transaction | Number of |
| shares | ||||
12-Apr-24 | Duncan Garrood | Chief Executive | LTIP Nil-cost | 728,294 |
| Officer | Option Grant over | |||
| Ordinary Shares | ||||
12-Apr-24 | Duncan Garrood | Chief Executive | Deferred Bonus | 136,476 |
| Officer | Plan Option Grant | |||
| over Ordinary | ||||
| Shares | ||||
12-Apr-24 | Donald Grant | Chief Financial | LTIP Nil-cost | 515,135 |
| and Sustainability | Option Grant over | |||
| Officer | Ordinary Shares | |||
12-Apr-24 | Donald Grant | Chief Financial | Deferred Bonus | 96,532 |
| and Sustainability | Plan Option Grant | |||
| Officer | over Ordinary | |||
| Shares |
26. Subsequent events
On 28 January 2025 the Group commenced a collective consultation on proposals aimed
at implementing certain organisational changes. The proposal is expected to complete
by 31 March 2025 and dependent on the conclusions reached, could result in up to £0.6
million of related restructuring costs being incurred.
On 29 January 2025, the Group completed on the disposal of Radway House, Bath for
consideration of £2.8 million.
Notes to the financial statements | continued
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27. Share-based payments
The Company operates two equity-settled share-based remuneration schemes for
Executive Directors (deferred annual bonus and LTIP schemes) and certain members of
the Senior Leadership Team (“SLT”) who participate in the LTIP scheme. The details of the
schemes are included in the Remuneration Committee Report. The Group also operates a
Save As You Earn (SAYE) scheme for employees.
On 12 April 2024, the Company granted nil-cost options over a total of 1,243,429 (Duncan
Garrood 728,294 and Donald Grant 515,135) ordinary shares pursuant to the Empiric
Student Property plc Long Term Incentive Plan for the 2024 financial year.
During the year, the Company granted nil-cost options over a total of 772,967 ordinary
shares to members of the Senior Leadership Team pursuant to the Empiric Student
Property plc Long Term Incentive Plan for the 2024 financial year.
During the year, the Company granted options over a total of 201,922 ordinary shares in
relation to the Save As You Earn scheme at an exercise price of £0.77. The earliest date on
which the options will become exercisable is 1 July 2027.
Of the nil-cost options, 72,396 were exercisable at 31 December 2024. The weighted
average remaining contractual life of these options was 0.2 years (2023: 1.2 years).
During the year to 31 December 2024 the amount recognised in the Statement of
Comprehensive Income relating to option plans was £0.3 million (2023: £0.7 million).
The awards have the benefit of dividend equivalence. The Remuneration Committee will
determine on or before vesting whether the dividend equivalent will be provided in the
form of cash and/or shares.
31/12/2024 | 31/12/2023 | 31/12/2022 | 31/12/2021 | 31/12/2020 | 31/12/2019 | |
| Outstanding | ||||||
| number brought | ||||||
forward | 4,866,099 | 3,756,874 | 3,446,320 | 2,314,539 | 1,250,045 | 1,051,708 |
Granted during the period | 2,451,326 | 1,886,191 | 2,430,279 | 1,725,577 | 1,064,494 | 604,134 |
Vested and exercised during the period | (182,563) | (80,116) | ( 127,492) | (35,779) | – | (129,253) |
Lapsed during the period | (1,523,881) | (696,850) | (1,992,233) | (558,017) | – | (276,544) |
| Outstanding | ||||||
| number carried | ||||||
| forward | 5,610,981 | 4,866,099 | 3,756,874 | 3,446,320 | 2,314,539 | 1,250,045 |
The fair value on date of grant for the nil-cost options under the LTIP Awards and Annual
Bonus Awards were priced using the Monte Carlo pricing model. The weighted average
share price for the options exercised in the period was 90.9 pence per share. For those
share options outstanding at year end, the exercise prices ranged from 75.5 pence per
share to 78.9 pence per share, and the weighted average of the remaining contractual life
of those shares is 1.6 years.
The following information is relevant in the determination of the fair value of the options
granted in the year, for those related to market based vesting conditions:
| LTIPs (market | LTIPs (Total | |||
| Deferred | based | Return | ||
| bonus shares | conditions) | conditions) | SAYE Award | |
(a) Share price at grant date | £0.91 | £0.91 | £0.91 | £0.92 |
(b) Exercise price | £nil | £nil | £nil | £0.77 |
(c) Vesting period | 3 years | 3 years | 3 years | 3 years |
(d) Expected volatility | N/A | 23.5% | N/A | 24.1% |
(e) Risk-free rate | N/A | 4.3% | N/A | 4.2% |
The volatility assumption is based on a statistical analysis of daily share prices of
comparator companies over the last three years.
The TSR performance conditions have been considered when assessing the fair value of
the options.
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| 31 December | 31 December | |
| 2024 | 2023 | |
| £m | £m | |
Bank borrowings and leasehold liability at start of the year | 357.8 | 387.8 |
| Cash flows from financing activities | ||
Bank borrowings drawn | 164.9 | – |
Bank borrowings repaid | (150.8) | (30.9) |
Lease liability paid | (0.2) | (0.2) |
Loan arrangement fees paid | (2.2) | (0.1) |
| Non-cash movements | ||
Amortisation of loan arrangement fees | 1.7 | 1.2 |
Recognition of lease liabilities | 0.1 | – |
Bank borrowings and leasehold liability at end of the year | 371.3 | 357.8 |
Credit ratings (Moody’s) | Long-term | Outlook |
Canada Life | Aa3 | Stable |
Mass Mutual | Aa3 | Stable |
Scottish Widows | A2 | Positive |
Aareal Bank AG | Baa1 | Stable |
Notes to the financial statements | continued
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| Group | ||||||
| Less than 3 | 3 to 12 | 1 to 5 | Greater than | |||
| On demand | months | months | years | 5 years | Total | |
| £m | £m | £m | £m | £m | £m | |
| At 31 December | ||||||
| 2024 | ||||||
| Bank borrowings | ||||||
| and interest | – | 4.1 | 12.6 | 263.3 | 179.1 | 459.1 |
Trade and other payables | – | 19.2 | – | – | – | 19.2 |
– | 23.3 | 12.6 | 263.3 | 179.1 | 478.3 |
| Group | |||||||
| Less than 3 | 3 to 12 | 1 to 5 | Greater than | ||||
| On demand | months | months | years | 5 years | Total | ||
| £m | £m | £m | £m | £m | £m | ||
| At 31 December | |||||||
| 2023 | |||||||
| Bank borrowings | |||||||
and interest | – | 17.6 | 54.8 | 286.3 | 54.6 | 413.3 | |
Trade and other payables | – | 23.4 | – | – | – | 23.4 | |
– | 41.0 | 54.8 | 286.3 | 54.6 | 436.7 |
29. Capital management
The primary objectives of the Group’s capital management are to ensure that it remains a
going concern and continues to qualify for UK REIT status.
The Board of Directors monitors and reviews the Group’s capital so as to promote the
long-term success of the business, facilitate expansion and to maintain sustainable
returns for shareholders.
Capital consists of ordinary shares, other capital reserves and retained earnings.
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| Company | ||
| 31 December | 31 December | |
| 2024 | 2023 | |
| £m | £m | |
| As at 1 January | 222.6 | 222.6 |
| Additions in the year | – | – |
Disposals | – | – |
Balance at 31 December | 222.6 | 222.6 |
Company | Status | Ownership | Principal activity |
Brunswick Contracting Limited | Active ** | 100% | Property Contracting |
Empiric (Alwyn Court) Limited | Active ** | 100% | Property Investment |
Empiric (Baptists Chapel) Limited | Active ** | 100% | Property Investment |
Empiric (Bath Canalside) Limited | Active ** | 100% | Property Investment |
Empiric (Bath James House) Limited | Active ** | 100% | Property Investment |
Empiric (Bath JSW) Limited | Active ** | 100% | Property Investment |
Empiric (Bath Oolite Road) Limited | Active ** | 100% | Property Investment |
Empiric (Bath Piccadilly Place) Limited | Active ** | 100% | Property Investment |
Empiric (Birmingham Emporium) Limited | Active ** | 100% | Property Investment |
Empiric (Birmingham) Limited | Active ** | 100% | Property Investment |
Empiric (Bristol CH) Limited | Active ** | 100% | Property Investment |
Company | Status | Ownership | Principal activity |
| Empiric (Bristol St Mary’s) Leasing | |||
Limited | Active ** | 100% | Property Leasing |
Empiric (Bristol St Mary’s) Limited | Active ** | 100% | Property Investment |
Empiric (Bristol) Limited | Active ** | 100% | Property Investment |
Empiric (Buccleuch Street) Limited | Active ** | 100% | Property Investment |
| Empiric (Canterbury Franciscans) | |||
Limited | Active ** | 100% | Property Investment |
| Empiric (Canterbury Pavilion Court) | |||
Limited | Active ** | 100% | Property Investment |
| Empiric (Cardiff Wndsr House) | |||
Leasing Limited | Dormant | 100% | Property Leasing |
Empiric (Cardiff Wndsr House) Limited | Active ** | 100% | Property Investment |
Empiric (Centro Court) Limited | Active ** | 100% | Property Investment |
Empiric (Claremont Newcastle) Limited | Active ** | 100% | Property Investment |
Empiric (College Green) Limited | Active ** | 100% | Property Investment |
| Development | |||
Empiric (Developments) Limited | Dormant * | 100% | Management |
Empiric (Edge Apartments) Limited | Active ** | 100% | Property Investment |
Empiric (Edinburgh KSR) Leasing Limited | Active ** | 100% | Property Leasing |
Empiric (Edinburgh KSR) Limited | Active ** | 100% | Property Investment |
| Empiric (Edinburgh South Bridge) | |||
Limited | Active ** | 100% | Property Investment |
| Empiric (Exeter Bishop Blackall School) | |||
Limited | Active ** | 100% | Property Investment |
Empiric (Exeter Bonhay Road) Limited | Active ** | 100% | Property Investment |
Empiric (Exeter City Service) Limited | Dormant * | 100% | Property Investment |
Empiric (Exeter DCL) Limited | Active ** | 100% | Property Investment |
Empiric (Exeter LL) Limited | Active ** | 100% | Property Investment |
| Empiric (Falmouth Maritime Studios) | |||
Limited | Active ** | 100% | Property Investment |
| Empiric (Falmouth Ocean Bowl) Leasing | |||
Limited | Active ** | 100% | Property Leasing |
Empiric (Falmouth Ocean Bowl) Limited | Active ** | 100% | Property Investment |
Empiric (Glasgow Ballet School) Limited | Active ** | 100% | Property Investment |
Notes to the financial statements | continued
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Company | Status | Ownership | Principal activity |
Empiric (Glasgow Bath St) Limited | Active ** | 100% | Property Investment |
| Empiric (Glasgow George St) Leasing | |||
Limited | Active ** | 100% | Property Leasing |
Empiric (Glasgow George St) Limited | Active ** | 100% | Property Investment |
Empiric (Glasgow) Leasing Limited | Active ** | 100% | Property Leasing |
Empiric (Glasgow) Limited | Active ** | 100% | Property Investment |
Empiric (Hatfield CP) Limited | Active ** | 100% | Property Investment |
| Empiric (Huddersfield Oldgate House) | |||
Limited | Active ** | 100% | Property Investment |
| Empiric (Huddersfield Snow Island) | |||
Leasing Limited | Dormant * | 100% | Property Leasing |
| Empiric (Lancaster Penny Street 1) | |||
Limited | Active ** | 100% | Property Investment |
| Empiric (Lancaster Penny Street 2) | |||
Limited | Active ** | 100% | Property Investment |
| Empiric (Lancaster Penny Street 3) | |||
Limited | Active ** | 100% | Property Investment |
Empiric (Leeds Algernon) Limited | Active ** | 100% | Property Investment |
Empiric (Leeds Pennine House) Limited | Active ** | 100% | Property Investment |
Empiric (Leeds St Marks) Limited | Active ** | 100% | Property Investment |
| Empiric (Leicester 134 New Walk) | |||
Limited | Active ** | 100% | Property Investment |
| Empiric (Leicester 136-138 New Walk) | |||
Limited | Active ** | 100% | Property Investment |
| Empiric (Leicester 140-142 New Walk) | |||
Limited | Active ** | 100% | Property Investment |
| Empiric (Leicester 160 Upper New Walk) | |||
Limited | Active ** | 100% | Property Investment |
Empiric (Leicester Bede Park) Limited | Active ** | 100% | Property Investment |
| Empiric (Leicester De Montfort Square) | |||
Limited | Active ** | 100% | Property Investment |
| Empiric (Leicester Hosiery Factory) | |||
Limited | Active ** | 100% | Property Investment |
| Empiric (Leicester Peacock Lane) | |||
Limited | Active ** | 100% | Property Investment |
Company | Status | Ownership | Principal activity |
| Empiric (Leicester Shoe & Boot Factory) | |||
Limited | Active ** | 100% | Property Investment |
| Empiric (Liverpool Art School/Maple | |||
House) Limited | Active ** | 100% | Property Investment |
Empiric (Liverpool Grove Street) Limited | Active ** | 100% | Property Investment |
| Empiric (Liverpool Hahnemann Building) | |||
Limited | Active ** | 100% | Property Investment |
| Empiric (Liverpool Octagon/Hayward) | |||
Limited | Active ** | 100% | Property Investment |
Empiric (London Camberwell) Limited | Active ** | 100% | Property Investment |
Empiric (London Road) Limited | Active ** | 100% | Property Investment |
Empiric (Manchester Ladybarn) Limited | Active ** | 100% | Property Investment |
Empiric (Manchester TH) Limited | Active ** | 100% | Property Investment |
| Empiric (Manchester Victoria Point) | |||
Limited | Active ** | 100% | Property Investment |
Empiric (Newcastle Metrovick) Limited | Active ** | 100% | Property Investment |
Empiric (Northgate House) Limited | Active ** | 100% | Property Investment |
Empiric (Nottingham 95 Talbot) Limited | Active ** | 100% | Property Investment |
Empiric (Nottingham Frontage) Limited | Active ** | 100% | Property Investment |
Empiric (Oxford Stonemason) Limited | Active ** | 100% | Property Investment |
| Empiric (Picturehouse Apartments) | |||
Limited | Active ** | 100% | Property Investment |
Empiric (Portobello House) Limited | Active ** | 100% | Property Investment |
| Empiric (Portsmouth Elm Grove Library) | |||
Limited | Active ** | 100% | Property Investment |
| Empiric (Portsmouth Europa House) | |||
Leasing Limited | Active ** | 100% | Property Leasing |
| Empiric (Portsmouth Europa House) | |||
Limited | Active ** | 100% | Property Investment |
| Empiric (Portsmouth Kingsway House) | |||
Limited | Active ** | 100% | Property Investment |
Empiric (Portsmouth Registry) Limited | Active ** | 100% | Property Investment |
| Empiric (Provincial House) Leasing | |||
Limited | Active ** | 100% | Property Leasing |
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Company | Status | Ownership | Principal activity |
Empiric (Provincial House) Limited | Active ** | 100% | Property Investment |
| Empiric (Reading Saxon Court) Leasing | |||
Limited | Active ** | 100% | Property Leasing |
Empiric (Reading Saxon Court) Limited | Active ** | 100% | Property Investment |
Empiric (Snow Island) Limited | Active ** | 100% | Property Investment |
| Empiric (Southampton Emily Davies) | |||
Limited | Active ** | 100% | Property Investment |
Empiric (Southampton) Leasing Limited | Active ** | 100% | Property Leasing |
Empiric (Southampton) Limited | Active ** | 100% | Property Investment |
| Empiric (St Andrews Ayton House) | |||
Leasing Limited | Active ** | 100% | Property Leasing |
| Empiric (St Andrews Ayton House) | |||
Limited | Active ** | 100% | Property Investment |
Empiric (St Peter Street) Limited | Active ** | 100% | Property Investment |
Empiric (Stoke Caledonia Mill) Limited | Active ** | 100% | Property Investment |
Empiric (Summit House) Limited | Active ** | 100% | Property Investment |
Empiric (Talbot Studios) Limited | Active ** | 100% | Property Investment |
Empiric (Trippet Lane) Limited | Active ** | 100% | Property Investment |
| Empiric (Twickenham Grosvenor Hall) | |||
Limited | Active ** | 100% | Property Investment |
Empiric (York Foss Studios 1) Limited | Active ** | 100% | Property Investment |
Empiric (York Lawrence Street) Limited | Active ** | 100% | Property Investment |
Empiric (York Percy’s Lane) Limited | Active ** | 100% | Property Investment |
| Immediate Holding | |||
Empiric Acquisitions Limited | Dormant * | 100% | Company |
| Empiric Investment Holdings (Eight) | |||
Limited | Active ** | 100% | Holding Company |
| Empiric Investment Holdings (Five) | |||
Limited | Active ** | 100% | Holding Company |
| Empiric Investment Holdings (Four) | |||
Limited | Active ** | 100% | Holding Company |
Company | Status | Ownership | Principal activity |
| Empiric Investment Holdings (Seven) | |||
Limited | Active ** | 100% | Holding Company |
| Empiric Investment Holdings (Six) | |||
Limited | Active ** | 100% | Holding Company |
| Empiric Investment Holdings (Two) | |||
Limited | Active ** | 100% | Holding Company |
| Immediate Holding | |||
Empiric Investments (Eight) Limited | Active | 100% | Company |
| Immediate Holding | |||
Empiric Investments (Five) Limited | Active | 100% | Company |
| Immediate Holding | |||
Empiric Investments (Four) Limited | Active | 100% | Company |
| Immediate Holding | |||
Empiric Investments (One) Limited | Dormant | 100% | Company |
| Immediate Holding | |||
Empiric Investments (Seven) Limited | Active ** | 100% | Company |
| Immediate Holding | |||
Empiric Investments (Six) Limited | Active ** | 100% | Company |
| Immediate Holding | |||
Empiric Investments (Three) Limited | Active ** | 100% | Company |
| Immediate Holding | |||
Empiric Investments (Two) Limited | Active | 100% | Company |
| Empiric Student Property Trustees | |||
Limited | Dormant | 100% | Trustee |
| Property | |||
Hello Student Management Limited | Active | 100% | Management |
Notes to the financial statements | continued
30. Investments in subsidiaries continued
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31. Alternative performance measures
The below sets out our alternative performance measures.
Gross margin – Gross profit expressed as a percentage of rental income.
A business KPI to monitor how efficiently we are running our buildings.
Gross Margin
| Group | ||
| 31 December | 31 December | |
| 2024 | 2023 | |
| £m | £m | |
Revenue | 84.2 | 80.5 |
Property Expenses | (25.6) | (25.2) |
Gross profit | 58.6 | 55.3 |
Gross Margin calculated as Gross profit/Revenue | 70% | 69% |
Total accounting return – The growth of EPRA NTA per share plus dividends per share
measured as a percentage. A key business indicator used to monitor the level of overall
return the Group is generating.
| Group | ||
| 31 December | 31 December | |
| 2024 | 2023 | |
| Total accounting return | (Pence) | (Pence) |
EPRA NTA per share at start of year | 120.7 | 115.4 |
EPRA NTA per share at end of year | 119.6 | 120.7 |
EPRA NTA growth/(reduction) per share in the period | (1.1) | 5.3 |
Dividend per share paid in year | 3.6 | 3.4 |
Dividends plus growth in EPRA NTA | 2.5 | 8.7 |
| Total accounting return calculated as Dividends plus EPRA | ||
NTA growth in year per share/ NTA at start of year (%) | 2.0 | 7.6 |
EPRA Loan to Value – a measure of gearing, calculated as gross borrowings without
deducting unamortised financing costs, less cash and adjusted for net receivables or
payables and intangibles, divided by gross portfolio valuation. This was 27.2 per cent for
the year (2023: 30.6 per cent).
Dividend cover – a measure of EPRA earnings relative to dividends declared for the year.
This was 114 per cent for the year (2023: 114 per cent).
Dividend pay-out ratio – a measure of dividends relative to EPRA earnings. This was
88 per cent for the year (2023: 88 per cent).
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Five year historical record
31 December
2024
£m
31 December
2023
£m
31 December
2022
£m
31 December
2021
£m
31 December
2020
£m
Revenue
84.2
80.5 73.0 56.0 59.4
Direct costs
(25.6)
(25.2) (24.0) (23.1) (22.7)
Gross profit 58.6 55.3 49.0 32.9 36.7
Gross margin 69.6% 68.7% 67.1% 58.8% 61.8%
Administrative expenses (15.4) (14.0) (13.4) (10.6) (9.8)
Gain/(loss) on disposals (4.2) (0.6) 1.5 1.7 –
Property revaluation 15.4 30.1 45.6 17.6 (37.6)
Operating profit 54.4 70.8 82.7 41.6 (10.7)
Net finance costs (18.7) (17.2) (15.0) (12.4) (13.3)
Derivative fair value movement (1.3) (0.2) – – –
Net profit/(loss)
34.4
53.4 67.7 29.2 (24.0)
EPRA EPS (pence)
4.2
4.0 3.4 1.7 2.3
Portfolio valuation
1
1,135.0 1,098.1 1,079.4 995.9 1,005.1
Borrowings (370.4) (356.7) (386.5) (371.0) (385.3)
Other net assets/(liabilities) 36.7 (7.2) 7.9 22.7 13.5
Net assets 801.3 734.2 700.8 647.6 633.3
EPRA NTA 800.8 734.1 700.8 647.6 633.3
EPRA NTA per share 119.6 120.7 115.4 106.8 104.6
Shares in issue 663,996,844 603,437,683 603,351,880 603,203,052 603,160,940
Weighted average cost of debt 4.5% 4.3% 4.0% 3.0% 2.9%
Weighted average debt maturity 4.7 years 3.9 years 4.8 years 4.9 years 5.9 years
Property LTV 29.1% 31.1% 33.1% 35.4%
EPRA LTV 27.2% 30.6% 32.7%
1 Includes properties classified as held for sale and under development
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Glossary
Alternative Performance Measures (“APM”) – Performance measures to supplement
IFRS to provide users of the Annual Report with a better understanding of the underlying
performance of the Group’s property portfolio.
Colleague Engagement – Calculated using the results of our biannual colleague
engagement surveys.
Company – Empiric Student Property plc.
Dividend Cover – EPRA earnings divided by dividends declared for the year.
Dividend pay-out ratio – Dividends declared relative to EPRA earnings.
EPRA – European Public Real Estate Association.
EPRA basic EPS – EPRA Earnings divided by the weighted average number of ordinary
shares outstanding during the period (refer to Note 8).
EPRA diluted EPS - EPRA Earnings divided by the weighted average number of shares
during the period, taking into account all potentially issuable shares.
EPRA Earnings – the IFRS profit after taxation excluding investment and development
property revaluations, gains/losses on investing property disposals and changes in the
fair value of financial instruments.
EPRA Loan to Value – a measure of gearing, calculated as gross borrowings without
deducting unamortised financing costs, less cash and adjusted for net receivables or
payables and intangibles, divided by gross portfolio valuation.
EPRA Net Disposal Value (“NDV”) – Represents the shareholders’ value under a disposal
scenario. The value of the Company assuming assets are sold, and the liabilities are
settled and not held to maturity.
EPRA Net Reinvestment Value (“NRV”) – The value of the assets on a long-term basis,
assets and liabilities are not expected to crystallise under normal circumstances.
EPRA Net Tangible Assets (“NTA”) – Assumes the underlying value of the Company
assuming it buys and sells assets.
Gross margin – Gross profit expressed as a percentage of revenue.
Group – Empiric Student Property plc and its subsidiaries.
Hello Student – Our customer-facing brand and operating platform.
HMO – House in multiple occupation.
IFRS – International Financial Reporting Standards.
IFRS EPS – IFRS earnings divided by the weighted average number of ordinary shares
outstanding during the period.
Like for like rental growth – Compares the growth in rental income for operational assets,
throughout both the current and comparative year, and excludes acquisitions, disposals
and developments.
Like for like valuation (gross) – Compares the growth in capital values of the Group’s
standing portfolio from the prior year end to the current year end, excluding acquisitions
and disposals.
Like for like valuation (net) – Compares the growth in capital values of the Group’s
standing portfolio from the prior year end to the current year end, excluding acquisitions,
disposals, capital expenditure and development properties.
Net Asset Value or NAV – Net Asset Value is the net assets in the Statement of Financial
Position.
PBSA – Purpose Built Student Accommodation.
Postgrad – Postgraduate students who have successfully completed an undergraduate
course and are undertaking further studies at a more advanced level.
RCF – Revolving credit facility.
REIT – Real estate investment trust.
Revenue Occupancy – Calculated as the percentage of our Gross Annualised Revenue we
have achieved for an academic year.
RICS – Royal Institution of Chartered Surveyors.
SONIA – Sterling Over Night Index Average is the effective reference for overnight
indexed swaps for unsecured transactions in the Sterling market. The SONIA itself is a
risk-free rate.
Total accounting return – The growth in EPRA NTA over the period plus dividends paid
for the period expressed as a percentage of opening EPRA NTA.
Weighted average cost of debt – Debt weighted by value multiplied by the interest rate.
Weighted average debt maturity – The weighted average term of our debt facilities at
the balance sheet date.
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Company information and corporate advisers
Empiric Student Property plc
1st Floor Hop Yard Studios
72 Borough High Street
London, SE1 1XF
t +44 (0)20 8078 8791
e info@empiric.co.uk
More information on
www.empiric.co.uk
Company Registration Number: 08886906
Incorporated in the UK
Empiric Student Property plc is a public company limited by shares
Registered office
DIRECTORS AND ADVISERS
Directors
Mark Pain (Chairman)
Duncan Garrood (Chief Executive Officer)
Donald Grant (Chief Financial and Sustainability Officer)
Alice Avis (Non-Executive Director, Senior Independent Director)
Martin Ratchford (Non-Executive Director)
Clair Preston-Beer (Non-Executive Director)
Broker and joint financial adviser
Jefferies International Ltd
100 Bishopsgate
London, EC2N 4JL
Broker and joint financial adviser
Peel Hunt LLP
7th Floor
100 Liverpool Street
London, EC2M 2AT
Legal adviser to the Company
Gowling WLG (UK) LLP
4 More London Riverside
London, SE1 2AU
Company Secretary
Lisa Hibberd
1st Floor Hop Yard Studios
72 Borough High Street
London, SE1 1XF
Registrar
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol, BA13 6ZZ
External auditor
BDO LLP
55 Baker Street
London, W1U 7EU
Communications adviser
FTI Consulting LLP
200 Aldersgate
Aldersgate Street
London, EC1A 4HD
Valuer
CBRE Limited
Henrietta House
Henrietta Place
London, W1G 0NB
Tax adviser
KPMG
15 Canada Square
London, E14 5GL
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Empiric Student Property plc Annual Report and Accounts 2024
Empiric Student Property plc
1st Floor Hop Yard Studios
72 Borough High Street
London
SE1 1XF
T +44 (0)20 8078 8791
E info@empiric.co.uk
More information on
www.empiric.co.uk