Empiric Student Property profits have been hit by a £42m reduction in its portfolio value, pushing it to a loss in results for the first half of the year.
It reported a £43.1m drop in profits to a loss of £14.4m at 30 June.
The student developer said the drop was due to a 2% reduction in portfolio value in six months, as a result of CBRE’s assumption around income uncertainty in the wake of the coronavirus pandemic.
Its portfolio fell to £1.01bn and EPRA NAV per share was down by 3% to 106.6p.
Revenue of £34m reflected a 5% decline on last year and Empiric said bookings for the next year have also fallen.
It is currently 65% booked for the 2020/21 academic year, compared to 85% at the same time last year.
In May, Empiric warned its income could fall by up to 12% next year.
Chairman Mark Pain said: “We are confident that we have a business which will be able to work through the current pandemic and provide a platform for growth moving forward.
“Despite Covid-19 we continue to see the increasing benefits of our operational transformation and we are optimistic for the future of the business.”
To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette
