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SPH looks for more PBSA after profit boost

Singapore Press Holdings remains focused on becoming a leader in the UK purpose-built student accommodation sector after the division helped push full-year operating profit to S$206.7m (£112m), a 69.8% increase on 2020.

The group, which owns around 30 PBSA properties in the UK, said net operating income across its student portfolio rose by 73.6%, boosted by a full-year contribution from the Student Castle portfolio. SPH bought Student Castle for £448m in December 2019.

The firm said it planned to “leverage the defensive nature of the asset class and strong market fundamentals to expand” its holdings in the sector.

SPH’s student division returned to the black in the 12 months ended 31 August, registering a pretax profit of S$71.8m, compared with a loss of S$24m in 2020. Alongside the extra income from the Student Castle acquisition, SPH said that profit had been further boosted by the opening of development sites in Oxford and Brighton, which were completed and opened for occupation in September 2020 and November 2020.

Revenue across the student portfolio increased from S$58.8m to S$78.7m, although SPH said that the increase was partially offset by lower occupancy and delayed tenancy start dates at some of its Capitol Students assets due to Covid-19.

For the 2021/22 academic year, the group said that bookings had achieved 96.5% of target revenue.

Total revenue across the business grew by 2.4% to S$475.1m, which SPH said was due to higher rental income from its retail division and its student portfolio.

The student assets also helped boost values at the Singapore-listed entity. Fair value gain on investment properties was S$66.6m, a partial reversal of the S$232m loss it shouldered in 2020. Gains were led by the PBSA portfolio – up by S$34.7m – and malls – up by S$21.9m.

See also: SPH outlines its plans to become a leader in the UK PBSA sector in 2019

 

To send feedback, e-mail samantha.mcclary@eg.co.uk or tweet @samanthamcclary or @EGPropertyNews

Photo @ Student Castle

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