15 February 2018 – property valuation & trading update
The group’s property portfolio has been independently valued by CBRE Ltd as at 31 December 2017 and on a like-for-like basis is slightly higher than six months earlier. The portfolio valuation was £890.1m, representing an increase of 23.4% for the full year. There has been some progress in line with guidance provided in a trading update in November. Bookings for the 2018/19 academic year are at 40%, significantly ahead of last year, and administration costs for the second half of 2017 were reduced by 21% from £7.6m in the first half of the year to around £6.0m. Results for the year ended 31 December 2017 will be published on 21 March. We see the shares as being particularly attractive for income seekers. At the current share price the yield is 5.9% based on a full year dividend payment of 5.0p, a figure which is likely to be a low water mark for payments. BUY FOR INCOME.