Empiric Student Property has predicted its income will drop by up to 12% for the 2019-20 academic year, below its worst-case scenario estimate.
Its estimated total reduction in revenue equals £8m, below a worst-case decline of up to around £21m, as previously announced in March.
The group has been “looking favourably” on requests from students – who are either no longer in occupation or do plan not to return to their accommodation owing to university closures – to be released from their rent and lease obligations from 25 April.
Empiric said 55% of its student accommodation bedrooms continue to be occupied.
The group added that 47% of rooms are reserved for the upcoming 2020-21 academic year, compared with 54% at the same point in the previous year.
Demand from international students is continuing at lower levels, but Empiric noted an increase in bookings from the UK domestic market.
Requests for self-contained studios and ensuite accommodation has also increased as a result of the social distancing measures.
Empiric plans to launch an in-house revenue management platform in November, as part of a cost-saving measure.
To conserve cash, the business has also deferred the delivery of three developments until market conditions stabilise: Emily Davies in Southampton (232 bedrooms); Canterbury (134 bedrooms, refurbishment); and St Mary’s, Bristol (153 bedrooms).
Its 52-bedroom development at New Walk in Leicester is expected to complete later this month.
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