Empiric Student Property hopes to make savings of around £26m through new measures as the Covid-19 crisis continues.
The student accommodation provider said it will now defer new developments and “non-essential” capital expenditure, as well as suspending all future dividend payments until the market stabilises.
Empiric said that these steps, together with a heightened focus on operational cost management, should save it around £26m and improve its cash headroom for the rest of this year.
The company is suspending all financial guidance “until there is clarity on the duration and consequences of this pandemic”.
Empiric added that it currently has £10m of cash and £57m of undrawn debt, with £32.8m of refinancing still this year. The company is in “the late stages of legal finalisation” on a new four-year facility.
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