DIGS.L Regulatory News (DIGS)

GCP STUDENT LIVING PLC Interim Management Statement GCP Student Living plc (the "Company"), the only listed real-estate investmenttrust ("REIT") in the UK student accommodation sector, is issuing this InterimManagement Statement in accordance with FCA Disclosure and Transparency Rule4.3. This statement relates to the period from 1 January 2014 to 31 March2014. Financial Highlights * Dividend payments in line with target, a total of 3.35 pence has been paid for the period to 31 December 2013, a third interim dividend of 1.35 pence per share was declared on 22 April 2014 for the three months to 31 March 2014, bringing total dividends declared and paid for the period to 31 March 2014 to 4.70 pence per share. * Third party valuation of investments as at 31 March 2014 of £109.4 million. * Increase in economic net asset value* ("Economic NAV") per share from 97.00 pence on listing to 102.61 pence as at 31 March 2014, representing a 5.8% increase on opening Economic NAV*. Operational Highlights * Open offer, placing and offer for subscription in May 2014 seeking to raise £42 million to acquire Scape Greenwich, a modern, purpose-built 280 studio accommodation block located on the Greenwich peninsula in London. * Full occupancy of the portfolio for the 2013/14 academic year. * Applications for the 2014/15 academic year at UK universities as at 24 March 2014 were 4% up on the prior year, with international student applications up 9% and EU students up 5% respectively. * Forward Purchase Agreement for Scape Guildford signed on 27 February 2014 for the acquisition of 141 bedrooms targeted for Q4 2015. Robert Peto, Chairman, commented: "In the past six months, the Company has increased assets under management withthe acquisition of The Pad, Egham and also strengthened its pipeline withforward purchase agreements to acquire The Pad phase 2, Egham, and ScapeGuildford. The recent announcement of the new share issue to acquire ScapeGreenwich shows that the Company is looking to increase the size and quality ofthe portfolio and provide additional liquidity for shareholders. The Company continues to perform in line with its strategy with income andcapital returns delivered to date currently in excess of its target. With theincreased application rate of domestic and in particular, internationalstudents, the Company is well positioned to meet its targets over theforthcoming years." Tenancies The portfolio is fully occupied for the 2013/14 academic year and directlettings for the 2014/15 academic year are ahead of prior year bookings. The portfolio is primarily occupied by international students, with 87% of theportfolio coming from students from outside of the UK. Undergraduates make upthe largest student group at c.77%, with the remaining 23% coming frompostgraduates. Approximately 75% of the student population residing in Scape East areundergraduates with the remainder postgraduates. Of these students, c.70%attend Queen Mary University of London, with the remaining 30% coming from28 other London universities. Dividend declaration Dividend payments in line with target, a total of 3.35 pence has been paid forthe period to 31 December 2013. On 22 April 2014, the Company declared a thirdinterim dividend of 1.35 pence per share for the period 1 January 2014 to31 March 2014. The dividend will be paid to shareholders on the register as at9 May 2014. All dividends have been paid as a REIT property income distributionin respect of the Group's tax exempt property rental business. Net Asset Value ("NAV") As announced on 22 April 2014, the Economic NAV* per Ordinary Share as at31 March 2014 was 102.61 pence per share. Investment update On 28 April 2014, the Company announced that the Board had resolved to proceedwith an open offer, placing and offer for subscription seeking to raise grossproceeds of £42 million for the acquisition of Scape Greenwich. Scape Greenwichis a modern, purpose built 280 studio accommodation block located on theGreenwich peninsula in London in close proximity to Ravensbourne College(c.1,600 students), a leading specialist digital media HEI, and the Universityof Greenwich (c.26,000 students). Shareholders will be offered the opportunity to participate in the pre-emptiveopen offer on the basis of one new ordinary share for every two ordinary sharesheld by shareholders as at the record date of 24 April 2014. The balance of anynew shares to be issued will be made available under the placing and offer forsubscription. The issue price for the new ordinary shares will be 105.5 pence each. On 3 December 2013, the Company announced that it had acquired a modern,purpose-built, private student accommodation residence located adjacent toRoyal Holloway, University of London, in Surrey. The asset comprises 116bedrooms and is currently fully occupied on 51 week tenancies. The asset wasacquired for £13 million, which was funded through the Company's existingborrowing facility. Following the acquisition, the Company's gearing wasapproximately 36% of gross assets. The Company also announced on 3 December 2013 that it had entered into aforward purchase agreement to acquire the second phase of the Royal Hollowayscheme. This phase is due for completion for the 2015/16 academic year and willconstitute an additional 100 beds. On 27 February 2014, the Company announced that it had increased the size ofits potential pipeline by entering into a forward purchase agreement to acquireScape Guildford. The property will house 141 bedrooms and is also due forcompletion for the 2015/16 academic year. Half Yearly Report The Company's Half Yearly Report and Unaudited Condensed Consolidated FinancialStatements for the period since incorporation on 26 February 2013 to31 December 2013 were released on 13 February 2014, reporting net assets of£69.4 million, operating profit for the period of £4.5 million with totalcomprehensive income of £2.8 million. * Economic NAV excludes the fair value mark-to-market valuation of theCompany's financial derivative instrument used to manage adverse effects ofinterest rate movements on the Company's debt facility. For further information please contact: Gravis Capital Partners LLPTom Ward tom.ward@gcpuk.com 020 7518 1496 Cenkos Securities plcDion Di Miceli ddimiceli@cenkos.com 020 7397 1921 BuchananCharles Ryland charlesr@buchanan.uk.com 020 7466 5000Sophie McNulty sophiem@buchanan.uk.com About GCP Student Living plc The Company is the first student accommodation REIT in the UK. The Companyinvests in modern, purpose-built, private student residential accommodation andteaching facilities, initially branded and operated by Scape Student Living.Facilities will be located primarily in and around London where the InvestmentManager believes the Company is likely to benefit from supply and demandimbalances for student residential accommodation. In total, London has over400,000 students and the largest number of overseas students of any city in theworld, at over 100,000, with international student numbers up by 5% in 2012/13and expected to increase at a similar rate in the years to come. However, withonly c.60,000 beds in purpose-built student accommodation in London, there areinsufficient beds for domestic first year students let alone internationalstudents and postgraduates. The Company's first asset, Scape East, is located directly opposite Queen MaryUniversity of London, one of London's leading universities with c.17,000students and Russell Group status. International students will be a specifictarget as they are the growth engine of UK Higher Education sector,particularly in London. The Company's second asset, The Pad, Egham, is a private student accommodationresidence located adjacent to Royal Holloway, University of London, in Surrey.Royal Holloway is ranked in 5th place in the world (1st in the UK) in the TimesHigher Education World University Rankings category of 'International Outlook',recognising it as a global university. It is home to more than 9,000 studentsfrom over 100 countries. The Company's assets are primarily occupied by international students and offernew high specification facilities and hotel-level concierge type services whichare attractive to overseas students. The Company will only acquire properties once they are completed and generatingincome. About Gravis Capital Partners LLP ("GCP") GCP is the Investment Manager to the Company. It is a specialist investmentadvisory company which focuses on student accommodation and infrastructure. GCPis authorised and regulated by the FCA.