Highlights

  • Empiric has reported 89% occupancy and 4.5% like-for-like rental growth for the 2025/26 academic year.
  • Unite expects annual run-rate synergies of at least £13.7 million from the acquisition of Empiric.
  • Integration and occupancy improvements are planned through operational expertise and university partnerships.

Empiric Student Property plc (LSE:ESP) has shared a trading update regarding bookings for the 2025/26 academic year. The update provides insights into occupancy and rental growth trends, supporting Unite’s (LSE:UTG) acquisition strategy and integration plans. Unite continues to anticipate operational and financial benefits from the transaction while preparing for a phased integration following regulatory approval.

Empiric Booking Trends

Empiric’s trading update shows occupancy of 89% for the 2025/26 academic year, slightly below the prior year’s 95% in October 2024, and like-for-like rental growth of 4.5%. The company highlighted increased demand from UK domestic students, which partially offset a decline in bookings from Chinese students. Unite notes that these figures are broadly in line with the assumptions underpinning its acquisition appraisal, which anticipated slightly lower occupancy and rental growth than the previous academic year.

Strategic Rationale and Integration Plans

Unite has emphasised that Empiric provides a platform for expansion among returning students. The Group is actively preparing for the integration of Empiric’s operations following the completion of the acquisition. Unite expects to leverage its operational platform, existing university relationships, and initiatives in customer retention to improve occupancy across the Empiric portfolio over the next three years.

Financial Outlook and Synergies

The Group reaffirmed its confidence in delivering earnings and dividend accretion from the acquisition. Anticipated annual run-rate synergies are projected to reach at least £13.7 million, underpinned by operational efficiencies. This confidence draws on Unite’s prior experience with the acquisition of Liberty Living in 2019, where the Group successfully delivered £18 million in annual synergies.

Regulatory Status and Completion Timeline

Following shareholder approval at Empiric’s Court and General Meetings on 6 October, the Competition and Markets Authority (CMA) has initiated a Phase 1 investigation, as expected. Unite continues to anticipate that the Scheme will become effective by the second quarter of 2026, subject to the satisfaction of remaining terms and conditions outlined in the Scheme Document.

Empiric shares were trading at GBX 76.90 per share at the time of writing on 3 November 2025.