Sanctuary back in surplus after boost from shared ownership portfolio sale

Sanctuary said its surplus was also affected by “valuation adjustments in respect of student investment property”, but it is not clear if this was positive or negative.

The group had last summer reportedly found a buyer for its £400m student accommodation portfolio.

However, Sanctuary has not confirmed if this sale was completed, and no mention was made of a transaction in the unaudited results. The group first told the markets in October 2024 it was looking to sell 21 of its student schemes. 

In its unaudited results, Sanctuary reported that its student occupancy rates edged up to 96 per cent in its last financial year.

Current members of the landlord’s executive team are also still directors of Sanctuary Management Services, which oversees its student stock.

Overall, Sanctuary recorded a three per cent rise in group revenue to £1.2bn in its last full-year, according to the unaudited figures.

Income from sales slid to £71m, down from £90m year-on-year. However, sales revenue is only six per cent of overall turnover.

Completions fell by six per cent to 790, with two-thirds of this comprising social housing tenures. 

Sanctuary reported an EBITDA MRI interest cover figure of 110.2 per cent, which was the same as the previous year. The group previously said that its interest cover had been hit by the acquisition of troubled Essex landlord Swan and its large debt.

Sanctuary’s net debt edged up to nearly £3.9bn. It held cash and undrawn facilities of £453m at the year-end, a fall from £516m the prior year.

Gearing was 53 per cent, up from 52.1 per cent the year before.

Ed Lunt, Sanctuary’s chief financial officer, branded it “another solid year for the group”.

Sanctuary has an A credit rating, and a stable outlook with S&P. Moody’s rates the landlord A2 with a stable outlook.