Unite Group PLC

UTG

Equity

ISIN GB0006928617 / Valor 812171

LSE London Stock Exchange, SETS (2025-11-21)

GBP 5.37-0.56%

Unite Group PLC
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About company

Unite Group PLC is a prominent UK-based provider of student accommodation, operating in a sector experiencing growth due to increasing demographic demand. The company achieves high occupancy rates through a diverse range of contracts with university partners, private accommodation providers, and direct-let sales. By effectively utilizing its website and agent networks, Unite has been able to enhance its market presence in the houses of multiple occupation (HMO) sector, a segment where it has made significant advancements in recent years. This strategic approach not only delivers quality housing options for students but also contributes to freeing up family housing within local communities.

Summarized from source with an LLMView SourceSector: Finance

Earnings and EPS

Adjusted earnings: £213.8m (up 16% YoY). Adjusted EPS: 46.6p (up 5% YoY). IFRS profit attributable to owners: £441.9m (up 331% YoY). IFRS diluted EPS: 96.1p (up 291% YoY). Dividend per share: 37.3p (up 5%).

Rental performance & occupancy

Strong rental growth for the 2024/25 academic year: +8.2% rental growth with 97.5% occupancy (sector avg ~94%). Occupancy remains well-supported by nomination agreements with universities.

Net asset values & returns

EPRA NTA per share increased to 972p (up 6%). IFRS net assets per share 982p (up 5%). Total accounting return (TAR) 9.6% (2023: 2.9%). Like‑for‑like portfolio valuation +4.8% to c.£6.0bn (Unite share).

Balance sheet & funding

Net debt:EBITDA reduced to 5.5x (from 6.1x); Loan-to-value 24% (from 28%). Cost of debt expected to rise to c.4.1% in 2025 (2024: 3.6%).

Development pipeline & M&A

Committed development pipeline £1,048m fully funded, 100% in Russell Group cities at a 6.8% yield on cost, adding c.£71m NOI (Unite share) over next four years. £281m of value‑add acquisitions (Unite share £210m) and £304m disposals (Unite share £161m) completed to enhance portfolio quality.

2025 outlook & guidance

Guidance: rental growth of 4–5% and 97–98% occupancy for 2025/26; adjusted EPS guidance 47.5–48.25p for 2025. Targeting 8–10% TAR in 2025 (before yield movement).

Market demand & sector context

Management cites rising student demand (UK 18‑year‑old applications +2% for 2025/26; international visa issuances +14% YoY), constrained PBSA supply (new supply c.60% below pre‑pandemic levels) and HMO landlord exits supporting medium‑term fundamentals.

Sustainability

Over 99% of the portfolio EPC A–C rated and a 9% reduction in energy intensity since 2019; delivery of low‑embodied‑carbon development at Bromley Place noted.

Summarized from source with an LLMView Source

Key figures

-36.4%1Y

-43.5%3Y

-50.0%5Y

Performance

23.6%1Y

23.3%3Y

26.6%5Y

Volatility