REG - Unite Group PLC - Trading Update and Q1 Fund Valuations

UniteAnnouncement

08/04/2025 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250408:nRSH9849Da&default-theme=true

RNS Number : 9849D  Unite Group PLC (The)  08 April 2025

PRESS RELEASE

8 April 2025

THE UNITE GROUP PLC

('Unite Students', 'Unite', the 'Group', or the 'Company')

TRADING UPDATE AND Q1 FUND VALUATIONS

 

GROWING STUDENT NUMBERS WITH RENT INCREASES DRIVING PROPERTY VALUES

 

Unite Students, the UK's leading owner, manager and developer of student
accommodation, today announces an update on current trading and quarterly
property valuations for the Unite UK Student Accommodation Fund ('USAF') and
the London Student Accommodation Joint Venture ('LSAV') as at 31 March 2025.

 

Highlights

·    Growing momentum in 2025/26 sales with 75% of beds sold (2024/25:
84%), in line with expected later leasing cycle for the current year

·    On track to deliver 4-5% rental growth and 97-98% occupancy for
2025/26

·    In advanced stages of agreeing new university joint venture with
Manchester Metropolitan University

·    Rental growth driving valuation increases in Q1 (USAF: 0.7%, LSAV
0.8%)

 

Joe Lister, Unite Students Chief Executive Officer, commented:

"Student numbers are expected to increase again for the 2025/26 academic year
due to a growing UK 18-year-old population and improving trends in
international student recruitment. Reservations have accelerated in recent
weeks, in line with our expectations for a later leasing cycle, and are
underpinned by nomination agreements from our university partners. We remain
on track to deliver rental growth of 4-5% and occupancy of 97-98% for the
2025/26 academic year."

 

Current trading

2025/26 lettings performance

We continue to see strong demand from students and universities for our well
located, value-for-money student accommodation. The outlook for student
numbers is positive for the 2025/26 academic year with domestic demand
structurally underpinned by a 2% larger population of UK 18-year-olds. We also
expect an increase in international student recruitment this year based on
growth in undergraduate applications for 2025/26 and higher issuance of
student visas in the year to date.

 

The pace of sales has increased since our preliminary results and 75% of rooms
are now reserved for the 2025/26 academic year (2024/25: 84%). This is in-line
with our expectations for a later sales cycle, following the normalisation in
leasing trends in 2024. Demand from universities is strong for the coming
year, as they look to secure accommodation to meet student demand, resulting
in nomination agreements for 56% of beds for 2025/26 (2024/25: 56%).

 

We remain on track to deliver rental growth of 4-5% and occupancy of 97-98%
for the 2025/26 academic year.

 

Manchester Metropolitan University joint venture

We are in the advanced stages of agreeing a new joint venture with Manchester
Metropolitan University to develop 2,300 beds at the University's Cambridge
Halls site in Manchester city centre for delivery in 2029 and 2030.

 

Pipeline update

At our 934-bed development at Central Quay in Glasgow, we are now on site with
the main build contract, which supports delivery of the project for the
2027/28 academic year.

 

The planning application for our Newcastle University joint venture is
expected to go to committee in May, which would enable delivery of the first
phase in time for the 2028/29 academic year.

 

Our 605-bed development at TP Paddington has now been called in by the Mayor
of London, following rejection by the local planning committee in February,
and we expect the review process to be concluded later this year.

 

We continue to engage with the Building Safety Regulator (BSR) to progress
pre-construction approvals for our upcoming development starts and mitigate
the risk of delays. Applications for our London projects at Kings Place and
Meridian Square are now under review by the BSR and we are targeting approval
in the second quarter, which would support delivery in line with our project
timetables.

 

Quarterly fund valuations

At 31 March 2025, USAF's property portfolio was independently valued
at £2,906 million, a 0.7% increase on a like-for-like basis during the
quarter. The valuation increase reflects quarterly rental growth of 0.8%.
Property yields were stable over the quarter at 5.2%. The portfolio comprises
24,326 beds in 61 properties across 19 university towns and cities in the UK.

 

LSAV's property portfolio was independently valued at £2,076 million, a 0.8%
increase on a like-for-like basis during the quarter. The valuation increase
in LSAV is driven by quarterly rental growth of 1.3%, partially offset by a 2
basis point increase in property yields to 4.5%. LSAV's portfolio comprises
9,710 beds across 14 properties in London and Aston Student Village
in Birmingham.

 

       Drivers of LfL capital growth (Q1)
       Valuation    Rental growth  Yield movement  Capital growth*

       March 2025                  (bps)
 USAF  £2,906m      0.8%           -               0.7%
 LSAV  £2,076m      1.3%           +2              0.8%

 

* Capital growth presented net of capital expenditure for property maintenance
and improvement, but excludes fire safety spend

 

 

ENDS

 

 

For further information, please contact:

 

Unite Students

Joe Lister / Mike Burt / Saxon Ridley
         Tel: +44 117 302 7005

Press
office
            Tel: +44 117 450 6300

 

Sodali & Co

Justin Griffiths / Victoria Heslop / Louisa Henry
 Tel: +44 20 7250 1446

 

 

About Unite Students

Unite Students is the UK's largest owner, manager, and developer of
purpose-built student accommodation (PBSA) serving the country's world-leading
higher education sector. We provide homes to 68,000 students across 152
properties in 23 leading university towns and cities. We currently partner
with over 60 universities across the UK.

Our people are driven by a common purpose: to provide a 'Home for Success' for
the students who live with us. Unite Students' accommodation is safe and
secure, high quality, and affordable. Students live predominantly in en-suite
study bedrooms with rents covering all bills, insurance, 24-hour security and
high-speed Wi-Fi.

We are committed to raising standards in the student accommodation sector for
our customers, investors, and employees. Our Sustainability Strategy includes
a commitment to become net zero carbon across our operations and developments
by 2030.

Founded in 1991 in Bristol, the Unite Group is an award-winning Real Estate
Investment Trust (REIT), listed on the London Stock Exchange. For more
information, visit Unite Group's corporate website www.unitegroup.com
(http://www.unitegroup.com/) or the Unite Students'
site www.unitestudents.com (https://www.unitestudents.com/) .

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTPKOBNPBKDAQK