Unite backs annual earnings guidance but fund valuations decline

Unite Group PLC on Thursday reported an upturn in the percentage of beds sold in the current academic year but said fund valuations have declined in the latest quarter.

In response, shares in the Bristol, England-based student accommodation provider were down 4.6% at 421.80 pence in London on Thursday morning, an around 12-year low.

In a trading statement Unite reiterated guidance for full-year adjusted earnings per share of 41.5p to 43.0p which would be down from 47.5p in 2025.

The FTSE 250 listing said 95.6% of Unite beds were sold for the 2026/27 academic year, slightly ahead of 95.3% in the prior year, with lettings delivering 0.6% like-for-like income growth for 2026/27.

It said 92% of Empiric beds sold for the 2026/27 academic year, up from 87% the year before. The firm completed the acquisition of Empiric Student Property PLC in January.

Unite reported a strong performance from new developments and major refurbishments delivered in 2025 and 2026, securing additional income in London, Bristol and Edinburgh and a 15% improvement in income in Nottingham, where targeted price reductions have driven "materially" higher occupancy.

Unite said it expects to deliver £300 to £400 million of disposals in 2026 with £200 million of sales completed in the year to date.

The sales have reduced the net debt to earnings before interest, tax, depreciation and amortisation ratio to 7.3 times on a pro forma basis from 7.5x at the end of June, Unite said.

Disposal proceeds will be used to fund remaining spend on the committed development pipeline and reduce leverage to a target level of 6x to 7x net debt to Ebitda, it added.

Unite said property valuations have reduced on a like-for-like basis over the quarter ending September 30, reflecting increases in property yields.

At September 30, the Unite UK Student Accommodation Fund's property portfolio was independently valued at £2.82 billion, down 4.0% on a like-for-like basis during the quarter.

In addition, the London Student Accommodation Joint Venture property portfolio was independently valued at £1.90 billion, down 3.4% reduction on a like-for-like basis during the quarter.

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