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Unite Group PLC on Tuesday maintained a confident outlook after achieving high sales in its first quarter.
The Bristol-based owner, manager and developer of purpose-built student accommodation noted ‘continued strong demand’, with 86% of beds sold for the 2024-25 academic year, down from 90% of beds at the same point for the 2023-24 year.
Unite is ‘confident’ in delivering rental growth of at least 6% for the 2024-25 academic year, it said.
Chief Executive Officer Joe Lister said: ‘Student demand is strong for the 2024-25 sales cycle, reflecting the continued appeal of our fixed-priced, all-inclusive offer and a growing shortage of high-quality student homes. Together with our alignment to the UK’s strongest universities, this supports a positive outlook for rental growth for the 2024-25 academic year and underpins our property valuations.’
The Unite UK Student Accommodation Fund was valued at £2.98 billion as of March 31, down 0.5% on a like-for-like basis from December 31. The London Student Accommodation Joint Venture valuation was £1.94 billion, up 0.8% like-for-like in the first quarter.
The trading update on Tuesday came after Unite reported 2023 earnings back in February. Annual revenue grow by 6.5% to £276.1 million in 2023 from £259.3 million in 2022. However, pretax profit plunged 72% to £102.5 million from £361.9 million, due to revaluation losses.
Shares in Unite were down 1.1% at 939.00 pence each in London on Tuesday morning.
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