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Unite Group PLC on Tuesday said it is on track to deliver rental growth of 4% to 5% for the academic year after an acceleration in reservations in recent weeks.
In a trading statement, the Bristol, England-based owner and manager of student accommodation said the outlook for student numbers is ‘positive’ for the 2025/26 academic year with domestic demand 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,’ Unite added.
As a result, Unite said it remains on track to deliver rental growth of 4% to 5% and occupancy of 97% to 98% for the 2025/26 academic year.
Joe Lister, Unite Students chief executive officer, noted: ‘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.’
In response, Unite shares rose 2.1% to 814.00 pence each on Tuesday morning in London. The wider FTSE 100 was up 1.3%.
Unite said the pace of sales has increased since preliminary results and 75% of rooms are now reserved for the 2025/26 academic year, albeit this is lower than 84% a year ago.
‘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,’ Unite said, unchanged from a year ago.
Unite said the Unite UK Student Accommodation Fund was independently valued at £2.91 billion at March 31, up 0.7% 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 firm added.
In addition, Unite said it is 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.
Delivery of a 934-bed development in Glasgow is expected for the 2027/28 academic year, while a planning application for a joint venture with Newcastle University could enable delivery of the first phase in time for the 2028/29 academic year.
A review process of a 605-bed development at TP Paddington is expected to be concluded later this year.
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