Unite Group reaffirms outlook despite softer interim earnings

(Sharecast News) - Shares in Unite Group came under pressure on Tuesday, after the student housing specialist posted a slide in first-half earnings.

The FTSE 250 property firm saw like-for-like income rise 1.5% in the six months to 30 June, although that was notably less than the 7.4% uplift recorded in the first-half of 2025. Adjusted earnings per share fell 8% to 27.1p - in part due to acquisition-related costs - while net asset value stood at 879p per share, down 9% since 31 December. Net tangible assets per share were 9% weaker at 865p.

However, chief executive Joe Lister said: "In a less certain operating environment, performance in the first half has been encouraging, with reservations up year on year for Unite Students and Hello Student, and earnings in line with our expectations."

He also stressed Unite remained on track to deliver full-year guidance.

Lister is currently repositioning Unite to provide accommodation at the UK's "strongest" universities only, where student demand remains "robust and growing". As a result, the company's portfolio is now being refocused on around 20 cities comprising 55,000 to 60,000 beds, compared to 72,000 beds at the end of the period. Interim applications for high-tariff universities for the coming academic year rose 7%.

Lister said: "We are creating a higher-quality business with strong and sustainable long-term growth prospects.

"The progress in repositioning the business gives us confidence in our ability to return to earnings growth and create long-term value for shareholders."

As at 0915 BST, the stock was down 2% at 545.5p.

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