No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Student accommodation provider Unite Group reported a drop in property valuations across its USAF and LSAV funds in the second quarter.
Unite said USAF's portfolio declined 2.2% on a likeforlike basis, while LSAV fell 3.7%, driven by yield expansion and limited transactional evidence in the investment market. Unite expects a 6% to 6.5% firsthalf valuation deficit across its wholly-owned investment properties.
Despite the valuation hit, Unite said trading ahead of the 2026/27 academic year remained solid, with 86% of Unite beds reserved, up from 85% a year earlier, as its Empiric (Hello Student) portfolio continued to improve, with reservations rising to 71% from 61% last year. Unite now expects at least 87% occupancy for 2026/27 and said rental growth should match its core portfolio.
Unite reaffirmed FY26 adjusted earnings per share guidance of 41.5 to 43p, supported by solid firsthalf trading and successful shortterm letting of vacant rooms, and also guided to 0% to 2% likeforlike income growth, now expected to be driven by 94 to 96% occupancy and 1 to 2% rental growth.
The FTSE 250-listed group also said it remained confident of delivering 300m to 400m of disposals this year. So far, 130m has been completed at a 4.8% yield, with around 500m of assets currently being marketed. Unite also noted that it had completed 165m of share buybacks in H1 at an average price of 505p.
Chief executive Joe Lister said: "We have seen strong progress in reservations for the 2026/27 academic year since our last update in May. This reflects our strong direct marketing and sales performance together with targeted adjustments to pricing in selected markets.
"We are also making good progress on our strategy to increase alignment to the UK's leading universities and are on track to deliver 300 to 400m (Unite share) of disposals this year in support of this objective. Our transition to a higher-quality portfolio, serving the UK's strongest universities, is accelerating, enhancing our ability to deliver future rental growth."
As of 0905 BST, Unite shares were down 1.83% at 510p.
Reporting by Iain Gilbert at Sharecast.com
See latest RNS at Investegate
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.