Track shipments

Unite on the right track to achieve the goals

Unite the group announced a good start to the second term on Friday, thanks to sustained demand from British and international students.

The student accommodation specialist indicated that it had made “good progress” in sales over the period, with 90% of the rooms now sold for the 2022-2023 academic year. This is an improvement of 81% over the previous year and 89% over 2019-20, before the pandemic.

Demand from UK students was supported by UK government guidelines that universities should prioritize face-to-face teaching, while following the easing of Covid-19 restrictions international students were able to travel to the UK for the start of the next academic year,

The FTSE 250 property manager, owner and developer added that he had seen “positive progress” in prices, driven by inflation-linked rent increases for multi-year appointment deals.

He concluded: “Given the strong sales performance to date, we are increasingly confident of a delivery occupancy of 97% for the 2022-2023 academic year and of achieving a rent growth at or just above the upper limit of our forecast of 3.0% to 3.5%.”

Shares of Unite rose in early trading, and were up 1% at 1,118.0p at 08:30 BST.

Joe Lister, Chief Financial Officer, said: “We are well protected against inflationary pressures through annual revenue repricing and cost coverage, but like others, we are not immune to impact of rising costs and interest rates.

“We continue to see strong investor demand for student accommodation, reflecting the positive outlook for the sector, as evidenced by the increased valuation of the Unite UK Student Accommodation Fund (USAF) and the London Student Accommodation Joint Venture (LSAV). ).”

As of June 30, the USAF property portfolio was valued at £2.97 billion, up 3.5% on a like-for-like basis in the quarter, while the valuation of the LSAV investment portfolio increased 4.0% on the same basis to £1.94 billion.