Unite Group PLC
LSE:UTG

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Unite Group PLC Logo
Unite Group PLC
LSE:UTG
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Price: 521.5 GBX 1.07% Market Closed
Market Cap: 2.6B GBX

Unite Group PLC
Investor Relations

In the vibrant landscape of the UK property sector, Unite Group PLC stands as a unique exemplar of niche-focused real estate innovation. Established in 1991, the company carved its name into prominence by honing its expertise in student accommodations; it capitalized on the burgeoning demand from both domestic and international students flocking to the UK's esteemed universities. Unite Group's core business model pivots on acquiring, developing, and managing student housing, offering a portfolio that spans from premium options to affordable residences. Its strategic placement in university cities ensures high occupancy rates, turning each accommodation into a dependable stream of rental income. This focus on tailored, student-centric services has seen it cultivate a valuable brand identity, synonymous with reliability and quality in the student housing market.

Unite Group's business acumen extends beyond merely providing rooms. The company has embraced a vertically integrated approach, managing every facet of the student living experience. By overseeing the entire lifecycle—from development and design to management and maintenance—Unite not only ensures operational efficiencies but also controls costs, enhancing profitability. Moreover, its strategic partnership with universities often leads to long-term, stable agreements that keep vacancy rates low. The firm continually reinvests in its properties to cater to modern student needs, incorporating sustainable practices and ensuring that its developments remain competitive. Thus, Unite Group PLC isn't just a real estate entity; it's a comprehensive service provider that merges real estate with lifestyle, capturing the students' journey from enrollment to graduation, and in doing so, cements its foothold in a resilient and ever-demanding market.

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Last Earnings Call
Fiscal Period
Q2 2022
Call Date
Jul 27, 2022
AI Summary
Q2 2022

Strong Results: Unite Group reported a strong first half of 2022, with earnings and EPS both up 32%.

Rental Growth: Rental growth is running ahead of long-run averages, with guidance of 3.5% to 4% for 2022/23 and 4% to 5% for 2023/24.

Occupancy: Occupancy has recovered to 94% and is expected to reach 97% for both the current and next academic years.

Dividend: Dividend was increased by 69% to 11p, reflecting an 80% payout ratio.

Cost Management: EBIT margin improved to 72%, with full-year guidance of 70% and a target of 71% next year, supported by cost control and utility hedging.

Development Pipeline: The company has a £1 billion development pipeline, mainly focused on London, with two projects completed on budget and schedule.

Sustainability & Social Initiatives: Over £100 million invested in the estate and student welfare, with a continued focus on affordability and environmental upgrades.

Guidance Update: Full-year EPS guidance was updated to 40p–41p, mainly due to higher interest costs.

Key Financials
Earnings
£96 million
EPS
24p
Dividend
11p
Occupancy
94%
NOI Margin
74%
EBIT Margin
72%
Total Accounting Return
8.3%
LTV
30%
Cost of Debt
3.4%
Portfolio Yield
4.7%
Other Earnings Calls
2022

Management

Mr. Joseph Julian Lister
CEO & Director
No Bio Available
Mr. Michael James Burt
Group Investment Director & CFO
No Bio Available
Mr. Karan Khanna
Chief Operating Officer
No Bio Available
Mr. Tom Ellis
Group Strategy & Technology Director
No Bio Available
Ms. Caroline Hall
PA to CFO & Corporate Development Director
No Bio Available
Mr. Christopher Robert Szpojnarowicz
Company Secretary, Head of Legal & Group Legal Director
No Bio Available
Ms. Amy Round
Group People Director
No Bio Available
Katherine Grafton
Deputy Chief Financial Officer
No Bio Available

Contacts

Address
BRISTOL
BRISTOL
South Quay House, Temple Back
Contacts
+441173027000.0
www.unite-group.co.uk