Quarterly Valuation and Reservations UpdateSource: RNS
12 April 2021
THE UNITE GROUP PLC
('Unite Students', 'Unite', the 'Group', or the 'Company')
QUARTERLY VALUATION AND RESERVATIONS UPDATE
Unite Students, the UK's leading owner, manager and developer of student accommodation, announces the quarterly property valuation of the Unite UK Student Accommodation Fund ('USAF') and the London Student Accommodation Joint Venture ('LSAV') as at 31 March 2021.
At 31 March 2021, USAF's property portfolio was independently valued at £2,756 million, reflecting a 0.5% increase on a like-for-like basis during the quarter. The portfolio comprises 29,627 beds in 76 properties across 20 University towns and cities in the UK.
LSAV's investment portfolio was independently valued at £1,341 million, reflecting a 1.3% increase on a like-for-like basis during the quarter. LSAV's investment portfolio comprises 8,358 beds across 12 properties in London and Aston Student Village in Birmingham.
The like-for-like valuation increase in Q1 reflects the sales performance to date for the 2021/22 academic year and the expectation of a return to full occupancy. LSAV also benefited from 2 bps of yield compression in London during the period. The USAF and LSAV portfolios are valued at weighted average yields of 5.3% and 4.4% respectively.
We have seen a strong sales performance since our preliminary results on 16 March, reflecting increased confidence from both UK and international students as lockdown restrictions begin to ease. Across the Group's total property portfolio, 73% of rooms are now reserved for the 2021/22 academic year with the deficit in sales to prior year continuing to narrow over recent weeks (2020/21: 80%).
Joe Lister, Unite Students Chief Financial Officer, commented:
"Our positive sales momentum reflects strong demand for the 2021/22 academic year and increasing confidence over a return to face-to-face teaching. Based on our expectation of an enhanced campus experience for students and a relaxation of international travel restrictions, we anticipate a return to full occupancy and 2-3% rental growth in 2021/22."
For further information, please contact:
Joe Lister / Michael Burt Tel: +44 117 302 7005
Unite press office Tel: +44 117 450 6300
Justin Griffiths / Victoria Heslop Tel: +44 20 7250 1446
About Unite Students
Unite Students is the UK's largest owner, manager and developer of purpose-built student accommodation, serving the country's world-leading Higher Education sector. We provide homes to 76,000 students across 180 properties in 27 leading University towns and cities. We currently partner with over 60 Universities across the UK.
Our people are driven by a common purpose: to provide a 'Home for Success' for the students who live with us. Unite's accommodation is safe and secure, high quality and affordable. Students live predominantly in ensuite study bedrooms, with rents covering all bills, insurance, 24-hour security and high-speed Wi-Fi. We also hold a five-star British Safety Council audit rating.
Founded in 1991 in Bristol, Unite Group is an award-winning Real Estate Investment Trust (REIT), listed on the London Stock Exchange and a member of the FTSE 250 Index. Unite is invested in and operates two specialist funds and joint ventures with institutional investment partners: the £3 billion Unite UK Student Accommodation Fund (USAF) and the £1 billion London Student Accommodation Vehicle (LSAV).
For more information, visit:
Unite's corporate website www.unite-group.co.uk
The student site www.unitestudents.com