Unite Group attains record earnings on full occupancy levels

Unite Group achieved its highest-ever profits last year, thanks to higher rents and a record occupancy rate across its portfolio.

Britain’s largest student accommodation provider, which operates around 70,000 beds across the country, reported that its adjusted revenue rose 13 per cent to a record £184.3 million in 2023.

The Bristol-based company’s rental income rose 9 per cent to £369.5m as a shortage of student housing, combined with strong demand for university places, helped it achieve rental rates. total occupancy for the 2023/24 academic year.

Revenue was further boosted by like-for-like annual rent growth of 7.7 per cent and a higher ownership stake in the Unite UK Student Accommodation Fund.

Unite said demand remained strong for the current academic year, with 80 per cent of rooms already sold, as many students look to secure places earlier in the sales cycle.

The group is driven by a significant shortage of student property supply that cannot meet the increase in domestic and international students attending higher education institutions in recent decades, as well as a broader housing shortage.

According to Unite, the supply of new purpose-built student housing is 60 per cent below pre-pandemic levels, while multiple occupancy housing has fallen by 8 per cent, equivalent to between 100,000 and 150,000 beds. less.

As a result, the FTSE 100 company forecasts rental income to grow by at least 6 per cent in 2024, having previously forecast a minimum of 5 per cent.

Joe Lister, chief executive of Unite Students, said: ‘The imbalance between supply and demand for student accommodation is acute and continues to intensify.

“We are playing a leading role in addressing this shortage, easing pressure on the broader housing market and freeing up housing for families.”

Unite has a record portfolio of development projects valued at £1.3bn, with a focus on building homes in supply-constrained markets and at Britain’s top universities.

Last week it agreed a £250m joint venture with Newcastle University to provide around 2,000 new beds to be delivered in 2027 and 2028.

The company also has projects worth £569 million in other major UK cities including London, Bristol, Edinburgh and Nottingham.

Neil Shah, chief content officer at Edison Group, said: “As Unite Group continues to enhance its portfolio, invest in technology upgrades and strengthen its balance sheet, it remains well equipped to navigate changing market dynamics and sustain its trajectory of growth in the years to come.’

group actions unite They were down 0.25 per cent to £9.84 on Tuesday afternoon and remain below their pre-pandemic levels.