Unite Group PLC, a leading provider of student accommodation in the UK, reported its final results for the year ended December 31, 2025. The company demonstrated resilience in a challenging market, with strong trading across most of its portfolio, despite weaker demand in some cities. Key highlights include
**Financial Performance**Adjusted earnings increased by 9% to £232.3 million, and adjusted EPS grew by 2% to 47.5p. However, IFRS profit attributable to owners decreased by 78% to £97.6 million due to a valuation decrease in the property portfolio.
**Operational Metrics**Achieved 4.0% rental growth and 95.2% occupancy for the 2025/26 academic year, with 19 out of 22 cities averaging 97% occupancy.
**Strategic Progress**Increased alignment to high-tariff universities to 67%, with a target of 80%. Completed the acquisition of Empirics 7,700-bed portfolio, enhancing the offer to returning students.
**Capital Allocation**Commenced a £100 million share buyback program and disposed of St Pancras Way to USAF for £186 million, demonstrating disciplined capital management.
**Market Trends**Strong demand for higher education in the UK, with a 5% increase in 18-year-old applicants for 2026/27. New PBSA supply remains constrained, and the HMO sector is in decline.
**Future Outlook**Guidance for 2026/27 includes 2-3% rental growth and 93-96% occupancy, with adjusted EPS expected to be 41.5-43.0p, reflecting lower Empiric income and occupancy.
Unite Group is focused on operational excellence, optimal capital allocation, and strengthening university partnerships to drive long-term growth and shareholder value.
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Adjusted earnings (£m) | 232.3 | 213.8 | 9% |
| Adjusted EPS (p) | 47.5 | 46.6 | 2% |
| IFRS profit attributable to owners (£m) | 97.6 | 441.9 | (78%) |
| IFRS EPS (diluted) (p) | 19.9 | 96.1 | (79%) |
| Dividend per share (p) | 37.7 | 37.3 | 1% |
| EPRA NTA per share (p) | 955 | 972 | (2%) |
| IFRS net assets per share (p) | 966 | 982 | (2%) |
| Net debt: EBITDA | 6.0x | 5.5x | 0.5x |
| Loan to value | 27% | 24% | +3ppts |