Unite Group PLC, the UKs leading student accommodation provider, released a trading update and Q1 fund valuations for 2026. Key highlights include
74% of beds reserved for the 2026/27 academic year, with guidance reiterated for 93-96% occupancy and 2-3% rental growth.
On track to achieve £300-400 million in asset disposals in 2026, with £130 million completed or under offer and £500 million actively marketed.
£85 million deployed in a £100 million share buyback program, with further capital expected from disposals.
Q1 valuation decreases driven by yield expansion: USAF (-1.7%) and LSAV (-2.4%).
Focus on aligning with top universities, accelerating disposals, and repositioning towards a higher-quality portfolio.
Empiric integration progressing well, with £3 million in annualized cost synergies achieved.
Utility and debt hedging strategies provide protection against market volatility.
Renters Rights Act expected to benefit PBSA over time, reducing HMO supply.
Development updateHawthorne House project nearing completion, with strong demand for beds.
Overall, Unite Group is strategically repositioning its portfolio, focusing on growth, and returning capital to shareholders through disposals and share buybacks.
| Metric | 2025/26 | 2026/27 | Change |
|---|---|---|---|
| Beds Reserved (%) | 76% | 74% | -2% |
| Nomination Agreements (%) | 58% | 54% | -4% |
| Direct-Let Sales (%) | 18% | 20% | +2% |
| Occupancy Guidance | 95.2% | 93-96% (lower end) | Slightly Lower |
| Rental Growth | 4.0% | 2-3% (lower end) | Slower |
| Asset Disposals Target (£ million) | N/A | £300-400 | New Target |
| Disposals Completed/Under Offer (£ million) | N/A | £130 | New |
| Assets Marketed for Disposal (£ million) | N/A | £500 | New |
| Share Buyback Programme (£ million) | N/A | £100 (£85 deployed) | New |
| USAF Valuation (£ million) | N/A | £2,798 | (1.7%) Q1 |
| LSAV Valuation (£ million) | N/A | £2,034 | (2.4%) Q1 |