Unite maintains guidance as reservations rise to record high

Student accommodation group Unite has held on to full-year guidance after a solid fourth quarter, with property values holding stable and reservations rising to a record high.

The company said that rental income from the first term of the 2023/24 academic year has been offset by higher operating costs, resulting in adjusted earnings per share expected at the upper end of the 43-44p range.

A record 71% of beds have now been sold for the 2024/25 academic year, up from 70% the same time last year, and the board said it's confident in delivering rental growth of "at least" 5% next year.

"We have seen a strong start to the 2024/25 sales cycle, reflecting the continued appeal of our fixed-priced, all-inclusive offer," said chief executive Joe Lister.

"The letting performance highlights the ongoing strength of demand from students and universities and underpins a positive outlook for rental growth for the 2024/25 academic year."

The company, which is currently building an extra 2,000 beds across four development schemes in London, Bristol, Edinburgh and Nottingham, said it is looking to dispose of £150-200m of regional assets in the first half of 2024, as it refocuses its portfolio on more attractive regions.

The Unite UK Student Accommodation Fund (USAF) saw a 2.3% increase in like-for-like valuations in the second half, leading to a 3.6% increase over the 2023 financial year, while the London Student Accommodation Joint Venture (LSAV) declined by 1% in the second half, resulting in a flat outcome for the year.