Unite Group portfolio valuation increases in Q1

Student accommodation manager Unite Group said on Monday that the value of its portfolio of 29,627 beds in 76 properties across 20 University towns and cities in the UK had increased 0.5% on a like-for-like basis during the three months ended 31 March.

Unite said its property portfolio was independently valued at £2.75bn, while its investment portfolio was independently valued at £1.34bn, reflecting a 1.3% increase on a like-for-like basis during the quarter.

The FTSE 250-listed group said its like-for-like valuation increase reflected its sales performance to date for the 2021/22 academic year and an expectation of a return to full occupancy.

Looking forward, Unite stated it had seen "a strong sales performance" since its 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 were now reserved for the 2021/22 academic year, with the deficit in sales to the prior year continuing to narrow in recent weeks.

Chief financial officer Joe Lister said: "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."

As of 0900 BST, Unite shares were down 0.65% at 1,076.50p.