Unite Group portfolio valuations impacted by Covid-19

Student accommodation providers Unite Group said on Wednesday that its decision to forego rent for students who choose to return home as a result of the Covid-19 pandemic had impacted valuations for the period.

Unite's USAF property portfolio was independently valued at £2.78m, representing a like-for-like decrease of 2.2% during the quarter, while its LSAV investment portfolio was valued at £1.31m - down 1.5%.

The FTSE 250-listed also firm expects a reduction in group cashflow of £90-125m in 2020 but said it would continue to focus on international students studying multi-year courses and domestic students living away from home, including those who might otherwise stay in multiple occupancy housing.

However, Unite was confident that its actions would ensure that it emerges from the "uniquely challenging period" with its reputations, not only "protected" but "enhanced".

Chief financial officer Joe Lister said: "Over the coming weeks we will have greater visibility over the income we expect to receive for the summer semester of 2019/20.

"Our operating platform provides us with the flexibility to rapidly implement new marketing strategies for 2020/21 and reduce costs where appropriate."

As of 0920 BST, Unite shares were up 1.23% at 822p.