Unite Group warns of Covid-19 impact to FY rents

Student accommodation provider Unite Group warned on Wednesday that full-year rents looked set to decline around 16-20%.

Unite said the decline was a result of it forgoing rent on 43,000-46,000 beds for the summer semester due to the closure of universities and students giving up their accommodation in the coronavirus crisis.

The FTSE 250-listed firm, which made further cuts in management wages and benefits, retained its guidance for a £90-125m reduction in group cashflow in 2020 - with only £12-15m in cost savings identified following a detailed review of its operating expenses and overheads.

Unite also said it was now fully drawn on its existing credit facilities but expects to receive around £50m from the HM Treasury and Bank of England Covid Corporate Financing Facility.

The group also cautioned that delivery of 2020 completions will be delayed by temporary site closures and amended working practices - with completion go its Middlesex Street in London and Old BRI in Bristol projects pushed out until 2022.

As of 0845 BST, Unite shares were up 3.71% at 799.50p.