Unite student rents climb amid 'very strong' demand for lettings
Unite Group
919.00p
16:40 04/10/24
Unite Group reported a 1.6% like-for-like increase in the value of both its UK Student Accommodation Fund and its London Student Accommodation Joint Venture over the last quarter after a strong period for lettings.
FTSE 250
20,900.08
17:14 04/10/24
FTSE 350
4,570.17
17:14 04/10/24
FTSE All-Share
4,527.24
16:54 04/10/24
Real Estate Investment Trusts
2,335.75
17:14 04/10/24
As of 30 September, the broader USAF portfolio of 69 properties across 23 UK university towns and cities was independently valued at £2.14bn, compared to £2.08bn at the end of June.
The mostly London-focused joint venture fund, which comprises 13 properties in London and Aston Student Village in Birmingham, was valued at £1.10bn versus £1.08bn three months earlier.
The valuation increases were driven by rental growth and seven basis points of yield compression across both USAF and LSAV in the quarter, the Bristol-based company said.
The overall USAF portfolio, which is 99% let with the 2017/18 academic year near the end of its lettings cycle, is now valued at an average yield of 5.5% and LSAV's portfolio at 4.9%.
Joe Lister, chief financial officer of Unite Students, called it a "very strong" lettings performance, with full year rental growth at the mid to upper end of the management's 3.0-3.5% forecast.
"Contracts with university partners guaranteeing income and rental growth now underpin 60% of the portfolio providing a high level of certainty over future income and demonstrating the strength of our relationships with high to mid-ranking universities. Demand from direct let bookings remains strong due to our high quality portfolio and market-leading service platform."