The Unite Group reiterates full-year EPS guidance on rental growth of 4%

Investig.com -- The Unite Group PLC (LON:UTG) on Wednesday reiterated its full-year adjusted earnings per share guidance of 47.5p-48.25p, supported by 4% rental growth for the 2025-26 academic year.

The UK’s largest owner, manager and developer of purpose‑built student accommodation also reported stable valuations for its portfolios and progress on its acquisition of Empiric Student Property plc.

As of 30 September 2025, The Unite Group said 95.2% of beds for the 2025-26 academic year were reserved, compared with 97.5% at the same point last year. 

Rental growth for the year to date was 4%, compared with 8.2% for the previous year. For nomination agreements with universities, 59% of beds were let, up from 57% in 2024-25. 

Direct-let sales to international students were in line with the prior year, while fewer rooms were sold to UK students. 

The company reported higher vacancies in a small number of regional cities as supply adjusts.

The company cited sector data showing increases in university acceptances. UCAS reported 512,000 undergraduate students had accepted offers for 2025-26, up 3% compared with 2024-25. 

Acceptances at high‑tariff universities rose 8% year-on-year, compared with growth of 2% and a decline of 2% for medium‑ and low‑tariff universities, respectively. 

Growth in acceptances was particularly strong among UK 18‑year‑olds and international applicants from China and the United States.

Home Office data showed a 7% increase in study visa applications in the year to August, with applications in the peak summer months in line with 2024 levels. 

Overall study visa applications remain 11% below 2023 levels before restrictions on dependent family members for postgraduate taught students were introduced.

On property valuations, The Unite Group said that at 30 September 2025, the Unite UK Student Accommodation Fund (USAF) portfolio was valued at £2,853 million, unchanged on a like‑for‑like basis for the quarter and up 1.4% for the year to date. 

Quarterly rental growth was 1.8%, and property yields were stable at 5.2%. The USAF portfolio comprises 22,361 beds in 56 properties across 17 university towns and cities in the UK.

The London Student Accommodation Joint Venture (LSAV) portfolio was valued at £2.11 billion, up 0.4% on a like‑for‑like basis for the quarter and 1.9% for the year to date. 

Rental growth was 0.8% for the quarter, and property yields remained at 4.5%. LSAV comprises 9,710 beds across 14 properties in London and Aston Student Village in Birmingham.

On the acquisition of Empiric Student Property, The Unite Group said Empiric shareholders approved its recommended cash and share offer at the Court and General meetings held on 6 October.

The Competition and Markets Authority has begun a pre‑notification process ahead of a formal Phase 1 investigation of the acquisition. 

The company said it expects the scheme to become effective by the second quarter of 2026, subject to conditions set out in the scheme document.