Unite Group PLC - Bristol-based student accommodation developer - USAF property portfolio on June 30 valued at GBP2.80 billion, a 1.4% increase on a like-for-like basis during the quarter. Its LSAV portfolio on the same date had a value of GBP1.70 billion, up 1.9% on a like-for-like basis. Also predicts a return to full occupancy in the coming academic year.
Unite says the valuation increase in the second quarter reflects its positive sales performance and the expectation of a return to full occupancy. The USAF and LSAV portfolios are valued at weighted average yields of 5.3% and 4.3% respectively, Unite adds.
"The sustained momentum in our sales reflects the strength of student demand for the [2021 to 2022] academic year and greater visibility over an enhanced campus experience this autumn," comments Chief Financial Officer Joe Lister.
"There remains some uncertainty over travel restrictions for international students and, assuming these are eased in time for the start of the academic year, we anticipate a return to full occupancy and 2% to 3% rental growth in [2021 to 2022]."
Across Unite's property portfolio, 83% of rooms are now reserved for the [2021 to 2022] academic year, overtaking the prior year but behind pre-pandemic levels in [2019 to 2020] of 89%.
Current stock price: 1,115.50 pence
Year-to-date change: up 6.8%
By Will Paige; willpaige@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
Unite (UTG)