(Alliance News) - Unite Group PLC on Friday said it is extending its 50% rent discount for students for an additional three weeks.
The ten-week rental discount and four-week complimentary tenancy extension will be available to students not living in their accommodation between January 18 and March 28.
This takes the total discount period to 10 weeks, up to the end of the government's stay at home rule on March 29. Subject to no further changes in government guidelines, this will be the company's final rent discount relating to the pandemic.
Based on take-up of the rental discount to date and occupancy in its buildings, Unite expects the total 10-week rental discount and tenancy extension to reduce rental income by up to GBP10 million, equivalent to 2.5 pence of EPRA earnings per share for the 2021 financial year.
"This represents a lower impact than previously anticipated, despite the three-week extension to the discount, reflecting the high number of students now in occupation in our buildings," said Unite.
The FTSE 250 constituent added that it has now collected 95% of rent due to date for the 2020/21 academic year.
"Given the strength of our cash collection, scheduled payments by Universities and physical occupancy in our buildings, we are confident in retaining headroom under all our ICR covenants across the group and its funds and joint ventures," the company said.
The stock was down 0.4% at 986.00 pence in London on Friday morning.
By Lucy Heming; lucyheming@alliancenews.com
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Unite (UTG)