(Alliance News) - Student accommodation provider Unite Group PLC on Wednesday said it has growing "confidence" ahead of the new university academic year, and added it will resume dividend payments soon.
The FTSE 250 company also unveiled plans for a GBP300 million placing.
Unite said its reservations for the 2020/21 academic year are at 80%, compared to 88% this time a year ago.
It added that 97% of universities have planned to provide in-person teaching during the new term, a boost for accommodation providers. Unite added that it is the first student homes provider to achieve a "Covid Secure" status from the British Safety Council.
Unite has also collected 94% of rent for the current summer term.
"We have growing visibility and confidence over our income for the 2020/21 academic year, reflective of the strength of our University relationships. Our best-in-class operating platform also provides the flexibility to rapidly adjust our marketing strategies and reduce costs," Chief Executive Officer Richard Smith said.
The company plans to raise GBP300 million through an accelerated bookbuild to "grow the development pipeline", it explained.
The price of the placing shares will be determined at bookbuild close.
Unite said it has three schemes in its pipeline, worth GBP250 million altogether and located in central London.
"This placing will enable us to continue to invest in our market-leading platform and accelerate growth opportunities," CEO Smith added.
Shares in the company closed 3.4% lower at 902.19 pence each in London on Wednesday.
By Eric Cunha; ericcunha@alliancenews.com
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Unite (UTG)