Unite sells 60% of property portfolio for next academic year

(Sharecast News) - Student property firm Unite Group said on Tuesday that it had already sold 60% of its entire property portfolio for the next academic year, up from 58% at the same time last year.
Unite expects to see strong student demand for the 2022-23 year from both domestic and international students, with the group anticipating "a slightly later sales cycle" for international students than in "a typical yea"r due to ongoing uncertainty relating to Covid-19. As a result, Unite increased its focus on retaining existing direct-let customers, which led to an increased share of sales to re-bookers.

The FTSE 250-listed firm said this was supportive of its guidance for full occupancy and rental growth of 3.0-3.5% for the 2022-23 academic year.

Unite highlighted that its USAF property portfolio was independently valued at £2.86bn on 31 December, a 1.6% increase on a like-for-like basis during the quarter and a 4.6% increase for the year, while its LSAV investment portfolio was independently valued at £1.81bn, up 3.1% in the quarter on a like-for-like basis and up 10.4% for the year.

Looking forward, Unite stated it had continued to make "good progress" in the delivery of its secured pipeline and in sourcing new development opportunities, adding that "a positive flow" of development opportunities remained in London and prime regional cities and that it expects to add further schemes to its secured pipeline during the first half of 2022.

Chief financial officer Joe Lister said: "Bookings for the 2022/23 academic year have started positively with 60% of rooms already sold, demonstrating the continued strength of student demand and our success in increasing the retention of existing customers.

"This supports our guidance of a return to full occupancy and 3.0-3.5% rental growth for the 2022/23 academic year. Reflecting this positive outlook, we continue to see strong investment demand for UK student accommodation, as reflected in the valuation performance for USAF and LSAV in 2021."

As of 0825 GMT, Unite shares were up 0.70% at 1,082.50p.