(Alliance News) - Unite Group PLC announced on Tuesday that 70% of checked-in students have returned to their accommodation despite concerns over Covid-19.
The Bristol-based student accommodation provider said this figure was in line with a typical year and added that it expects the remaining students to arrive soon, following the start of the spring term.
Across the company's entire portfolio, Unite said that 60% of its rooms had now been sold for the next academic year. This is up from 58% of rooms at the same time last year.
The company said it expects strong student demand for the 2022-23 academic year from both domestic and international students but anticipates a later sales cycle for international students than in a typical year due to uncertainty relating to Covid-19. As a result, Unite said it has increased its focus on retaining existing direct-let customers.
Direct-let customers pay Unite directly, rather than Unite being paid by the university.
At December 31, the Unite UK Student Accommodation Fund property portfolio was independently valued at GBP2.9 million. Unite said this represents a 1.6% increase on a like-for-like basis during the fourth quarter of 2021 and a 4.6% increase for the year.
The Unite UK Student Accommodation Fund property portfolio comprises 29,523 beds in 75 properties across 20 university towns and cities in the UK. At December 31, 2020, the portfolio was valued at GBP2.8 million.
Unite's London Student Accommodation Joint Venture investment portfolio was independently valued at GBP1.8 million. This is up 3.1% in the fourth quarter on a like-for-like basis and up 10% for the year, according to Unite.
The London Student Accommodation Joint Venture investment portfolio comprises 9,716 beds across 14 properties in London and Birmingham. At December 31, 2020, the portfolio was valued at GBP1.3 million.
The two portfolios are now valued at weighted average yields of 5.2% and 4.1% respectively, Unite said.
Joe Lister, Unite Students chief financial officer, 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 to 3.5% rental growth for the 2022/23 academic year."
Shares in Unite were up 0.7% at 1,082.00 pence on Tuesday morning in London.
By Heather Rydings; heatherrydings@alliancenews.com
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