- Unite Group‘s adjusted Earnings Per Share (EPS) exceeded expectations, reported at 46.6p against the estimated 46.4p.
- The company’s EPRA net tangible assets per share were 972p.
- Pretax profit stood at £444.0 million, surpassing the estimated £406.4 million.
- Rental income came in slightly below expectations at £282.0 million, compared to the estimated £286.4 million.
- Total revenue of the company was reported at £299.3 million.
- Unite Group declared a dividend per share of 37.3p, slightly higher than the estimated 36.9p.
- The loan-to-value ratio was reported at 24%, in line with the estimated 24.4%.
- The portfolio value was £6.38 billion, exceeding the estimate of £6.26 billion.
- The company targets an 8-10% Total Accounting Return (TAR) in 2025, excluding yield movement.
- Cost of debt is expected to rise to 4.1% in 2025, from 3.6% in 2024.
- Rental growth is projected at 4-5% for 2025/26, with an anticipated occupancy rate of 97-98%.
- There is an encouraging outlook for student demand, supporting rental growth and a 2-4% increase in adjusted EPS for 2025.
- Positive momentum is driven by increasing demand and favorable policies for international students in 2025.
- Analysts have issued 10 buy recommendations, 3 hold recommendations, and no sell recommendations.
A look at Unite Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, the long-term outlook for Unite Group appears to be positive. With strong scores in Value, Dividend, and Momentum, the company seems well-positioned to deliver solid returns to investors. The company’s focus on student accommodation in the UK, along with its established relationships with academic institutions, lends stability to its operations, reflected in the Resilience score. While Growth scored lower than other factors, the overall outlook for Unite Group seems promising.
The UNITE Group PLC, a property investment company specializing in student accommodation in the UK and maintaining close ties with academic institutions, has received favorable scores in key areas like Value, Dividend, and Momentum. Despite a slightly lower score in Growth and Resilience, the company’s diversified portfolio and established funds and joint ventures contribute to its overall positive trajectory, suggesting a stable and potentially rewarding long-term investment opportunity.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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