8th Oct 2024 09:01
(Alliance News) - Unite Group PLC on Tuesday said its outlook for the next academic year was positive as it noted caps for international student numbers in Australia and Canada which it expects will boost the UK's attractiveness as a place to study.
The Bristol, England-based owner and manager of student accommodation said like-for-like rental growth was 8.2% on-year in the 2024/25 academic year, picking up speed from 7.4% growth a year ago.
Occupancy was a notch lower, at 97.5% compared to 99.3%.
Unite said it has secured four new multi-year agreements with Russell Group partners starting in the current academic year for over 2,500 beds.
Looking ahead, the company noted a positive outlook for the 2025/26 academic year, with demographic growth supporting strong demand from UK students.
For 2024, Unite expects adjusted earnings per share at the upper end of the 45.5 pence to 46.5p range, a rise of up 5.0% to compared to 44.3p a year ago.
"Demographic growth supports strong demand from UK students and we are encouraged by the positive tone of the new government towards international student recruitment, ending a period of policy uncertainty. Other competing student destinations, including Australia and Canada, have recently introduced caps for international student numbers as part of tighter visa rules, which we expect to add to the relative attractiveness of the UK as a place to study," the company said.
It added: "Rental growth will also be enhanced by the capture of reversion on long-term nomination agreements and income-enhancing asset management initiatives."
Unite shares were 0.2% higher at 918.00 pence each on Tuesday morning in London.
By Tom Budszus, Alliance News slot editor
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