8th Jul 2022 08:30
(Alliance News) - Unite Group PLC said on Friday its performance is ahead of pre-pandemic levels for the upcoming academic year, and the value of its funds made healthy gains over the second quarter.
The Bristol-based student accommodation provider said sales have progressed well in the second quarter, with 90% of rooms sold for the 2022/2023 academic year, compared to 81% last year.
This is ahead of pre-pandemic reservation levels of 80% for 2020/2021 and 89% in 2019/2020.
Unite noted positive developments in pricing, especially as concerns around the Omicron variant eased towards the second half of the sales cycle.
It expects to deliver occupancy rates of 97% for the upcoming academic year, and achieve rental growth at the top of, or slightly above, guidance of 3.0% to 3.5%. It continues to monitor potential Covid-19 travel restrictions for international students, especially in China.
"We continue to make good progress with bookings...demonstrating the strength of student demand... We are well protected against inflationary pressures through annual re-pricing of our income and cost hedging but, like others, are not immune from the impact of rising costs and interest rates," said Chief Financial Officer Joe Lister.
Shares in Unite were up 1.2% to 1,119.00 pence each in London on Friday morning.
The company also updated on the valuation of its funds.
Unite UK Student Accommodation Fund was worth GBP2.97 billion at June 30, according to an independent valuation, which is a 3.5% increase on a like-for-like basis during the quarter.
London Student Accommodation Joint Venture was valued at GBP1.94 billion at June 30, an increase of 4.0% on a like-for-like basis during the quarter.
"We continue to see significant investor demand for student accommodation, reflecting the sector's positive outlook, as demonstrated by valuation increases for USAF and LSAV in the quarter," Lister continued.
By Elizabeth Winter; [email protected]
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