17th Sep 2026 12:29
(Alliance News) - Unite Group PLC shares declined on Thursday after it reported stable occupancy rates but weak expected income growth for the next academic year.
Shares in the Bristol, England-based student accommodation provider were down 3.2% at 470.11 pence in London on Thursday afternoon.
Unite said 95% of beds in its portfolio are reserved for the 2026/27 academic year, unchanged from a year earlier and within its guidance range of 94% to 96%.
The company said it expects like-for-like income growth of 0.5% to 1.0% for 2026/27. Under the previous guidance, Unite had expected income growth of 0% to 2%.
Rental growth is now expected to be flat, compared with a previous guidance of 1% to 2%.
Panmure Liberum analyst Bjorn Zietsman said: "Reservations alone are a poor measure of underlying demand, with Unite increasingly protecting occupancy through pricing."
Zietsman added that a further weakness was Unite's customer mix.
The company said 54% of beds were let through universities' nomination agreements while 41% were directly let for 2026/27. This compared with 59% and 36% respectively at a year earlier.
The rate of income growth reflected a sales shift towards undergraduate students over postgraduates which Unite said "impacted direct-let pricing through shorter average tenancy lengths."
Unite said current trading supported its guidance for financial 2026, with adjusted earnings per share between 41.5 pence and 43.0 pence.
Unite Chief Executive Officer Joe Lister said the company's portfolio is focused "around UK's strongest universities, where student numbers continue to grow".
The company said UK universities have increased undergraduate acceptances by 1% for the coming academic year, while high-tariff institutions, where its portfolio is concentrated, saw acceptances grow by 6%.
In the Hello Student portfolio, owned by Empiric Student Property PLC, which Unite acquired in January, 91% of beds are reserved, up from 84% a year earlier. Unite is targeting 92% occupancy in the coming weeks.
However, the Panmure Liberum analyst said this has also required targeted price reductions.
Unite said its new 719-bed Hawthorne House development in Stratford is fully let for 2026/27 following its opening.
The company said it will publish a trading update on October 8.
By Camilla Borri, Alliance News reporter
Comments and questions to [email protected]
Copyright 2026 Alliance News Ltd. All Rights Reserved.
Related Shares:
Unite