29th Jul 2025 10:21
(Alliance News) - Unite Group PLC on Tuesday reported "building momentum" in the first half of 2025, upping its dividend in spite of a profit decline.
The Bristol, England-based owner and operator of student accommodation posted pretax profit of GBP185.9 million for the six months that ended June 30, down 35% from GBP283.9 million the year prior.
First-half revenue totalled GBP181.1 million, 14% ahead of GBP158.9 million in 2024. Rental income contributed GBP171.9 million, up from GBP150.0 million. Unite said the discrepancy between profit and revenue was due in part to "the smaller increase in property values in the first half".
The company also raised its interim dividend per share to 12.8 pence from 12.4p.
Unite's net tangible assets per share rose slightly during the six months to 986p from 969p, while net asset value per share rose to 998p from 973p in 2024.
Net debt increased to GBP1.7 billion at June 30 from GBP1.5 billion at December 31. However, earnings before interest, tax, depreciation and amortisation rose to GBP172.6 million from GBP154.1 million, reducing the net debt to Ebitda ratio to 5.3x at June 30 compared with 5.5x at December 31.
Diluted earnings per share decreased 41% on-year to 37.9p from 64.6p. On an adjusted basis, Unite said that EPS rose 3% to 29.4p from 28.6p in 2024. It reiterated full-year guidance for adjusted EPS between 47.5p and 48.25p, up from 46.6p the previous year.
The firm also maintained guidance for rental growth between 4% and 5% in 2025, as Chief Executive Joe Lister noted growing momentum ahead of the new academic year that starts in September.
"Universities continue to attract school leavers in record numbers and improving recruitment of international students reflects the UK's attractiveness as a study destination," Lister commented.
"Structurally growing demand combined with limited new supply creates a range of attractive investment opportunities and we see significant potential to add to our growing pipeline of on-campus university partnerships. Our alignment to the UK's strongest universities and investment pipeline position the business to deliver sustainable earnings growth."
Unite shares were 2.1% lower at 769.50p on Tuesday morning in London. The stock has fallen 19% over the past 12 months.
By Holly Munks, Alliance News reporter
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