25th Feb 2025 09:29
(Alliance News) - Unite Group PLC on Tuesday celebrated growing student demand continuing to outpace the UK's constrained housing supply, as it reported a jump in the profit.
The Bristol, England-based owner and manager of student accommodation said pretax profit surged to GBP444.0 million in 2024 from GBP102.5 million in 2023.
Notably, valuation gains and profit on disposal was GBP239.6 million in 2024, swung from a loss of GBP61.2 million in 2023.
EPRA net tangible assets per share rose 5.7% to 972 pence as at December 31, from 920p a year ago.
Unite said rental growth improved to 8.2% in the academic year 2024/25, from 7.4% a year prior. Occupancy rate however edged down to 97.5% from 99.8%.
It highlighted that student demand continued to outpace the UK's constrained housing supply, with a 2% increase in university applications by 18-year-olds in the UK for academic year 2025/26. Further, it noted a more supportive environment for international students, with most recent visa issuance up 14% on-year.
Unite said: "International student demand is improving for 2025 after the disruption created by changes to visa policy in early 2024. Visas granted to students were down 14% in 2024 as a result of this policy change and uncertainty created by the review of post-study visa policy ahead of the UK general election. The new government has been vocal in its support of international students coming to the UK, recognising the value they bring to the UK and its universities, and we are not expecting any further visa changes in the near term. Recruitment data is encouraging, with indications of a 14% increase in the intake for January 2025 and a 3% increase in international applicants for the 2025/26 academic year, with 9% growth from China."
The company proposed a final dividend of 24.9 pence per share, up 5.5% from 23.6p a year ago. This brings the total payout to 37.3p, up 5.4% from 35.4p.
Chief Executive Officer of Unite Students Joe Lister said: "The outlook for 2025 is encouraging with growing momentum, driven by increasing demand and a more supportive policy environment for international students. Additionally, private house in multiple occupation [HMO] landlords continue to leave the sector, creating a shortage of student housing. We are well-positioned to respond, with a robust development pipeline and new university joint-venture partnerships. This not only provides students with high-quality homes but also frees up family housing in local communities. We are excited by the opportunities that lie ahead for the business."
Unite shares rose 1.5% to 869.00 pence each on Tuesday morning in London.
By Tom Budszus, Alliance News slot editor
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