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UniteAnnouncement

06/09/2014 02:41

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RNS Number : 6599L
Unite Group PLC
08 July 2014 
 
 PRESS RELEASE 8 July 2014    
                              
 
 
THE UNITE GROUP PLC 
 
("Unite", "Unite Students", the "Group", or the "Company") 
 
VALUATION OF THE UNITE UK STUDENT ACCOMMODATION FUND 
 
AS AT 30 JUNE 2014 
 
The Unite Group, the UK's leading manager and developer of student
accommodation, today reports the estimated net asset value* ("NAV") of the
Unite UK Student Accommodation Fund (the "Fund", "USAF") as at 30 June 2014.
The NAV was £866.9 million (£0.999 per unit), reflecting an increase of 1.6%
during the second quarter of 2014 (31 March 2014: £853.6 million, £0.984 per
unit). 
 
USAF distributes the income that it generates from the portfolio and the
principal components of the underlying movement in NAV are as follows: 
 
 Effect on NAV:                                                                  Q2 2014  
 Movement in property values                                                     1.3%     
 Movement in swap values                                                         0.1%     
 Other factors                                                                   0.2%     
 Increase in NAV                                                                 1.6%     
                                                                                          
 Increase in underlying gross property portfolio value on a like for like basis  0.9%     
 
 
In arriving at the value of the Fund, USAF's property portfolio, comprising
21,673 beds in 59 properties across 19 UK towns and cities, was independently
valued at £1,375 million (31 March 2014 £1,362 million). 
 
The movement during the quarter represents a like-for-like increase of 0.9%
(1.5% in the six months to 30 June) in the underlying value of the property
portfolio, driven mainly by rental growth. The portfolio is valued at an
average yield of 6.60% at 30 June 2014 (31 March 2014: 6.63%). As in previous
years, further rental growth is expected to be achieved as reservations for
the forthcoming 2014/15 academic year progress. 
 
Reservations across USAF's properties for the academic year starting in
September 2014 stand at 76% compared to 73% at the same point in 2013. 
 
Commenting on the Fund's valuation, Joe Lister, Unite Student's Chief
Financial Officer, said: "The fund continues to perform well with another
strong quarter. Lettings for the forthcoming academic year are proceeding
strongly at rental levels supportive of management expectations, with 76% of
the portfolio now reserved, ahead of the 73% level at the same point in 2013.
USAF has continued its strong track record of growing rents, with further
uplifts anticipated in the third quarter as the 2014/15 academic year lettings
cycle is completed." 
 
* Estimated Net Asset Value represents the capital position of the Fund and
does not include undistributed income 
 
ENDS 
 
For further information, please contact: 
 
 The Unite Group plcJoe Lister, Chief Financial OfficerSally Quigg, Head of Corporate Communications  Tel: 0117 302 7004Tel: 0117 302 7070  
 Bell PottingerVictoria GeogheganNick Lambert Elizabeth Snow                                          Tel: 020 7861 3925                    
 
 
About Unite Students 
 
Unite Students is the UK's leading manager and developer of student
accommodation. We provide a home for 41,000 students in over 120 purpose built
properties across 23 of the UK's strongest university towns and cities. We
have nearly 1,000 employees and work in partnership with over 50 higher
education providers, as well as renting rooms directly to students. 
 
Our culturally-diverse customers are at the heart of our business and we aim
to provide a home for students that supports their success, whether defined as
academic achievement, personal growth or employability. Our properties provide
high quality, well-located, safe accommodation that is close to university
campuses, transport and local amenities. Our rent includes a study bedroom,
all bills, insurance, 24-hour security and high speed Wi-Fi throughout our
buildings. 
 
Founded in 1991, Unite Group is a FTSE 250 company listed on the London Stock
Exchange. We are pursuing a sustainable growth strategy designed to make the
most of the resilient nature of the student accommodation sector. We aim to
maintain the strongest brand in the sector and operate the highest quality
portfolio through consistent investment in and improvement to our operating
platform, highly selective development activity, asset management initiatives
and portfolio recycling. 
 
In addition to our wholly owned properties, we are also invested in and
operate a small number of specialist funds and joint ventures with
institutional investment partners, the largest of which is the £1.38 billion
Unite UK Student Accommodation Fund (USAF). 
 
The Group's charitable trust, the Unite Foundation, supports widening access
to higher education, integrating students into the community and
employability. It provides scholarships for disadvantaged students at seven
universities and volunteering opportunities for our students and employees
through partner organisations. 
 
For more information visit our corporate website: www.unite-group.co.uk or
www.unite-students.com. 
 
This information is provided by RNS
The company news service from the London Stock Exchange