UK student housing provider Unite warns of 2026 profit drop amid demand slump (updated)
24/02/2026 07:37
Adds CEO quote in paragraph 3, analyst quote in paragraph 10, details throughout Rising UK education costs curb international student demand Unite's Empiric acquisition earnings affected by market shift Unite sells London property for 186 million pounds sterling By Simone Lobo Feb 24 (Reuters) - The annual income of Britain's largest student housing provider Unite Group UTG.L could fall by up to 13% in 2026 as rising UK education costs deter international postgraduate enrolments, it said on Tuesday, sending its shares 8% lower. Visa changes as the government seeks to reduce immigration have further reduced demand from international students and British students have been opting to live at home rather than rent property to cut their costs. "We've seen the overall cost of education increasing in the UK relative to some competing markets, particularly within Asia, and so that has led to a reduction in the numbers of international postgraduates," CEO Joe Lister told Reuters. The 8% share price fall by 0933 GMT put Unite on track for its worst day since October, if losses hold. EMPIRIC ACQUISITION CONCLUDED IN JANUARY Unite expects adjusted earnings per share of 41.5-43.0 pence in 2026, down between 9.5% and 12.6% from 2025 levels, reflecting lower income from its Empiric business, which it acquired in January and is focused on postgraduate housing. In November, it had expected a 7-10% reduction in 2026 adjusted earnings per share. It reported occupancy of 95.2% for the 2025/26 academic year, down from 97.5% in the previous year. Universities are seeking to boost recruitment for three-year undergraduate courses to offset the reduced number of international postgraduates, which could help Unite's revenues. Analysts, however, anticipated recovery would be hard. "We believe the weaker operational market will make it tough for the group to bounce back to trend growth from AY27/28, as previously communicated," Barclays analysts said in a note. Unite has sold non-core assets to streamline operations. The company on Tuesday announced the sale of a property in London for 186 million pounds ($250.91 million). ($1 = 0.7413 pounds) (Reporting by Raechel Thankam Job and Simone Lobo in Bengaluru; Editing by Mrigank Dhaniwala and Barbara Lewis) ((RaechelThankam.Job@thomsonreuters.com;))