REG - Unite Group PLC - Interim Results
Tue 07:00
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RNS Number : 8897S Unite Group PLC (The) 29 July 2025
PRESS RELEASE
29 July 2025
THE UNITE GROUP PLC
("Unite Students", "Unite", the "Group", or the "Company")
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2025
STRONG H1 PERFORMANCE WITH SIGNIFICANT GROWTH OPPORTUNITIES
Joe Lister, Chief Executive of Unite Students, commented:
"We have had a strong first half, delivering 15% growth in adjusted earnings
underpinned by high occupancy, rental growth and investment into our portfolio
and operating platform.
Universities continue to attract school leavers in record numbers and
improving recruitment of international students reflects the UK's
attractiveness as a study destination. Sales for the 2025/26 academic year are
building momentum, and we expect strong demand for accommodation in late
August and September following A-level results.
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."
H1 2025 H1 2024 FY 2024 Change from
H1 2024
Adjusted earnings(1) £144.2m £125.3m £213.8m 15%
Adjusted EPS(1) 29.5p 28.7p 46.6p 3%
IFRS profit £186.1m £281.7m £441.9m (34)%
IFRS diluted EPS 37.9p 64.4p 96.1p (41)%
Dividend per share 12.8p 12.4p 37.3p 3%
Total accounting return(2) 4.0% 7.9% 9.6%
As at 30 Jun 2025 30 Jun 2024 31 Dec 2024 Change from
31 Dec 2024
EPRA NTA per share(2) 986p 969p 972p 1%
IFRS NAV per share 998p 973p 982p 2%
Net debt: EBITDA 5.3x 5.7x 5.5x 0.2x
Loan to value(3,4) 26% 26% 24% (2)ppts
HIGHLIGHTS
Strong operational performance drives earnings growth
· Like-for-like(5) income growth of 7%, reflecting strong occupancy
and rental growth
· Adjusted EPS up 3% to 29.5p (H1 2024: 28.7p)(1)
· IFRS diluted EPS down 41% to 37.9p (H1 2024: 64.4p), reflecting
lower revaluation gains
· Reiterating FY2025 Adjusted EPS guidance of 47.5-48.25p (2024:
46.6p)
Growing student numbers and limited new supply support demand for 2025/26
academic year
· Building sales momentum with portfolio 88% sold for 2025/26
(2024/25: 94%)
· Targeting rental growth of 4-5% and occupancy of at least 97% for
2025/26 (2024/25: 97.5% and 8.2%)
· 2% growth in UK 18-year-olds applying to university for 2025/26 and
student visa applications up 19% YoY
· 10% growth in offers to study at the high-quality universities to
which Unite is aligned
· New PBSA supply below pre-pandemic levels and increasing HMO
regulation
Partner of choice for universities to meet housing needs
· Strong university demand, with 56% of beds nominated for 2025/26
(2024/25: 57%)
· Planning approval secured for 2,000-bed Newcastle University joint
venture
· Secured new joint venture with Manchester Metropolitan University
to develop 2,300 beds
· Growing interest from universities to explore strategic
accommodation partnerships
Increasing alignment to the strongest universities
· Delivering over 1,000 new beds in Bristol and Edinburgh for 2025/26
academic year
· £90m NOI contribution from off-campus and university partnership
pipeline over the next five years
· Disposal of 10 properties totalling £214 million (Unite share:
£142 million) to improve portfolio quality
· Enhancing portfolio through £33 million of refurbishments at 8.1%
yield on cost in 2025
Robust balance sheet with growing valuations
· EPRA NTA up 1.4% to 986p (2024: 972p) and 4.0% Total Accounting
Return in H1 (H1 2024: 7.9%)
· £9.3 billion portfolio valuation (Unite share: £6.2 billion), up
1.4% on a like-for-like basis⁵
· Net debt to EBITDA of 5.3x and LTV of 26% (31 December 2024: 5.5x
and 24%)
1. Adjusted earnings and Adjusted EPS remove the impact of SaaS
implementation costs from EPRA earnings and EPRA EPS. See glossary for
definitions and note 7 for calculations and reconciliations
2. The financial statements are prepared in accordance with International
Financial Reporting Standards (IFRS). The Group uses alternative performance
measures (APMs), which are not defined or specified under IFRS. These APMs,
which are not considered a substitute for IFRS measures, provide additional
helpful information and include measures based on the European Public Real
Estate Association (EPRA) best practice recommendations. The metrics are also
used internally to measure and manage the business. The adjustments to the
IFRS results are intended to help users in the comparability of these results
across other listed real estate companies in Europe and reflect how the
Directors monitor the business. See glossary for definitions
3. Excludes IFRS 16 related balances recognised in respect of leased
properties. See glossary for definitions
4. Wholly owned balances plus Unite's share of balances relating to USAF and
LSAV
5. Like-for-like properties owned at both 30 June 2025 and 31 December 2024,
includes revaluation gains/(losses), capital expenditure, excludes development
properties, leased properties and fire safety provisions
PRESENTATION
A live webcast of the presentation including Q&A will be held today at
10:00am BST for investors and analysts. The webcast can be accessed via
https://brrmedia.news/UTG_HY25 (https://brrmedia.news/UTG_HY25) and will be
available for playback on our website (https://www.unitegroup.com
(https://www.unitegroup.com) ) after the event.
To register for the event or to receive dial-in details, please contact
unite@sodali.com (mailto:unite@sodali.com) .
For further information, please contact:
Unite Students
Joe Lister / Michael Burt / Saxon Ridley
Tel: +44 117 302 7005
Press office
Tel:
+44 117 450 6300
Sodali & Co
Justin Griffiths / Victoria Heslop / Louisa Henry
Tel: +44 20 7250 1446
CHIEF EXECUTIVE'S REVIEW
The business has delivered a strong performance in the first half, with growth
in earnings, dividends and net assets. As expected, we have seen a
normalisation in leasing trends for the 2025/26 academic year with more
bookings being made later in the sales cycle. Demand for our accommodation
remains underpinned by our alignment to the UK's strongest universities and
nomination agreements with our university partners. Our off-campus development
and on-campus partnership pipeline will deliver earnings growth over the
medium term.
Growing earnings and dividend
Adjusted earnings for the period increased by 15% to £144.2 million (H1 2024:
£125.3 million). This increase was driven by strong rental growth for the
2024/25 academic year, property acquisitions and the delivery of asset
management and development projects over the past 12 months. Adjusted EPS
increased 3% to 29.5p (H1 2024: 28.7p), reflecting the increased share count
following our equity raise in July 2024. The Group recorded a reduction in
IFRS profit before tax to £185.9 million (H1 2024: £283.9 million),
principally driven by adjusted earnings and the smaller increase in property
values in the first half.
We are announcing an interim dividend of 12.8p (H1 2024: 12.4p), an increase
of 3% on H1 2024. We plan to distribute 80% of adjusted EPS as dividends for
2025.
EPRA NTA per share increased by 1% to 986p (31 December 2024: 972p), driven by
valuation increases through rental growth. Together with the FY2024 final
dividend payment, this resulted in a total accounting return of 4.0% in the
first six months of the year (H1 2024: 7.9%). IFRS NAV per share increased by
2% to 998p over the half (31 December 2024: 982p).
Our key financial performance indicators are set out below:
Financial highlights¹ H1 2025 H1 2024 FY 2024
Adjusted earnings £144.2m £125.3m £213.8m
Adjusted EPS 29.5p 28.7p 46.6p
IFRS profit before tax £185.9m £283.9m £444.0m
IFRS diluted EPS 37.9p 64.4p 96.1p
Dividend per share 12.8p 12.4p 37.3p
Total accounting return 4.0% 7.9% 9.6%
EPRA NTA per share 986p 969p 972p
IFRS NAV per share 998p 973p 982p
Loan to value 26% 26% 24%
1. See glossary for definitions and note 7 for alternative performance
measure calculations and reconciliations. A reconciliation of profit before
tax to EPRA earnings and adjusted earnings is set out in note 7 of the
financial statements.
Encouraging outlook for 2025/26
Across the Group's operational portfolio, 88% of rooms are now sold for the
2025/26 academic year (2024/25: 94%). As expected, we are seeing a later sales
cycle, in line with historical trends, following the unusually early booking
patterns observed over the past couple of years. Students are increasingly
choosing to enter A-level Clearing to secure a place at university once their
grades are confirmed. There are also indications that some students are
deferring booking accommodation in anticipation of discounting later in the
cycle as some competitors did last year. The combination of these factors is
driving this year's later booking cycle.
Student numbers for the 2025/26 academic year are encouraging. Growth in the
UK 18-year-old population has resulted in record demand from this demographic,
with 2% growth in applicants for the year. Overall, the number of students
offered a place at university has increased by 2% for the 2025/26 academic
year, with 10% growth in offers to study at the high-tariff universities to
which we have aligned our portfolio.
Demand from international students continues to recover from the visa policy
changes implemented last year. Encouragingly, visa applications are 19% higher
in the year to June, as we enter the summer peak for applications. UCAS data
shows 2% growth in applications from international students for 2025/26, with
particularly strong growth from Chinese students (10%), who account for
approximately 16% of our sales.
We have seen strong demand for our accommodation from universities.
Nominations agreements currently cover 56% of total beds for 2025/26 (2024/25:
57%) as universities look to secure accommodation to meet student demand.
Direct-let sales are in line with long-term trends, and we anticipate strong
demand from UK students following A-level results in late-August and from
international students during September. A small number of regional cities are
leasing more slowly as they adjust to the delivery of new supply. Greater
availability of existing beds has also meant a slower lease-up for our new
openings, which we expect to reach stabilised occupancy in 2026/27.
Our sales to date support rental growth of 4-5% for the 2025/26 academic year
and we continue to target occupancy of at least 97%.
Breakdown of reservations for 2025/26 by domicile and year of study:
Nominations(1) Direct let
UK China India Other Intl.
First year 4% 3% 3% 10%
Returning students 9% 3% 3% 15%
Postgraduate 2% 6% 4% 12%
% of reservations 63% 15% 12% 10% 100%
% of portfolio 56% 13% 11% 8% 88%
1. All years and domiciles
Growing student numbers and constrained supply
Structural factors have led to a supply / demand imbalance for student
accommodation. Demographic growth will see the population of UK 18-year-olds
increase by 91,000 (11%) by 2030 (source: ONS). Tuition fees have reduced by a
third in real terms since 2012 and offer significant value through a £100,000
lifetime earnings premium for graduates.
International student numbers are forecast to grow by up to 50% to nine
million by 2030 (Source: ICEF), with a growing global middle class driving
demand for higher education. The UK is second only to the US in the standing
of its leading universities and the sector is well positioned to attract
higher student numbers. Data indicates an increasing proportion of prospective
international students are exploring UK degrees as an alternative to the US
since January.
Over half of students needing term-time accommodation live in Houses of
Multiple Occupancy ('HMOs') where private landlords are facing rising costs
from higher mortgage rates and increasing regulation, which may provide the
business with an opportunity to retain and attract more returner students.
New supply of PBSA is also down on pre-pandemic levels, with around 15,000
beds expected to be delivered in 2025, reflecting viability challenges created
by higher build and funding costs, as well as planning backlogs and additional
time required to secure Building Safety Act approvals. Once allowance is made
for first generation university-owned beds leaving the market each year
through obsolescence, we expect to see limited growth in PBSA supply in the
near term.
Significant growth through our pipeline
Universities increasingly recognise that a shortage of high-quality and
value-for-money accommodation is a barrier to their growth. University
campuses offer best-in-class locations, but their potential is yet to be fully
realised due to funding constraints faced by institutions and the complexity
of delivering new homes.
In May, we announced our second university joint venture with Manchester
Metropolitan University for the development of 2,300 new beds at Cambridge
Halls in Manchester city centre. Together with our first partnership with
Newcastle University, the Group's on-campus pipeline now totals 4,300 beds for
delivery over the next 3-5 years. We have seen an increase in interest from
universities to discuss partnership opportunities in recent months and are in
discussions with a number of high-quality partners for development both on-
and off-campus, as well as the stock transfer and refurbishment of existing
accommodation.
Our off-campus development pipeline totals £925 million (4,600 beds) in the
strongest university cities, the seven projects are fully funded and we are
on-site at four of the schemes. Freestone Island, Kings Place and Meridian
Square await Gateway 2 approval from the Building Safety Regulator ahead of
main construction starting.
Our off-campus and on-campus university partnership projects will contribute
£90 million to NOI (Unite share) as they complete over the next five years.
Focus on the strongest universities
We have aligned our portfolio to the UK's leading universities, where student
demand is strongest, with 93% of the portfolio by value in Russell Group
cities. Our investment is concentrated on these universities, with 100% of our
development pipeline and recent acquisitions in Russell Group cities. These
universities have the most attractive long-term outlook for student
recruitment and in turn support sustainable rental growth.
Acquisitions, providing immediate income, have become more attractive and we
are seeing increased availability of investment opportunities as vendors seek
liquidity. In many cases, there are opportunities to acquire materially below
replacement cost, which underpins the long-term prospects for rental growth.
We are particularly focused on those opportunities where we can add value
through our operational platform and asset management capabilities.
We continue to recycle capital with a focus on increasing alignment to the
strongest universities and agreed the sale of 10 properties for £214 million
in the period (Unite share: £142 million).
Possible offer for Empiric Student Property
On 5 June 2025, the Board of Empiric Student Property plc ("Empiric")
announced that it had received an indicative proposal from Unite Students
regarding a possible share and cash offer for Empiric. The possible
acquisition of Empiric's high-quality and complementary portfolio would
provide Unite Students with greater scale and enhanced growth opportunities
aligned to the UK's strongest universities. Empiric's differentiated product
and service would broaden Unite Student's offering to returning students. The
possible offer is expected to deliver earnings accretion and enhanced returns
for both sets of shareholders while maintaining balance sheet strength. There
can be no certainty that an offer will be made. A further announcement will be
made in due course.
Higher Education policy
The Government's recent Industrial Strategy recognised the critical role
played by UK universities in delivering advanced skills and highlighted the
strength of the Higher Education sector, with 17 universities in the top 100
globally. A white paper on post-16 education and skills, incorporating Higher
Education, and an International Education strategy are due to be published
later this year.
The financial sustainability of universities is a key focus for the Department
for Education following a period in which UK tuition fees have reduced
significantly in real terms. In response, domestic tuition fees will increase
by 3.1% for the 2025/26 academic year and many institutions are pursuing cost
saving initiatives to improve their financial position. We expect these
financial conditions to create new partnership opportunities with universities
as they seek to deliver cost efficiencies and release funding for reinvestment
into their academic programmes. Our exposure to students attending lowest
ranked institutions is around 0.3% of gross rent.
The Immigration White Paper published in May emphasised the significant
contribution made by international students to the UK economy and research in
the Higher Education sector, while introducing measures to raise standards for
student visas. The changes include a reduction in post-study work visas from
24 to 18 months and the potential introduction of a levy on income from
international students for reinvestment into Higher Education. Further details
are due to be provided in the Autumn Budget. We do not expect these changes to
materially impact international student demand, particularly for high-tariff
universities, at a time when more restrictive policy in the UK's main
competitor markets is making the UK a more attractive destination.
The Renters' Rights Bill is expected to come into effect during the 2025/26
academic year. Secondary legislation around the bill will act to exempt PBSA
from the legislation based on compliance with government-approved codes of
conduct under which the Group has operated for a number of years. We
anticipate the Bill and exemption will apply to future tenancies (likely from
the 2026/27 academic year) and we continue to engage with the Government to
understand the impact of transitional arrangements for existing tenancies at
the time of implementation.
The Housing (Scotland) Bill proposes changes to tenants' rights as well as the
introduction of designated rent control areas within Scotland. The Scottish
Government has clearly stated that PBSA should be exempt from the Bill. We
continue to monitor the Bill, which is expected to gain parliamentary approval
later in the year.
Positive outlook
We have significant opportunities for growth, supported by our high-quality
university relationships and structurally growing demand. Student numbers are
expected to increase for the 2025/26 academic year and beyond due to a
growing UK 18-year-old population and improving trends in international
student recruitment. This supports strong demand and continued rental growth
for our high-quality value-for-money offer. We expect a busy end to the sales
cycle through August and September and continue to target rental growth of
4-5% and occupancy of at least 97%. Our strong H1 performance and the outlook
for the 2025/26 academic year supports reiterated guidance for adjusted EPS of
47.5-48.25p in 2025. Growth in our recurring earnings underpins total
accounting returns of 8-10% pre-yield movement in 2025 and c.10% over the
medium term.
Our significant development pipeline underpins our medium-term earnings
outlook, and we have a broad range of attractive investment opportunities. In
particular, we see a growing opportunity for partnerships with high-quality
universities to invest and deliver new student accommodation, freeing up much
needed family housing in our local communities. We believe that we are
uniquely placed to unlock these opportunities thanks to our long-term
relationships, operational and development capabilities and access to capital.
PROPERTY REVIEW
Our property portfolio saw a 1.4% increase in valuations on a like-for-like
basis during the half (Unite share: 1.4%). The valuations reflect rental
growth for the 2025/26 academic year based on our leasing progress to date.
The portfolio's 5.1% net initial yield was broadly unchanged over the first
half (31 December 2024: 5.1%).
Investment activity in the UK student accommodation sector remains strong with
around £2.5 billion either traded or well progressed in the first half at
pricing supportive of our valuations. Private equity and institutional
investors remain active in the sector, attracted by a positive outlook for
rental growth, which reflects strong occupational demand and supply
constraints.
The Royal Institution of Chartered Surveyors (RICS) has introduced new
independence rules for valuation firms. Under the new rules, the majority of
our wholly owned portfolio has been valued by new valuers at 30 June 2025,
either CBRE or Knight Frank. USAF and LSAV will also rotate valuers later in
the year.
Like-for-like capital growth(1,2)
£m Valuation 30 June 2025 Rental growth/ other Yield movement Capital expenditure Total
Wholly owned 4,227 103 (23) (19) 61
USAF 2,937 63 (8) (17) 38
LSAV 2,092 38 (3) (5) 30
Total (Gross) 9,256 204 (34) (41) 129
Total (Unite share) 6,150 87
Capital growth
Wholly owned 2.6% (0.6)% (0.5)% 1.5%
USAF 2.2% (0.3)% (0.6)% 1.3%
LSAV 1.9% (0.2)% (0.2)% 1.5%
Total (Gross) 2.2% (0.4)% (0.4)% 1.4%
Total (Unite share) 1.4%
1. Excludes leased properties and fire safety provisions
2. Includes assets held for sale
Development and university partnership activity
Development and university partnership activity continues to be a significant
driver of future growth in our earnings and EPRA NTA. Our development pipeline
now stands at 10,000 beds, with a total development cost of £1.9 billion and
is aligned to our strategic focus on high and mid-ranked universities.
The anticipated yield on cost of the total pipeline is 6.8%. We have lower
hurdle rates for developments that are supported by universities or where
another developer is undertaking the higher risk activities of planning and
construction.
Universities remain willing to support our planning applications as a means of
delivering the high-quality, affordable accommodation required to support
their growth ambitions. 58% of our pipeline by value will be delivered with
support of a nomination agreement from a university partner, giving us
increased confidence to commit to projects.
The Building Safety Act has added three approval gateways to the design, build
and occupation of new buildings. We continue to engage with the Building
Safety Regulator (BSR) to progress pre-construction approvals for our upcoming
development starts. Applications for four projects are under review by the BSR
and continue to experience delays. We are working to mitigate this impact in
order to deliver projects in line with our target completion dates.
On-campus pipeline
Strengthening our partnerships with universities through on-campus
co-investment has been an objective for the business for several years and has
the potential to be a significant source of growth in the years to come.
We were pleased to secure our second university joint venture during the
period with Manchester Metropolitan University. Following the signing of a
framework agreement in May, a joint planning application has been submitted
for the development of 2,300 new beds at Cambridge Halls in Manchester city
centre. This supports entry into the joint venture around the end of 2025 with
the first phase of the project targeting delivery in time for the 2029/30
academic year. The partnership will redevelop the University's 770-bed halls
which is over 30 years old and no longer meets student needs.
At our Castle Leazes joint venture in Newcastle, planning was granted in the
first half and work is underway to secure outstanding approvals to enable a
start on-site later this year. This supports delivery of the first phase of
the 2,000-bed project for 2028/29 academic year.
Off-campus pipeline
We are on track to deliver over 1,000 new beds for 2025/26 academic year, with
623 beds at Avon Point in Bristol and 401 beds at Burnet Point in Edinburgh.
Avon Point is well located for the new University of Bristol Temple Quarter
campus and the university has nominated 54% of beds for an initial 14-year
term. In the current sales environment, new openings have been slower to
lease-up due to increased availability of completed properties. We expect
occupancy for new openings to be impacted for the 2025/26 academic year before
stabilising in their second year with the benefit of a full leasing cycle.
Construction is progressing well at Hawthorne House in Stratford and is
on-track for delivery for the 2026/27 academic year. At Central Quay in
Glasgow, we have started construction of the 934-bed project, supporting
delivery for the 2027/28 academic year.
Future pipeline
Our future pipeline of two projects now stands at 1,100 beds with total
development costs of £313 million, delivering a 6.2% yield on cost. Our TP
Paddington scheme has been called in by the Mayor of London following a second
planning refusal by the local authority in the period. We expect planning at
both our TP and Elephant & Castle schemes to be determined later this year
and have optionality over whether to proceed based on the return prospects of
the schemes.
Secured development and partnerships pipeline
Type(1) Target delivery Secured beds/ units Total completed value Total devel. costs Capex in period Capex remaining Forecast NTA remaining⁶ Forecast yield on cost
no. £m £m £m £m £m %
Off-campus pipeline
Avon Point, Bristol Noms/DL 2025 623 120 80 17 5 1 7.3%
Burnet Point, Edinburgh DL 2025 401 76 62 24 8 2 7.1%
Hawthorne House, Stratford(3) Noms/DL 2026 719 250 196 27 46 33 6.1%
Freestone Island, Bristol Noms/DL 2027 500 111 76 1 58 15 7.4%
Central Quay, Glasgow Noms/DL 2027 934 164 125 7 100 33 7.4%
King's Place, London DL 2027 444 238 169 6 95 38 6.6%
Meridian Square, Stratford Noms/DL 2028 952 299 217 3 140 44 6.4%
Total off-campus pipeline 4,573 1,258 925 85 452 166 6.7%
University JV's
Castle Leazes, Newcastle(4) JV 2028/29 2,000 291 250 8 232 16 7.3%
Cambridge Hall, Manchester(2,5) JV 2029/30 2,300 483 390 5 385 65 7.3%
Total on-campus pipeline 4,300 774 640 13 617 81 7.3%
Total committed pipeline 8,873 2,032 1,565 98 1,069 247 7.0%
Future pipeline
Elephant & Castle, London(2) Noms/DL 2029 511 135 - 130 6.5%
TP Paddington, London(2) Noms/DL 2030 605 178 - 171 6.0%
Total future pipeline 1,116 313 - 301 6.2%
Total pipeline (gross) 9,989 1,878 98 1,370 6.8%
Total pipeline (Unite share) 1,639 93 1,141 6.8%
1. Direct-let (DL), Nominated (Noms) and Joint Venture (JV)
2. Subject to obtaining planning consent
3. Yield on cost assumes the sale of academic space for c.£45 million
4. Unite share 51%. Yield on cost includes management fees in NOI and
deducts development management fee from costs
5. Unite share 70%. Yield on cost includes management fees in NOI and
deducts development management fee from costs
6. Unite share
Asset management
This year, we will complete seven asset management and refurbishment schemes
in strong markets with a total investment of £33 million (Unite share: £21
million) and yield on cost of 8.1%. The projects will deliver additional beds,
refurbish existing rooms and common spaces and enhance the environmental
performance of the properties. In total, we will have enhanced properties
offering 2,200 beds for the 2025/26 academic year.
Disposal activity
During the period we agreed the sale of 10 properties in Aberdeen, Leicester,
Leeds, Nottingham and Sheffield for £214 million (Unite share: £142
million). This includes the sale of a portfolio of nine properties at a
blended yield of 6.4% and priced c.1% below December 2024 book value, which is
due to complete in August 2025. The proceeds will be recycled into investment
activity in our strongest markets.
Disposals remain a key part of our strategy to improve the quality of our
portfolio and increase alignment to the strongest universities. They also help
to manage our balance sheet leverage and provide funding for new investment
opportunities, which offer superior risk-adjusted returns. We expect to make
disposals of £100-150 million per annum (Unite share) on an ongoing basis.
Fire safety
Fire safety is a critical part of our health and safety strategy, and we have
a track record of leading the sector on fire safety standards through our
proactive approach. During the period we progressed fire safety improvements
on 15 buildings across our estate. We prioritise remediation according to our
risk assessments and expect to recognise new provisions in H2.
We spent £37.5 million (Unite share: £17.8 million) on fire safety capex
during the period. Included in our period-end balance sheet is total committed
fire safety spend of £76.6 million (Unite share: £40.3 million), the costs
for which will be incurred over the next two years.
We expect to recover 50-75% of total cladding remediation costs through claims
from contractors, although the settlement and recognition of these claims will
lag costs incurred to remediate buildings.
Build-to-rent
During the period, we have progressed with the planned upgrade of our 180
Stratford pilot build-to-rent (BTR) property. The delivery of new amenity
space has completed and a rolling refurbishment is planned for the 178
apartments.
Later this year we will be extending our BTR pilot at Burnet Point in
Edinburgh. The scheme includes a standalone block of 103 beds in smaller flat
sizes with higher specification fit out and amenity than our standard student
product. We have initially marketed the rooms to students, which are proving
to be particularly popular to returning and postgraduate students.
We continue to review BTR opportunities, alongside our existing PBSA pipeline,
though do not expect to increase our capital commitment in the short term.
FINANCIAL REVIEW
The Group uses alternative performance measures (APMs), which are not defined
or specified under IFRS. These APMs, which are not considered to be a
substitute for IFRS measures, provide additional helpful information and
include, among others, measures based on the European Public Real Estate
Association (EPRA) best practice recommendations. The metrics are used
internally to measure and manage the business. Figures in this section are
APMs unless otherwise identified as such.
Earnings
We delivered a strong operating performance in H1 2025, with rental income
increasing by 12% to £236.6 million, up from £211.8 million in H1 2024,
reflecting like-for-like rental growth and property investment activity.
Adjusted earnings grew by 15%, reflecting growth in NOI and a slight reduction
in finance costs following the repayment of debt. Adjusted EPS increased by 3%
to 29.5p (H1 2024: 28.7p), which reflects the increased share count following
our July 2024 capital raise.
Based on our performance in H1 and progress on reservations for the 2025/26
academic year, we reiterate our guidance for adjusted EPS of 47.5-48.25p in
2025.
Summary EPRA income statement H1 2025 H1 2024 £m FY 2024
£m £m
Rental income 236.6 211.8 398.0
Property operating expenses (64.7) (58.6) (121.9)
Net operating income (NOI) 171.9 153.2 276.1
NOI margin 72.7% 72.3% 69.4%
Management fees 9.2 9.0 17.3
Operating expenses (21.1) (14.2) (38.4)
Finance costs (20.1) (22.1) (44.0)
Development and other costs (2.9) (3.3) (9.1)
EPRA earnings 137.0 122.6 201.9
SaaS implementation costs 7.2 2.7 11.9
Adjusted earnings 144.2 125.3 213.8
Adjusted EPS 29.5p 28.7p 46.6p
EPRA EPS 28.0p 28.1p 44.0p
EBIT margin 71.7% 71.6% 68.1%
A reconciliation of profit after tax to EPRA earnings is set out in note 2.2b
of the financial statements
IFRS profit before tax and diluted EPS reduced to £185.9 million and 37.9p
respectively in the first half (H1 2024: £283.9 million and 64.4p
respectively), reflecting the lower net revaluation gain of £61.1 million (H1
2024: £132.5 million gain) and, for diluted EPS, the increased share count
following our July 2024 capital raise.
H1 2025 H1 2024 FY 2024
£m £m £m
Adjusted earnings 144.2 125.3 213.8
SaaS implementation costs (7.2) (2.7) (11.9)
EPRA earnings 137.0 122.6 201.9
Valuation gains/(losses) and profit/(loss) on disposal 61.1 132.5 239.6
Changes in valuation of interest rate swaps (13.0) 5.4 (3.5)
Non-controlling interest and other items 0.8 23.4 6.0
IFRS profit before tax 185.9 283.9 444.0
Adjusted earnings per share 29.5p 28.7p 46.6p
EPRA EPS 28.0p 28.1p 44.0p
IFRS diluted earnings per share 37.9p 64.4p 96.1p
A reconciliation of profit before tax to EPRA earnings measures is expanded in
section 7 of the financial statements.
During the period, our technology investment programme delivered significant
enhancements to our customer management and finance systems, adding to the
website and app enhancements made in 2024. These upgrades will deliver an
enhanced customer experience and increase our operational efficiency. We
incurred technology implementation costs of £9.6 million in the first half
and a deferred tax credit of £2.4 million (H1 2024: £3.9 million and £1.2
million) and expect to incur £10-15 million of implementation costs (net of
tax) in 2025. These implementation costs are removed from adjusted earnings to
reflect the underlying operating performance of the business. Post
implementation, technology licence costs will be expensed on a recurring
basis.
Operations result
Like-for-like rental income increased by 7% during the first half. Operating
expenses increased by 9% for like-for-like properties in the period primarily
driven by increased staff costs. This resulted in the Group's NOI margin
increasing to 72.7% for the six months (H1 2024: 72.3%).
H1 2025 H1 2024 YoY change
Wholly owned Share of Fund/JV Total Wholly owned Share of Fund/JV Total
£m £m £m £m
£m £m £m %
Rental income
Like-for-like properties 140.4 51.9 192.3 131.9 47.1 179.0 13.3 7%
Non-like-for-like properties 31.5 12.8 44.3 18.1 14.7 32.8 11.5 35%
Total rental income 171.9 64.7 236.6 150.0 61.8 211.8 24.8 12%
Property operating expenses
Like-for-like properties (39.3) (14.4) (53.7) (36.0) (13.1) (49.1) (4.6) 9%
Non-like-for-like properties (8.8) (2.2) (11.0) (5.6) (4.0) (9.5) (1.5) 16%
Total property operating expenses (48.1) (16.6) (64.7) (41.6) (17.0) (58.6) (6.1) 10%
Net operating income
Like-for-like properties 101.1 37.5 138.6 95.9 34.1 130.0 8.6 7%
Non-like-for-like properties 22.7 10.6 33.3 12.5 10.7 23.2 10.1 44%
Total net operating income 123.8 48.1 171.9 108.4 44.8 153.2 18.7 12%
The increase in property operating expenses in the first half was driven by an
average 5% pay increase for city staff, increased employer's national
insurance contributions, a new team structure in London and higher
performance-related pay. The increase in other costs reflects higher credit
card payment fees and an increased H1 weighting to spend across the year.
Utility costs were flat compared to the prior year, reflecting a stabilisation
in commodity prices.
H1 2025 H1 2024 FY 2024 Change from H1 2024
£m £m £m
Staff costs (18.4) (16.4) (34.0) 12%
Utilities (16.4) (16.4) (30.5) -%
Summer cleaning (1.2) (0.7) (5.3) 71%
Marketing (4.0) (3.8) (7.0) 5%
Central costs (9.9) (8.7) (18.0) 14%
Other (14.8) (12.6) (27.1) 17%
Property operating expenses (64.7) (58.6) (121.9) 10%
Our EBIT margin was stable in the period at 71.7% (H1 2024: 71.6%) as rental
growth offset increases in operating and overhead costs. Our leasing
performance for the 2025/26 academic year and moderating cost inflation,
particularly for utilities, supports an improvement in EBIT margin up to 50bps
for 2025.
Finance costs reduced to £20.1 million (H1 2024: £22.1 million) due to
higher interest receivable on cash balances and interest capitalised in
respect of development projects. £14.1 million of interest costs were
capitalised in the first half, an increase from £6.0 million in H1 2024, due
to increased construction activity in the development pipeline.
EPRA NTA growth
EPRA net tangible assets (NTA) per share, our key measure of NAV, increased by
1% to 986p at 30 June 2025 (31 December 2024: 972 p). EPRA net tangible assets
were £4,840 million at 30 June 2025, up from £4,758 million at 31 December
2024.
The main drivers of the £82 million increase in EPRA NTA and 14p increase in
EPRA NTA per share were:
· Net valuation increases from rental growth excluding IFRS16
adjustments (£108 million, 22p)
· Yield movement ((£34) million, (7)p)
· Development losses ((£9) million, (2)p)
· The positive impact of retained profits, increased share count and
other movements (£17 million, 1p)
Property portfolio
The valuation of our property portfolio at 30 June 2025, including our share
of properties held in USAF and LSAV, was £6,710 million (31 December 2024:
£6,375 million). The £335 million increase in portfolio value reflects the
valuation movements outlined above, capital expenditure and interest
capitalised on developments.
Summary balance sheet
30 June 2025 30 June 2024 31 December 2024
Wholly owned Share of Fund/JV Total Wholly owned Share of Fund/JV Total Wholly owned Share of Fund/JV Total
£m £m £m £m £m £m £m £m £m
Rental properties¹ 4,196 1,896 6,092 3,803 1,831 5,634 4,025 1,827 5,852
Rental properties (leased) 70 - 70 82 - 82 72 - 72
Properties under development 548 - 548 244 - 244 451 - 451
Total property 4,814 1,896 6,710 4,129 1,831 5,960 4,588 1,827 6,375
Net debt (1,182) (535) (1,717) (972) (535) (1,507) (989) (521) (1,510)
Lease liability (65) - (65) (78) - (78) (73) - (73)
Other assets/(liabilities) (35) (53) (88) (89) (26) (115) 1 (35) (34)
EPRA net tangible assets 3,532 1,308 4,840 2,990 1,270 4,260 3,487 1,271 4,758
IFRS NAV 4,882 4,269 3,547 1,265 4,812
LTV 26% 26% 24%
1. Rental properties (Wholly owned) includes assets classified as held for
sale in the IFRS balance sheet
Cash flow and net debt
The operations business generated £140 million of net cash in H1 2025 (H1
2024: £128 million) and net debt increased to £1,717 million (31 December
2024: £1,510 million). The key components of the movement in net debt were an
operational cash inflow offset by total capital expenditure of £140 million
and dividend payments of £109 million.
Debt financing
We are well protected from potential increases in borrowing costs through our
well-laddered debt maturity profile and forward hedging of interest rates but
still expect to see our borrowing costs increase over time as we refinance
in-place debt at higher prevailing market costs.
Our see-through borrowing cost increased to 3.8% during the first half,
reflecting refinancing at higher rates over the past year (31 December 2024:
3.6%). Based on our hedging protection and current market interest rates, we
forecast a cost of debt of 4.1% for FY2025. Yields on our investment portfolio
and secured development pipeline continue to show a healthy positive spread
against our funding costs.
The Group maintains a disciplined approach to leverage and capital allocation,
targeting an LTV of around 30% on a built-out basis alongside interest cover
of 3.5-4.0x and net debt to EBITDA of 6-7x.
Interest cover improved to 6.9x for the 12 months to June 2025 (H1 2024:
4.8x), reflecting growth in operating profit and lower interest costs
following our equity raise in July 2024. Net debt to EBITDA reduced slightly
in the first half to 5.3x and LTV increased to 26%, reflecting growing income
and capital expenditure over the period (31 December 2024: 5.5x and 24%).
Key debt statistics (Unite share basis) 30 Jun 2025 30 Jun 2024 31 Dec 2024
Net debt £1,717m £1,507m £1,510m
LTV 26% 26% 24%
Net debt to EBITDA ratio(1) 5.3x 6.1x 5.5x
Interest cover ratio(1) 6.9x 4.8x 6.2x
Average debt maturity 3.7 years 4.0 years 3.8 years
Average cost of debt 3.8% 3.2% 3.6%
Proportion of investment debt at fixed rate 100% 100% 100%
1. Calculated on a 12-month look-back basis
Funding activity
As at 30 June 2025, the wholly owned Group had £824 million of cash and debt
headroom (31 December 2024: £1,024 million), comprising of £74 million of
cash balances and £750 million of undrawn debt (31 December 2024: £274
million and £750 million respectively).
In June, USAF refinanced its £395m 2025 bonds through a new £400 million
eight-year secured loan with Rothesay at a cost of 5.6%. The new facility
completes refinancing activity in USAF with no maturities now due before 2029.
Our average debt maturity has reduced marginally to 3.7 years (31 December
2024: 3.8 years). We continue to proactively manage our debt maturity profile
and diversify our lending base with no significant maturities until 2027.
Dividend
We are proposing an interim dividend payment of 12.8p per share, which
represents an increase of 3% compared to the prior year (H1 2024: 12.4p). The
interim dividend will be partially paid as a Property Income Distribution
(PID) of 9.7p with the remaining 3.1p paid as an ordinary dividend. The
interim dividend will be paid on 31 October 2025 to shareholders on the
register at close of business on 19 September 2025.
The Company's scrip dividend scheme will be offered for the PID of 9.7p and,
if taken up, will be paid in new ordinary shares. The last date for receipt of
scrip elections for this interim dividend is 10 October 2025. Details of the
scrip scheme, terms and conditions and the process for election are available
at the Company's website (https://www.unitegroup.com/investors/dividends
(https://www.unitegroup.com/investors/dividends) ).
In relation to the 2024 final dividend, scrip elections were received for 5%
of shares, allowing the Company to retain £5 million of capital for
investment into accretive growth opportunities.
Tax and REIT status
The Group holds REIT status and is exempt from tax on its property rental
business. During the first half of 2025, we recognised a current tax charge of
£1.4 million (H1 2024: £1.2 million) with the increase primarily due to
higher taxable profits on interest income.
Funds and joint ventures
The table below summarises the key financials at 30 June 2025 for USAF and
LSAV.
Property assets Net Other liabilities Net Unite share Maturity Unite share
£m debt £m assets of NTA
£m £m £m
USAF 2,937 (752) (71) 2,114 631 Infinite 30%
LSAV 2,092 (632) (64) 1,396 698 2032 50%
Property valuations increased by 1.3% and 1.5% on a like-for-like basis over
the first half of the year for USAF and LSAV respectively, driven by rental
growth. Property yields remained broadly stable across both portfolios.
During the period, £87 million of USAF redemption requests were cleared, with
£75 million traded in the secondary market at an average 2% discount to NAV
and £12 million paid to unitholders out of disposal proceeds. This resulted
in a 0.7% increase in Unite's ownership of USAF to 29.8%. USAF now has capital
available to invest in potential acquisitions, which we expect to be deployed
over the next 6-12 months.
Fees
During the six months to June 2025, the Group recognised net fees of £9.2
million from its fund and asset management activities (H1 2024: £9.0
million), reflecting increases in asset values and NOI in USAF.
H1 2025 H1 2024 FY 2024
£m £m £m
USAF asset management fee 6.6 6.5 12.4
LSAV asset and property management fee 2.6 2.5 4.9
Total fees 9.2 9.0 17.3
Principal risks and uncertainties
The principal risks of the business are set out on pages 57-61 of the 2024
Annual Report published in March. The Board has reviewed the principal risks
again and concluded that they have not changed since the year-end report. Our
principal risks fall into seven categories and are summarised as follows:
Category Risk
Market risk · A reduction in demand driven by geopolitical factors
· A reduction in demand driven by macroeconomic conditions, customer
value-for-money considerations and affordability
· Increase in supply; as a maturing sector, new entrants to the market
will increase competition and could lead to a loss of market share
Operational risk · Major health and safety (H&S) incident in a property or a
development site
Property risk · Inability to secure the best sites on the right terms, at a suitable
level of return on investment
· Schemes are delivered late and/or over budget
People risk · Loss of talent and capability, lack of strategic leadership capability
and meeting changing Diversity, Equity, Inclusion, Belonging and Wellbeing
requirements
Sustainability risk · Failure to meet external public commitments, regulatory and
reporting requirements made in respect of sustainability
· Failure to mitigate or prepare for the impact of climate change
Technology risk · Significant loss of personal or confidential data, disruption to
corporate systems either through cyber-attack or internal theft / error
Financial risk · Borrowing costs rise rapidly or inability to obtain funding at cost
within risk appetite
· Internal controls are exploited to allow individuals to gain from
asset misappropriation, fraudulent statements and corruption
Responsibility statement of the directors in respect of the interim report and
accounts
We confirm that to the best of our knowledge:
· The condensed set of financial statements has been prepared in
accordance with IAS 34 Interim Financial Reporting as adopted by the United
Kingdom and gives a true and fair view of the assets, liabilities, financial
position and profit or loss of the issuer, or the undertakings included in the
consolidation as a whole as required by DTR 4.2.4R
The interim management report includes a fair review of the information
required by:
· DTR 4.2.7R of the Disclosure and Transparency Rules, being an
indication of important events that have occurred during the first six months
of the financial year and their impact on the condensed set of financial
statements; and a description of the principal risks and uncertainties for the
remaining six months of the year; and
· DTR 4.2.8R of the Disclosure and Transparency Rules, being related
party transactions that have taken place in the first six months of the
current financial year and that have materially affected the financial
position or performance of the entity during that period; and any changes in
the related party transactions described in the last annual report that could
do so.
Joe Lister
Mike Burt
Chief Executive Chief
Financial Officer
29 July 2025
Unite FY2025 Profit Forecast
Unite released its 2024 financial results preliminary statement on 25 February
2025, which included the following statement: "guidance for adjusted EPS of
47.5 - 48.25p in 2025" ("Unite FY2025 Profit Forecast"). The Unite FY2025
Profit Forecast is referred to in this announcement.
The Panel on Takeovers and Mergers has confirmed that the Unite FY2025 Profit
Forecast constitutes a profit forecast made before the commencement of an
offer period, to which the requirements of Rule 28.1(c) (i) of the Code apply.
Basis of preparation
The Unite FY2025 Profit Forecast is based on the Group's current internal
unaudited management accounts for the six-month period ended 30 June 2025 and
the Group's current internal unaudited forecasts for the remainder of the
financial year ending 31 December 2025.
The Unite FY2025 Profit Forecast has been compiled on the basis of the
assumptions set out below. The basis of the accounting policies used in the
Unite FY2025 Profit Forecast is consistent with the existing accounting
policies of the Group, which uses 'Alternative Performance Measures' or other
non-International Financial Reporting Standards measures.
Directors' confirmation
The Unite Directors have considered the Unite FY2025 Profit Forecast and
confirm that, as at the date of this announcement, the Unite FY2025 Profit
Forecast remains valid, has been properly compiled on the basis of the
assumptions set out below and the basis of accounting used is consistent with
the Unite Group's existing accounting policies.
Assumptions
The Unite FY2025 Profit Forecast has been prepared on the basis referred to
above and subject to the principal assumptions set out below. The Unite FY2025
Profit Forecast is inherently uncertain and there can be no guarantee that any
of the assumptions listed below will occur and/or if they do, their effect on
the Group's results of operations, financial condition or financial
performance may be material. The Unite FY2025 Profit Forecast should be read
in this context and construed accordingly.
The directors of Unite have made the following assumptions in respect of the
financial year ending 31 December 2025: Assumptions within Unite's control or
influence:
(a) no material change to the existing strategy or operation of the Group's
business;
(b) no material adverse change to the Group's ability to meet customer,
supplier and partner needs and expectations based on current practice;
(c) no material unplanned asset acquisitions or disposals, merger and
acquisition activity conducted by or affecting the Group;
(d) no material change to the present management of the Unite Group; and
(e) no material change in capital allocation policies of the Group.
Assumptions outside of Unite's control or influence
(a) no material effect from changes to existing prevailing macroeconomic,
fiscal, monetary and inflationary conditions in the United Kingdom;
(b) no material adverse change to the Group's market environment, including in
relation to customer demand or competitive environment;
(c) no material adverse events that have a significant impact on the Group's
major partners or suppliers;
(d) no material disruption or changes to student demand for accommodation in
the cities in which the Group operates;
(e) no material adverse events that would have a significant impact on the
Group including information technology / cyber infrastructure disruption or
significantly adverse weather events;
(f) no material new litigation, and no material unexpected developments in any
existing litigation, each in relation to any of the Group's activities; and
(g) no material change in legislation, taxation or regulatory requirements
impacting the Group's operations, expenditure or its accounting policies.
INTRODUCTION AND TABLE OF CONTENTS
These financial statements are prepared in accordance with IFRS. The Group
uses alternative performance measures (APMs), which are not defined or
specified under IFRS. These APMs, which are not considered to be a substitute
for IFRS measures, provide additional helpful information and include measures
based on the European Public Real Estate Association (EPRA) best practice
recommendations. The metrics are used internally to measure and manage the
business. The reconciliation between IFRS performance measures and EPRA
performance measures can be found in Section 2.2b for EPRA Earnings and 2.3c
for EPRA net tangible assets (NTA). The adjustments to the IFRS results are
intended to help users in the comparability of these results across other
listed real estate companies in Europe and reflect how the Directors monitor
the business.
Primary statements
Consolidated income statement
Consolidated statement of comprehensive income
Consolidated balance sheet
Consolidated statement of changes in shareholders' equity
Consolidated statement of cash flows
Section 1: Basis of preparation
Section 2: Results for the period
2.1 Segmental information
2.2 Earnings
2.3 Net assets
2.4 Revenue and costs
Section 3: Asset management
3.1 Wholly owned property assets
3.2 Inventories
3.3 Investments in joint ventures
Section 4: Funding
4.1 Borrowings
4.2 Interest rate swaps
4.3 Dividends
Section 5: Working capital
5.1 Cash and cash equivalents
Section 6: Post balance sheet events
Section 7: Alternative performance measures
CONSOLIDATED INCOME STATEMENT
For the 6 months to 30 June 2025
£m Note Unaudited Unaudited Year to 31 December
6 months to
6 months to
2024
30 June 2025
30 June 2024
Rental income 2.4 171.9 150.0 282.0
Other income 2.4 9.2 8.9 17.3
Total revenue 181.1 158.9 299.3
Cost of sales (47.0) (41.3) (86.4)
Operating expenses (23.5) (16.0) (43.9)
Expected credit losses (1.1) (0.3) (0.9)
Results from operating activities before gains/(losses) on property 109.5 101.3 168.1
Gains/ (losses) on disposal of property 2.5 (3.4) (9.8)
Net valuation gains on property (owned and under development) 3.1a 37.8 90.0 186.7
Net valuation losses on property (leased) 3.1a (2.7) (3.3) (1.9)
Profit before net financing costs 147.1 184.6 343.1
Loan interest and similar charges (5.2) (5.6) (19.4)
Interest on lease liability (3.7) (3.6) (8.8)
Mark to market changes in interest rate swaps (13.0) 5.4 (0.4)
Swap cancellation costs - (1.8) (3.1)
Finance costs (21.9) (5.6) (31.7)
Finance income 4.5 2.6 16.7
Net financing costs (17.4) (3.0) (15.0)
Share of joint venture profit 3.3a 56.2 102.3 115.9
Profit before tax 185.9 283.9 444.0
Current tax (1.4) (1.2) (4.8)
Deferred tax 1.6 0.6 2.6
Profit for the period 186.1 283.3 441.8
Profit for the period attributable to
Owners of the parent company 2.2c 186.1 281.7 441.9
Non-controlling interest - 1.6 (0.1)
186.1 283.3 441.8
Earnings per share
Basic 2.2c 38.0p 64.6p 96.3p
Diluted 2.2c 37.9p 64.4p 96.1p
All results are derived from continuing activities.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the 6 months to 30 June 2025
Unaudited Unaudited Year to 31 December
6 months to
6 months to
2024
30 June 2025
30 June 2024
£m
£m
£m
Profit for the period 186.1 283.3 441.8
Share of joint venture mark to market movements on hedging instruments - (2.3) (2.3)
Total comprehensive income for the period 186.1 281.0 439.5
Attributable to
Owners of the parent company 186.1 279.4 439.6
Non-controlling interest - 1.6 (0.1)
186.1 281.0 439.5
All other comprehensive income may be classified as profit and loss in the
future.
There are no tax effects on items of other comprehensive income.
CONSOLIDATED BALANCE SHEET
At 30 June 2025
£m Note Unaudited Unaudited 31 December
30 June 2025
30 June 2024
2024
Assets
Investment property (owned) 3.1a 4,108.0 3,678.7 4,025.5
Investment property (leased) 3.1a 69.8 81.7 71.8
Investment property (under development) 3.1a 548.0 244.2 451.4
Investment in joint ventures 3.3a 1,306.5 1,298.1 1,265.0
Other non-current assets 16.4 13.6 14.8
Interest rate swaps 4.2 37.8 12.4 46.0
Right of use assets 9.3 3.3 4.7
Deferred tax asset 10.4 6.1 8.2
Total non-current assets 6,106.2 5,338.1 5,887.4
Assets classified as held for sale 3.1a 88.6 124.7 92.6
Interest rate swaps 2.6 - 7.4
Inventories 3.2 15.2 31.3 13.6
Trade and other receivables 136.6 82.8 144.6
Cash and cash equivalents 83.3 591.7 274.3
Total current assets 326.3 830.5 532.5
Total assets 6,432.5 6,168.6 6,419.9
Liabilities
Current borrowings 4.1 - (299.7) -
Lease liabilities (5.8) (6.7) (6.0)
Trade and other payables (198.0) (212.8) (255.5)
Current tax liability (1.3) (0.3) (1.2)
Provisions (1.5) (5.1) (5.1)
Total current liabilities (206.6) (524.6) (267.8)
Borrowings 4.1 (1,274.0) (1,275.3) (1,273.8)
Lease liabilities (69.8) (72.9) (66.8)
Total non-current liabilities (1,343.8) (1,348.2) (1,340.6)
Total liabilities (1,550.4) (1,872.8) (1,608.4)
Net assets 4,882.1 4,295.8 4,811.5
Equity
Issued share capital 122.3 109.6 122.2
Share premium 2,876.9 2,447.7 2,876.9
Merger reserve 40.2 40.2 40.2
Retained earnings 1,841.4 1,669.6 1,770.8
Hedging reserve 1.3 1.4 1.4
Equity attributable to the owners of the parent company 4,882.1 4,268.5 4,811.5
Non-controlling interest - 27.3 -
Total equity 4,882.1 4,295.8 4,811.5
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
For the 6 months to 30 June 2025
£m Issued Share Merger Retained earnings Hedging Total
share capital
premium
reserve
reserve
At 1 January 2025 122.2 2,876.9 40.2 1,770.8 1.4 4811.5
(Unaudited)
Profit and other comprehensive income for the period - - - 186.1 - 186.1
Shares issued 0.1 - - - - 0.1
Fair value of share based payments - - - 1.2 - 1.2
Deferred tax on share based payments - - - 0.6 - 0.6
Own shares acquired - - - (0.4) - (0.4)
Unwind of realised swap gain - - - - (0.1) (0.1)
Dividends to owners - - - (116.9) - (116.9)
of the parent company
At 30 June 2025 122.3 2,876.9 40.2 1,841.4 1.3 4,882.1
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
For the 6 months to 30 June 2024
Issued Share Merger Retained earnings Hedging Attributable Non-controlling Total
share capital
premium
reserve
£m
reserve
to owners
interest
£m
£m
£m
£m
£m
of the parent
£m
£m
At 1 January 2024 109.4 2,447.6 40.2 1,466.0 3.8 4,067.0 26.1 4,093.1
(Unaudited)
Profit for the period - - - 281.7 - 281.7 1.6 283.3
Other comprehensive income for the period:
Share of joint venture mark to market movements on hedging instruments - - - - (2.3) (2.3) - (2.3)
Total comprehensive income for the period - - - 281.7 (2.3) 279.4 1.6 281.0
Shares issued 0.2 0.1 - - - 0.3 - 0.3
Fair value of share based payments - - - 1.0 - 1.0 - 1.0
Deferred tax on share based payments - - - (0.2) - (0.2) - (0.2)
Own shares acquired - - - (1.0) - (1.0) - (1.0)
Unwind of realised swap gain - - - - (0.1) (0.1) - (0.1)
Dividends to owners - - - (77.9) - (77.9) - (77.9)
of the parent company
Dividends to non-controlling interest - - - - - - (0.4) (0.4)
At 30 June 2024 109.6 2,447.7 40.2 1,669.6 1.4 4,268.5 27.3 4,295.8
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
For the year to 31 December 2024
Issued Share Merger Retained earnings Hedging Attributable Non-controlling Total
share capital
premium
reserve
£m
reserve
to owners
interest
£m
£m
£m
£m
£m
of the parent
£m
£m
At 1 January 2024 109.4 2,447.6 40.2 1,466.0 3.8 4,067.0 26.1 4,093.1
Profit for the year - - - 441.9 - 441.9 (0.1) 441.8
Other comprehensive income for the year:
Share of joint venture mark to market movements on hedging instruments - - - - (2.3) (2.3) - (2.3)
Total comprehensive income for the year - - - 441.9 (2.3) 439.6 (0.1) 439.5
Shares issued 12.8 429.3 - - - 442.1 - 442.1
Fair value of share based payments - - - 2.1 - 2.1 - 2.1
Deferred tax on share based payments - - - 0.1 - 0.1 - 0.1
Own shares acquired - - - (1.5) - (1.5) - (1.5)
Unwind of realised swap gain - - - - (0.1) (0.1) - (0.1)
Dividends to owners - - - (137.8) - (137.8) - (137.8)
of the parent company
Dividends to non-controlling interest - - - - - - (26.0) (26.0)
At 31 December 2024 122.2 2,876.9 40.2 1,770.8 1.4 4,811.5 - 4,811.5
CONSOLIDATED STATEMENT OF CASH FLOWS
For the 6 months to 30 June 2025
£m Note Unaudited Unaudited Year to 31 December
6 months to
6 months to
2024
30 June 2025
30 June 2024
Net cash flows from operating activities 5.1 65.2 147.1 216.4
Investing activities
Redemption of units / investment in joint ventures 1.8 2.3 27.9
Payments for investment property - - (347.8)
Capital expenditure on properties (139.5) (84.4) (267.9)
Acquisition of intangible assets (2.9) (2.4) (5.1)
Acquisition of plant and equipment (1.4) (0.5) (2.5)
Proceeds from sale of investment property 1.9 22.7 123.1
Interest received 4.5 2.5 16.7
Dividends received 10.3 18.3 27.6
Cash flows from investing activities (125.3) (41.5) (428.0)
Financing activities
Proceeds from the issue of share capital - 0.3 442.0
Payments to acquire own shares (0.4) (1.0) (1.5)
Interest paid in respect of financing activities (17.6) (8.4) (35.6)
Repayment of lease liabilities (3.7) - (8.8)
Swap cancellation and debt exit costs - 49.0 (3.1)
Proceeds from non-current borrowings - 543.9 543.7
Repayment of borrowings - (50.0) (350.5)
Dividends paid to the owners of the parent company (101.3) (77.9) (124.2)
Withholding tax paid on distributions (7.9) (6.9) (13.6)
Dividends paid to minority interest - (0.4) -
Cash flows from financing activities (130.9) 448.6 448.4
Net (decrease)/increase in cash and cash equivalents (191.0) 554.2 236.8
Cash and cash equivalents at start of period 274.3 37.5 37.5
Cash and cash equivalents at end of period 83.3 591.7 274.3
NOTES TO THE INTERIM FINANCIAL STATEMENTS
Section 1: Basis of preparation
General information
The information for the period ended 30 June 2025 does not constitute
statutory accounts as defined in section 434 of the Companies Act 2006 but is
derived from those accounts. A copy of the statutory accounts for that year
has been delivered to the Registrar of Companies. The auditors reported on
those accounts: their report was unqualified, did not draw attention to any
matters by way of emphasis and did not contain a statement under section
498(2) or (3) of the Companies Act 2006.
Basis of preparation
The financial statements consolidate those of The Unite Group plc and its
subsidiaries (together referred to as the Group) and include the Group's
interest in jointly controlled entities.
The annual financial statements of the Group are prepared in accordance with
IFRSs as adopted by the United Kingdom. The condensed set of financial
statements included in this half yearly financial report has been prepared in
accordance with International Accounting Standard 34 'Interim Financial
Reporting', as adopted by the United Kingdom and the Disclosure and
Transparency Rules of the United Kingdom's Financial Services Authority.
The accounting policies have been applied consistently to all periods
presented in these consolidated financial statements.
Going concern
In determining the appropriate basis of preparation of the financial statements, the Directors are required to consider whether the Group can continue in operational existence for at least 12 months from the date of this report.
The Directors have considered a range of scenarios for future performance through the 2024/25 and 2025/26 academic years. This included a base case assuming cash collection and performance for the 2024/25 academic year remains in line with current expectations and sales performance for the 2025/26 academic year consistent with published guidance; and a reasonable worst-case scenario where income for the 2025/26 academic year is impacted by reduced sales, equivalent to occupancy of around 90%.
The impact of our ESG asset transition plans are included within the cashflows, which have been modelled to align with the Group's 2030 net zero carbon targets. Under each of these scenarios, the Directors are satisfied that the Group has sufficient liquidity and will maintain in covenant compliance over the next 12 months. To further support the Directors' going concern assessment, a 'Reverse Stress Test' was performed to determine the level of performance at which adopting the going concern basis of preparation may not be appropriate. This involved assessing the minimum amount of income required to ensure financial covenants would not be breached. Within the tightest covenant, occupancy could fall to approximately 70% before there would be a breach. The Group has capacity for property valuations to fall by around 68% before there would be a breach of LTV and gearing covenants in facilities where such covenants exist. Were income or asset values to fall beyond these levels, the Group has certain cure rights, such that an immediate default could be avoided.
The Directors are satisfied that the possibility of such an outcome is sufficiently remote that adopting the going concern basis of preparation is appropriate.
Accordingly, after making enquiries and having considered forecasts and appropriate sensitivities, the Directors have formed a judgement, at the time of approving the financial statements, that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, being at least 12 months from the date of these financial statements.
Seasonality of operations
The results of the Group's Operations segment, a separate business segment (see Section 2), are closely linked to the level of occupancy achieved in its portfolio of property. Occupancy typically falls over the summer months (particularly July and August) as students leave for the summer holidays.
Conversely, the Group's build cycle for new properties sees construction complete shortly before the start of the academic year in September. There will be a net income benefit in the second half of the year from two newly completing asset in 2025.
Changes in accounting policies
The Group has not adopted any new accounting standards or policies compared to
those included in the 2024 Annual Report.
Critical accounting judgements and key sources of estimation uncertainty
Full details of critical accounting judgements and key sources of estimation
uncertainty are given on page 159 of the 2024 Annual Report and Accounts. This
includes detail of the Group's approach to valuation of investment property
and investment property under development and the classification of joint
venture vehicles. There have been no changes to critical accounting
judgements and key sources of estimation uncertainty.
Section 2: Results for the period
This section focuses on the results and performance of the Group and provides
a reconciliation between the primary statements and EPRA performance measures.
The following disclosures explain the Group's results for the period,
segmental information, earnings and net tangible asset value (NTA) per share.
The Group uses EPRA earnings, adjusted earnings and NTA movement as key
comparable indicators across other real estate companies in Europe.
IFRS performance measures
Note Unaudited Unaudited 31 December
30 June 2025
30 June 2024
2024
£m pps £m pps £m pps
Profit after tax(1) 2.2c 186.1 38.0 281.7 64.6 441.9 96.3
Net assets(1) 2.3d 4,882.1 998 4,268.5 973 4,811.5 982
(1 Profit after tax represents profit attributable to the owners of the parent
company and net assets represents equity attributable to the owners of the
parent company.)
EPRA performance measures
Note Unaudited Unaudited 31 December
30 June 2025
30 June 2024
2024
£m pps £m pps £m pps
EPRA earnings 2.2c 137.0 28.0 122.6 28.1 201.9 44.0
Adjusted earnings(2) 2.2c 144.2 29.5 125.3 28.7 213.8 46.6
EPRA NTA 2.3d 4,839.9 986 4,262.3 969 4,758.4 972
(2 Adjusted earnings are calculated as EPRA earnings after adding back
software as a service costs (net of deferred tax) and abortive costs (see note
2.2a), in order to reflect the performance of the Group's underlying operating
activities.)
2.1 Segmental information
The Board of Directors monitors the business along two activity lines:
The Operations segment manages rental properties, owned directly by the Group or by joint ventures. Its revenues are derived from rental income and asset management fees earned from joint ventures. The way in which the Operations segment adds value to the business is set out in the Operations review on pages 24-28 of the 2024 Annual Report.
The Operations segment is the main contributor to adjusted earnings and adjusted EPS and these are therefore the key indicators which are used by the Board to monitor the Group's financial performance. The Board does not manage or monitor the Operations segment through the balance sheet and therefore no segmental information for assets and liabilities is provided.
The Group's Property business undertakes the acquisition and development of
properties. The way in which the Property segment adds value to the business
is set out in the Property review on pages 29-34 of the 2024 Annual Report.
The reportable segments for six months ended 30 June 2025, 30 June 2024, and
for the year ended 31 December 2024 are Operations and Property. The Group
undertakes its Operations and Property activities directly and through joint
ventures with third parties. The joint ventures are an integral part of each
segment and are included in the information used by the Board to monitor the
business. Detailed analysis of the performance of each of these reportable
segments is provided in the following sections 2.2 to 2.3.
The Group's properties are located exclusively in the United Kingdom. The Group therefore has one geographical segment.
2.2 Earnings
EPRA earnings and adjusted earnings amend IFRS measures by removing principally the unrealised investment property valuation gains and losses such that users of the financial statements are able to see the extent to which dividend payments (dividend per share) are underpinned by earnings arising from operational activity. Adjusted earnings are calculated as EPRA earnings after adjusting for software as a service costs (net of deferred tax) relating to the Group's technology transformation programme and abortive costs, in order to reflect the performance of the Group's underlying operating activities. The reconciliation between profit attributable to owners of the Company and EPRA earnings is available in note 2.2b.
2.2a EPRA earnings
Unaudited 30 June 2025
Share of joint ventures Group on see
through basis
£m Unite USAF LSAV Total
Rental income 171.9 32.4 32.3 236.6
Property operating expenses (48.1) (9.8) (6.8) (64.7)
Net operating income 123.8 22.6 25.5 171.9
Management fees 11.8 (2.6) - 9.2
Overheads (20.6) (0.3) (0.2) (21.1)
Lease liability interest (3.7) - - (3.7)
Net financing costs (1.9) (5.8) (8.7) (16.4)
Operations segment result 109.4 13.9 16.6 139.9
Property segment result (0.8) - - (0.8)
Unallocated to segments (1.9) (0.1) (0.1) (2.1)
EPRA earnings 106.7 13.8 16.5 137.0
Software as a service costs 7.2 - - 7.2
Adjusted earnings 113.9 13.8 16.5 144.2
Included in the above is rental income of £11.2 million and property
operating expenses of (£5.9 million) relating to sale and leaseback
properties.
The unallocated to segments balance includes the fair value of share-based
payments of (£1.6 million), contributions to the Unite Foundation and social
causes of (£0.7 million), a deferred tax credit of £1.6 million and a
current tax charge of (£1.4 million). Depreciation and amortisation totalling
(£3.0 million) is included within overheads. The software as a service costs
are presented net of deferred tax of £2.4 million.
Unaudited 30 June 2024
Share of joint ventures Group on see
through basis
£m Unite USAF LSAV Total
Rental income 150.0 32.5 29.3 211.8
Property operating expenses (41.6) (10.3) (6.7) (58.6)
Net operating income 108.4 22.2 22.6 153.2
Management fees 11.5 (2.5) - 9.0
Overheads (13.8) (0.2) (0.3) (14.2)
Lease liability interest (3.6) - - (3.6)
Net financing costs (5.2) (5.5) (7.8) (18.5)
Operations segment result 97.3 14.0 14.6 125.9
Property segment result (0.8) - - (0.8)
Unallocated to segments (2.3) (0.1) (0.1) (2.5)
EPRA earnings 94.2 13.9 14.5 122..6
Software as a service costs 2.7 - - 2.7
Adjusted earnings 96.9 13.9 14.5 125.3
Included in the above is rental income of £10.3 million and property
operating expenses of (£4.7 million) relating to sale and leaseback
properties.
The unallocated to segments balance includes the fair value of share-based
payments of (£0.8 million), contributions to the Unite Foundation of (£0.4
million), a deferred tax credit of £1.4 million and a current tax charge of
(£1.0 million). Depreciation and amortisation totalling of (£4.1 million) is
included within overheads. The software as a service costs are presented net
of deferred tax of £1.2 million.
31 December 2024
Share of joint ventures Group on see
through basis
£m Unite USAF LSAV Total
Rental income 282.0 59.0 57.0 398.0
Property operating expenses (87.2) (20.7) (14.0) (121.9)
Net operating income 194.8 38.3 43.0 276.1
Management fees 21.9 (4.6) - 17.3
Overheads (37.5) (0.5) (0.4) (38.4)
Interest on lease liabilities (8.8) - - (8.8)
Net financing costs (6.9) (11.5) (16.8) (35.2)
Operations segment result 163.5 21.7 25.8 211.0
Property segment result (3.8) - - (3.8)
Unallocated to segments (4.8) (0.2) (0.3) (5.3)
EPRA earnings 154.9 21.5 25.5 201.9
Software as a service costs 11.9 - - 11.9
Adjusted earnings 166.8 21.5 25.5 213.8
Included in the above is rental income of £20.3 million and property
operating expenses of (£11.5 million) relating to sale and leaseback
properties.
Unallocated to segments includes the fair value of share-based payments of
(£2.3 million), contributions to the Unite Foundation and social causes of
(£0.6 million), a deferred tax credit of £2.6 million and current tax charge
of (£5.1 million). Depreciation and amortisation totalling (£5.7 million) is
included within overheads. The software as a service costs are presented net
of deferred tax of £4.0 million.
2.2b IFRS reconciliation to EPRA earnings and adjusted earnings
EPRA earnings excludes movements relating to changes in values of investment
properties (owned, leased and under development), profits/losses from the
disposals of properties, mark to market changes on interest rate swaps and
swap cancellation costs which are included in the profit/loss reported under
IFRS. EPRA earnings and adjusted earnings reconcile to the profit attributable
to owners of the parent company as follows:
£m Note Unaudited Unaudited 31 December
30 June 2025
30 June 2024
2024
Profit attributable to owners of the parent company 186.1 281.7 441.9
Net valuation (gains)/losses on investment property (owned and under 3.1a (37.8) (90.0) (186.7)
development)
Property disposals (owned) losses/(gains) (2.5) 3.4 9.8
Net valuation loss on investment property (leased) 3.1a 2.7 3.3 1.9
Amortisation of fair value of debt recognised on acquisition (1.1) (2.1) (4.1)
Share of joint venture gains on investment property 3.3a (23.3) (50.4) (67.0)
Share of joint venture property disposal losses/(gains) 3.3a - (1.2) 2.4
Mark to market changes on interest rate swaps 13.0 (5.4) 3.1
Swap cancellation and loan break costs - 1.8 0.4
Current tax relating to property disposals - - 0.2
Deferred tax charge/(credit) relating to costs below EPRA earnings 0.1 (0.2) -
Non-controlling interest and other* (0.2) (18.3) -
EPRA earnings 2.2a 137.0 122.6 201.9
Software as a service costs 7.2 2.7 11.9
Adjusted earnings 2.2a 144.2 125.3 213.8
(*) The non-controlling interest share, or non-controlling interest, arose as
a result of the Group not owning 100% of the share capital of one of its
subsidiaries, USAF (Feeder) Guernsey Ltd. This non-controlling interest was
disposed of in 2024.
2.2c Earnings per share
Basic EPS calculation is based on the earnings attributable to the equity
shareholders of The Unite Group PLC and the weighted average number of shares
which have been in issue during the year. Basic EPS is adjusted in line with
EPRA guidelines to allow users to compare the business performance of the
Group with other listed real estate companies in a consistent manner and to
reflect how the business is managed on a day-to-day basis.
The calculations of earnings and EPS on a basic, diluted, EPRA and adjusted
basis are as follows:
Note Unaudited Unaudited 31 December
30 June 2025
30 June 2024
2024
£m pps £m pps £m pps
Basic 186.1 38.0 281.7 64.6 441.9 96.3
Diluted 186.1 37.9 281.7 64.4 441.9 96.1
EPRA 2.2a 137.0 28.0 122.6 28.1 201.9 44.0
Diluted EPRA 137.0 27.9 122.6 28.0 201.9 43.9
Adjusted 2.2a 144.2 29.5 125.3 28.7 213.8 46.6
Diluted adjusted 144.2 29.4 125.3 28.6 213.8 46.5
Weighted average number of shares (thousands) Unaudited Unaudited 31 December 2024
30 June 2025 30 June 2024
Basic 489,383 436,218 458,969
Dilutive potential ordinary shares (share options) 1,468 1,475 1,087
Diluted 490,851 437,693 460,056
The total number of ordinary shares in issue at 30 June 2025 was 489,383,360
(30 June 2024: 438,687,730, 31 December 2024: 488,792,074).
In 2025, there were 142,634 options excluded from the potential dilutive
shares that did not affect the diluted weighted average number of shares (30
June 2024: 102,662, 31 December 2024: 37,319).
2.3 Net Assets
EPRA NTA per share makes adjustments to IFRS measures by removing the fair
value of financial instruments and the carrying value of intangibles. The
reconciliation between IFRS NTA and EPRA NTA is available in note 2.3c.
2.3a EPRA net assets
Unaudited 30 June 2025
Share of joint ventures Group on see through basis
£m Unite USAF LSAV Total
Investment properties (owned)(*) 4,196.6 872.1 1,023.2 6,091.9
Investment properties (leased) 69.8 - - 69.8
Investment properties (under development) 548.0 - - 548.0
Total property portfolio 4,814.4 872.1 1,023.2 6,709.7
Debt on properties (1,265.1) (279.4) (360.9) (1,905.4)
Lease liability on properties (65.1) - - (65.1)
Cash 83.3 59.0 46.5 188.8
Net debt (1,246.9) (220.4) (314.4) (1,781.7)
Other assets and (liabilities) (24.1) (40.9) (11.9) (76.9)
Intangible assets (11.2) - - (11.2)
EPRA NTA 3,532.2 610.8 696.9 4,839.9
Loan to value(**) 25% 25% 31% 26%
Loan to value post-IFRS 16 26% 25% 31% 27%
* Investment property (owned) includes assets classified as held for sale in
the IFRS balance sheet.
** LTV calculated excluding leased investment property and the corresponding
lease liability. LTV is an APM - see note 7.
Unaudited 30 June 2024
Share of joint ventures Group on see through basis
£m Unite USAF LSAV Total
Investment properties (owned)* 3,803.4 840.2 991.2 5,634.8
Investment properties (leased) 81.7 - - 81.7
Investment properties (under development) 244.2 - - 244.2
Total property portfolio 4,129.3 840.2 991.2 5,960.7
Debt on properties (1,563.2) (272.2) (337.1) (2,172.5)
Lease liability on properties (78.2) - - (78.2)
Cash 591.7 48.0 26.3 666.0
Net debt (1,049.7) (224.2) (310.8) (1,584.7)
Other assets and (liabilities) (89.9) 3.0 26.3 (116.3)
EPRA NTA 2,989.7 619.0 651.0 4,259.7
Loan to value(**) 24% 26% 31% 26%
Loan to value post-IFRS 16 25% 26% 31% 27%
* Investment property (owned) includes assets classified as held for sale in
the IFRS balance sheet.
** LTV calculated excluding leased investment property and the corresponding
lease liability. LTV is an APM - see note 7.
* Investment property (owned) includes assets classified as held for sale in
the IFRS balance sheet.
** LTV calculated excluding leased investment property and the corresponding
lease liability. LTV is an APM - see note 7.
31 December 2024
Share of joint ventures Group on see through basis
£m Unite USAF LSAV Total
Investment properties (owned)(*) 4,025.5 829.6 996.9 5,852.0
Investment properties (leased) 71.8 - - 71.8
Investment properties (under development) 451.4 - - 451.4
Total property portfolio 4,548.7 829.6 996.9 6,375.2
Debt on properties (1,263.7) (273.1) (338.0) (1,874.8)
Lease liability on properties (72.8) - - (72.8)
Cash 274.3 70.4 20.0 364.7
Net debt (1,062.2) (202.7) (318.0) (1,582.9)
Other assets and (liabilities) 11.7 (22.6) (12.6) (23.5)
EPRA net assets 3,498.2 604.3 666.3 4,768.8
Intangible assets (10.4) - - (10.4)
EPRA NTA 3,487.8 604.3 666.3 4,758.4
Loan to value(**) 22% 24% 32% 24%
Loan to value post-IFRS 16 23% 24% 32% 25%
* Investment property (owned) includes assets classified as held for sale in
the IFRS balance sheet.
** LTV calculated excluding leased investment property and the corresponding
lease liability. LTV is an APM - see note 7.
2.3b Movement in EPRA NTA during the period
Contributions to EPRA NTA by each segment during the period are as follows:
Unaudited 30 June 2025
Share of joint ventures Group on see through basis
£m Unite USAF LSAV Total Total
Operations
Operations segment result 109.4 13.9 16.6 30.5 139.9
Add back amortisation of intangibles 2.2 - - - 2.2
Total operations 111.6 13.9 16.6 30.5 142.1
Property
Rental growth 68.7 17.2 17.1 34.3 103.0
Yield movement (23.0) (8.0) (3.0) (11.0) (34.0)
Disposal gains (owned) 2.5 - - - 2.5
Investment property gains (owned)* 48.2 9.2 14.1 23.3 71.5
Investment property losses (leased) (2.7) - - - (2.7)
Investment property losses (under development) (7.9) - - - (7.9)
Pre-contract/other development costs (0.8) - - - (0.8)
Total property 36.8 9.2 14.1 23.3 60.1
Unallocated
Distributions from joint ventures 16.5 (16.5) - (16.5) -
Dividends paid (116.9) - - - (116.9)
Purchase of intangibles (3.0) - - - (3.0)
Other (0.6) (0.1) (0.1) (0.2) (0.8)
Total unallocated (104.0) (16.6) (0.1) (16.7) (120.7)
Total EPRA NTA movement in the period 44.4 6.5 30.6 37.1 81.5
Total EPRA NTA brought forward 3,487.8 604.3 666.3 1,270.6 4,758.4
Total EPRA NTA carried forward 3,532.2 610.8 696.9 1,307.7 4,839.9
(*) Investment property gains (owned) includes assets classified as held for
sale in the IFRS balance sheet.
Unaudited 30 June 2024
Share of joint ventures Group on see through basis
£m Unite USAF LSAV Total
Operations
Operations segment result 97.3 14.1 14.6 126.0
Add back amortisation of intangibles 1.7 - - 1.7
Total operations 99.0 14.1 14.6 127.7
Property
Rental growth 137.9 16.0 34.8 188.7
Yield movement (62.7) 0.1 (1.2) (63.8)
Disposal (losses)/gains (owned) (3.4) 1.1 (0.1) (2.4)
Investment property gains (owned)* 71.8 17.2 33.5 122.5
Investment property losses (leased) (3.3) - - (3.3)
Investment property gains (under development) 14.9 - - 14.9
Pre-contract/other development costs (0.8) - - (0.8)
Total property 82.6 17.2 33.5 133.3
Unallocated
Shares issued 0.3 - - 0.3
Dividends received from joint ventures 18.0 (11.5) (6.5) -
Dividends paid (77.9) - - (77.9)
Swap gain 49.0 - - 49.0
Swap cancellation costs (1.8) - - (1.8)
Purchase of intangibles (1.7) - - (1.7)
Other (2.7) 19.0 (0.2) 16.1
Total unallocated (16.8) 7.5 (6.7) (16.0)
Total EPRA NTA movement in the period 164.8 38.8 41.4 244.9
Total EPRA NTA brought forward 2,824.9 580.2 609.5 4,014.6
Total EPRA NTA carried forward 2,989.7 619.0 651.0 4,259.7
* Investment property gains (owned) includes assets classified as held for
sale in the IFRS balance sheet.
31 December 2024
Share of joint ventures Group on see through basis
£m Unite USAF LSAV Total
Operations
Operations segment result 163.5 21.7 25.8 211.0
Add back amortisation of intangibles 4.0 - - 4.0
Total operations 167.5 21.7 25.8 215.0
Property
Rental growth 269.6 29.7 46.4 345.7
Yield movement (107.0) (2.8) (4.3) (114.1)
Disposal gains/(losses) (owned) (5.5) (2.4) - (7.9)
Investment property gains (owned) * 157.1 24.5 42.1 223.7
Investment property losses (leased) (1.9) - - (1.9)
Disposals losses investment property (leased) (4.3) - - (4.3)
Investment property gains (under development) 24.1 - - 24.1
Pre-contract/other development costs (3.8) - - (3.8)
Total property 171.2 24.5 42.1 237.8
Unallocated
Shares issued 442.1 - - 442.1
Dividends received from joint ventures 28.3 (18.7) (9.6) -
Dividends paid (137.8) - - (137.8)
Swap cancellation and debt break costs (3.5) - - (3.5)
Purchase of intangibles (5.1) - - (5.1)
Share based payment charge (2.4) - - (2.4)
Other 2.5 (3.4) (1.5) (2.4)
Total unallocated 324.1 (22.1) (11.1) 290.9
Total EPRA NTA movement in the year 662.8 24.1 56.8 743.7
Total EPRA NTA brought forward 2,825.0 580.2 609.5 4,014.7
Total EPRA NTA carried forward 3,487.8 604.3 666.3 4,758.4
(*) Investment property (owned) includes assets classified as held for sale in
the IFRS balance sheet.
2.3c Reconciliation to IFRS
To determine EPRA NTA, net assets reported under IFRS are amended to exclude
the fair value of financial instruments, associated tax and the carrying value
of intangibles.
To determine EPRA NRV, net assets reported under IFRS are amended to exclude
the fair value of financial instruments, associated tax and real estate
transfer tax.
To determine EPRA NDV, net assets reported under IFRS are amended to exclude
the fair value of financial instruments but include the fair value of fixed
interest rate debt and the carrying value of intangibles.
The net assets reported under IFRS reconcile to EPRA NTA, NRV and NDV as
follows:
Unaudited 30 June 2025
£m Note NTA NRV NDV
Net asset value reported under IFRS 4,882.1 4,882.1 4,882.1
Mark to market interest rate swaps (40.4) (40.5) -
Unamortised swap gain (1.0) (1.0) (1.0)
Mark to market of fixed rate debt - - 21.9
Unamortised fair value of debt recognised on acquisition 9.7 9.7 9.7
Current tax 0.8 0.8 -
Intangibles per IFRS balance sheet (11.3) - -
Real estate transfer tax - 400.8 -
EPRA reporting measure 2.3a 4,839.9 5,251.9 4,912.7
Unaudited 30 June 2024
£m Note NTA NRV NDV
Net asset value reported under IFRS 4,268.5 4,268.5 4,268.5
Mark to market interest rate swaps (12.4) (12.4) -
Unamortised swap gain (1.1) (1.1) (1.1)
Mark to market of fixed rate debt - - 38.5
Unamortised fair value of debt recognised on acquisition 13.0 13.0 13.0
Current tax 1.1 1.1 -
Deferred tax 0.6 0.6 -
Intangibles per IFRS balance sheet (10.0) - -
Real estate transfer tax - 383.6 -
EPRA reporting measure 2.3a 4,259.7 4,653.3 4,318.9
31 December 2024
£m Note NTA NRV NDV
Net asset value reported under IFRS 4,811.5 4,811.5 4,811.5
Mark to market interest rate swaps (53.6) (53.6) -
Unamortised swap gain (1.0) (1.0) (1.0)
Mark to market of fixed rate debt - - 31.7
Unamortised fair value of debt recognised on acquisition 11.1 11.1 11.1
Current tax 0.8 0.8 -
Deferred tax - - -
Intangibles per IFRS balance sheet (10.4) - -
Real estate transfer tax - 467.4 -
EPRA reporting measure 2.3a 4,758.4 5,236.2 4,853.3
2.3d NTA, NRV and NDV per share
Basic NAV is based on the net assets attributable to the equity shareholders
of The Unite Group plc and the number of shares in issue at the end of the
period. The Board uses EPRA NTA to monitor the performance of the Property
segment on a periodic basis.
Note Unaudited Unaudited 31 December Unaudited Unaudited 31 December
30 June 2025
30 June 2024
2024
30 June 2025
30 June 2024
2024
£m £m £m pps pps pps
Net assets
Basic 2.3c 4,882.1 4,268.5 4,811.5 998 973 982
EPRA NTA 2.3a 4,839.9 4,259.7 4,758.4 989 971 974
EPRA NTA (diluted) 4,842.5 4,262.3 4,761.4 986 969 972
EPRA NRV 2.3c 5,251.9 4,653.3 5,236.2 1,073 1,061 1,071
EPRA NRV (diluted) 5,254.5 4,655.9 5,239.2 1,070 1,058 1,069
EPRA NDV 2.3c 4,912.7 4,318.9 4,853.3 1,004 984 993
EPRA NDV (diluted) 4,915.3 4,321.4 4,856.3 1,001 982 994
Number of shares (thousands)
Basic 489,383 438,688 488,792
Outstanding share options 1,596 1,265 1,308
Diluted 490,979 439,953 490,100
2.4 Revenue and costs
The Group earns revenue from the following activities:
£m Note Unaudited Unaudited 31 December
30 June 2025
30 June 2024
2024
Rental income(*) Operations segment 2.2a 171.9 150.0 282.0
Management fees Operations segment 9.2 9.0 17.3
181.1 159.0 299.3
Impact of non-controlling interest on management fees - (0.1) -
Total revenue 181.1 158.9 299.3
(*)EPRA earnings includes £236.6 million of rental income (30 June 2024:
£211.8 million, 31 December 2024: £398.0 million), which is comprised of
£171.9 million recognised on wholly owned assets (30 June 2024: £150.0
million, 31 December 2024: £282.0 million) and a further £64.7 million from
joint ventures (30 June 2024: £61.8 million, 31 December 2024: £116.0
million) which is included in share of joint venture profit/loss in the
consolidated IFRS income statement.
The cost of sales included in the consolidated IFRS income statement includes
property operating expenses of £47.0 million (30 June 2024: £41.3 million,
31 December 2024: £86.4 million).
Section 3: Asset management
The Group holds its property portfolio directly and through its joint
ventures. The performance of the property portfolio whether wholly owned or in
joint ventures is the key factor that drives EPRA Net Tangibles Asset Value
(NTA), one of the Group's key performance indicators.
The following pages provide disclosures about the Group's investments in property assets and joint ventures and their performance over the period.
3.1 Wholly owned property assets
The Group's wholly owned property portfolio is held in four groups on the
balance sheet at the carrying values detailed below. In the Group's EPRA NTA,
all are shown at market value, except where otherwise stated.
i) Investment property (owned)
These are assets that the Group intends to hold for a long period to earn
rental income or capital appreciation. The assets are held at fair value in
the balance sheet with changes in fair value taken to the income statement.
ii) Investment property (leased)
These are assets the Group sold to institutional investors and simultaneously
leased back. These right-of-use assets are held at fair value in the balance
sheet with changes in fair value taken to the income statement.
iii) Investment property (under development)
These are assets which are currently in the course of construction and which
will be transferred to Investment property on completion. These assets are
initially recognised at cost and are subsequently measured at fair value in
the balance sheet with changes in fair value taken to the income statement.
iv) Investment property classified as held for sale
These are assets whose carrying amount will be recovered through a sale
transaction rather than to hold for long-term rental income or capital
appreciation. This condition is regarded as met only when the sale is highly
probable and the investment property is available for immediate sale in its
present condition. Management must be committed to the sale which should be
expected to qualify for recognition as a completed sale within one year from
the date of classification. The assets are measured at fair value in the
balance sheet, with changes in fair value taken to the income statement. The
assets are presented as current in the IFRS balance sheet.
3.1a Valuation process
The valuations of the properties are performed twice a year on the basis of
valuation reports prepared by external, independent valuers, having an
appropriate recognised professional qualification. The fair values, in line
with IFRS 13 requirements are based on market values as defined in the RICS
Appraisal and Valuation Manual, issued by the Royal Institution of Chartered
Surveyors, and taking account of committed fire safety and external façade
works as provided by Unite. CB Richard Ellis Ltd, Jones Lang LaSalle Ltd and
Messrs Knight Frank LLP, Chartered Surveyors were the valuers in the 6 months
ending 30 June 2025 and throughout 2024.
The valuations are based on both:
· Information provided by the Group such as current rents, occupancy,
operating costs, terms and conditions of leases and nomination agreements, and
capital expenditure. This information is derived from the Group's financial
systems and is subject to the Group's overall control environment.
· Assumptions and valuation models used by the valuers - the
assumptions are typically market related, such as yield, discount rates and
NOI. These are based on their professional judgement and market observation.
The information provided to the valuers - and the assumptions and the
valuation models used by the valuers - are reviewed by the Leadership of the
Property Function and the CFO. This includes a review of the fair value
movements over the period.
The fair value of the Group's wholly owned properties and the movements in the
carrying value of the Group's wholly owned property portfolio during the
periods ended 30 June 2025, 30 June 2024 and 31 December 2024 is shown in the
tables below. Included in the fair value is £10.5 million related to
committed fire safety and external façade capital expenditure (30 June 2024:
£17.9 million, 31 December 2024: £14.8 million).
Unaudited 30 June 2025
£m Investment property (owned) Investment property (leased) Investment property (under development) Total
At 1 January 2025 4,025.5 71.8 451.4 4,548.7
Cost capitalised 32.7 0.7 91.2 124.6
Interest capitalised - - 14.1 14.1
Transfer to assets held for sale - - (0.8) (0.8)
Disposals (1.8) - - (1.8)
Net valuation gains/(losses) 51.6 (2.7) (7.9) 41.0
Carrying value and market value at 30 June 2025 4,108.0 69.8 548.0 4,725.8
The income statement includes a valuation gain of £37.8m in respect of
investment property owned and under development. This includes a gain of
£43.7m in respect of investment property owned and under development as shown
above, and a further £5.9m loss in respect of assets held for sale.
Assets classified as held for sale at 30 June 2025 are comprised of £88.6
million of investment property (owned). Assets held for sale are reported
within the Operations segment and represents four properties intended to be
sold in the next 12 months.
Unaudited 30 June 2024
£m Investment property (owned) Investment property (leased) Investment property (under development) Total
At 1 January 2024 3,694.3 84.7 174.7 3,953.7
Cost capitalised 34.0 0.3 53.5 87.8
Interest capitalised - - 6.5 6.5
Transfer from conditionally exchanged schemes - - 2.1 2.1
Transfer to assets classified as held for sale (124.7) - - (124.7)
Disposals - - (7.5) (7.5)
Valuation gains 110.0 - 33.5 143.5
Valuation losses (34.9) (3.3) (18.6) (56.8)
Net valuation gains/(losses) 75.1 (3.3) 14.9 86.7
Carrying value and market value at 30 June 2024 3,678.7 81.7 244.2 4,004.6
Assets classified as held for sale at 30 June 2024 are comprised of £124.7
million of investment property (owned). Assets held for sale are reported
within the Operations segment and represents four properties intended for sale
in the 12 month period following 30 June 2024.
31 December 2024
£m Investment property (owned) Investment property (leased) Investment property (under development) Total
At 1 January 2024 3,694.3 84.7 174.7 3,953.7
Additions 282.9 - 64.9 347.8
Cost capitalised 68.3 2.2 198.8 269.3
Interest capitalised - - 15.5 15.5
Transfer from investment property under development 37.0 - (37.0) -
Transfer from work in progress - - 17.9 17.9
Transfer to assets classified as held for sale (92.6) - - (92.6)
Disposals (112.2) (13.2) (7.5) (132.9)
Valuation gains 228.4 - 33.9 262.3
Valuation losses (65.8) (1.9) (9.8) (77.5)
Net valuation gains/(losses) 162.6 (1.9) 24.1 184.8
Committed fire safety and external façade works (14.8) - - (14.8)
Carrying value and market value at 31 December 2024 4,025.5 71.8 451.4 4,548.7
Assets classified as held for sale at 31 December 2024 are comprised of
£110.0 million of investment property (owned) less (£21.4 million) costs to
sell - the amounts are presented net in the balance sheet at £92.6 million.
Assets held for sale are reported within the Operations segment and represent
a portfolio of properties (split across the Group and joint ventures) intended
to be sold in the months following the balance sheet date.
The Company has contractual commitments of £272.0 million due within one year
(2024: £324.7 million) and £210.4 million
due within two to four years (2024: £263.0 million). This relates to land,
property, plant, and equipment as well as committed
development costs.
3.1b Fair value measurement
All investment and development properties are classified as Level 3 in the
fair value hierarchy.
Class of asset (£m) Unaudited Unaudited 31 December
30 June 2025
30 June 2024
2024
London - rental properties 1,327.1 1,199.4 1,286.7
Prime regional - rental properties 1,341.1 1,183.8 1,314.2
Major regional - rental properties 1,361.2 1,249.6 1,346.7
Provincial - rental properties 98.2 102.7 100.7
London - development properties 315.3 96.7 269.5
Prime regional - development properties 210.3 104.0 157.7
Major regional - development properties 21.7 33.4 13.0
London BTR 68.9 67.8 69.8
Prime regional BTR - development properties 0.8 10.2 11.2
Investment property (owned) 4,744.6 4,047.6 4,569.5
Investment property (leased) 69.8 81.7 71.8
Market value (including assets classified as held for sale) 4,814.4 4,129.3 4,641.3
Investment property (classified as held for sale) (88.6) (124.7) (92.6)
Market value 4,725.8 4,004.6 4,548.7
The valuations have been prepared in accordance with the latest version of the
RICS Valuation - Global Standards (incorporating the International Valuation
Standards) and the UK national supplement (the "Red Book") based on net rental
income, estimated future costs, occupancy, property management costs and the
net initial yield or discount rate.
Where the asset is leased to a University, the valuation also reflects the
length of the lease, the allocation of maintenance and insurance
responsibilities between the Group and the lessee, and the market's general
perception of the lessee's credit worthiness.
The resulting valuations are cross-checked against comparable market
transactions.
For development properties, the fair value is usually calculated by estimating
the fair value of the completed property (using the discounted cash flow
method) less estimated costs to completion
3.1c Quantitative information about fair value measurements using unobservable inputs (Level 3)
Unaudited 30 June 2025
Fair value £m Valuation technique Unobservable inputs Range Weighted average
London - RICS Red Book Net rental income (£ per week) £220 - £500 £354
3%
3%
Rental properties Estimated rental growth (% p.a.)
4.3% - 4.8%
4.4%
Discount rate (yield) (%)
1,327.1
Prime regional - RICS Red Book Net rental income (£ per week) £165 - £386 £242
2% - 4%
3%
Rental properties Estimated rental growth (% p.a.)
4.5% - 7.2%
5.2%
Discount rate (yield) (%)
1,341.1
Major regional - RICS Red Book Net rental income (£ per week) £99 - £231 £172
2% - 3%
3%
Rental properties 1,361.2 Estimated rental growth (% p.a.)
5.3% - 7.4%
5.8%
Discount rate (yield) (%)
Provincial - RICS Red Book Net rental income (£ per week) £115 - £178 £136
3%
3%
Rental properties 98.2 Estimated rental growth (% p.a.)
7.5% - 16.2%
9.0%
Discount rate (yield) (%)
London - RICS Red Book Estimated cost to complete (£m) £46m - £171m £117m
£319 - £500
£353
Development properties Net rental income (£ per week)
3%
3%
4.4% - 4.5%
4.5%
315.3 Estimated rental growth (% p.a.)
Discount rate (yield) (%)
Prime regional - RICS Red Book Estimated cost to complete (£m) £5m - £232m £142m
£247 - £271
£258
Development properties Net rental income (£ per week)
3%
3%
4.4% - 5.2%
4.6%
Estimated rental growth (% p.a.)
Discount rate (yield) (%)
210.3
Major regional - RICS Red Book Estimated cost to complete (£m) £100m £100m
£236
£236
Development properties Net rental income (£ per week)
3%
3%
5.4%
5.4%
Estimated rental growth (% p.a.)
Discount rate (yield) (%)
21.7
Fair value at 30 June 2025 4,675.0
Investment properties - Build to Rent RICS Red Book Net rental income (£ per week) £499 £499
3%
3%
68.9 Estimated rental growth (% p.a.)
4.6%
4.6%
Discount rate (yield) (%)
Development properties -Build to Rent RICS Red Book Estimated cost to complete (£m) £29m £29m
Net rental income (£ per week) 370 370
0.8 Estimated rental growth (% p.a.) 3.0% 3.0% 4.8%
Discount rate (yield) (%) 4.8%
Fair value at 30 June 2025 4,744.6
Investment properties - Leased Discounted cash flows Estimated cost to complete (£m) £112 - £241 £173
1% - 5%
3%
69.8 Estimated rental growth (% p.a.)
10.0%
10.0%
Discount rate (yield) (%)
Fair value at 30 June 2025 4,814.4
Unaudited 30 June 2024
Fair value £m Valuation technique Unobservable inputs Range Weighted average
London - RICS Red Book Net rental income (£ per week) £212-£465 £332
Rental properties Estimated rental growth (% p.a.) 2% - 4% 3%
Discount rate (yield) (%) 4.0%-4.7% 4.4%
1,199.4
Prime regional - RICS Red Book Net rental income (£ per week) £158-£324 £210
Rental properties Estimated rental growth (% p.a.) 2% - 3% 4%
Discount rate (yield) (%) 4.3%-7.0% 5.0%
1,183.8
Major regional - RICS Red Book Net rental income (£ per week) £86-£210 £161
Rental properties Estimated rental growth (% p.a.) 2% - 4% 3%
Discount rate (yield) (%) 4.8%-8.5% 5.8%
1,249.6
Provincial - RICS Red Book Net rental income (£ per week) £110-£169 £144
Rental properties Estimated rental growth (% p.a.) 2% - 3% 3%
Discount rate (yield) (%) 7.1%-21.7% 9.1%
102.7
London - RICS Red Book Estimated cost to complete (£m) £88m-£198m £153m
Development properties Net rental income (£ per week) £180-£456 £304
Estimated rental growth (% p.a.) 3% 3%
Discount rate (yield) (%) 4.15% 4.15%
96.7
Prime regional - Estimated cost to complete (£m) £41m-£248m £162m
Development properties RICS Red Book Net rental income (£ per week) £227-£362 £251
Estimated rental growth (% p.a.) 3% 3%
Discount rate (yield) (%) 4.35%-5.20% 4.62%
104.0
Major regional - Estimated cost to complete (£m) £8m-£122m £92m
Development properties RICS Red Book Net rental income (£ per week) £179-£250 £211
Estimated rental growth (% p.a.) 3% 3%
Discount rate (yield) (%) 5.15% 5.15%
33.4
Fair value at 30 June 2024 3,969.6
Investment properties - 67.8 RICS Red Book Net rental income (£ per week) £497 £497
Build to Rent Estimated rental growth (% p.a.) 3% 3%
Discount rate (yield) (%) 4.6% 4.6%
Development properties - 10.2 RICS Red Book Estimated cost to complete (£m) £11m £11m
Build to Rent Net rental income (£ per week) £289-£845 £535
Estimated rental growth (% p.a.) 3.0% 3.0%
Discount rate (yield) (%) 4.4% 4.4%
Fair value at 30 June 2024 4,047.6
Investment properties - 81.7 Discounted cash flows Estimated cost to complete (£m) £105-£221 £165
1.4%-2.6%
2.1%
Leased Estimated rental growth (% p.a.)
6.3%
6.3%
Discount rate (yield) (%)
Fair value at 30 June 2024 4,129.3
31 December 2024
Fair value £m Valuation technique Unobservable inputs Range Weighted average
London - RICS Red Book Net rental income (£ per week) £214- £479 £351
Rental properties Estimated rental growth (% p.a.) 2% - 3% 3%
Discount rate (yield) (%) 4.2% - 4.8% 4.5%
1,286.7
Prime regional - RICS Red Book Net rental income (£ per week) £160-£342 £221
Rental properties Estimated rental growth (% p.a.) 2% - 9% 4%
Discount rate (yield) (%) 4.3% - 7.1% 5.1%
1,314.2
Major regional - RICS Red Book Net rental income (£ per week) £87-£224 £158
Rental properties Estimated rental growth (% p.a.) 2% - 6% 3%
Discount rate (yield) (%) 5.1%- 7.9% 6.2%
1,346.7
Provincial - RICS Red Book Net rental income (£ per week) £119-£171 £133
Rental properties Estimated rental growth (% p.a.) 2% - 6% 3%
Discount rate (yield) (%) 7.2% - 38.1% 14.7%
100.7
London - development properties 269.5 RICS Red Book Estimated cost to complete (£m) £71m-£171m £123m
Estimated rental growth (% p.a.) 3% 3%
Discount rate (yield) (%) 4.4%-4.5% 4.5%
Net rental income (£ per week) £299-£485 £345
Prime regional - RICS Red Book Estimated cost to complete (£m) £22m- £263m £165m
Development properties Estimated rental growth (% p.a.) 3.0% 3%
Discount rate (yield) (%) 4.4%-5.2% 4.6%
Net rental income (£ per week) £247-£271 £258
157.7
Major regional - RICS Red Book "Estimated cost to complete (£m) £107m £107m
Development properties Estimated rental growth (% p.a.) 3% 3%
Discount rate (yield) (%) 5.4% 5.4%
Net rental income (£ per week)" £236 £236
13.0
Fair value at 31 December 2024 4,488.5
Investment properties - 69.8 RICS Red Book Net rental income (£ per week) £490 £490
Build to Rent Estimated rental growth (% p.a.) 3% 3%
Discount rate (yield) (%) 4.6% 4.6%
Development properties - 11.2 RICS Red Book Estimated cost to complete (£m) £17m £17m
Build to Rent Estimated rental growth (% p.a.) 3% 3%
Discount rate (yield) (%) 4.4% 4.4%
Net rental income (£ per week) £226 £226
Fair value at 31 December 2024 4,569.5
Investment properties - 71.8 Discounted cash flows Net rental income (£ per week) £119- £233 £156
Leased Estimated rental growth (% p.a.) 1% - 5% 3%
Discount rate (yield) (%) 10.0% 10.0%
Fair value at 31 December 2024 4,641.3
Fair value sensitivity analysis
A decrease in net rental income or occupancy will result in a decrease in the
fair value, whereas a decrease in the discount rate (yield) will result in an
increase in fair value. There are inter-relationships between these rates as
they are partially determined by market rate conditions. These two key sources
of estimation uncertainty are considered to represent those most likely to
have a material impact on the valuation of the Group's investment property
within the next 12 months as a result of reasonably possible changes in
assumptions used. The potential effect of such reasonably possible changes has
been assessed by the Group and is set out below:
Class of assets (£m) Fair value at +5% -5% +25bps -25bps
30 June 2025
change in estimated
change in estimated
change in
change in
net rental income
net rental income net initial yield net initial yield
Rental properties
London 1,327.1 1,382.1 1,248.5 1,243.7 1,394.8
Prime regional 1,341.1 1,400.0 1,264.9 1,269.5 1,401.8
Major regional 1,361.2 1,428.9 1,286.6 1,299.3 1,421.6
Provincial 98.2 102.9 93.4 95.5 101.0
Development properties
London 315.3 329.4 301.5 300.5 332.1
Prime regional 210.3 223.1 202.1 201.8 224.7
Major regional 21.7 22.7 20.6 20.7 22.7
Build to Rent
London 68.9 71.6 64.8 64.7 72.1
Prime regional 0.8 0.8 0.7 0.7 0.7
Market value 4,744.6 4,961.5 4,483.1 4,496.4 4,971.5
3.2 Inventories
£m Unaudited Unaudited 31 December
30 June 2025
30 June 2024
2024
Interests in land 14.0 31.3 13.5
Other stocks 1.2 - 0.1
Inventories 15.2 31.3 13.6
At 30 June 2025, 30 June 2024 and 31 December 2024 interests in land includes
conditionally exchanged schemes.
3.3 Investments in joint ventures
The Group has two joint ventures:
· The UNITE UK Student Accommodation Fund ("USAF") - share of assets/
results: 29.84% (30 June 2024: 29.05% and 31 December 2024: 29.1%). USAF
invests and operates student accommodation through the UK.
· London Student Accommodation Village ("LSAV") - share of assets/
results: 50% (30 June 2024 and 31 December 2024: 50%). LSAV invests and
operates student accommodation in London and Birmingham.
3.3a Movement in carrying value of the Group's investments in joint ventures
The carrying value of the Group's investment in joint ventures has increased
by £41.5 million during the 6 months ended 30 June 2025 (30 June 2024: £79.1
million, 30 December 2024: £46.0 million), resulting in an overall carrying
value of £1,306.5 million (30 June 2024: £1,298.2 million, 30 December 2024:
£1,265.0 million). The following table shows how the increase has arisen.
£m Unaudited Unaudited Year to 31 December
6 months to
6 months to
2024
30 June 2025
30 June 2024
Recognised in the income statement:
Operations segment result 30.5 28.7 47.5
Non-controlling interest share of Operations segment result - 1.4 (0.2)
Management fee adjustment relating to trading with joint venture 2.6 2.6 4.8
Net valuation gains on investment property 23.3 50.4 67.0
Property disposals - 1.2 (2.4)
Ineffective swap - - (0.4)
Other (loss)/gain (0.7) 17.9 (0.4)
55.7 102.3 115.9
Recognised in equity:
Movement in effective hedges loss - (2.3) (2.3)
Other adjustments to the carrying value:
Profit adjustment related to trading with joint venture (2.6) (2.6) (4.8)
Disposal of non-controlling interest - - (27.9)
Additional capital invested in USAF - - (7.4)
Loans into JVs (1.3) - -
Distributions received (10.3) (18.3) (27.5)
Increase in carrying value 41.5 79.1 46.0
Carrying value brought forward 1,265.0 1,219.0 1,219.0
Carrying value carried forward 1,306.5 1,298.1 1,265.0
3.3b Transactions with joint ventures
The Group acts as asset and property manager for the joint ventures and
receives management fees in relation to these services. In addition, the Group
is entitled to performance fees from USAF and LSAV, if the joint ventures
outperform certain benchmarks. The Group receives either cash or an enhanced
equity interest in the joint ventures as consideration for the performance
fee.
The Group has recognised the following gross fees in its results for the
period.
£m Unaudited Unaudited Year to
6 months to
6 months to
31 December
30 June 2025
30 June 2024
2024
USAF 9.2 9.1 16.9
LSAV 2.6 2.4 4.9
Asset and property management fees 11.8 11.5 21.8
Total fees 11.8 11.5 21.8
On an EPRA basis, fees from joint ventures are shown net of the Group's share of the cost to the joint venture.
The Group's share of the management fees to the joint ventures is £2.6 million (30 June 2024: £2.5 million, 31 December 2024: £4.5 million), which results in management fees from joint ventures of £9.2 million being shown in the Operations segment result in note 2.2a (30 June 2024: £9.0 million, 31 December 2024: £17.3 million).
During the period the Group did not sell any properties to LSAV or USAF (30 June 2024: no properties sold to LSAV or USAF, 31 December 2024: During the year the Group purchased seven properties from USAF for gross proceeds of £235.5m and sold two properties to USAF for total gross proceeds of £118.5m. Both sale and purchase were transacted at fair value which was the same as the carrying value. As part of these transactions, the Group paid £117.0m of cash to USAF reflecting the net difference in value between these assets, this balance is presented within investing activities in the consolidated statement of cash flows.
Investment management fees are included within the unallocated to segments section in note 2.2a.
On 1 May 2025, Unite announced the planned formation of a joint venture with Manchester Metropolitan University to acquire a long leasehold interest in the Cambridge South Hall site, and the subsequent development of a c£390 million 2300 bed site of purpose-built student accommodation. At 30 June 2025, the JV has not yet been incorporated as key conditions such as, planning permission, debt funding and confirmation that the development is viable remained outstanding, therefore it is not presented above. Unite is holding £4.8m on balance sheet in respect of pre-contract costs.
3.4a Net assets and results of the joint ventures
The summarised balance sheets and results for the year, and the Group's share
of these joint ventures are as follows.
Unaudited 30 June 2025
Summarised balance sheet (£m)
USAF LSAV Total
Gross Share Gross Share Gross Share
Investment property 2,897.8 864.7 2,046.5 1,023.2 4,944.3 1,887.9
Cash 197.7 59.0 93.0 46.5 290.7 105.5
Debt (936.3) (279.4) (721.8) (360.9) (1,658.1) (640.3)
Swap liabilities - - - - - -
Other current assets 3.7 1.1 24.8 12.4 28.5 13.5
Other current liabilities (116.0) (34.6) (48.7) (24.3) (164.6) (58.9)
EPRA net assets 2,046.9 610.8 1,393.8 696.9 3,440.7 1,307.7
Summarised income statement (£m)
Rental income 109.6 32.3 63.6 31.8 173.2 64.1
Other income 0.4 0.1 1.0 0.5 1.4 0.6
Total Income 110.0 32.4 64.6 32.3 174.6 64.7
Cost of sales (33.2) (9.8) (13.8) (6.9) (47.0) (16.7)
Operating expenses (1.6) (0.4) (0.6) (0.3) (2.2) (0.7)
Results from operating activities 75.2 22.2 50.2 25.1 125.4 47.3
Profit/ (loss) on disposal of property - - - - - -
Net valuation movement 31.0 9.1 28.4 14.2 59.4 23.3
Net financing (costs)/gains (19.9) (5.9) (17.4) (8.7) (37.3) (14.6)
Profit before tax 86.3 25.4 61.2 30.6 147.5 56.0
Taxation (0.1) - - - (0.1) -
Profit for the period after tax 86.2 25.4 61.2 30.6 147.4 56.0
Other comprehensive income - - 0.5 0.2 0.5 0.2
Total comprehensive income 86.2 25.4 61.7 30.8 147.9 56.2
Dividends received from the joint ventures during the year 10.3 - 10.3
Unaudited 30 June 2024
USAF LSAV Total
Summarised balance sheet (£m) Gross Share Gross Share Gross Share
Investment property 2,919.6 848.1 1,987.8 993.9 4,907.4 1,842.0
Cash 165.2 48.0 52.6 26.3 217.8 74.3
Debt (937.1) (272.2) (674.2) (337.1) (1,611.3) (609.3)
Swap liabilities - - - - - -
Other current assets 6.5 1.9 20.2 10.1 26.7 12.0
Other current liabilities (6.5) (1.9) (84.2) (42.1) (90.7) (44.0)
EPRA net assets 2,147.8 623.9 1,303.2 651.6 3,451.0 1,275.5
Summarised income statement (£m)
Rental income 115.1 32.4 57.6 28.8 172.7 61.2
Other income 0.4 0.1 1.0 0.5 1.4 0.6
Total Income 115.5 32.5 58.6 29.3 174.1 61.8
Cost of sales (36.6) (10.3) (13.6) (6.8) (50.2) (17.1)
Operating expenses (1.4) (0.4) (0.6) (0.3) (2.0) (0.7)
Results from operating activities 77.5 21.8 44.4 22.2 121.9 44.0
Profit/ (loss) on disposal of property 4.2 1.2 - - 4.2 1.2
Net valuation movement 41.1 16.1 67.0 33.5 108.1 49.6
Net financing (costs)/gains (19.3) (5.4) (15.6) (7.8) (34.9) (13.2)
Profit before tax 103.5 33.7 95.8 47.9 199.3 81.6
Taxation - - - - - -
Profit for the period after tax 103.5 33.7 95.8 47.9 199.3 81.6
Other comprehensive income (0.7) (0.2) (3.4) (1.7) (4.1) (1.9)
Total comprehensive income 102.8 33.5 92.4 46.2 195.2 79.7
Dividends received from the joint ventures during the year 11.8 6.5 18.3
31 December 2024
USAF LSAV Total
Summarised balance sheet (£m) Gross Share Gross Share Gross Share
Investment property 2,847.3 829.6 1,993.8 996.9 4,841.1 1,826.5
Cash 241.6 70.4 40.0 20.0 281.6 90.4
Borrowings (non-current) (937.3) (273.1) (276.0) (138.0) (1,213.3) (411.1)
Borrowings (current) - - (400.0) (200.0) (400.0) (200.0)
Swap liabilities - - - - - -
Other current assets 7.9 2.3 22.8 11.4 30.7 13.7
Other current liabilities (85.7) (25.0) (47.8) (23.9) (133.5) (48.9)
EPRA net assets 2,073.8 604.2 1,332.8 666.4 3,406.6 1,270.6
Summarised income statement (£m)
Rental income 207.5 58.8 112.2 56.1 319.7 114.9
Other income 0.7 0.2 1.8 0.9 2.5 1.1
Total Income 208.2 59.0 114.0 57.00 322.2 116.0
Cost of sales (73.1) (20.7) (28.0) (14.0) (101.1) (34.7)
Operating expenses (2.6) (0.7) (1.4) (0.7) (4.0) (1.4)
Results from operating activities 132.5 37.6 84.6 42.3 217.1 79.9
Profit/ (loss) on disposal of property (8.5) (2.4) - - (8.5) (2.4)
Net valuation movement 81.4 26.2 81.5 40.8 162.9 67.0
Net financing (costs)/gains (40.5) (11.5) (33.6) (16.8) (74.1) (28.3)
Profit before tax 164.9 49.9 132.5 66.3 297.4 116.2
Taxation (0.1) - (0.6) (0.3) (0.7) (0.3)
Profit for the period after tax 164.8 49.9 131.9 66.0 296.7 115.9
Other comprehensive income (0.7) (0.3) (3.6) (2.0) (4.3) (2.3)
Total comprehensive income 164.1 49.6 128.3 64.0 292.4 113.6
Dividends received from the joint ventures during the year 13.8 13.8 27.6
Section 4: Funding
The Group finances its development and investment activities through a mixture
of retained earnings, borrowings and equity. The Group continuously monitors
its financing arrangements to manage its gearing.
Interest rate swaps are used to manage the Group's risk to fluctuations in
interest rate movements.
The following pages provide disclosures about the Group's funding position,
including borrowings and hedging instruments.
4.1 Borrowings
The table below analyses the Group's borrowings which comprise bank and other
loans by when they fall due for payment:
£m Unaudited 30 June 2025 Unaudited 30 June 2024 31 December 2024
Current
In one year or less, or on demand - 299.7 -
Non-current
In more than one year but not more than two years 149.5 - 147.6
In more than two years but not more than five years 571.9 420.5 572.3
In more than five years 543.6 842.8 543.8
1,265.0 1,263.3 1,263.7
Unamortised fair value of debt recognised on acquisition 9.0 12.0 10.1
Total borrowings 1,274.0 1,575.0 1,273.8
The carrying value of borrowings is considered to be approximate to fair
value, except for the Group's fixed rate loans as analysed below:
Unaudited Unaudited 31 December 2024
30 June 2025
30 June 2024
£m Carrying value Fair value Carrying value Fair value Carrying value Fair value
Level 1 IFRS fair value hierarchy 975.0 965.1 1,275.0 1,249.7 975.0 956.6
Other loans and unamortised arrangement fees 299.0 287.0 300.0 286.8 288.7 275.4
Total borrowings 1,274.0 1,252.1 1,575.0 1,536.5 1,263.7 1,232.0
4.2 Interest rate swaps
The Group uses interest rate swaps to manage the Group's exposure to interest
rate fluctuations. In accordance with the Group's treasury policy, the Group
does not hold or issue interest rate swaps for trading purposes and only holds
swaps which are considered to be commercially effective.
The following table shows the fair value of interest rate swaps:
£m Unaudited Unaudited 31 December
30 June 2025
30 June 2024
2024
Current 2.6 - 7.4
Non-current 37.8 12.4 46.0
Fair value of interest rate swaps asset 40.4 12.4 53.4
The fair values of interest rate swaps have been calculated by a third party
expert, discounting estimated future cash flows on the basis of market
expectations of future interest rates, representing Level 2 in the IFRS 13
fair value hierarchy.
4.3 Dividends
During the 6 months to 30 June 2025, the Company declared and paid a final
dividend of £121.7 million, 24.9p per share (30 June 2024: final dividend of
£102.9 million, 23.6p per share). This includes the cash dividend and scrip
dividend (including PID).
After the period end, the Directors proposed an interim dividend of 12.8p per
share (30 June 2024: 12.4p per share). No provision has been made in relation
to this dividend.
The Group has modelled tax adjusted property business profits for 2025 and
2024 and the PID requirement in respect of the year ended 31 December 2024 is
expected to be satisfied by the end of 2025.
Section 5: Working capital
5.1 Cash and cash equivalents
£m Unaudited 6 months to 30 June 2025 Unaudited 6 months to 30 June 2024 Year to 31 December 2024
Profit for the period 186.1 283.3 441.8
Adjusted for:
Depreciation and amortisation 3.0 2.5 5.7
Acquisition costs - - -
Fair value of share-based payments 1.6 1.2 2.4
Change in value of investment property (37.8) (90.0) (186.7)
Change in value of investment property (Leased) 2.7 3.3 1.9
Net finance costs 0.8 3.0 2.7
Interest payments for leased assets 3.7 3.6 8.8
Swap break and debt exit costs - - 3.1
Mark to market changes in interest rate swaps 13.0 (5.4) 0.3
(Profit)/ loss on disposal of investment property (owned) (2.5) 3.4 9.8
Loss/ (profit) on disposal of investment property (leased) - - -
Share of joint venture profit (56.2) (102.3) (115.9)
Trading with joint venture adjustment 2.6 2.5 4.6
Tax charge/ (credit) (0.1) 0.6 2.1
Cash flows from operating activities before changes in working capital 116.9 105.7 180.6
Decrease/ (increase) in trade and other receivables 7.8 49.8 (12.0)
Increase in inventories (1.6) (5.1) (5.3)
Increase/ (decrease) in trade and other payables (55.9) (2.2) 48.1
Cash flows from operating activities 67.2 148.2 211.5
Tax received/ (paid) (2.0) (1.1) 4.9
Net cash flows from operating activities 65.2 147.1 216.4
Section 6: Post balance sheet events
The Group has reviewed events up to 29 July 2025 and have determined that no
material post balance sheet events have occurred.
Section 7: Alternative performance measures
The Group uses alternative performance measures ("APMs"), which are not
defined or specified under IFRS. These APMs, which are not considered to be a
substitute for IFRS measures, provide additional helpful information. APMs are
consistent with how business performance is planned, reported and assessed
internally by management and the Board, and provide comparable information
across the Group. The APMs below have been calculated on a see through / Unite
share basis, as referenced to the notes to the financial statements.
Reconciliations to equivalent IFRS measures are included in notes 2.2b and
2.3c. Definitions can also be found in the glossary.
Adjusted earnings of the Group excludes the non-recurring impact of one-of
transactions, improving comparability between reporting periods.
Non-EPRA measures may not have comparable calculation bases between companies
and therefore may not provide meaningful industry-wide comparability
£m Note 6 months to 30 June 2025 6 months to 30 June 2024 Year to
31 December 2024
EBIT
Net operating income (NOI) 2.2a 171.9 153.2 276.1
Management fees 2.2a 9.2 9.0 17.3
Overheads 2.2a (11.5) (10.6) (22.5)
169.6 151.6 270.9
EBIT margin %
Rental income 2.2a 236.6 211.8 398.0
EBIT 7 169.6 151.6 270.9
71.7% 71.6% 68.1%
EBITDA
Net operating income (NOI) 2.2a 171.9 153.2 276.1
Management fees 2.2a 9.2 9.0 17.3
Overheads 2.2a (11.5) (10.6) (22.5)
Depreciation and amortisation 2.2a 3.0 2.5 5.7
172.6 154.1 276.6
£m Note 30 June 2025 30 June 2024 31 December 2024
Net debt
Cash 2.3a 188.8 666.0 364.7
Debt on properties 2.3a (1,905.4) (2,172.5) (1,874.8)
Net debt (1,716.6) (1,506.5) (1,510.1)
£m Note 12 months to 30 June 2025 12 months to 30 June 2024 Year to 31
December 2024
Net debt (adjusted)
Cash (adjusted) 2.3a 396.1(1) 234.4 364.7
Debt on properties (adjusted) 2.3a (1,956.9)(2) (1,831.9) (1,874.8)
Net debt (adjusted) (1,560.8) (1,597.5) (1,510.1)
(1) Calculated on a 12 month look back basis. Average of £188.8 million and
£364.7 million in respect of H1 2025 and average of £666.0 million and
£364.7million in respect of H2 2024.
(2) Calculated on a 12 month look back basis. Average of £1,905.4 million and
£1,874.8 million in respect of H1 2025 and average £2,172.5 million and
£1,874.8 million in respect of H2 2024.
£m Note 12 months to 30 June 2025 12 months to 30 June 2024 Year to 31
December 2024
Net debt: EBITDA (adjusted)
Net debt (adjusted) 7 (1,560.8) (1,597.5) (1,510.1)
EBITDA 7 295.1 263.9 276.6
Ratio 5.3 6.1 5.5
(1) Calculated on a 12 month look back basis. £172.6 million in respect of H2
2024 and £122.5 million in respect of H1 2025.
£m Note 12 months to 30 June 2025 12 months to 30 June 2024 Year to 31
December 2024
Interest cover (Unite share)
EBIT 7 288.9(1) 259.2 270.9
Net financing costs 2.2a (33.1)(2) (46.6) (35.2)
Interest on lease liability 2.2a (8.9)(3) (7.8) (8.8)
Total interest (42.0) (54.4) (43.9)
Ratio 6.9 4.8 6.2
(1) Calculated on a 12 month look back basis. £169.6 million in respect of H1
2025 and £119.3 million in respect of H2 2024.
(2) Calculated on a 12 month look back basis. £16.4 million in respect of
H1 2025 and £16.7 million in respect of H2 2024.
(3) Calculated on a 12 month look back basis. £3.7 million in respect of H1
2025 and £5.2 million in respect of H2 2024.
Reconciliation: IFRS profit before tax to EPRA earnings and adjusted earnings
£m Note 6 months to 30 June 2025 6 months to 30 June 2024 Year to 31 December 2024
IFRS profit before tax 185.9 283.9 444.0
Net valuation gains on investment property (owned) 2.2b (61.3) (140.4) (253.7)
Property disposal losses/(gains) (owned) 2.2b (2.5) 2.2 12.2
Net valuation losses on investment property (leased) 2.2b 2.7 3.3 1.9
Amortisation of fair value of debt recognised on acquisition 2.2b (1.1) (2.1) (4.1)
Changes in valuation of interest rate swaps 2.2b 13.0 (5.4) 0.4
Swap cancellation and debt exit fees - 1.8 3.1
Non-controlling interest and other 0.3 (20.7) (1.9)
EPRA earnings 137.0 122.6 201.9
Software as a service costs 7.2 2.7 11.9
Adjusted earnings 144.2 125.3 213.8
Adjusted EPS yield
Note 30 June 2025 30 June 2024 pps 31 December 2024
pps
pps
Adjusted EPS (A) 2.2c 29.5p 28.7p 46.6p
Opening EPRA NTA (B) 2.3d 972p 920p 920p
Adjusted EPS yield (A/B) 3.0% 3.1% 5.1%
Total accounting return
Note 30 June 2025 30 June 2024 pps 31 December 2024
pps
pps
Opening EPRA NTA (A) 2.3d 972p 920p 920p
Closing EPRA NTA 2.3d 986p 969p 972p
Movement 14p 49p 52p
H1 dividend paid 4.3 24.9p 23.6p 23.6p
H2 dividend paid 4.3 - - 12.4p
Total movement in NTA (B) 38.9p 72.6p 88.0p
Total accounting return (B/A) 4.0% 7.9% 9.6%
EPRA Performance Measures
Summary of EPRA performance measures
30 June 2025 30 June 2024 31 Dec 2024 30 June 2025 30 June 2024 31 Dec
2024
£m £m £m pps pps
pps
EPRA earnings / EPS 137.0 122.6 201.9 28.0 28.1 44.0
Adjusted earnings / Adjusted EPS(*) 144.2 125.3 213.8 29.5 28.7 46.6
EPRA NTA (diluted) 4,844.2 4,262.3 4,758.4 986 969 972
EPRA NRV (diluted) 5,253.2 4,655.9 5,236.2 1,070 1,058 1,069
EPRA NDV (diluted) 5,256.2 4,321.4 4,853.3 1,001 982 994
EPRA Like-for-like gross rental income 7% 9% 8%
EPRA Cost ratio (including vacancy costs) 31% 30% 35%
EPRA Cost ratio (excluding vacancy costs) 30% 30% 35%
EPRA Loan to value 27% 28% 24%
(*) Adjusted earnings calculated as EPRA earnings less software as a service
costs.
EPRA like-for-like rental income
£m Properties owned throughout the period Development property Total EPRA
Other*
6 months to 30 June 2025
Rental income 192.3 0.9 43.4 236.6
Property operating expenses (53.7) (0.5) (10.5) (64.7)
Net rental income 138.6 0.4 32.9 171.9
6 months to 30 June 2024
Rental income 179.1 - 32.7 211.8
Property operating expenses (49.1) - (9.5) (58.6)
Net rental income 130.0 - 23.2 153.2
Movements in the period:
Like-for-like net rental income (£m) 8.6
Like-for-like net rental income (%) 6.6%
Like-for-like gross rental income (£m) 13.2
Like-for-like gross rental income (%) 7.4%
(*) Other includes acquisitions, disposals, major refurbishments and changes
in ownership.
EPRA cost ratio 6 months to 30 June 2025 6 months to 30 June 2024 Year to 31 Dec 2024
£m
Property operating expenses 48.1 41.6 87.2
Overheads (*) 11.0 10.2 21.6
Development / pre contract costs 0.8 0.8 3.8
Unallocated expenses 4.3 3.2 8.8
64.2 55.8 121.4
Share of JV property operating expenses 16.6 17.0 34.7
Share of JV overheads 0.5 0.4 0.9
Share of JV unallocated expenses 0.2 0.2 0.5
81.5 73.4 157.5
Less: Joint venture management fees (9.2) (9.0) (17.3)
Total costs (A) 72.3 64.4 140.2
Group vacant property costs ((**)) (1.0) (0.8) (0.9)
Share of JV vacant property costs ((**)) (0.3) (0.3) (0.3)
Total costs excluding vacant property costs (B) 71.0 63.3 138.9
Rental income 171.9 150.0 282.0
Share of JV rental income 64.7 61.8 116.0
Total gross rental income (C) 236.6 211.8 398.0
Total EPRA cost ratio (including vacant property costs) (A)/(C) 30.6% 30.4% 35.2%
Total EPRA cost ratio (excluding vacant property costs) (B)/(C) 30.0% 29.9% 34.9%
* Excludes software as a service cost net of deferred tax.
** Vacant property costs reflect the per bed share of operating expenses
allocated to vacant beds.
Unite's EBIT margin excludes non-operational expenses which are included
within the EPRA cost ratio above. The Group capitalises costs in relation to
staff costs and professional fees associated with property development
activity.
EPRA valuation movement (Unite share)
£m Valuation Change %
Wholly owned 4,197* 61 1.5%
USAF 872 15 1.3%
LSAV 1,023 11 1.5%
Rental properties 6,092 87 1.4%
Leased properties 70
Properties under development 548
Properties held throughout the period 6,710
Total property portfolio 6,710
*Includes PBSA and BTR properties.
EPRA yield movement
NOI yield Yield movement (bps)
% H1
Wholly owned 5.2 1
USAF 5.2 1
LSAV 4.5 1
Rental properties (Unite share) 5.1 1
EPRA property related capital expenditure
30 June 2025 31 Dec 2024
£m Wholly owned Share of JVs Group share Wholly owned Share of JVs Group share
London 6.6 11.8 18.4 13.0 18.5 31.5
Prime regional 9.9 1.9 11.8 12.4 6.1 18.5
Major regional 8.9 7.1 16.0 36.8 13.8 50.6
Provincial 4.0 1.6 5.6 2.6 4.5 7.1
Total rental properties 29.4 22.4 51.8 64.8 42.9 107.7
Increase in beds - - - 282.9 34.5 1.3
BTR - - - - - -
Developments 103.1 - 103.1 263.7 - 263.7
Capitalised interest 14.1 - 14.1 15.5 - 15.5
Total property related capex 146.6 22.4 169.0 626.9 77.4 704.3
EPRA loan to value
6 months to 30 June 2025 6 months to 30 June 2024 Year to
31 Dec 2024
£m
Investment property (owned) 6,091.9 5,634.8 5,852.0
Investment property (under development) 548.0 244.2 451.4
Intangibles 11.2 10.0 10.4
Total property value and other eligible assets 6,651.1 5,889.0 6,313.8
Cash at bank and in hand 188.8 666.0 364.7
Borrowings (1,905.4) (2,172.5) (1,874.8)
Net other payables (88.1) (116.2) (33.9)
EPRA net debt (1,804.7) (1,622.7) (1,544.0)
EPRA loan to value 27.1% 27.6% 24.4%
INDEPENDENT REVIEW REPORT TO THE UNITE GROUP PLC
Conclusion
We have been engaged by the company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30
June 2025 which comprises the consolidated income statement, consolidated
statement of comprehensive income, consolidated balance sheet, consolidated
statement of changes in equity, consolidated statement of cash flows and
related sections 1 to 7.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 30 June 2025 is not prepared, in all
material respects, in accordance with International Accounting Standard 34 as
adopted by the United Kingdom and the Disclosure and Transparency Rules of the
United Kingdom's Financial Services Authority.
Basis for Conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410 "Review of Interim Financial Information Performed by
the Independent Auditor of the Entity" issued by the Financial Reporting
Council for use in the United Kingdom (ISRE (UK) 2410). A review of interim
financial information consists of making inquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures. A review is substantially less in scope than an audit
conducted in accordance with International Standards on Auditing (UK) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly,
we do not express an audit opinion.
As disclosed in Section 1, the annual financial statements of the group are
prepared in accordance with United Kingdom adopted international accounting
standards. The condensed set of financial statements included in this
half-yearly financial report has been prepared in accordance with United
Kingdom adopted International Accounting Standard 34, "Interim Financial
Reporting".
Conclusion Relating to Going Concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for Conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This Conclusion is based on the review procedures performed in accordance with
ISRE (UK) 2410; however future events or conditions may cause the entity to
cease to continue as a going concern.
Responsibilities of the directors
The directors are responsible for preparing the half-yearly financial report
in accordance with the Disclosure and Transparency Rules of the United
Kingdom's Financial Services Authority.
In preparing the half-yearly financial report, the directors are responsible
for assessing the group's ability to continue as a going concern, disclosing,
as applicable, matters related to going concern and using the going concern
basis of accounting unless the directors either intend to liquidate the
company or to cease operations, or have no realistic alternative but to do so.
Auditor's Responsibilities for the review of the financial information
In reviewing the half-yearly report, we are responsible for expressing to the
company a conclusion on the condensed set of financial statement in the
half-yearly financial report. Our conclusion, including our Conclusions
Relating to Going Concern, are based on procedures that are less extensive
than audit procedures, as described in the Basis for Conclusion paragraph of
this report.
Use of our report
This report is made solely to the company in accordance with ISRE (UK) 2410.
Our work has been undertaken so that we might state to the company those
matters we are required to state to it in an independent review report and for
no other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the company, for our review work,
for this report, or for the conclusions we have formed.
Deloitte LLP
Statutory Auditor
London, United Kingdom
29 July 2025
GLOSSARY
Adjusted earnings EBIT EPRA Net Tangible Assets per share
An alternative performance measure based on EPRA earnings, adjusted to remove The Group's NOI plus management fees and less overheads. In the opinion of the The diluted NTA per share figure based on EPRA NTA.
the impact of abortive acquisition costs, software as a service cost net of Directors, adjusted EBIT is a useful measure to monitor our cost discipline
deferred tax and other items of an exceptional nature. The items have been and performance of the Group.
excluded from adjusted earnings to improve the comparability of results
year-on-year. EPRA Net Reinstatement Value (NRV)
EBIT margin EPRA NRV includes all property at market value but excludes the mark to market
of financial instruments, deferred tax and real estate transfer tax. EPRA NRV
Adjusted earnings per share / EPS The Group's EBIT expressed as a percentage of rental income. In the opinion of assumes that entities never sell assets and represents the value required to
the Directors, adjusted EBIT margin is a useful measure to monitor our cost rebuild the entity.
The earnings per share based on adjusted earnings and weighted average number discipline and performance of the Group.
of shares in issue (basic).
EPRA Net Disposal Value (NDV)
EBITDA
Adjusted EPS yield
EPRA NDV includes all property at market value, excludes the mark to market of
The Group's EBIT, adding back depreciation and amortisation. financial instruments but includes the fair value of fixed interest rate debt
Adjusted EPS as a percentage of opening EPRA NTA (diluted).
and the carrying value of intangible assets. EPRA NDV represents the
shareholders' value in a disposal scenario.
EPRA
Adjusted net debt
The European Public Real Estate ESG
Net debt per the balance sheet, adjusted to remove IFRS 16 lease liabilities
and the unamortised fair value of debt Association, who produce best practice recommendations for financial Environmental, Social and Governance.
reporting.
recognised on the acquisition of Liberty Living.
Full occupancy
EPRA Cost Ratio Full occupancy is defined as occupancy in excess of 97%.
Basis points (BPS)
The ratio of property operating expenses, overheads and management fees,
A basis point is a term used to describe a small percentage, usually in the against rental income, calculated on an EPRA basis.
context of change, and equates to 0.01%.
GRESB
GRESB is a benchmark of the Environmental, Social and Governance (ESG)
EPRA earnings performance of real assets.
Diluted earnings / EPS
EPRA earnings exclude movements relating to changes in values of investment
Where earnings values per share are used, basic measures divide the earnings properties, profits/losses from the disposal of properties, swap/debt break
by the weighted average number of issued costs and interest rate swaps and the related tax effects. Gross asset value (GAV)
shares in issue throughout the period, whilst the diluted measure also takes The fair value of rental properties, leased properties and development
into account the effect of share options which
properties.
EPRA earnings per share / EPS
have been granted and which are expected to be converted into shares in the
future. The earnings per share based on EPRA earnings and weighted average number of
shares in issue (basic). The Group
Wholly owned balances plus Unite's interests relating to USAF and LSAV.
Diluted NTA/NAV
EPRA like-for-like rental growth
Where NTA/NAV per share is used, basic measures divide the NTA/NAV by the
number of shares issued at the reporting The growth in rental income measured by reference to the part of the portfolio Group debt
of the Group that has been consistently in operation, and not under
date, whilst the diluted measure also takes into account the effect of share development nor subject to disposal, and which accordingly enables more Wholly owned borrowings plus Unite's share of borrowings attributable to USAF
options which have been granted and which are expected to be converted into meaningful comparison in underlying rental income levels. and LSAV.
shares in the future (both for the additional number of shares that will be
issued and the value of additional consideration that will be received in
issuing them).
EPRA Net Initial Yield (NIY) HMO
Annualised NOI generated by the Group's rental properties expressed as a
percentage of their fair value, taking into account notional acquisition Houses in multiple occupation, where buildings or flats are shared by multiple
Direct let costs. tenants who rent their own rooms and the property's communal spaces on an
individual basis.
Properties where short-hold tenancy agreements are made directly between Unite
Students and the student.
EPRA Net Tangible Assets (NTA)
IFRS NAV per share
EPRA NTA includes all property at market value but excludes the mark to market
IFRS equity attributable to the owners of the parent company from the
of financial instruments, deferred tax and intangible assets. EPRA NTA consolidated balance sheet divided by the total number of shares of the Parent
provides a consistent measure of NAV on a going concern basis. Company in issue at the reporting date.
Net debt per balance sheet
Borrowings, IFRS 16 lease liabilities and the mark to market of interest rate
Interest cover ratio (ICR) swaps, net of cash.
Calculated as EBIT divided by the sum of net financing costs and IFRS 16 lease
liability interest costs.
Resident ambassadors
Net debt to EBITDA
Student representatives who engage with students living in the property to
Net debt as a proportion of EBITDA. create a community and sense of belonging.
Lease
Properties which are leased to universities for a number of years.
Net financing costs (EPRA) Rental properties
Interest payable on borrowings less interest capitalised into developments and Investment properties (owned and leased) whose construction has been completed
Like-for-like metrics finance income. and are used by the Operations segment to generate NOI.
Like-for-like is the change in metric, on a gross basis, calculated using
properties owned throughout the current and previous period.
Net operating income (NOI) Rental properties (leased) / Sale and leaseback
The Group's rental income less property operating expenses. Properties that have been sold to a third-party investor then leased back to
LSAV
the Group. Unite is also responsible for the management of these assets on
behalf of the owner.
The London Student Accommodation Joint Venture (LSAV) is a joint venture
between Unite and GIC, in which both hold a 50% stake. LSAV has a maturity NOI margin
date of September 2032. The Group's NOI expressed as a percentage of rental income.
See-through (also Unite share)
Wholly owned balances plus Unite's share of balances relating to USAF and
Loan to value (LTV) Nomination agreements LSAV.
Net debt as a proportion of the value of the rental properties, excluding Agreements at properties where universities have entered into a contract to
balances in respect of leased properties under IFRS 16. Prepared on a reserve rooms for their students, usually guaranteeing occupancy. The
see-through basis. In the opinion of the directors, this measure enables an Universities usually either nominate students to live in the building and TCFD
appraisal of the indebtedness of the business, which closely aligns with key Unite enters into short-hold tenancies with the students or the University
covenants in the Group's lending arrangements. enters into a contract with Unite and makes payment directly to Unite. The Taskforce on Climate-related Financial Disclosures develops voluntary,
consistent climate-related financial risk disclosures for use by companies in
providing information to investors, lenders, insurers, and other stakeholders.
LTV post IFRS 16 Provincial
Net debt as a proportion of the value of the rental properties, including Properties located in Bournemouth, Coventry, Loughborough, Medway, Portsmouth Total accounting return
balances in respect of leased properties under IFRS 16. Prepared on a and Swindon.
see-through basis.
Growth in diluted EPRA NTA per share plus dividends paid, expressed as a
percentage of diluted EPRA NTA per share at the beginning of the period. In
the opinion of the Directors, this measure enables an appraisal of the return
PBSA generated by the business for shareholders during the year.
LTV (EPRA)
Purpose-built student accommodation.
Net debt as a proportion of the value of the rental properties including
balances in respect of leased properties and all other assets and liabilities. Total shareholder return
Prime provincial The growth in value of a shareholding over a specified period, assuming
dividends are reinvested to purchase additional shares.
Major regional Properties located in Bath, Bristol, Durham, Edinburgh, Manchester and Oxford.
Properties located in Aberdeen, Birmingham, Cardiff, Glasgow, Leeds,
Leicester, Liverpool, Newcastle, Nottingham, Sheffield and Southampton.
USAF/the fund
Property operating expenses
The Unite UK Student Accommodation Fund (USAF) is Europe's largest fund
Operating costs directly related to rental properties, therefore excluding focused purely on income-producing student accommodation investment assets.
Net asset value (NAV) central overheads.
The fund is an open-ended infinite life vehicle with unique access to Unite's
The total of all assets less the value of all liabilities at each reporting development pipeline. Unite acts as fund manager for the fund, as well as
date.
owning a significant minority stake.
Rental growth
Calculated as the year-on-year change in average annual price for sold beds.
Net debt (EPRA) In the opinion of the Directors, this measure enables a more meaningful WAULT
comparison in rental income as it excludes the impact of changes in occupancy.
Borrowings net of cash. IFRS 16 lease liabilities are excluded from net debt
Weighted average unexpired lease term to expiry.
on an EPRA basis. In the opinion of the Directors, net debt is a useful
measure to monitor the overall cash position of the Group.
Rental income
Wholly owned
Income generated by the Group from rental properties.
Balances relating to properties that are 100% owned by The Unite Group plc or
its 100% subsidiaries.
COMPANY INFORMATION
Executive Team
Joe Lister
Chief Executive
Michael Burt
Chief Financial Officer
Registered office
South Quay House
Temple Back
Bristol BS1 6FL
Registered Number in England
03199160
Auditor
Deloitte LLP
1 New Street Square, London EC4A 3HQ
Financial Advisers
J.P. Morgan Cazenove
25 Bank Street, London E14 5JP
Deutsche Numis
45 Gresham Street, London EC2V 7BF
Registrars
Computershare Investor Services PLC
PO Box 82
The Pavilions
Bridgwater Road
Bristol BS99 7NH
Financial PR Consultants
Sodali & Co.
1 Tudor Street, London EC4Y OAH
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