REG - Unite Group PLC - Results for the year ended 31 December 2025
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RNS Number : 1597U Unite Group PLC (The) 24 February 2026
PRESS RELEASE
24 February 2026
THE UNITE GROUP PLC
('Unite Students', 'Unite', the 'Group', or the 'Company')
RESULTS FOR THE YEAR ENDED 31 DECEMBER 2025
RESPONDING TO CHANGE AND DELIVERING OUR PLAN
Joe Lister, Chief Executive of Unite Students, commented:
"Unite Students delivered a robust performance in 2025, with strong trading
across the majority of our portfolio offset by weaker demand in a small number
of cities for the 2025/26 academic year. Growing domestic demand for higher
education, improving international mobility and constrained housing supply
underpin the long-term prospects for the sector. Students continue to place
high value on the residential university experience, supporting sustained
demand for the high‑quality accommodation and living experience that we
provide.
"We have started to deliver on the strategic plan set out at the end of 2025,
focusing on closer alignment to the strongest universities, building on our
university partnerships and taking decisive action on costs. We have also
demonstrated our disciplined approach to capital, having commenced a £100
million share buyback in January and this morning announcing the sale of St
Pancras Way to USAF.
"While there is much to do, we are making early progress and building
momentum. Delivering the benefits from our plan, together with the Empiric
acquisition, provides a strong platform for 2027 and beyond."
Year ended 31 December 2025 31 December 2024 Change
Adjusted earnings(1,3) £232.3m £213.8m 9%
Adjusted EPS(1,3) 47.5p 46.6p 2%
IFRS profit attributable to owners £97.6m £441.9m (78%)
IFRS EPS (diluted) 19.9p 96.1p (79%)
Dividend per share 37.7p 37.3p 1%
Total accounting return (TAR)(1) 2.1% 9.6%
As at 31 December 2025 31 December 2024 Change
EPRA NTA per share(1) 955p 972p (2%)
IFRS net assets per share 966p 982p (2%)
Net debt: EBITDA(4) 6.0x 5.5x 0.5x
Loan to value(2) 27% 24% +3ppts
HIGHLIGHTS
Continued rental growth for 2025/26, demonstrating value of our platform
· 4.0% rental growth and 95.2% occupancy for the 2025/26 academic
year (2024/25: 8.2% and 97.5%)
· +2% YoY growth in adjusted EPS to 47.5p (2024: 46.6p)
· IFRS EPS (diluted) reduced to 19.9p (2024: 96.1p)
· 0.5% LfL valuation decline, reflecting 3.8% rental growth and
11bps yield expansion
· TAR of 2.1%, reflecting 2% reduction in EPRA NTA to 955p (2024:
9.6% and 972p)
Growing HE demand in a more competitive leasing market
· 5% increase in UK 18-year-old applicants for the 2026/27 academic
year
· Strongest student demand and housing need at the highest-quality
universities
· New PBSA supply 50% below pre-pandemic levels and competing HMO
sector in decline
· 68% reserved for 2026/27 (2025/26: 71%), reflecting more cautious
booking trends
· Continued demand from strong university partners, with 55% of
beds nominated for 2026/27 (2025/26: 59%)
Increasing alignment to the UK's strongest universities
· 67% aligned to high-tariff universities, growing to 80% through
disposals and committed development
· Enhanced offer to returning students through acquisition of
high-quality Empiric portfolio in 2026
· Over 1,000 new beds delivered in Bristol and Edinburgh for the
2025/26 academic year
· £27 million NOI upside from off-campus development completions
from 2027
Delivering our strategic priorities
· Newcastle and Manchester Metropolitan JVs to deliver 4,300 new
beds between 2028-2030
· Completed Empiric acquisition in January 2026 and increased cost
synergies to £17 million p.a.
Demonstrating our disciplined approach to capital allocation
· Targeting disposals of £300-400m p.a., £214 million completed
in 2025 (Unite share: £142 million)
· Agreed disposal of St Pancras Way, London to USAF for £186
million (Unite share: £126 million)
· Initial £100 million share buyback programme underway and
delivering attractive returns
2026 Guidance
· 2026/27 income expected at lower end of range for 2-3% rental
growth and 93-96% occupancy
· Empiric's 2025/26 income below expectations ahead of integration
to our platform
· Cost of debt expected to increase to 4.3% in 2026 (2025: 3.9%)
· 2026 adjusted EPS guidance of 41.5-43.0p, reflecting lower
Empiric income and occupancy
1. The financial statements are prepared in accordance with International
Financial Reporting Standards (IFRS). These financial highlights are based on
the European Public Real Estate Association (EPRA) best practice
recommendations and these performance measures are published as they are
intended to help users in the comparability of these results across other
listed real estate companies in Europe. The metrics are also used internally
to measure and manage the business and to align to the performance related
conditions for Directors' remuneration. See glossary for definitions.
2. Excludes IFRS 16 related balances recognised in respect of leased
properties. Wholly owned balances plus Unite's share of balances relating to
USAF, LSAV and University Partnerships. See glossary for definitions.
3. 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.
4. See glossary for definitions
PRESENTATION
A live webcast of the presentation including Q&A will be held today at
08:30am GMT for investors and analysts. The webcast can be accessed via
https://brrmedia.news/UTG_FY25 (https://brrmedia.news/UTG_FY25) and will be
available for playback on our website (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 / Mike Burt / Saxon
Ridley Tel:
+44 117 302 7005
Press
office Tel:
+44 117 450 6300
Sodali & Co
Ben Foster / Sam Austrums / Louisa
Henry Tel:
+44 20 7250 1446
CHIEF EXECUTIVE'S REVIEW
Demand for UK Higher Education sector remains strong, underpinned by
demographic growth, high participation rates and the quality and global
reputation of the UK's universities. Higher-tariff universities continue to
capture an increased share of student numbers, driving increased housing need
in the strongest cities and locations. This is coming at the expense of
lower-tariff universities where housing demand has also been impacted by
growing numbers of students choosing to live at home.
The majority of our portfolio is delivering strong levels of occupancy and
rental growth, but we have experienced challenges from weaker demand and
higher supply in some cities. We are responding to this change through a
renewed focus on operational excellence and optimal capital allocation. During
the year, we increased our alignment to high-tariff universities from 64% to
67% and are targeting 80% as we align our portfolio even more closely with the
strongest universities.
The acquisition of Empiric's high-quality 7,700-bed portfolio across 66
properties, which is 81% aligned to high-tariff universities, completed
towards the end of January 2026 and allows us to better serve the attractive
Returner market segment.
Growing earnings and dividend
Lettings performance for the 2024/25 and 2025/26 academic years supported
growth in adjusted earnings to £232.3 million and adjusted EPS of 47.5p, up
9% and 2% respectively year-on-year. The growth in adjusted EPS also reflects
the increased share count following our capital raise in July 2024. IFRS
profit reduced to £97.6 million and diluted EPS to 19.9p (2024: £441.9
million and 96.1p), reflecting a valuation decrease for our property portfolio
compared to the prior year. We have proposed a final dividend of 24.9p which,
if approved, takes the total dividends to 37.7p for the year, representing a
year-on-year increase of 1%.
Total accounting returns for the year were 2.1%, reflecting dividends paid in
the year and a 2% reduction in EPRA NTA per share to 955p due to a 0.5%
decline in LfL property valuations. Our net debt: EBITDA and LTV ratios
increased to 6.0x and 27% respectively, reflecting an increase in net debt
during the year.
Our key financial performance indicators are set out below:
Financial highlights(1) 2025 2024
Adjusted earnings £232.3m £213.8m
Adjusted EPS 47.5p 46.6p
IFRS profit £97.6m £441.9m
IFRS diluted EPS 19.9p 96.1p
Dividend per share 37.7p 37.3p
Total accounting return 2.1% 9.6%
EPRA NTA per share 955p 972p
IFRS net assets per share 966p 982p
Net debt: EBITDA 6.0x 5.5x
Loan to value 27% 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.
Growing higher education demand in a more competitive leasing market
A record number of UK 18-year-olds started university in 2025/26, with 2%
growth in the number of new undergraduates. Growth was particularly strong at
high-tariff universities where acceptances grew 7%, while medium-tariff
providers saw 2% growth and low-tariff experienced a 2% reduction. This growth
supported an increase in the proportion of beds let to universities through
nomination agreements to 59% (2024/25: 57%) but was offset by weaker sales to
international postgraduate students and an increase in students choosing to
live at home, which particularly impacted lower-ranked universities.
Overall, our portfolio delivered 95.2% occupancy and rental growth of 4.0% for
the 2025/26 academic year (2024/25: 97.5% and 8.2% respectively). The majority
of our portfolio performed strongly, with 19 of 22 cities averaging 97%
occupancy. Vacancies were concentrated in three regional cities (Leicester,
Nottingham and Sheffield), where weaker demand combined with high levels of
existing and new supply. We also saw lower occupancy in new buildings or
buildings where we delivered large capital projects, which were slower to let
in a more competitive leasing environment.
Housing supply remains constrained
New supply of PBSA is down 50% on pre-pandemic levels, with around 17,000 new
beds expected in 2026, reflecting viability challenges created by higher costs
of construction and funding, as well as the time required to secure planning
and Building Safety Regulator (BSR) approvals. Weekly rents now need to be at
least £230 for new PBSA development outside of London to be viable, meaning
there is little prospect of new PBSA supply in many markets. Build-to-Rent
(BTR) is a source of growing competition in larger regional cities,
particularly for international students, but new supply of BTR faces many of
the same viability issues.
Obsolescence of older university accommodation continues to impact supply,
with 5,000-10,000 beds being removed from the market each year due to building
age and the need to operate buildings more sustainably.
Over half of students who need term-time accommodation live in HMOs where many
private landlords are choosing to leave the sector due to rising mortgage
costs and increasing regulation. The Renters' Rights Act introduces new
regulations for HMO landlords and rights for tenants from which PBSA is
exempt. From May 2026, entering tenancy agreements more than six months before
the start date will be banned, disrupting HMO lettings to students early in
the 2027/28 sales cycle. The ability for students to exit HMO tenancies with
two months' notice will also reduce income security for private landlords. HMO
supply has fallen by 9% over the last four years and we expect this trend to
continue.
Delivering our strategy
At our investor event in November, we set out how we are responding to changes
in our market. Our focus is on delivering operational excellence from our
best-in-class platform and ensuring optimal capital allocation to deliver the
strongest risk-adjusted returns for shareholders.
We will focus on six priorities to help deliver on these objectives.
Operational excellence
· High-quality, growing income - We are targeting above 97% occupancy
in our core cities and above-inflation rental growth, in line with our
long-term performance. This is underpinned by our target to grow university
nomination agreements to 60% of beds from 54% (including Empiric) which will
be achieved by delivering our university joint ventures, winning share from
competitors and exiting assets with lower university demand.
· Taking action on costs - We are being proactive in right-sizing our
cost base to reflect more challenging market conditions and ensure that we
deliver efficiencies from our recent investment in new technology platforms.
· Deliver our business plan for Empiric - There is a significant
opportunity to improve occupancy across the Empiric portfolio over the next
two years, alongside delivery of our cost synergies, which supports earnings
accretion.
Optimal capital allocation
· Increase alignment to the strongest universities - We expect
the UK's strongest universities to outperform and capture a growing share of
student numbers in the next 5-10 years. Our committed and future investment
activity aims to increase the portfolio's weighting to high-tariff
universities, from 67% currently to 80% over the medium term, leading to a
more focused, higher-quality portfolio with a presence in 18-20 cities. This
realignment is a key enabler of our return to higher occupancy.
· Grow university partnerships - Our first two university joint
ventures, with Newcastle University and Manchester Metropolitan University,
are now formed and will see us deliver 4,300 new beds on-campus at affordable
rents over the next five years. Building on the strength of our university
relationships, we aim to secure one new university partnership per year from
our pipeline of active opportunities, including new development and stock
transfer.
· Deploy capital at the best risk-adjusted returns - An increased rate
of disposals and lower development capex will see the Group move from net
investor to net seller, generating £100-200 million p.a. of surplus capital.
We will allocate capital to the opportunities offering the strongest
risk-adjusted returns, which are currently expected to be new university
partnerships and share buybacks, while maintaining the strength of our balance
sheet.
Progress since our investor event
We have made good early progress in delivering against our priorities since
our investor event in November. Before the year end, we implemented a c.20%
reduction in our central staff costs and have increased our annual cost
synergy target for Empiric to £17 million.
Since December, we have formed two university joint ventures with Newcastle
University and Manchester Metropolitan University, which will see us deliver
4,300 new beds on-campus between 2028 and 2030.
In January 2026, we launched a £100 million share buyback programme to
return surplus capital to shareholders. This was funded through reduced
off-campus development activity, having chosen to defer delivery of our
Freestone Island project in Bristol and exit our TP Paddington development in
London.
The acquisition of Empiric's high-quality 7,700-bed portfolio completed
towards the end of January 2026. The portfolio is 81% aligned to high-tariff
universities, overlapping with our portfolio in 15 cities, and broadens our
product offer for returning students.
We are also today announcing the disposal of St Pancras Way in London to USAF
for £186 million (Unite share: £126 million), which forms part of the
Group's target to accelerate disposals to £300-400 million p.a. (Unite
share).
Acquisition of Empiric Student Property
The acquisition of Empiric, which completed in January 2026, brings a
high-quality 7,700-bed PBSA portfolio and enables us to better meet the needs
of the attractive Returner student segment. The acquisition delivers a
significant increase in Unite's addressable market, enabling the Group to
attract and retain more students throughout their academic journey, including
the c.35,000 first-year students currently living with Unite. Returning
students want a more independent experience, living in smaller groups and with
a less institutional feel, which Empiric's portfolio offers through the Hello
Student brand.
For the 2025/26 academic year, sales performance has been weaker than
expected, with occupancy at 89% and rental growth of 4.5%. We are now just
over three weeks post-completion and our priority is enhancing Empiric's
commercial performance, with our central commercial team and local teams
engaged with Empiric to support sales. We are moving at pace to open our sales
channels to Empiric properties, including our significantly larger
international agent network and China sales office, in advance of full
integration later this year which will benefit the 2027/28 sales cycle. We
continue to see significant potential in the business, which we are well
placed to unlock through our long-standing university relationships and
best-in-class operating platform.
We are also confident in our ability to deliver cost synergies from the
acquisition and have validated many of our pre-acquisition assumptions, which
support an increase to our annual synergy target to £17 million from 2027.
More supportive government policy for Higher Education
Higher Education (HE) contributes over £250 billion to the UK economy,
creates new opportunities and life experiences for young people, and provides
global influence through the soft power of education. The HE sector also plays
a key part in increasing skill levels in support of the Government's mission
to kickstart economic growth.
The Government has increased UK tuition fees for the 2025/26 academic year by
3.1% and confirmed it intends to increase tuition fees for each of the next
two academic years by around 2.75%. Government policy is increasingly
supportive of international students, the International Education Strategy
published in January 2026 details ambitious plans to increase the UK HE
sector's international standing, grow international recruitment and increase
the value of education exports by 20% over the next five years. The UK's
recent return to the Erasmus+ programme will also strengthen ties with the
European Union. We expect these measures to improve the global competitiveness
of UK universities at a time when a number of competing global destinations
are increasing restrictions on international student numbers.
Universities are long-standing and adaptable institutions, and many are making
changes to their cost bases to improve their financial sustainability. 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.
Current trading
Student numbers
UCAS undergraduate data for the 2026/27 academic year shows 5% growth in UK
18-year-old applicants, our key customer demographic. Student demand remains
strongest for the high-tariff universities to which we have aligned our
portfolio, where applicants are up by 6%. International undergraduate
applicants are 5% up for 2026/27, with 10% growth from China. As expected,
there has been a further modest increase in students intending to live at
home, increasing 1ppt to 28% of applications from UK school leavers. Given
growth in overall applications, we expect c.3% growth in the undergraduate
intake living away from home this September.
International postgraduate demand has reduced in the past two years following
changes in visa policies and increased competition from alternative study
destinations, despite the strength of the UK's HE offering. We expect
universities to respond by increasing recruitment of international
undergraduates to mitigate reduced postgraduate demand.
Letting progress
Across the Group's portfolio (excluding Empiric), 68% of rooms are now sold
for the 2026/27 academic year (2025/26: 71%). We expect the booking trends
experienced in the 2025/26 sales cycle to continue for 2026/27, with more
students choosing to book later and accommodation demand increasingly
concentrated at the strongest universities. Nomination agreements account for
55% of beds for 2026/27 (2025/26: 59%), with some, predominantly low-tariff
universities choosing not to renew or holding off committing to new agreements
as they look to balance security of accommodation for their students with
their financial commitment to beds early in the cycle. Engagement with
university partners has been positive in recent weeks, reflecting strong
undergraduate applications, and we typically secure further nomination
agreements through the remainder of the sales cycle.
Encouragingly, direct-let sales in recent weeks have been ahead of last year,
with pricing adjustments helping to stimulate sales in those markets with
lower occupancy in 2025/26. In keeping with last year, we are seeing students
delay their purchasing decisions, following discounting and increased use of
incentives by our competitors late in the past two sales cycles.
Like-for-like rental growth on rooms sold to date is 2.4%, with growth through
nomination agreements offsetting the impact of modest price reductions on
direct-let sales.
2026/27 income guidance
Based on our current rate of sale and future nominations pipeline, we expect
to deliver occupancy and rental growth towards the lower end of our guidance
ranges of 93-96% and 2-3% respectively for the 2026/27 academic year. This
translates to like-for-like income growth of 0-2% (previously 0-4%).
Across the Empiric portfolio, 22% of rooms are now sold for the 2026/27
academic year. The slower sales performance reflects a delayed start to the
sales cycle following a technology upgrade and the more cautious leasing
behaviour seen in the Unite portfolio. Based on our initial assessment, we
anticipate Empiric's letting performance to be in line with our direct-let
portfolio for the 2026/27 academic year. The full benefit of our sales
platform to Empiric will be realised for the 2027/28 sales cycle.
Earnings guidance
We expect to deliver adjusted EPS of 41.5-43.0p in 2026 (2025: 47.5p),
principally reflecting the impact of lower Empiric income and occupancy.
Empiric's lower than expected income for 2025/26 will impact performance in
2026, particularly in H1, resulting in a c.1.0-1.5p reduction in adjusted EPS
net of initial cost synergies. Thereafter, we expect an improvement in
Empiric's income performance as we integrate it onto our platform and realise
the full benefit of cost synergies from 2027.
Outlook
Demand for UK Higher Education remains strong, underpinned by growing domestic
demand and increasing mobility of international students. Together with
constrained housing supply, this supports sustainable growth in our rents and
earnings over the long term.
There is greatest demand and most enduring appeal for the residential
experience at the UK's strongest universities and our strategy is focused on
increasing our alignment to these universities. We are uniquely positioned to
meet university needs thanks to our best-in-class operating platform,
providing the opportunity to grow and extend our already strong partnerships.
We have made early progress in delivery of the strategic plan set out at the
end of 2025, focusing on our priorities of operational excellence and optimal
capital allocation. We will build on this momentum during 2026 as we also
begin to realise value from our acquisition of Empiric. Delivering on these
priorities provides a strong platform for 2027 and beyond.
OPERATIONS REVIEW
Stronger cities continue to deliver
We achieved occupancy of 95.2% across our portfolio for the 2025/26 academic
year (2024/25: 97.5%) as changing student behaviour at lower-ranked
universities and slower leasing following major projects impacted lettings.
The strength of our relationships with universities, the quality and
affordability of our portfolio and focus on UK customers saw lettings
outperform the wider PBSA sector, where occupancy averaged around 86%.
Annual rents increased by 4.0% on a like-for-like basis for the 2025/26
academic year (2024/25: 8.2%), with 4.6% growth across our nominated beds.
This reflected our success in agreeing increased rental levels on renewals of
single-year and new multi-year nomination agreements, where our university
partners recognise the value our accommodation provides. Rents for direct-let
tenancies increased by 3.6%, partly impacted by a reduction in average tenancy
length of around 0.5 weeks to 47.6 weeks.
UK universities attract young people from around the world for the quality of
learning and life experience they offer. This demand for university education
and our accommodation is supported by demographic growth, with the UK
population of 18-year-olds forecast to grow 6% (50,000) by 2030, and strong
participation rates. We are also seeing a more stable policy environment for
international recruitment following publication of the Government's new
International Education Strategy.
Strongest universities taking market share
Overall, the undergraduate intake for 2025/26 increased by 2% to 578,000
(2024/25: 565,000), with a record number of UK 18-year-olds starting courses.
We have been deliberate in aligning our portfolio to high- and medium-tariff
universities, where the number of accepted applicants grew by 7% and 2%
respectively for the 2025/26 academic year. In contrast, lower-tariff
universities saw a 2% reduction in acceptances, marking an acceleration of the
trend of the past decade where higher-tariff universities have captured a
growing share of student demand. In response to this trend, our investment
activity aims to increase our portfolio's weighting to high-tariff
universities from 67% currently to 80% over the medium term.
International demand broadly stable
Recruitment of international students stabilised in 2025 after the 14% fall in
student visa issuance in 2024 following visa policy changes and a review of
the Graduate Route. The proportion of our 2025/26 customers from outside the
UK was stable at 28% (2024/25: 28%), with more bookings from international
undergraduates offsetting fewer bookings from Chinese postgraduates.
Recent data indicates broadly stable international student numbers, with 5%
growth in international applicants through UCAS for the 2026/27 academic year
balanced by fewer study visa applications in recent months.
Students seeking value from university
Students are increasingly selective when choosing where to study, with a
growing focus on graduate outcomes and earnings potential as they seek to
ensure they achieve value for money from their time at university. This is
supported by data showing that the average Russell Group student enjoys a
c.£350,000 lifetime earnings premium over a non-graduate, with the premium
reducing materially for lower-ranked courses.
The highest-quality universities continue to see healthy accommodation demand
as the enduring appeal of the UK's top universities attracts students from
around the world. At lower-tariff providers, an increasing proportion of
students are choosing to live at home as an alternative to the traditional
residential experience. At these universities, around half of students now
choose to live at home to reduce the overall cost of university, compared to
only 15% at high-tariff providers.
New supply impacting some cities
New supply is taking longer to reach stabilised occupancy in a more
competitive leasing market, with our new openings in 2025 65% occupied on
completion. These new deliveries accounted for around a third of the increase
in vacancy within our portfolio in 2025/26.
It is typical to see a period of lower occupancy and rental growth while a
city adjusts to an increase in new supply, with Nottingham particularly
impacted in 2025. We expect a reduction in new supply over the coming years as
viability remains challenging for new development, reducing the impact of new
openings outside of the strongest cities.
Continuing demand from universities
We have maintained a high proportion of income let to universities, with
37,660 beds (59% of total) provided under nomination agreements for 2025/26
(2024/25: 38,326 and 57%). The increase in the percentage of beds under
nomination agreements reflects universities' growing reliance on private
providers to meet their accommodation needs and our position as the partner of
choice. We saw further improvement in our University Trust Score to +81 (2024:
+80), recognising the strength of our partnerships, sector-leading student
welfare offer, and thought leadership in the sector.
The unexpired term of our nomination agreements increased to 6.1 years for
2025/26 (2024/25: 5.8 years), reflecting the strength of our relationships and
universities' willingness to commit to high-quality accommodation. A balance
of nomination agreements and direct-let beds provides the benefit of having
income secured by universities, as well as the ability to offer rooms to
re-bookers and postgraduates and determine market pricing on an annual basis.
We are targeting an increase in beds under nomination agreements to 60% going
forward, aided by our university joint ventures and new developments as well
as planned disposals.
83% of our nomination agreements by income are multi-year and therefore
benefit from annual fixed or inflation-linked uplifts based on RPI or CPI
(2024/25: 67%). The remaining agreements are single year, and we achieved a
renewal rate of 77% with universities for 2025/26 where we sought to renew
(2024/25: 81%).
Agreement length Noms beds % Noms income
2025/26 2025/26
Single year 6,039 17%
2-5 years 14,659 40%
6-10 years 4,151 12%
11-20 years 6,728 16%
20+ years 6,083 15%
Total 37,660 100%
UK students account for 72% of our customers for 2025/26 (2024/25: 72%),
making up a large proportion of the beds under nomination agreements with
universities. This represents a significant increase in our weighting to UK
students over recent years, compared to 60% immediately prior to the pandemic,
and reflects our success in growing the proportion of beds under nomination
agreements and retaining second- and third-year students who might have
historically moved into the HMO sector.
Postgraduates make up 16% of our customer base and non-first year
undergraduates accounted for a further 21% of our bookings for the 2025/26
academic year (2024/25: 17% and 27%), reflecting the greater proportion of
beds let through nomination agreements which predominantly house first-year
students and fewer sales to returning UK students. The acquisition of Empiric
broadens our offering to postgraduate and non-first year undergraduate
students, who typically seek greater independence, and supports our strategy
of increasing the segmentation of our customer offer to capture market share
from the traditional HMO sector.
Occupancy by type and domicile by academic year
Direct let
Nominations UK China EU Non-EU Total
2022/23 52% 24% 14% 2% 7% 99%
2023/24 53% 24% 13% 2% 8% 100%
2024/25 57% 22% 13% 1% 5% 98%
2025/26 59% 17% 12% 1% 6% 95%
Acquisition of Empiric
Empiric's Hello Student brand delivered occupancy of 89% for the 2025/26
academic year and rental growth of 4.5%. This letting performance was below
our expectations at the time of appraising the acquisition, reflecting more
challenging recent leasing conditions. As a result, the Empiric portfolio is
expected to contribute lower income and earnings in the first half of FY2026.
We are working closely with the Empiric team to drive performance across the
portfolio. We have started marketing Hello Student properties to our customers
in the 15 cities where our portfolios overlap and added their properties to
our international distribution channels. Our priority is to return the Empiric
portfolio to full occupancy over the next two sales cycles. We expect leasing
performance for Empiric to be broadly in line with the Unite Students
direct-let portfolio for 2026/27.
Taking action on costs
Property operating costs increased by 10% in 2025 (2024: 8%), principally
driven by higher staff costs, increased marketing activity and additional
central and other costs. Higher staff costs reflect our commitment to the Real
Living Wage, resulting in an average 5% pay increase for city operations
staff, as well as increases to employer's National Insurance contributions.
Marketing costs increased due to higher costs of acquisition in a more
competitive sales environment. Utility costs were broadly flat compared to the
prior year, with increases in charges and levies offset by a reduction in
consumption through our continued investment in energy efficiency initiatives.
Other cost increases reflected higher council tax costs as a result of lower
occupancy in certain cities and increased building insurance premiums.
At the end of the year, we reduced our central team costs by approximately
20%, responding to lower income for the 2025/26 academic year. We will
maintain an appropriate cost base to reflect the operational performance of
the business. These changes support our expectation for flat property and
central costs in 2026 for the Unite business (excluding Empiric).
Property operating expenses breakdown 2025 2024 Change
£m £m
Staff costs (37.2) (34.0) 10%
Utilities (30.7) (30.5) 1%
Summer cleaning (5.5) (5.3) 4%
Marketing (8.3) (7.0) 19%
Central costs (20.1) (18.0) 12%
Other (32.3) (27.1) 19%
Property operating expenses (134.2) (121.9) 10%
Technology enhancing customer experience and margins
Our technology upgrade programme delivered significant milestones in 2025 as
we launched a new customer management system, finance system and learning
platform for our people. The final phase of delivery in 2026 will deliver new
booking and property management platforms. We expect to incur a further £10
million of costs in 2026 as the programme concludes. We expect to achieve a
payback on our investment through enhanced utilisation of our portfolio and
cost efficiencies, which will increase our EBIT margin by around 1% over the
medium term, including £7 million p.a. of cost savings.
PROPERTY REVIEW
Our property portfolio saw a 0.1% decrease in valuations on a like-for-like
basis during the year (Unite share: 0.5% decrease), as increases in property
yields and capital expenditure offset rental growth. The see-through net
initial yield of the portfolio was 5.2% at 31 December 2025 (31 December 2024:
5.1%), which reflects like-for-like yield expansion of 11 basis points in the
year.
Investment activity in the UK student accommodation sector remains strong,
with around £4 billion traded in 2025. Private equity and institutional
investors have remained active in the sector, attracted by a positive outlook
for rental growth, which reflects strong demand and constrained supply in many
cities. Investor demand is greatest for newly-built assets and older assets,
with value-add opportunities in strong markets.
Like-for-like capital growth(1)
£m Valuation Rental growth/ other Yield movement Capital expenditure Total
31 Dec 2025
Wholly owned 4,233 101 (89) (52) (40)
USAF 2,844 127 (64) (45) 18
LSAV 2,083 105 (80) (15) 10
Total (Gross) 9,160 333 (233) (112) (12)
Total (Unite share) 6,083 (30)
% capital growth
Wholly owned 2.5% (2.2)% (1.3)% (1.0)%
USAF 4.6% (2.3)% (1.6)% 0.7%
LSAV 5.1% (3.9)% (0.7)% 0.5%
Total (Gross) 3.8% (2.6)% (1.3)% (0.1)%
Total (Unite share) 3.3% (2.5)% (1.3)% (0.5)%
1. Excludes leased properties and fire safety expenditure costs
93% by value of the portfolio is income generating is (31 December 2024: 93%)
and properties under development remained at 7% (31 December 2024: 7%) with
the impact of new openings from the development pipeline balanced by capital
expenditure for on-site projects during the year.
The PBSA investment portfolio, inclusive of Empiric, is 32% weighted to London
by value on a Unite share basis and expected to remain around this level on a
built-out basis following completion of our committed development pipeline.
Limited new supply
Supply of PBSA grew by around 10,000 beds in 2025, net of beds leaving the
market, equivalent to 1.5% growth in PBSA supply (Source: Cushman and
Wakefield). This remains significantly below levels of new supply in the
period prior to the pandemic. Weekly rents of around £230 are now required to
make development viable outside London, above market rents in 85% of our
regional cities. In response to increasing costs, new supply is increasingly
focused on higher price studio accommodation and is targeting a different
market segment to our predominantly cluster-flat portfolio. Positively, we saw
build cost inflation moderate during the year, although the availability of
skilled labour remains tight, and build costs remain around 50% higher than
five years ago.
The Building Safety Act has added three approval gateways to the design, build
and occupation of new buildings adding 6-12 months to development programmes.
During the year we were pleased to secure three pre-construction approvals
from the Building Safety Regulator for our university partnership and
uncommitted off-campus development projects.
We expect the combination of complex planning, increasing regulation, and
higher build and funding costs to restrict the delivery of new supply for
several years. We expect new supply in 2026 to maintain 2025 levels, before
slowing significantly from 2027.
Increasing alignment to the strongest universities
University joint ventures
Strengthening our partnerships with universities through joint ventures for
on-campus accommodation has been an objective of the business for several
years and has the potential to be a significant source of growth in the years
to come. Our first two university joint ventures in Newcastle and Manchester
will deliver 4,300 beds by 2030 and contribute a combined £47 million (Unite
share: £29 million) to net operating income, delivering a blended 7.4%
yield-on-cost including recurring management fees. The projects will deliver
high-quality accommodation at a range of price points, underpinned by demand
from our university partners.
At our Castle Leazes joint venture in Newcastle, planning was granted in the
first half and construction is now underway. This supports delivery of the
first phase of the 2,000-bed project for 2028/29 academic year.
In Manchester, following the grant of planning permission and pre-construction
approvals, construction is underway for the development of 2,300 new beds at
Cambridge Halls for Manchester Metropolitan University. The first phase of the
project targets delivery 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. The joint venture will include over 400 beds based
on a new cluster-flat design with a larger communal kitchen, allowing us to
offer these rooms at a c.15% lower rent than standard designs.
We are in active discussions with a range of high-quality universities for
further partnerships, which we are looking to progress over the next 12-18
months. These include discussions around stock transfer and refurbishment of
existing university accommodation, as well as new development both on- and
off-campus. We aim to secure one further joint venture per year, recognising
the scale and complexity of these projects.
Completed schemes
During the year, we delivered over 1,000 new beds for 2025/26 academic year,
with 623 beds at Avon Point in Bristol and 402 beds at Burnet Point in
Edinburgh. Avon Point is well located for University of Bristol's new Temple
Quarter campus, and the university has nominated 54% of beds for an initial
14-year term. At Burnet Point, we delivered 298 beds in cluster flats, as well
as 104 beds in two- and three-bed clusters in a separate block. These smaller
flats are let to postgraduate students, university staff and other young
professionals. In the current sales environment, new openings have been slower
to lease-up due to increased availability in the wider market. We expect our
2025 openings to deliver a meaningful improvement in occupancy for the 2026/27
academic year with the benefit of a full leasing cycle.
Off-campus development
We have increased our return requirements for new investment to reflect higher
funding costs and increased delivery and leasing risks in the current
environment. We are now seeking development yields on new direct-let schemes
in excess of 8% in regional markets and 7% in London. These hurdles assume a
university nominating a significant portion of the beds.
Our focus is now on successfully delivering our on-site schemes and seeking
opportunities for further university joint ventures, including on-campus
projects and stock transfer, building on our successes over the past year.
We are committed to two off-campus development schemes, totalling 1,650 beds
in London and Glasgow. The projects have £109 million remaining costs to
complete and will add a combined £21 million to net operating income from the
2027/28 academic year.
Construction is progressing well at our 719-bed Hawthorne House project in
Stratford, which includes a new academy school. Construction will complete in
June, and the project requires transitional approval from the Building Safety
Regulator in advance of occupation in September. We are working with the
Regulator and our supply chain to secure approval in line with our target
completion date. 51% of the beds are nominated to University of the Arts
London under a long-term agreement.
At Central Quay in Glasgow, we have started construction of the 934-bed
project, supporting delivery for the 2027/28 academic year. The scheme is well
located for University of Glasgow, a QS Global Top 100 university, with whom
we have a long-standing relationship.
Secured development and partnerships pipeline
Type(¹) Target delivery Secured beds/ Total completed value Total devel. costs Capex in period Capex remaining Forecast NTA remaining⁵ Forecast yield on cost
units
no. £m £m £m £m £m %
Off-campus pipeline
Hawthorne House, Stratford² Noms 2026 719 248 196 53 21 30 6.1%
Central Quay, Glasgow Noms/DL 2027 934 161 125 18 88 30 7.4%
Total off-campus pipeline 1,653 409 321 71 109 60 6.6%
University JV
Castle Leazes, Newcastle³ JV 2028/29 2,009 318 267 27 240 33 7.2%
Cambridge Halls, Manchester⁴ JV 2029/30 2,302 465 367 10 357 72 7.5%
Total on-campus pipeline 4,311 783 634 37 597 105 7.4%
Total committed pipeline 5,964 1,191 955 108 706 165 7.1%
Total committed pipeline (Unite share) 891 710 91 478 127 7.0%
1. Direct-let (DL), Nominated (Noms) and Joint Venture (JV)
2. Yield on cost assumes the sale of academic space for c.£45 million
3. Unite share 51%. Yield on cost includes management fees in NOI and deducts
development management fee from costs
4. Unite share 69%. Yield on cost includes management fees in NOI and deducts
development management fee from costs
5. Unite share
Future off-campus pipeline
Our future pipeline includes an additional 2,900 beds for schemes where we
have optionality on whether to proceed based on the risk-adjusted returns of
projects relative to other investment opportunities. We will be disciplined
when committing further capital to these projects, which will likely require a
nomination underpin from a university for a significant portion of the beds.
We own three consented development sites, of which 83% by value is in London.
We are reviewing options for these projects to deliver best value for
shareholders, including disposal or potential third-party funding. While we
explore options, we have deferred delivery of our 500-bed Freestone Island
project in Bristol. Our Meridian Square and King's Place projects in London
have also been delayed following an extended timeline to secure necessary
approvals prior to construction.
We have also decided not to proceed with our TP Paddington development in
London. This follows the grant of planning permission on appeal, which
fulfilled our contractual commitment to the landowner. The 605-bed project was
not financially viable based on our increased return requirements and an
extended delivery programme. We have recognised a c.£10 million write-off of
planning costs, which has been excluded from adjusted earnings and have no
further commitments to the landowner.
Disposals
We continue to enhance the quality of the portfolio and manage our balance
sheet leverage by recycling capital through disposals. During the year, we
completed the sale of 10 properties in Aberdeen, Leicester, Leeds, Nottingham
and Sheffield for £214 million (Unite share: £142 million). This included
the sale of a portfolio of nine properties for £212 million (Unite share:
£140 million) at a blended yield of 6.4% and priced c.1% below December 2024
book value, which completed in August 2025. The proceeds will be recycled into
university joint ventures and asset management activity in our strongest
markets.
We will continue to recycle capital from disposals to maintain net debt:
EBITDA in the 6-7x range and LTV around c.30-35% on a built-out basis. We will
target future disposals of around £300-400 million p.a. (Unite share), which
will release £100-200 million p.a. of surplus capital for reinvestment.
Disposals will be made up from a combination of lower growth assets, similar
to those sold in 2025, stabilised assets in core markets, and lower-yielding
or non-income producing assets. These disposals will enhance portfolio quality
and be accretive to earnings as proceeds are reinvested.
Following the year end, we agreed the sale of St Pancras Way, a 571-bed asset
in central London, to USAF for £186 million (Unite share: £126 million),
subject to technical due diligence. The building was developed by Unite in
2014 and is undergoing a light refurbishment to the common areas. The
transaction will be funded by existing cash headroom in USAF and the issue of
new USAF Units (the 'New Units'), to be fully underwritten by Unite. Unite
will receive minimum net proceeds of £115m in cash and increase its ownership
of USAF increase to approximately 32%, subject to USAF investors choosing to
take-up their pre-emption rights.
Asset management
In the year, investment in asset management and refurbishment activity
totalled £44 million (Unite share: £30 million), delivering a yield-on-cost
of 8.1%. The 10 projects included full refurbishment of existing rooms,
upgrades to common spaces and enhancements to the environmental performance of
the properties.
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 completed fire safety improvements
on eight properties across our estate and spent £66 million (Unite share:
£36 million) on fire safety capex during the year. Our year-end balance sheet
includes committed fire safety spend of £80 million (Unite share: £46
million), the costs for which will be incurred over the next two years.
During the year, we reached agreement with contractors for recovery of £14
million of remediation costs (Unite share: £8 million) in relation to 10
properties. In total, we have now agreed settlements totalling £86 million
(Unite share: £59 million). We expect to recover 50-75% of total cladding
remediation costs through claims from contractors, although the settlement and
recognition of these claims is likely to lag costs incurred to remediate
properties. We anticipate the remediation programme to complete by 2031 with
net spend reducing materially over time.
FINANCIAL PERFORMANCE
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.
Earnings and adjusted earnings
We delivered a robust operating performance in 2025, with adjusted earnings
increasing by 9% to £232.3 million (2024: £213.8 million), driven by growth
in like-for-like rental income and investment activity. NOI growth more than
offset higher overhead and finance costs when compared to the prior year.
Adjusted EPS grew 2% to 47.5p (2024: 46.6p), reflecting the growth in adjusted
earnings and increased share count following our July 2024 equity raise.
2025 2024
£m £m
Rental income 428.2 398.0
Property operating expenses (134.2) (121.9)
Net operating income (NOI) 294.0 276.1
NOI margin 68.7% 69.4%
Management fees 17.3 17.3
Overheads (48.5) (38.4)
Finance costs (46.7) (44.0)
Development costs and other items 1.6 (9.1)
EPRA earnings 217.7 201.9
SaaS implementation costs 14.6 11.9
Adjusted earnings 232.3 213.8
Adjusted EPS 47.5p 46.6p
EPRA EPS 44.5p 44.0p
EBIT margin 65.9% 68.1%
A reconciliation of profit after tax to EPRA earnings and adjusted earnings is
set out in note 2.2b to the financial statements.
IFRS profit attributable to owners of the parent company reduced to £97.6
million in the year (2024: £441.9 million), reflecting the increase in
adjusted earnings of £18.5 million, a revaluation loss of £73.7 million
(2024: £239.6 million gain) and a £22.5 million loss for the valuation of
interest rate swaps and cancellation costs (2024: £3.5 million loss).
2025 2024
£m £m
Adjusted earnings 232.3 213.8
SaaS implementation costs (14.6) (11.9)
EPRA earnings 217.7 201.9
Valuation gains/(losses) and profit/(loss) on disposal¹ (73.7) 239.6
Changes in valuation of interest rate swaps and debt break costs (22.5) (3.5)
Non-recurring costs² (9.7) -
Non-controlling interest and other items (14.2) 6.0
IFRS profit before tax 97.6 444.0
Adjusted earnings per share 47.5p 46.6p
IFRS diluted earnings per share 19.9p 96.1p
1. Includes TP Paddington abortive costs
2. Includes restructuring costs and Empiric acquisition costs to date
A reconciliation of profit before tax to adjusted earnings and EPRA earnings
is expanded in section 7 of the financial statements.
Rental growth and profitability
Rental income increased by £30.2 million to £428.2 million, up 8% compared
to 2024. Like-for-like rental income, excluding the impact of major
refurbishments, acquisitions, disposals and development completions, increased
by 5% during the year, reflecting strong rental growth but modestly lower
occupancy for the year. Non-like-for-like income grew by £15.3 million, with
additional rental income from development completions and asset management
schemes exceeding the impact of income forgone through disposals.
Property operating expenses increased by 9% for like-for-like properties,
primarily driven by higher staff costs due to the 5% increase in the Real
Living Wage and higher Employer's National Insurance contributions. Marketing
costs increased due to higher costs of acquisition in a more competitive sales
environment. Other cost increases included higher council tax as a result of
lower occupancy in certain cities and increased building insurance premiums.
Together, this resulted in a 6% increase in net operating income to £294.0
million (2024: £276.1 million) or 3% on a like-for-like basis.
FY 2025 FY 2024 YoY change
£m Wholly- owned Share of Fund/JV Total Wholly- owned Share of Fund/JV Total £m %
Rental income
Like-for-like properties 236.4 82.7 319.1 227.4 76.8 304.2 14.9 5%
Non-like-for-like properties 71.2 37.9 109.1 54.6 39.2 93.8 15.3 16%
Total rental income 307.6 120.6 428.2 282.0 116.0 398.0 30.2 8%
Property operating expenses
Like-for-like properties (77.1) (24.7) (101.8) (70.4) (23.3) (93.7) (8.1) 9%
Non-like-for-like properties (22.3) (10.1) (32.4) (16.8) (11.4) (28.2) (4.2) 15%
Total property operating expenses (99.4) (34.8) (134.2) (87.2) (34.7) (121.9) (12.3) 10%
Net operating income
Like-for-like properties 159.3 58.0 217.3 157.0 53.5 210.5 6.8 3%
Non-like-for-like properties 48.9 27.8 76.7 37.8 27.8 65.6 11.1 17%
Total net operating income 208.2 85.8 294.0 194.8 81.3 276.1 17.9 6%
Management fee income from joint ventures remains unchanged at £17.3 million
(2024: £17.3 million), with the benefit of higher income and property
valuations offset by the impact of redemptions in USAF over the past two
years.
Overheads increased by £10.1 million to £48.5 million (2024: £38.4
million). During the year, Software as a Service (SaaS) implementation costs
relating to our technology upgrade programme totalled £19.4 million, for
which a deferred tax credit of £4.8 million was recognised (2024: £15.9
million and £4.0 million). Excluding SaaS implementation costs, overheads
increased by £6.6 million driven by a £2.4 million increase in central staff
costs, £1.2 million of dual running costs from relocation of offices and
£1.7 million lower VAT recovery due to increased costs relating to property
letting activity and a £1.3 million inflationary increase across the
remainder of the cost base.
Our EBIT margin reduced to 65.9% (2024: 68.1%) due to cost growth outpacing
rental increases as a result of lower occupancy.
Finance costs increased to £46.7 million in 2025 (2024: £44.0 million),
reflecting an increase in our average cost of debt to 3.9% (2024: 3.6%) due to
refinancing activity and higher rates on new debt. Capitalised interest linked
to our development pipeline increased to £26.8 million (2024: £15.5 million)
in line with increased levels of development activity.
Development costs and other items include a £4.2 million non-recurring
Newcastle University joint venture fee.
We are targeting to hold costs flat in 2026 for the Unite business (excluding
Empiric), reflecting the reduction in our central overhead at the end of 2025
and discipline around other cost lines.
EPRA NTA
EPRA net tangible assets (NTA) per share, our key measure of NAV, decreased by
2% to 955p at 31 December 2025 (31 December 2024: 972p). EPRA net tangible
assets were £4,685 million at 31 December 2025, a £73 million decrease from
£4,758 million in the prior year.
The main drivers of the £73 million decrease in EPRA NTA and 17p decrease in
EPRA NTA per share were an increase in property valuation yields and capital
expenditure, which were partially offset by rental growth.
£m Diluted pence per share
EPRA NTA as at 31 December 2024 4,758 972
Investment portfolio 116 24
Yield movement (148) (30)
Development portfolio (18) (4)
Fire safety capex net of claims (15) (3)
Other (8) (4)
EPRA NTA as at 31 December 2025 4,685 955
IFRS net assets decreased by 2% in the year to £4,734 million (31 December
2024: £4,812 million), principally driven by net valuation movements and
retained profits. On a per share basis, IFRS NAV decreased by 2% to 966p (31
December 2024: 982p).
Property portfolio
The valuation of our property portfolio at 31 December 2025, including our
share of property assets held in USAF, LSAV and the Newcastle University joint
venture, was £6,601 million (31 December 2024: £6,375 million). The £226
million increase in portfolio value reflects the valuation movements outlined
above, capital expenditure and interest capitalised on developments.
Summary balance sheet
31 December 2025 31 December 2024
Wholly- owned £m Share of fund/JV £m Total Wholly- owned £m Share of fund/JV £m Total
£m £m
Rental properties(1) 4,221 1,863 6,084 4,025 1,827 5,852
Rental properties (leased) 60 - 60 72 - 72
Properties under development 438 19 457 451 - 451
Total property 4,719 1,882 6,601 4,588 1,827 6,375
Net debt (1,212) (532) (1,744) (989) (521) (1,510)
Lease liability (74) - (74) (73) - (73)
Other assets/(liabilities) (65) (33) (98) 1 (35) (34)
EPRA net tangible assets 3,368 1,317 4,685 3,487 1,271 4,758
IFRS NAV 3,417 1,317 4,734 3,547 1,265 4,812
LTV 27% 24%
1. Rental properties (owned) includes assets classified as held for sale in
the IFRS balance sheet
Return on equity (total accounting return)
Dividends paid of 37.7p (2024: 36.0p), together with growth in EPRA NTA,
resulted in a total accounting return of 2.1% in the year (2024: 9.6%). Our
adjusted EPS yield (measured against opening EPRA NTA) decreased to 4.9% in
the year (2024: 5.1%), reflecting NTA growth in the prior year.
Cash flow and net debt
During the year, net debt increased to £1,744 million (2024: £1,510
million). The key components of the movement in net debt were an inflow from
operational cash of £189 million, disposals of £142 million, offset by total
capital expenditure of £349 million and dividend payments of £175 million.
In 2026, we expect see-through net debt to be broadly stable as planned
capital expenditure on investment and development activity will offset
anticipated property disposals.
Debt financing and liquidity
We are focused on maintaining a strong and flexible balance sheet and use debt
to support our growth and enhance risk-adjusted returns. We manage our
financing risk by ensuring that we have a diversified range of funding
sources, well-laddered debt maturities and appropriate hedging of future
interest rates.
We closely monitor our interest cover and net debt to EBITDA ratios. In 2025,
interest cover decreased to 6.0x (2024: 6.2x) and net debt to EBITDA increased
to 6.0x (2024: 5.5x), reflecting the impact of increased borrowing. We aim to
maintain an ICR ratio of 3.5-4.0x and a net debt to EBITDA ratio of 6-7x.
LTV increased to 27% at 31 December 2025 (31 December 2024: 24%), reflecting
increased net debt and a more modest increase in our property valuations. We
expect to maintain LTV between 30-35% on a built-out basis, while maintaining
healthy leverage metrics on a cashflow basis.
We remain committed to active portfolio management through capital recycling
and are targeting disposals of around £300-400 million p.a. (Unite share).
At the end of the year, Standard & Poor's affirmed The Unite Group credit
rating at BBB+, reflecting our leverage targets, robust capital position and
track record.
Key debt statistics (Unite share basis) 31 Dec 2025 31 Dec 2024
See-through net debt £1,744m £1,510m
LTV 27% 24%
Net debt: EBITDA ratio 6.0x 5.5x
Interest cover ratio 6.0x 6.2x
Average debt maturity 4.0 years 3.8 years
Average cost of debt 3.9% 3.6%
Proportion of investment debt at fixed rate 100% 100%
Funding activity
As at 31 December 2025, the wholly-owned Group had £651 million of cash and
debt headroom (31 December 2024: £1,024 million), comprising £36 million of
cash balances and £615 million of undrawn debt (2024: £274 million and £750
million respectively).
In June, USAF refinanced its £395 million 2025 bonds through a new £400
million eight-year secured loan with Rothesay Life. The new facility completes
refinancing activity in USAF with no maturities now due before 2029.
In December, the Group refinanced its £750 million RCF with five existing
relationship banks into a new three-year facility, extendable by up to two
further years. Following this refinancing, the SMBC £150 million unsecured
term loan was repaid in advance of its maturity in March 2027.
In December, the Group entered into a joint venture with Newcastle University
(Unite share: 51%) supported by a £150 million development facility with
Rothesay Life. Debt drawdowns are expected to commence in May 2027.
In January 2026, the Group entered into a joint venture with Manchester
Metropolitan University (Unite share: 69%) supported by a £236 million
development facility with PIMCO. Debt drawdowns are expected to commence in
October 2027.
Interest rate hedging arrangements and cost of debt
Our average cost of debt increased to 3.9% in the year (2024: 3.6%) as new
debt was issued at higher prevailing rates. At the year-end, 100% of the
Group's debt was subject to fixed or capped interest rates (31 December 2024:
100%), providing protection against future changes in interest rates. We
expect our average cost of debt to increase to 4.3% for 2026 and 4.5% for 2027
based on our hedging position, forecast future drawings, planned refinancing
events and market interest rate expectations. We expect a reduction in
capitalised interest in 2026 to £10-15 million (2025: £26.8 million), driven
by a reduced level of development activity. The Group's average debt maturity
has remained broadly unchanged at 4.0 years (31 December 2024: 3.8 years).
Dividend
We are proposing a final dividend payment of 24.9p per share (2024: 24.9p),
totalling 37.7p for the full year (2024: 37.3p) and representing a 1% increase
compared to 2024. This represents a payout ratio of 79% of adjusted EPS. The
final dividend will be fully paid as a Property Income Distribution (PID) of
24.9p, which will fully satisfy our PID requirement for the 2025 financial
year.
Subject to approval at Unite's Annual General Meeting on 15 May 2026, the
dividend will be paid on 29 May 2026 to shareholders on the register at close
of business on 17 April 2026.
During 2025, scrip elections were received for 5% and 10% of shares in issue
for the 2024 final dividend and 2025 interim dividend respectively. The
Company does not intend to offer a scrip alternative for the 2025 final
dividend.
The Company intends to maintain a stable dividend payout in 2026, distributing
37.7p for the financial year, balancing confidence in the medium-term outlook
with the expected reduction in adjusted EPS for the year ahead.
Tax and REIT status
The Group holds REIT status and is exempt from tax on its property business.
During the year, we recognised a corporation tax charge of £3.1 million
(2024: £4.8 million charge) with the decrease primarily due to lower taxable
profits from interest income.
Funds and joint ventures
The table below summarises the key financials at 31 December 2025 for our
co-investment vehicles USAF and LSAV.
Property assets Net debt Other Net assets Unite share of NTA Total return Maturity Unite share
liabilities
£m £m £m £m £m
USAF 2,844 (697) (35) 2,112 614 3.3% Infinite 30%
LSAV 2,083 (647) (50) 1,386 685 4.3% 2032 50%
Property valuations increased by 0.7% for USAF and 0.5% in LSAV over the year,
on a like-for-like basis, with rental growth more than offsetting the impact
of increases to property yields. Property yields increased by 12bps for USAF
and 18bps for LSAV to a weighted average yield of 5.3% and 4.7% respectively.
During the year, £117 million of USAF redemption requests were cleared, with
£105 million traded on the secondary market at an average 2% discount to NAV
and £12 million paid to unitholders out of disposal proceeds. Unite's
ownership of USAF increased by 0.7% to 29.8% following redemptions paid to
unitholders during the year. USAF has capital available to invest, which will
part fund the acquisition of St Pancras Way from Unite for £186 million,
increasing USAF's portfolio weighting to London.
Management fees
During the year, the Group recognised net fees of £17.3 million from its fund
and asset management activities (2024: £17.3 million), which remained
unchanged in the year. The benefit of increased fees from higher income and
property valuations were offset by lower fees following redemptions in USAF
over the past two years.
2025 2024
£m £m
USAF asset management fee 12.3 12.4
LSAV asset and property management fee 5.0 4.9
Total fees 17.3 17.3
Responsibility statement of the directors in respect of the annual financial
report
We confirm that to the best of our knowledge:
· The financial statements, prepared in accordance with the
relevant financial reporting framework, give a true and fair view of the
assets, liabilities, financial position and profit or loss of the company and
the undertakings included in the consolidation taken as a whole
· The strategic report includes a fair review of the development
and performance of the business and the position of the company and the
undertakings included in the consolidation taken as a whole, together with a
description of the principal risks and uncertainties that they face
· The annual report and financial statements, taken as a whole, are
fair, balanced and understandable and provide the information necessary for
shareholders to assess the Group's position and performance, business model
and strategy.
Joe Lister
Mike Burt
Chief Executive
Chief
Financial Officer
24 February 2026
Forward-looking statements
The preceding preliminary statement has been prepared for the shareholders of
the Company, as a body, and for no other persons. Its purpose is to assist
shareholders of the Company to assess the strategies adopted by the Company
and the potential for those strategies to succeed and for no other purpose.
The preliminary statement contains forward-looking statements that are subject
to risk factors associated with, among other things, the economic, regulatory
and business circumstances occurring from time to time in the sectors and
markets in which the Group operates. It is believed that the expectations
reflected in these statements are reasonable, but they may be affected by a
wide range of variables that could cause actual results to differ materially
from those currently anticipated. No assurances can be given that the
forward-looking statements will be realised. The forward-looking statements
reflect the knowledge and information available at the date of preparation.
Nothing in the preliminary statement should be considered or construed as a
profit forecast for the Group. Except as required by law, the Group has no
obligation to update forward-looking statements or to correct any inaccuracies
therein.
Primary statements
Consolidated income statement
Consolidated statement of comprehensive income
Consolidated balance sheet
Consolidated statement of changes in shareholders' equity
Statement of cash flows
Section 1: Basis of preparation
Section 2: Results for the year
2.1 Segmental information
2.2 Earnings
2.3 Net assets
2.4 Revenue and costs
2.5 Tax
Section 3: Asset management
3.1 Wholly owned property assets
3.2 Investments in joint ventures
Section 4: Funding
4.1 Borrowings
4.2 Interest rate swaps
4.3 Net financing costs
4.4 Gearing
4.5 Covenant compliance
4.6 Equity
4.7 Dividends
Section 5: Working capital
5.1 Cash and cash equivalents
5.2 Credit risk
Section 6: Post balance sheet events
Section 7: Alternative performance measures
Glossary
Company information
CONSOLIDATED INCOME STATEMENT
For the year ended 31 December 2025
2025 2024
Note £m £m
Rental income 2.4 307.7 282.0
Other income 2.4 25.1 17.3
Total revenue 332.8 299.3
Cost of sales (96.8) (86.4)
Operating expenses (57.9) (43.9)
Expected credit losses (2.6) (0.9)
Results from operating activities before (losses)/gains on property 175.5 168.1
Loss on disposal of property (1.3) (9.8)
Write-off of inventories 3.1 (12.0) -
Net valuation (losses)/gains on property (owned and under development) 3.1 (72.3) 186.7
Net valuation losses on property (leased) (12.9) (1.9)
Profit before net financing (costs)/gains and share of joint venture profit 77.0 343.1
Loan interest and similar charges 4.3 (13.0) (19.4)
Interest on lease liability 4.3 (7.6) (8.8)
Mark to market changes in interest rate swaps 4.3 (22.5) (0.4)
Swap cancellation and loan break costs 4.3 - (3.1)
Finance (costs) (43.1) (31.7)
Finance income 4.3 6.1 16.7
Net financing (costs)/gains (37.0) (15.0)
Share of joint venture profit 3.3b 57.7 115.9
Profit before tax 97.7 444.0
Current tax 2.5a (3.1) (4.8)
Deferred tax 2.5a 3.0 2.6
Profit for the year 97.6 441.8
Profit for the year attributable to
Owners of the Parent Company 97.6 441.9
Non-controlling interest - (0.1)
97.6 441.8
Earnings per share
Basic 2.2c 19.9p 96.3p
Diluted 2.2c 19.9p 96.1p
All results are derived from continuing activities.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2025
Note 2025 2024
£m £m
Profit for the year 97.6 441.8
Share of joint venture movements in effective hedges 3.3b (0.5) (2.3)
Other comprehensive income for the year (0.5) (2.3)
Total comprehensive income for the year 97.1 439.5
Attributable to
Owners of the Parent Company 97.1 439.6
Non-controlling interest - (0.1)
97.1 439.5
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 31 December 2025 Note 2025 2024 2022
£m £m £m
Assets
Investment property (owned) 3.1 4,220.4 4,025.5 3,623.4
Investment property (leased) 3.1 60.3 71.8 90.3
Investment property under development 3.1 438.4 451.4 202.7
Investment in joint ventures 3.3b 1,317.3 1,265.0 1,226.6
Other non-current assets 21.6 14.8 15.4
Interest rate swaps 4.2 26.9 46.0 73.2
Right-of-use assets 8.3 4.7 2.7
Deferred tax asset 2.5d 11.2 8.2 3.6
Total non-current assets 6,104.4 5,887.4 5,238.0
Assets classified as held for sale 3.1 - 92.6 -
Interest rate swaps 4.2 17.1 7.4
Inventories 5.4 13.6 12.8
Trade and other receivables 138.0 144.6 105.2
Cash and cash equivalents 5.1 35.8 274.3 38.0
Total current assets 196.3 532.5 156.0
Total assets 6,300.7 6,419.9 5,393.9
Liabilities
Lease liabilities (5.8) (6.0) (4.8)
Trade and other payables (230.2) (255.5) (191.5)
Current tax liability (6.2) (1.2) (0.8)
Provisions - (5.1) (29.5)
Total current liabilities (242.2) (267.8) (226.6)
Borrowings 4.1 (1,256.2) (1,273.8) (1,265.9)
Lease liabilities (68.5) (66.8) (87.5)
Total non-current liabilities (1,324.7) (1,340.6) (1,353.4)
Total liabilities (1,566.9) (1,608.4) (1,580.0)
Net assets 4,733.8 4,811.5 3,813.9
Equity
Issued share capital 122.5 122.2 100.1
Share premium 2,876.6 2,876.9 2,162.0
Merger reserve 40.2 40.2 40.2
Retained earnings 1,693.8 1,770.8 1,479.0
Hedging reserve 0.7 1.4 6.2
Equity attributable to the owners of the Parent Company 4,733.8 4,811.5 3,787.5
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
For the year ended 31 December 2025
Note
Issued share Share premium Merger reserve Retained earnings Hedging reserve
capital £m £m £m £m Total
£m £m
At 1 January 2025 122.2 2,876.9 40.2 1,770.8 1.4 4,811.5
Profit for the year - - - 97.6 - 97.6
Other comprehensive income
for the year:
Share of joint venture movements in effective hedges
- - - - (0.5) (0.5)
Total comprehensive income
for the year
- - - 97.6 (0.5) 97.1
Fair value of share-based payments - - - 1.5 - 1.5
Own shares acquired - - - (0.8) - (0.8)
Unwind of realised swap gain - - - - (0.2) (0.2)
Dividends paid to owners - - - (175.3) - (175.3)
of the parent company
Scrip dividend related share issue 0.3 (0.3) - - - -
At 31 December 2025 122.5 2,876.6 40.2 1,693.8 0.7 4,733.8
Note Attributable to owners of the
Issued share Share premium Merger reserve Retained earnings Hedging reserve parent Non-controlling interest
capital £m £m £m £m £m £m Total
£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 hedged instruments - - - - (2.3) (2.3) - (2.3)
Total comprehensive income - - - 441.9 (2.3) 439.6 (0.1) 439.5
for the year
Shares issued 12.8 429.3 - - - 442.1 - 442.1
Deferred tax on share-based payments - - - 0.1 - 0.1 - 0.1
Fair value of share-based payments - - - 2.1 - 2.1 - 2.1
Own shares acquired - - - (1.5) - (1.5) - (1.5)
Unwind of realised swap gain - - - - (0.1) (0.1) - (0.1)
Dividends paid to owners - - - (137.8) - (137.8) - (137.8)
of the parent company
Disposals of 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
For the year ended 31 December 2024
STATEMENT OF CASH FLOWS
For the year ended 31 December 2025
Note 2025 2024
£m £m
Net cash flows from operating activities 5.1 166.5 216.4
Investing activities
Redemption of units / investment in joint ventures (11.7) 27.9
Payments for investment property - (347.8)
Capital expenditure on properties (242.5) (267.9)
Acquisition of intangible assets (8.6) (5.1)
Acquisition of plant and equipment (4.2) (2.5)
Proceeds from sale of investment property 91.0 123.1
Interest received 6.1 16.7
Dividends received 29.5 27.6
Net cash flows from investing activities (140.4) (428.0)
Financing activities
Proceeds from the issue of share capital - 442.0
Payments to acquire own shares (0.8) (1.5)
Interest paid in respect of financing activities (47.5) (35.6)
Repayment of lease liabilities (12.9) (8.8)
Swap cancellation and loan break costs - (3.1)
Purchase of Swap Premium (13.1) -
Proceeds from non-current borrowings 135.0 543.7
Repayment of borrowings (150.0) (350.5)
Dividends paid to the owners of the parent company (153.7) (124.2)
Withholding tax paid on distributions (21.6) (13.6)
Net cash flows from financing activities (264.6) 448.4
Net (decrease)/increase in cash and cash equivalents (238.5) 236.8
Cash and cash equivalents at start of year 274.3 37.5
Cash and cash equivalents at end of year 35.8 274.3
NOTES TO THE FINANCIAL STATEMENTS
Section 1: Basis of preparation
The financial information set out above does not constitute the company's
statutory accounts for the years ended 31 December 2025 or 2024 but is derived
from those accounts. Statutory accounts for 2025 have been delivered to the
Registrar of Companies, and those for 2025 will be delivered in due
course. The auditors have reported on those accounts; their reports were (i)
unqualified (ii) did not include a reference to any matters to which the
auditors drew attention by way of emphasis without qualifying their report and
(iii) did not contain a statement under section 498 (2) or (3) of the
Companies Act 2006 in respect of the accounts for 2025 or 2024.
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. Following the acquisition of Empiric Student Property plc on 28th
January 2026, the Group has also considered the impact of Empiric's cash flows
and covenants in its going concern assessment.
The Directors have considered a range of scenarios for future performance
through the 2025/26 and 2026/27 academic years. This included a base case
assuming cash collection and performance for the 2025/26 academic year remains
in line with current expectations and sales performance for the 2026/27
academic year is consistent with published guidance; and a reasonable
worst-case scenario where income for the 2026/27 academic year is impacted by
reduced sales, equivalent to occupancy of around 90%.
The impact of our sustainability asset transition plans are included within
the capex element of our cash flows, which have been modelled to align with
the Group's net zero carbon targets. Under each of these scenarios, the
Directors are satisfied that the Group has sufficient liquidity and will
maintain 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 80% in the
Group and 68% in the funds before a breach would occur. The Group has capacity
for property valuations to fall by around 30% in the Group and 35% in the
funds before 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.
Section 2: Results for the year
IFRS performance measures
2025 2024 2025 2024
£m
£m
pps
pps
Note
Profit after tax 2.2b 97.6 441.9 19.9 96.3p
Net assets 2.3d 4,733.8 4,811.5 967.5 982p
EPRA performance measures
2025 2024 2025 2024
£m
£m
pps
pps
Note
EPRA earnings 2.2c 217.7 201.9 44.5 44.0p
Adjusted earnings* 2.2c 232.3 213.8 47.5 46.6p
EPRA NTA 2.3d 4,684.9 4,758.4 955 972p
* See glossary for definition and note 2.2b for reconciliation to IFRS
measure.
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. 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.
The reportable segments for the years ended 31 December 2025 and 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. In accordance with the IFRIC guidance, costs
relating to software as a service arrangements are expensed as incurred and
excluded from adjusted earnings, rather than being capitalised. The
reconciliation between profit attributable to owners of the Parent Company and
EPRA earnings is available in note 2.2b
2.2a) EPRA earnings
2025
Unite Share of joint ventures Group on
EPRA basis
£m
Total
£m
USAF LSAV Total
£m £m £m
Rental income 307.7 59.2 61.3 120.5 428.2
Property operating expenses (99.4) (19.6) (15.2) (34.8) (134.2)
Net operating income 208.3 39.6 46.1 85.7 294.0
Management fees 22.2 (4.9) - (4.9) 17.3
Overheads (47.1) (0.6) (0.8) (1.4) (48.5)
Interest on lease liabilities (7.6) - - - (7.6)
Net financing costs (9.1) (12.8) (17.2) (30.0) (39.1)
Operations segment result 166.7 21.3 28.1 49.4 216.1
Property segment result 5.0 - - - 5.0
Unallocated to segments (2.9) (0.2) (0.3) (0.5) (3.4)
EPRA earnings 168.8 21.1 27.8 48.9 217.7
Software as a service cost 14.6 - - - 14.6
Adjusted earnings 183.4 21.1 27.8 48.9 232.3
Included in the above is rental income of £20.7 million and property
operating expenses of £11.6 million relating to sale and leaseback
properties. Included in the above is also rental income of £4.1 million and
property operating expenses of £1.2 million, relating to a build-to-rent
property. Unallocated to segments includes the fair value of share-based
payments of (£1.5 million), contributions to the Unite Foundation and social
causes of (£1.0 million), a deferred tax credit of £3.3 million and a
current tax charge of (£3.1 million). Depreciation and amortisation totalling
(£6.9 million) is included within overheads. The software as a service costs
are presented net of deferred tax of £4.8 million.
2.2a) EPRA earnings (continued)
2024
Unite Share of joint ventures Group on
EPRA basis
Students
Total
£m
£m
USAF LSAV Total
£m £m £m
Rental income 282.0 59.0 57.0 116.0 398.0
Property operating expenses (87.2) (20.7) (14.0) (34.7) (121.9)
Net operating income 194.8 38.3 43.0 81.3 276.1
Management fees 21.9 (4.6) - (4.6) 17.3
Overheads (37.5) (0.5) (0.4) (0.9) (38.4)
Interest on lease liabilities (8.8) - - - (8.8)
Net financing costs (6.9) (11.5) (16.8) (28.3) (35.2)
Operations segment result 163.5 21.7 25.8 47.5 211.0
Property segment result (3.8) - - - (3.8)
Unallocated to segments (4.8) (0.2) (0.3) (0.5) (5.3)
EPRA earnings 154.9 21.5 25.5 47.0 201.9
Software as a service cost 11.9 - - - 11.9
Adjusted earnings 166.8 21.5 25.5 47.0 213.8
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. Included in the above is also rental income of £4.0 million and
property operating expenses of £1.2 million, relating to a build-to-rent
property. 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 a
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
disposal of properties and swap/debt break costs which are included in the
profit reported under IFRS. EPRA earnings and adjusted earnings reconcile to
the profit attributable to owners of the Company as follows:
Note 2025 2024
£m £m
Profit attributable to owners of the Parent Company 97.6 441.9
Net valuation losses/(gains) on investment property (owned) 3.1 72.3 (186.7)
Losses on property disposals (owned) 1.3 9.8
Write-off of inventories and other fixed assets 12.0 -
Net valuation losses on investment property (leased) 3.1 12.9 1.9
Amortisation of fair value of debt recognised on acquisition (2.3) (4.1)
Share of joint venture (gains)/losses on investment property 3.3b (5.2) (67.0)
Share of joint venture property disposals 3.3b 1.6 2.4
Swap cancellation and loan break costs 4.3 - 3.1
Mark to market changes on interest rate swaps 4.3 22.5 0.4
Current tax relating to property disposals - 0.2
Deferred tax 2.5d (1.2) -
Cladding compensation (3.5) -
Costs relating to the acquisition of Empiric 4.9 -
Restructuring costs 4.8 -
EPRA earnings 217.7 201.9
Software as a service cost previously capitalised 14.6 11.9
Adjusted earnings 232.3 213.8
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 in order 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.
2025 2024 2025 2024
£m
£m
pps
pps
Note
Earnings
Basic 97.6 441.9 19.9 96.3
Diluted 19.9 96.1
EPRA 2.2b 217.7 201.9 44.5 44.0
Diluted EPRA 44.5 43.9
Adjusted earnings 2.2b 232.3 213.8 47.5 46.6
Diluted adjusted earnings 47.5 46.5
2025 2024
Weighted average number of shares (thousands)
Basic 489,258 458,969
Dilutive potential ordinary shares (share options) 758 1,087
Diluted 490,016 460,056
Movements in the weighted average number of shares have resulted from the
equity raise in July 2024, employee share-based payment schemes and the scrip
dividend.
In 2025, there were 231,792 options excluded from the potential dilutive
shares that did not affect the diluted weighted average number of shares
(2024: 37,319).
2.3 Net assets
2.3a) EPRA NTA
EPRA NTA makes adjustments to IFRS measures by removing the fair value of
financial instruments and the carrying value of intangibles. The
reconciliation between IFRS NAV and EPRA NTA is available in note 2.3c.
2025 Unite Share of joint ventures Group on
EPRA basis
Students
£m
USAF LSAV Other university partnerships Total Total
£m £m £m £m £m
Investment property (owned)* 4,220.4 843.4 1,019.5 - 1,862.9 6,083.3
Investment property (leased) 60.3 - - - - 60.3
Investment property (under development) 438.4 - - 18.5 18.5 456.9
Total property portfolio 4,719.1 843.4 1,019.5 18.5 1,881.4 6,600.5
Debt (1,248.2) (279.7) (361.3) - (641.0) (1,889.2)
Lease liabilities (74.3) - - - - (74.3)
Cash 35.8 71.7 38.0 - 109.7 145.5
Net debt (1,286.7) (208.0) (323.3) - (531.3) (1,818.0)
Other assets and (liabilities) (52.0) (20.7) (10.9) (1.1) (32.7) (84.7)
EPRA net assets 3,380.4 614.7 685.3 17.4 1,317.4 4,697.8
Intangible assets (12.8) (0.1) - - (0.1) (12.9)
EPRA NTA 3,367.6 614.6 685.3 17.4 1,317.3 4,684.9
Loan to value** 26% 25% 32% n/a 28% 27%
Loan to value post IFRS 16 27% 25% 32% n/a 28% 28%
2.3a) EPRA NTA (continued)
2024 Unite Share of joint ventures Group on
EPRA basis
Students
£m
Total
£m
USAF LSAV Total
£m £m £m
Investment property (owned)* 4,025.5 829.6 996.9 1,826.5 5,852.0
Investment property (leased) 71.8 - - - 71.8
Investment property (under development) 451.4 - - - 451.4
Total property portfolio 4,548.7 829.6 996.9 1,826.5 6,375.2
Debt (1,263.7) (273.1) (338.0) (611.1) (1,874.8)
Lease liabilities (72.8) - - - (72.8)
Cash 274.3 70.4 20.0 90.4 364.7
Net debt (1,062.2) (202.7) (318.0) (520.7) (1,582.9)
Other assets and (liabilities) 11.7 (22.6) (12.6) (35.2) (23.5)
EPRA NTA 3,498.2 604.3 666.3 1,270.6 4,768.8
Intangible assets (10.4) - - - (10.4)
Net Tangible Assets
Net Tangible Assets 3,487.8 604.3 666.3 1,270.6 4,758.4
Loan to value** 22% 24% 32% 29% 24%
Loan to value post IFRS 16 23% 24% 32% 29% 25%
* Investment property (owned) includes assets classified as held for sale in
the IFRS balance sheet.
** LTV calculated excluding investment properties (leased) and the
corresponding lease liabilities. LTV is an APM - see section 8.
2.3b) Movement in EPRA NTA during the year
Contributions to EPRA NTA by each segment during the year is as follows:
2025 Note Unite Students Share of joint ventures Group on
EPRA basis
£m
Total
£m
USAF LSAV Other University partnerships Total
£m £m £m £m
Operations
Operations segment result 2.2a 166.7 21.3 28.1 - 49.4 216.1
Add back amortisation of intangibles 3.3b 4.3 - - - - 4.3
Total Operations 171.0 21.3 28.1 49.4 220.4
Property
Rental growth 19.5 21.0 43.4 - 64.4 83.9
Yield movement (89.3) (19.0) (40.0) - (59.0) (148.3)
Disposals (losses) (1.3) (1.6) - - (1.6) (2.9)
Investment property (losses)/gains (owned) (71.1) 0.4 3.4 - 3.8 (67.3)
Investment property loss (leased) 3.1 (12.9) - - - - (12.9)
Disposals losses investment property (leased) - - - - - -
Investment property loss (under development) 3.1 (2.5) - - (0.2) (0.2) (2.7)
Pre-contract/other development costs 2.2a 5.0 - - - - 5.0
Total Property (81.5) 0.4 3.4 (0.2) 3.6 (77.9)
Unallocated
Shares issued - - - - - -
Investment in joint ventures 11.6 (16.6) (12.9) 17.9 (11.6) -
Dividends paid (175.3) - - - - (175.3)
Swap cancellation and debt break costs (13.1) - - - - (13.1)
Purchase of intangibles (8.6) - - - - (8.6)
Share based payment charge (1.5) - - - - (1.5)
Write-off of inventories and other fixed assets (12.0) - - - - (12.0)
Costs relating to the acquisition of Empiric (4.9) - - - - (4.9)
Restructuring and other non-recurring write-offs (5.8) 5.1 0.4 (0.3) 5.2 (0.6)
Total Unallocated (209.6) (11.5) (12.5) 17.6 (6.4) (216.0)
Total EPRA NTA movement in the year (120.1) 10.2 19.0 17.4 46.6 (73.5)
Total EPRA NTA brought forward 3,487.8 604.3 666.3 - 1,270.6 4,758.4
Total EPRA NTA carried forward 3,367.7 614.5 685.3 17.4 1,317.2 4,684.9
* Investment property gains (owned) includes gains on assets classified as
held for sale in the IFRS balance sheet.
The £0.6 million Other balance within the Unallocated segment includes
restructuring costs of (£4.8 million), the purchase of own shares of (£0.8
million), contributions to the Unite Foundation and other social causes of
(£1.7 million) and tax credits of £3.1 million.
2024 Note Unite Students Share of joint ventures Group on
EPRA basis
£m
Total
£m
USAF LSAV Total
£m £m £m
Operations
Operations segment result 2.2a 163.5 21.7 25.8 47.5 211.0
Add back amortisation of intangibles 3.3b 4.0 - - - 4.0
Total Operations 167.5 21.7 25.8 47.5 215.0
Property
Rental growth 269.6 29.7 46.4 76.1 345.7
Yield movement (107.0) (2.8) (4.3) (7.1) (114.1)
Disposal (losses) (5.5) (2.4) - (2.4) (7.9)
Investment property (losses)/gains (owned)* 157.1 24.5 42.1 66.6 223.7
Investment property losses (leased) 3.1 (1.9) - - - (1.9)
Disposals losses investment property (leased) (4.3) - - - (4.3)
Investment property losses (under development) 3.1 24.1 - - - 24.1
Pre-contract/other development costs 2.2a (3.8) - - - (3.8)
Total Property 171.2 24.5 42.1 66.6 237.8
Unallocated
Shares issued 442.1 - - - 442.1
Investment in joint ventures 28.3 (18.7) (9.6) (28.3) -
Dividends paid (137.8) - - - (137.8)
Swap cancellation and debt break cost (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) (4.9) (2.4)
Total Unallocated 324.1 (22.1) (11.1) (33.2) 290.9
Total EPRA NTA movement in the year 662.8 24.1 56.8 80.9 743.7
Total EPRA NTA brought forward 2,825.0 580.2 609.5 1,189.7 4,014.7
Total EPRA NTA carried forward 3,487.8 604.3 666.3 1,270.6 4,758.4
The £2.4 million Other balance within the Unallocated segment includes the
purchase of own shares of (£1.5 million), contributions to the Unite
Foundation and other social causes of (£0.6 million), tax credits of £2.6
million.
2.3c) Reconciliation to IFRS
To determine EPRA NTA, net assets reported under IFRS are adjusted 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 adjusted 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 adjusted 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:
2025
NTA NRV NDV
£m
£m
£m
Note
Net asset reported under IFRS 4,733.8 4,733.8 4,733.8
Mark to market interest rate swaps (44.0) (44.0) -
Unamortised fair value of debt recognised on acquisition 7.9 7.9 7.9
Mark to market of fixed rate debt - - 8.9
Intangibles per IFRS balance sheet (12.8) - -
Real estate transfer tax - 435.9 -
EPRA reporting measures 4,684.9 5,133.6 4,750.6
2024
NTA NRV NDV
£m
£m
£m
Note
Net assets 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 -
Intangibles per IFRS balance sheet (10.4) - -
Real estate transfer tax - 467.4 -
EPRA reporting measures 4,758.4 5,236.2 4,853.3
2.3d) NAV, NTA, NRV and NDV per share
The Board uses EPRA NTA to monitor the performance of the Property segment on
a day-to-day basis.
Note 2025 2024 2025 2024
£m
£m
pps
pps
Net assets 4,733.8 4,811.5 966 982
EPRA NTA 2.3a 4,684.9 4,758.4 956 974
EPRA NTA (diluted) 4,685.6 4,761.4 955 972
EPRA NRV 2.3c 5,133.6 5,236.2 1,048 1,071
EPRA NRV (diluted) 5,134.3 5,239.2 1,046 1,069
EPRA NDV 2.3c 4,750.6 4,853.3 970 993
EPRA NDV (diluted) 4,751.3 4,856.3 968 994
Number of shares (thousands) 2025 2024
Basic 489,853 488,792
Outstanding share options 962 1,308
Diluted 490,815 490,100
2.4 Revenue and costs
The Group earns revenue from the following activities:
Note 2025 2024
£m £m
Rental income* Operations segment 2.2a 307.7 282.0
Management fees Operations segment 17.3 17.3
Cladding compensation 3.5 -
Joint venture formation fee Property segment result 4.3 -
Total revenue 332.8 299.3
* EPRA earnings includes £428.2 million (2024: £398.0 million) of rental
income, which is comprised of £307.7 million (2024: £282.0 million)
recognised on wholly owned assets and a further £120.5 million (2024: £116.0
million) from joint ventures, which is included in share of joint venture
profit/(loss) in the consolidated income statement.
The cost of sales included in the consolidated income statement includes
property operating expenses of £96.8 million (2024: £86.4 million).
2.5 Tax
As a REIT, rental profits and gains on disposal of investment properties are
exempt from corporation tax. The Group pays UK corporation tax on the profits
from its residual business, including management fees received from joint
ventures, together with UK income tax on rental income that arises from
investments held by offshore subsidiaries in which the Group holds a
non-controlling interest.
2.5a) Tax - income statement
The total taxation charge/(credit) in the income statement is analysed as
follows:
2025 2024
£m £m
Corporation tax on residual business income arising in UK companies 3.3 4.9
Income tax on UK rental income arising in non-UK companies - 0.1
Prior year adjustments (0.2) (0.2)
Current tax charge 3.1 4.8
Reversal of deferred tax provision in respect of REIT property business assets (2.7) -
Origination and reversal of temporary differences - (2.6)
Adjustments in respect of prior periods (0.3) -
Deferred tax (credit) (3.0) (2.6)
Total tax charge/(credit) in income statement 0.1 2.2
The movement in deferred tax is shown in more detail in note 2.5d.
In the income statement, a tax debit of £0.1 million arises on a profit
before tax of £97.7 million. The taxation charge that would arise at the
standard rate of UK corporation tax is reconciled to the actual tax charge as
follows:
2025 2024
£m £m
Profit before tax 97.7 444.0
Income tax using the UK corporation tax rate of 25% 24.6 111.0
Property rental business profits exempt from tax in the REIT Group (48.4) (42.7)
Property revaluations not subject to tax 15.9 (66.6)
Mark to market changes in interest rate swaps not subject to tax 5.1 (0.4)
Unrealised gains on investments - (0.4)
Effect of other permanent differences 3.4 1.4
Effect of tax deduction transferred to equity on share schemes - 0.1
Prior years adjustments (0.5) (0.2)
Total tax charge/(credit) in income statement 0.1 2.2
As a UK REIT, the Group is exempt from UK corporation tax on the profits from
its property rental business. Accordingly, the element of the Group's profit
before tax relating to its property rental business has been separately
identified in the reconciliation above.
No deferred tax asset has been recognised in respect of the Group's
accumulated tax losses on the basis that they are not expected to be utilised
in future periods. At 31 December 2025 these losses totalled £14.7 million
(2024: £15.3 million).
Although the Group does not pay UK corporation tax on the profits from its
property rental business, it is required to distribute 90% of the profits from
its property rental business after accounting for tax adjustments as a
Property Income Distribution (PID). PIDs are charged to tax in the same way as
property income in the hands of the recipient. For the year ended 31 December
2025, the required PID is expected to be fully paid by the end of 2026.
2.5b) Tax - other comprehensive income
Within other comprehensive income a tax charge totalling £nil (2024: £nil)
has been recognised.
2.5c) Tax - statement of changes in equity
Within the statement of changes in equity a tax credit totalling £nil (2024:
£0.2 million charge) has been recognised representing deferred tax. An
analysis of this is included below in the deferred tax movement table.
2.5d) Tax - balance sheet
The table below outlines the deferred tax (assets)/liabilities that are
recognised in the balance sheet, together with their movements in the year:
2025
At 31 December 2024 Charged/(credited) Charged/(credited) At 31 December 2025
in income
in equity
£m
£m
£m £m
Property, plant and machinery (7.2) (3.1) - (10.3)
Share schemes (1.0) 0.1 - (0.9)
Net tax (assets) (8.2) (3.0)* - (11.2)
* The £3.0 million credit above includes tax movements totalling £3.0
million in respect of Property, plant and machinery and Share schemes, which
are included in EPRA, which is why they are not included in the IFRS
reconciliation in note 2.2b).
2024
At 31 December 2023 Charged/(credited) Charged/(credited) At 31 December 2024
in income
in equity
£m
£m
£m £m
Investments 0.4 (0.4) - -
Property, plant and machinery and provisions (4.9) (2.3) - (7.2)
Share schemes (1.1) - 0.1 (1.0)
Tax value of carried forward losses recognised - 0.1 (0.1) -
Net tax (assets) (5.6) (2.6)* - (8.2)
*The £2.6m credit above includes tax movements totalling £2.3m in respect of
Property, plant and machinery and losses that are included in EPRA earnings,
which is why they are not included in the IFRS reconciliation in note 2.2b).
Section 3: Asset management
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 these groups 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 measured 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 measured 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. The 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. They
are presented as current assets in the IFRS balance sheet.
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 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 Group.
CB Richard Ellis Ltd, Jones Lang LaSalle Ltd, and Messrs Knight Frank LLP
Chartered Surveyors acted as valuers for both 2024 and 2025, Savills Ltd were
added as valuers in 2025.
The valuations are based on:
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 Net Operating
Income. These are based on their professional judgement and market
observation.
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 year
ended 31 December 2025 are shown in the table below.
2025 Investment Investment Investment property under development Total
property property £m £m
(owned) (leased)
£m £m
At 1 January 2025 4,025.5 71.8 451.4 4,548.7
Additions - - - -
Cost capitalised 77.6 1.4 152.4 231.4
Interest capitalised - - 26.8 26.8
Transfer from investment property under development 188.9 - (188.9) -
Disposals (1.8) - (0.8) (2.6)
Net valuation gains/(losses) (69.8) (12.9) (2.5) (85.2)
Carrying value at 31 December 2025 4,220.4 60.3 438.4 4,719.1
Investment property (owned) includes an Asset Held for Sale of £4.0 million.
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 year
ended 31 December 2024 are shown in the table below.
2024 Investment Investment Investment property under development Total
property property £m £m
(owned) (leased)
£m £m
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 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 facade works (14.8) - - (14.8)
Carrying 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 £92.6
million of investment property (owned). Assets held for sale are reported
within the Property segment and represent a portfolio of properties (split
across the Group and joint ventures) intended to be sold within the next 12
months.
Total interest capitalised in investment properties (owned) and investment
properties under development at 31 December 2025 was £108.7 million (2024:
£81.9 million) on a cumulative basis.
Total internal costs capitalised in investment properties (owned) and
investment properties under development was £92.6 million at 31 December 2025
(2024: £84.4 million) on a cumulative basis
Capital Commitments
The Company has contractual commitments of £151.8 million due within one year
(2024: £324.7 million) and £406.1 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.
Recurring fair value measurement
All investment and development properties are classified as Level 3 in the
fair value hierarchy.
Class of asset 2025 2024
£m £m
London - rental properties 1,316.0 1,286.7
Prime regional - rental properties 1,512.8 1,314.2
Major regional - rental properties 1,226.6 1,346.7
Provincial - rental properties 96.1 100.7
London - development properties 372.0 269.5
Prime regional - development properties 21.0 157.7
Major regional - development properties 40.8 13.0
London build-to-rent 69.8 69.8
Prime regional build-to-rent - development properties 3.7 11.2
Investment property (owned) 4,658.8 4,569.5
Investment property (leased) 60.3 71.8
Market value (including assets classified as held for sale) 4,719.1 4,641.3
Investment property (classified as held for sale) - (92.6)
Market value 4,719.1 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 valuations also reflect 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 creditworthiness.
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.
Fair value using unobservable inputs (Level 3)
2025 2024
£m £m
Opening fair value 4,548.7 3,953.7
Additions - 347.8
Gains and (losses) recognised in income statement (85.2) 184.8
Transfer to assets held for sale - (92.6)
Capital expenditure 258.2 302.7
Disposals (2.6) (132.9)
Committed fire safety and external facade works - (14.8)
Closing fair value 4,719.1 4,548.7
Investment property (owned) - 92.6
Closing fair value (including assets classified as held for sale) 4,719.1 4,641.3
Quantitative information about fair value measurements using unobservable
inputs (Level 3)
2025
Fair value Valuation Unobservable inputs Range Weighted average
technique
£m
London - 1,316.0 RICS Red Book Net rental income (£ per week) £224 - £508 347
rental properties Estimated future rent increase (%)
Net initial yield/discount rate (%) 3% 3%
4.4% - 4.8% 4.5%
Prime regional - 1,512.8 RICS Red Book Net rental income (£ per week) £168 - £377 205
rental properties Estimated future rent increase (%)
Net initial yield/discount rate (%) 2% - 3% 3%
4.5% - 7.2% 5.2%
Major regional - 1,226.6 RICS Red Book Net rental income (£ per week) £100 - £232 169
rental properties Estimated future rent increase (%)
Net initial yield/discount rate (%) 3% 3%
5.3% - 7.0% 5.8%
Provincial - 96.1 RICS Red Book Net rental income (£ per week) £127 - £166 142
rental properties Estimated future rent increase (%)
Net initial yield/discount rate (%) 3% 3%
7.5% - 16.2% 9.0%
London - 372.0 RICS Red Book Estimated cost to complete (£m) £21m - £136m £71
development properties
Net rental income (£ per week)
Estimated future rent increase (%) £311 - £513 £358
Net initial yield/discount rate (%)
3% 3%
4.5% - 4.5% 4.5%
Prime regional - 21.0 RICS Red Book Estimated cost to complete (£m) £56m £56m
development properties
Net rental income (£ per week)
Estimated future rent increase (%) £263 £263
Net initial yield/discount rate (%)
3% 3%
4.5% 4.5%
Major regional - 40.8 RICS Red Book Estimated cost to complete (£m) £88m £88m
development properties
Net rental income (£ per week)
Estimated future rent increase (%) £241 £241
Net initial yield/discount rate (%)
3% 3%
5.4% 5.4%
4,585.3
Investment property - 68.7 RICS Red Book Net rental income (£ per week) £504.7 £504.7
Estimated future rent increase (%)
(BTR) Net initial yield/discount rate (%) 3% 3%
4.6% 4.6%
Development property - 4.9 RICS Red Book Estimated cost to complete (£m) £29m £29m
Net rental income (£ per week)
(BTR) Estimated future rent increase (%) £370 £370
Net initial yield/discount rate (%)
3% 3%
4.8% 4.8%
73.6
Investment property 60.2 Discounted cash flows Net rental income (£ per week) £119 - £213 £155
Estimated future rent increase (%)
(leased) Net initial yield/discount rate (%) 2% - 4% 3%
10.0% 10.0%
Fair value at 31 December 2025 4,719.1
2024
Fair value Valuation Unobservable inputs Range Weighted average
technique
£m
London - 1,286.7 RICS Red Book Net rental income (£ per week) £214 - £479 £351
rental properties
Estimated rental growth (% p.a.)
Discount rate (yield) (%) 2% - 3% 3%
4.2% - 4.8% 4.5%
Prime regional - 1,314.2 RICS Red Book Net rental income (£ per week) £160 - £342 £221
rental properties
Estimated rental growth (% p.a.)
Discount rate (yield) (%) 2% - 9% 4%
4.3% - 7.1% 5.1%
Major regional - 1,346.7 RICS Red Book Net rental income (£ per week) £87 - £224 £158
rental properties
Estimated rental growth (% p.a.)
Discount rate (yield) (%) 2% - 6% 3%
5.1% - 7.9% 6.2%
Provincial - 100.7 RICS Red Book Net rental income (£ per week) £119 - £171 £133
rental properties
Estimated rental growth (% p.a.)
Discount rate (yield) (%) 2% - 6% 4%
7.2% - 38.1% 14.7%
London - 269.5 RICS Red Book Estimated cost to complete (£m) £71m - £171m £123m
development properties
Estimated rental growth (% p.a.)
Discount rate (yield) (%) 3.0% 3%
Net rental income (£ per week)
4.4.% - 4.5% 4.5%
£299 - £485 £345
Prime regional - 157.7 RICS Red Book Estimated cost to complete (£m) £22m - £263m £165m
development properties
Estimated rental growth (% p.a.)
Discount rate (yield) (%) 3% 3%
Net rental income (£ per week)
4.4% - 5.2% 4.6%
£247 - £271 £258
Major regional - 13.0 RICS Red Book Estimated cost to complete (£m) £107m £107m
development properties
Estimated rental growth (% p.a.)
Discount rate (yield) (%) 3% 3%
Net rental income (£ per week)
5.4% 5.4%
£236 £236
4,488.5
Investment property - 69.8 RICS Red Book Net rental income (£ per week) £490 £490
Estimated rental growth (% p.a.)
(BTR)
Discount rate (yield) (%) 3% 3%
4.6% 4.6%
Development property - 11.2 RICS Red Book Estimated cost to complete (£m) £17m £17m
Estimated rental growth (% p.a.)
(BTR)
Discount rate (yield) (%) 3% 3%
Net rental income (£ per week)
4.4% 4.4%
£226 £226
4,569.5
Investment property 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
(owned and development) 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 Fair value at +5% -5% +25 bps -25 bps
31 December 2025
change in estimated net rental income
change in estimated net rental income
change in net initial yield
change in net initial yield
£m
£m
£m
£m
£m
Rental properties
London 1,316.0 1,370.2 1,237.0 1,234.9 1,381.1
Prime regional 1,512.8 1,579.9 1,426.5 1,432.5 1,581.3
Major regional 1,226.6 1,286.6 1,158.7 1,169.9 1,280.2
Provincial 96.1 100.9 91.4 93.4 99.0
Development properties
London 372.0 388.0 355.2 354.4 390.9
Prime regional 21.0 22.0 19.9 19.9 22.2
Major regional 40.8 42.9 38.8 39.0 42.8
Build-to-rent properties
London 68.7 71.4 64.5 64.3 71.9
Prime regional 4.9 5.2 4.7 4.7 5.2
Market value 4,658.9 4,867.1 4,396.7 4,413.0 4,874.6
3.2 Investments in joint ventures
The Group has three joint ventures:
Joint venture Group's share of assets/results 2025 (2024) Objective Partner Legal entity in which
Group has interest
The UNITE UK Student Accommodation Fund (USAF) 29.8% Operate student accommodation throughout the UK Consortium of investors UNITE UK Student Accommodation Fund,
a Jersey Unit Trust
(29.1%)
London Student Accommodation 50% Operate student accommodation GIC Real Estate Pte, Ltd Real estate investment vehicle of LSAV Unit Trust, a Jersey Unit Trust and LSAV (Holdings) Ltd, incorporated in
Venture (LSAV)
in London and Birmingham
the Government of Singapore Jersey
(50%)
Newcastle University Joint Venture (NUJV)* 51% Redevelop and operate student accommodation in Newcastle Newcastle University Unite Newcastle Holdco GP Limited
* On 22nd of December 2025, the Group entered into a joint venture with
Newcastle University
3.3a) 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:
2025
Summarised balance sheet USAF LSAV Uni-JV Total
£m £m £m £m
Gross Share Gross Share Gross Share Gross Share
Investment property 2,826.5 843.4 2,039.0 1,019.5 36.2 18.5 4,901.3 1,881.4
Cash and cash equivalents 239.9 71.6 76.0 38.0 - - 315.9 109.6
Borrowings Non-Current (937.3) (279.7) (722.6) (361.3) - - (1,659.9) (641.0)
Borrowings Current - - - - - - - -
Swap assets - - - - - - - -
Other current assets - - - - 32.7 16.7 32.7 16.7
Other current liabilities (69.4) (20.7) (21.8) (10.9) (35.0) (17.8) (126.2) (49.4)
Net assets 2,059.8 614.6 1,370.6 685.3 33.9 17.4 3,464.2 1,317.3
Swap liabilities - - - - - - - -
EPRA net assets 2,111.8 614.6 1,3870.6 685.3 33.9 17.4 3,464.2 1,317.3
Summarised income statement
Rental income 198.7 59.0 120.5 60.2 - - 319.2 119.2
Other income 0.7 0.2 2.1 1.1 - - 2.8 1.3
Total Revenue 199.4 59.2 122.6 61.3 - - 322.0 120.5
Cost of sales (65.9) (19.6) (30.5) (15.2) - - (96.4) (34.8)
Operating expenses (2.8) (0.6) (1.5) (0.8) - - (4.3) (1.4)
Results from operating activities before (losses)/gains on property 130.7 39.0 90.6 45.3 - - 221.3 84.3
Loss on disposal of property (5.0) (1.6) - - - - (5.0) (1.6)
Net valuation movement 7.0 2.0 6.8 3.4 (0.3) (0.2) 13.5 5.2
Net financing (costs)/gains (45.0) (12.8) (34.4) (17.2) - - (79.4) (30.0)
Profit before tax 87.7 26.6 63.0 31.5 (0.3) (0.2) 150.4 57.9
Taxation (0.1) - (0.3) (0.2) - - (0.4) (0.2)
Profit for the year after tax 87.6 26.6 62.7 31.3 (0.3) (0.2) 150.0 57.7
Other comprehensive expense - - (1.0) (0.5) - - (1.0) (0.5)
Total comprehensive (expense)/income 87.6 26.6 61.7 30.8 (0.3) (0.2) 149.0 57.2
Dividends received from the joint ventures during the year - 16.6 - 12.9 - - - 29.5
2024
Summarised balance sheet USAF LSAV Total
£m £m £m
Gross Share Gross Share Gross Share
Investment property 2,847.3 829.6 1,993.8 996.9 4841.1 1,826.5
Cash and cash equivalents 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 assets - - - - - -
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)
Net assets 2,073.8 604.2 1,332.8 666.4 3,406.6 1,270.6
Minority interest - - - - - -
Swap liabilities - - - - - -
EPRA net assets 2,073.8 604.2 1,332.8 666.4 3,406.6 1,270.6
Summarised income statement
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 Revenue 208.2 59.0 114.0 57.0 322.2 116.0
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 before (losses)/gains on property 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 year after tax 164.8 49.9 131.9 66.0 296.7 115.9
Other comprehensive expense (0.7) (0.3) (3.6) (2.0) (4.3) (2.3)
Total comprehensive (expense)/income 164.1 47.6 128.3 64.0 292.4 113.6
Dividends received from the joint ventures during the year 13.8 13.8 27.6
USAF and LSAV use derivatives to hedge their borrowings. These derivatives are
designated in cash flow hedge relationships which are considered to be fully
effective. The share of joint venture mark to market movements on hedging
instruments is recognised in the Group's Other Comprehensive Income within the
share of joint venture mark to market movements on hedging instruments. The
total notional value of borrowings in hedge relationships at 31 December 2025
is £340 million (2024: £340 million).
3.3b) Movement in carrying value of the Group's investments in joint ventures
The carrying value of the Group's investment in joint ventures increased by
£52.3 million during the year ended 31 December 2025 (2024: £46.0 million
increase), resulting in an overall carrying value of £1,317.3 million (2024:
£1,265.0 million).
The following table shows how the movement has arisen:
2025 2024
£m £m
Recognised in the income statement:
Operations segment result 49.4 47.5
Non-controlling interest share of Operations segment result - (0.2)
Management fee adjustment related to trading with joint venture 5.0 4.8
Net valuation (losses)/gains on investment property 5.2 67.0
Property disposals (1.6) (2.4)
Ineffective swap - (0.4)
Other (0.3) (0.4)
57.7 115.9
Recognised in equity:
Movement in effective hedges (0.5) (2.3)
Other adjustments to the carrying value:
Joint venture with Newcastle University 17.9 -
Profit adjustment related to trading with joint venture (5.0) (4.8)
Disposal of non-controlling interest - (27.9)
Additional capital invested in USAF 11.7 (7.4)
Distributions received (29.5) (27.5)
Increase/(Decrease) in carrying value 52.3 46.0
Carrying value at 1 January 1,265.0 1,219.0
Carrying value at 31 December 1,317.3 1,265.0
3.3c) 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. No performance fees were
recognised in the year (2025: £nil).
2025 2024
£m £m
USAF 17.2 16.9
4.8
21.4
LSAV 5.0 4.9
Asset management fees 22.2 21.8
Investment management fees - -
Total fees 22.2 21.8
Fees from joint ventures are shown net of the Group's share of the cost to the
joint ventures. The Group's share of the management fees to the joint ventures
is £4.9 million (2024: £4.6 million), which results in management fees from
joint ventures of £17.3 million being shown in the Operating segment result
in note 2.2a (2024: £17.3 million).
Section 4: Funding
4.1 Borrowings
The table below analyses the Group's borrowings which comprise bank and other
loans by when they fall due for payment:
Group - Carrying value Company - Carrying value
2025 2024 2025 2025
£m £m £m £m
Non-current
In more than one year but not more than two years - 147.6 - 147.6
In more than two years but not more than five years 704.1 572.3 704.1 572.3
In more than five years 544.1 543.8 544.1 543.8
1,248.2 1,263.7 1,248.2 1,263.7
Unamortised fair value of debt recognised on acquisition 8.0 10.1 -
Total borrowings 1,256.2 1,273.8 1,248.2 1,263.7
In addition to the borrowings currently drawn as shown above, the Group has
available undrawn facilities of £615 million (2024: £750.0 million). A
further overdraft facility of £10 million (2024: £10.0 million) is also
available.
The carrying value and fair value of the Group's borrowings is analysed below:
Group 2025 2024
Carrying value Fair value Carrying value Fair value
£m £m £m £m
Level 1 IFRS fair value hierarchy 975.0 969.5 975.0 956.6
Other loans and unamortised arrangement fees 273.2 269.9 288.7 275.4
Total borrowings 1,248.2 1,239.4 1,263.7 1,232.0
Company 2025 2024
Carrying value Fair value Carrying value Fair value
£m £m £m £m
Level 1 IFRS fair value hierarchy 975.0 969.5 975.0 956.6
Other loans and unamortised arrangement fees 273.2 269.9 288.7 274.4
Total borrowings 1,248.2 1,239.4 1,263.7 1,232.0
The fair value of loans classified as Level 1 in the IFRS fair value hierarchy
is determined using quoted prices in active markets for identical liabilities.
The following table shows the changes in liabilities arising from financing
activities:
2025
Group At 1 January 2025 as reported Financing cash flows Interest expense Fair Value adjustments Other At 31 December 2025
changes
Borrowings 1,273.8 (15.0) - (1.1) (1.5) 1,256.2
Lease liabilities 72.8 (12.9) 7.6 - 6.8 74.3
Interest rate swaps (53.4) (13.0) - 22.5 (0.1) (44.0)
Total liabilities from financing activities 1,293.2 (40.9) 7.6 21.4 5.2 1,286.5
Company
Borrowings 1,263.7 (15.0) - 0.2 (0.7) 1,248.2
Interest rate swaps (53.4) (13.0) - 22.5 (0.1) (44.0)
Total liabilities from financing activities 1,210.3 (28.0) - 22.7 (0.8) 1,204.2
2024
Group At 1 January 2024 as reported Financing cash flows Interest expense Fair Value adjustments Other At 31 December 2024
changes
Borrowings 1,081.6 193.2 - (4.1) 3.1 1,273.8
Lease liabilities 83.8 (19.8) 8.8 - - 72.8
Interest rate swaps (56.0) - - 0.4 2.2 (53.4)
Total liabilities from financing activities 1,109.4 173.4 8.8 (3.7) 5.3 1,293.2
Company
Borrowings 468.6 800.0 - 0.2 (5.1) 1,263.7
Interest rate swaps (56.0) - - 0.4 2.2 (53.4)
Total liabilities from financing activities 412.5 800.0 - 0.6 (2.9) 1,210.3
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 which at 31
December 2025 are not designated in accounting hedge relationships:
2025 2024
£m £m
Current 17.1 7.4
Non-current 26.9 46.0
Fair value of interest rate swaps 44.0 53.4
The fair value of interest rate swaps has been calculated by a third-party,
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. At 31 December 2025, the fair value above comprises
current assets of £17.1 milion and non-current assets of £26.9 million
(2024: current assets of £7.4 million and non-current assets of £46.0
million).
4.3 Net financing costs/(gains)
2025 2024
Recognised in the income statement: £m £m
Interest income (6.1) (16.7)
Finance income (6.1) (16.7)
Gross interest expense on loans 42.1 39.0
Amortisation of fair value of debt recognised on acquisition (2.3) (4.1)
Interest capitalised (26.8) (15.5)
Loan interest and similar charges 13.0 19.4
Interest on lease liabilities 7.6 8.8
Mark to market changes on interest rate swaps 22.5 0.4
Swap cancellation and loan break costs 0.0 3.1
Finance costs 43.1 31.7
Net financing costs 37.0 15.0
The average cost of the Group's wholly-owned debt at 31 December 2025 is 3.0%
(2024: 3.3%). The overall average cost of debt on an EPRA basis is 3.9% (2024:
3.6%).
4.4 Gearing
LTV is a key indicator that the Group uses to manage its indebtedness. The
Group also monitors gearing, which is calculated using EPRA net tangible
assets (NTA) and adjusted net debt. Adjusted net debt excludes IFRS 16 lease
liabilities, the unamortised fair value of debt recognised on acquisition and
mark to market of interest rate swaps as shown below.
The Group's gearing ratios are calculated as follows:
Note 2025 2024
£m £m
Cash and cash equivalents 5.1 35.8 274.3
Non-current borrowings 4.1 (1,256.2) (1,273.8)
Lease liabilities 4.6a (74.3) (72.8)
Interest rate swaps 4.2 44.0 53.4
Net debt per balance sheet (1,250.7) (1,018.9)
Lease liabilities 4.6a 74.3 72.8
Unamortised fair value of debt recognised on acquisition 2.3c 7.9 11.1
Adjusted net debt (1,168.5) (935.0)
Reported net asset value 2.3c 4,733.8 4,811.5
EPRA NTA 2.3c 4,684.9 4,758.4
Gearing
Basic (net debt/reported net asset value) 26% 21%
Adjusted gearing (adjusted net debt/EPRA NTA) 25% 20%
Loan to value 2.3a 27% 24%
4.5 Covenant compliance
The Group monitors its covenant position and the forecast headroom available
on a monthly basis. At 31 December 2025, the Group was in full compliance with
all of its borrowing covenants.
The Group's unsecured borrowings carry several covenants. The covenant regime
is IFRS based and gives the Group substantial operational flexibility,
allowing property acquisitions, disposals and developments to occur with
relative freedom.
2025 2024
Covenant Actual Covenant Actual
LTV < 60% 26% - -
Gearing <1.50 0.26 <1.50 0.21
Unencumbered assets ratio >1.70 3.84 >1.70 4.48
Secured gearing <0.25 - <0.25 -
Development assets ratio <30% 7% <30% 8%
Joint venture ratio <55% 22% <55% 22%
Interest cover >2.00 32.80 >2.00 81.56
4.6 Equity
The Company's issued share capital has increased during the year as follows:
Called up, allotted and fully paid 2025 2024
ordinary shares of £0.25p each
No. of Ordinary shares Share Premium No. of Ordinary shares Share Premium
shares
shares
£m £m £m £m
At 1 January 488,792,074 122.2 2,876.9 435,854,542 109.4 2,447.6
Shares issued (capital raise) - - - 50,000,000 12.1 430.1
Shares issued (scrip dividend) 1,146,199 0.3 (0.3) 2,808,461 0.7 (0.7)
Shares issued options exercised 105,298 - - 129,071 - (0.1)
At 31 December 490,043,571 122.5 2,876.6 488,792,074 122.2 2,876.9
The holders of ordinary shares are entitled to receive dividends as declared
from time to time and are entitled to one vote per share at meetings of the
Company. All shares rank equally with regard to the Company's residual assets.
4.7 Dividends
During the year, the Company paid the final 2024 dividend of £125.8 million -
24.9p per share - and an interim 2025 dividend of £62.6 million - 12.8p per
share (2024: final 2023 dividend of £64.0 million - 23.6p per share - and an
interim 2024 dividend of £52.0 million - 12.4p).
After the year-end, the Directors proposed a final dividend per share of 24.9p
(2024: 24.9p), bringing the total dividend per share for the year to 37.7p
(2024: 37.4p). No provision has been made in relation to this dividend.
The Group has modelled tax adjusted property business profits for 2025 and
2025 and the PID requirement in respect of the year ended 31 December 2025 is
expected to be satisfied by the end of 2025.
Section 5: Working capital
5.1 Cash and cash equivalents
The Group's cash position at 31 December 2025 was £35.8 million (2024:
£274.3 million). Of this balance, £nil million was cash equivalents money
market deposits, £35.8 million was cash.
The Group's cash balances include £1.2 million (2024: £1.1 million) whose
use at the balance sheet date is restricted by funding agreements to pay
operating costs.
The Group generates cash from its operating activities as follows:
Note
2025 2024
£m £m
Profit for the year 97.6 441.8
Adjustments for:
Depreciation and amortisation 3.3 6.9 5.7
Write-off of inventories and other fixed assets 12.0 -
Fair value of share based payments 1.5 2.4
Change in value of investment property (owned and under development) 3.1 72.3 (186.7)
Change in value of investment property (leased) 3.1 12.9 1.9
Net finance costs 4.3 6.9 2.7
Interest payment for leased assets 7.6 8.8
Swap break and debt exit costs - 3.1
Mark to market changes in interest rate swaps 22.5 0.3
Loss on disposal of investment property 1.3 9.8
Share of joint venture profit 3.3b (57.7) (115.9)
Trading with joint venture adjustment 3.3c 4.9 4.6
Tax charge/(credit) 2.5a 0.1 2.1
Cash flows from operating activities before changes in working capital 188.8 180.6
Decrease/(increase) in trade and other receivables 6.7 (12.0)
(Increase)/decrease in inventories (3.8) (5.3)
Increase/(decrease) in trade and other payables (20.8) 48.2
Cash flows from operating activities 170.9 211.5
Tax paid/(received) (4.4) 4.9
Net cash flows from operating activities 166.5 216.4
5.2 Credit risk
Credit risk is the risk of financial loss to the Group if a customer or
counterparty to a financial instrument fails to meet its contractual
obligations. It arises principally from the Group's cash balances, the Group's
receivables from customers and joint ventures and loans provided to the
Group's joint ventures.
At the year-end, the Group's maximum exposure to credit risk was as follows:
2025 2024
Note £m £m
Cash 5.1 35.8 274.3
Trade receivables 5.2 11.2 37.5
Amounts due from joint ventures (excluding loans that are capital in nature) 5.2 30.7 56.7
77.7 368.5
5.2a) Cash
The Group operates investment guidelines with respect to surplus cash.
Counterparty limits for cash deposits are largely based upon long-term ratings
published by credit rating agencies and credit default swap rates. Deposits
were placed with financial institutions with A- or better credit ratings.
5.2b) Trade receivables
The Group's customers can be split into two groups - (i) students
(individuals) and (ii) commercial organisations including universities. The
Group's exposure to credit risk is influenced by the characteristics of each
customer.
5.2c) Joint ventures
Amounts receivable from joint ventures fall into two categories - working
capital balances and investment loans. The Group has strong working
relationships with its joint venture partners, and the joint ventures have
strong financial performance, retain net asset positions and are cash
generative, and therefore the Group views this as a low credit risk balance.
No impairment has therefore been recognised in 2025 or 2024.
Section 6: Post balance sheet events
The Group has reviewed events up to 24 February 2026 and have identified the
following non-adjusting events after the reporting period:
On 9 January 2026, the Group announced that it had launched a £100 million
share buyback programme to return surplus capital to shareholders. The
programme will complete by 30 June 2026.
On 28 January 2026, the Group completed the acquisition of Empiric Students
Property (Empiric), bringing the Hello Students brand into the business. The
acquisition was for total consideration of c£530 million. The consideration
is comprised of a combination of cash and Unite shares for each Empiric share.
A total of 56,547,696 new ordinary shares in the Company were submitted for
admission to trading on the London Stock Exchange's main market for listed
securities on 29 January 2026. Cash consideration totalled £204 million.
The initial accounting for the business combination was not complete when
these financial statements were authorised for issue.
On 3 February 2026, the Group entered into a joint venture with Manchester
Metropolitan University to redevelop the Cambridge Halls site in Manchester.
The joint venture will deliver approximately 2,302 purpose-built student
accommodation beds. The Group will hold a 69% interest and will act as
developer, operator, and asset manager, with Manchester Metropolitan
University holding the remaining 31% interest.
The Group has reviewed events up to 24 February 2026 and have determined that
no other 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. The APMs below have been calculated on
a see through/Unite Group share basis, as referenced to the notes to the
financial statements. Reconciliations to equivalent IFRS measures are included
in notes 2.2b and 2.2c. Definitions can also be found in the glossary.
Adjusted earnings of the Group excludes the non-recurring impact of one-off
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.
Note 2025 2024
£m
£m
EBIT
Net operating income (NOI) 2.2a 294.0 276.1
Management fees 2.2a 17.3 17.3
Overheads 2.2a (29.1) (22.5)
282.2 270.9
EBIT margin %
Rental income 2.2a 428.2 398.0
EBIT 7 282.2 270.9
65.9% 68.1%
EBITDA
Net operating income 2.2a 294.0 276.1
Management fees 2.2a 17.3 17.3
Overheads 2.2a (29.1) (22.5)
Depreciation and amortisation 6.9 5.7
289.1 276.6
Net debt
Cash 2.3a 145.5 364.7
Debt 2.3a (1,889.2) (1,874.8)
(1,743.7) (1,510.1)
EBITDA : Net debt
EBITDA 7 288.1 276.6
Net debt 7 (1,743.7) (1,510.1)
Ratio 6.0 5.5
Interest cover (Unite Group share)
EBIT 7 282.2 270.9
Net financing costs 2.2a (39.1) (35.2)
Interest on lease liability 2.2a (7.6) (8.8)
Total interest (46.7) (44.0)
Ratio 6.0 6.2
Reconciliation: IFRS profit before tax to EPRA earnings and adjusted earnings
Note 2025 2024
£m
£m
IFRS profit before tax 97.7 444.0
Net valuation (gains)/losses on investment property 2.2b 67.1 (253.7)
(Gains)/losses on property disposals 2.2b 2.9 12.2
Write-off of inventory and fixed assets 12.0 -
Net valuation losses on investment property (leased) 2.2b 12.9 1.9
Amortisation of fair value of debt recognised on acquisition 2.2b (2.3) (4.1)
Changes in valuation of interest rate swaps 2.2b 22.5 0.4
Swap cancellation and debt exit fees - 3.1
Non-controlling interest, tax and other items 4.9 (1.9)
EPRA earnings 217.7 201.9
Software as a service cost 14.6 11.9
Adjusted earnings 232.3 213.8
Adjusted EPS yield
Note 2025 2024
Adjusted EPS (A) 47.5p 46.6p
EPRA NTA 1 January (B) 972p 920p
Adjusted EPS yield (A/B) 4.9% 5.1%
Total accounting return
Note 2025 2024
Opening EPRA NTA (A) 2.3d 972p 920p
Closing EPRA NTA 2.3d 955p 972p
Movement in EPRA NTA (17p) 52p
2024 final dividend 4.9 24.9p 23.6p
2025 interim dividend 4.9 12.8p 12.4p
Total movement in NTA (B) 20.7p 88.0p
Total accounting return (B/A) 2.1% 9.6%
EPRA Performance Measures
Summary of EPRA performance measures
2025 2024 2025 2024
£m
£m
pps
pps
EPRA earnings 217.7 201.9 44.5 44.0
Adjusted earnings 232.3 213.8 47.5 46.6
EPRA NTA 4,684.9 4,758.4 955 972
EPRA NRV 4,697.7 5,236.2 957 1,069
EPRA NDV 4,741.9 4,853.3 966 994
EPRA net initial yield 4.8% 4.8%
EPRA topped-up net initial yield 4.8% 4.8%
EPRA like-for-like gross rental income 4.9% 7.5%
EPRA vacancy rate 4.6% 2.0%
EPRA cost ratio (including vacancy costs) 34.8% 35.2%
EPRA cost ratio (excluding vacancy costs) 33.9% 34.9%
* Adjusted earnings calculated as EPRA earnings less software as a service
cost (net of deferred tax).
EPRA like-for-like rental income (calculated based on total portfolio value of
£9.2 billion)
£m Like for like properties Development property Other properties* Total EPRA
2025
Rental income 319.1 3.2 105.9 428.2
Property operating expenses (101.8) (1.1) (31.3) (134.2)
Net rental income 217.3 2.1 74.6 294.0
2024
Rental income 304.2 0.4 93.4 398.0
Property operating expenses (93.7) (0.2) (28.0) (121.9)
))
Net rental income 210.5 0.2 65.4 276.1
Like-for-like net rental income £m 6.8
Like-for-like net rental income % 3.2%
Like-for-like gross rental income £m 14.9
Like-for-like gross rental income % 4.9%
*Other properties includes acquisitions, disposals, major refurbishments and
changes in ownership.
EPRA vacancy rate
2025 2024
£m £m
Estimated rental value of vacant space 14.8 6.5
Estimated rental value of the whole portfolio 321.3 320.3
EPRA vacancy rate 4.6% 2.0%
EPRA net initial yield
2025 2024
Net operating income (£m) 300.6 305.5
Property market value (£m) 5,836.9 5,948.2
Notional acquisition costs (£m) 378.5 392.2
6,215.4 6,340.4
EPRA Net initial yield (%) * 4.8% 4.8%
Difference in projected versus historical GOI 0.4% 0.3%
Unite net initial yield 5.2% 5.1%
* No lease incentives are provided by the Group and accordingly the Topped Up
Net Initial Yield measure is also 4.8% (2024: 4.8%).
EPRA cost ratio
2025 2024
£m £m
Property operating expenses 99.4 87.2
Overheads* 27.7 21.6
Development costs and other items (5.0) 3.8
Unallocated expenses 7.7 8.8
129.8 121.4
Share of JV property operating expenses 34.8 34.7
Share of JV overheads expenses 1.4 0.9
Share of JV unallocated expenses 0.5 0.5
166.5 157.5
Less: Joint venture management fees (17.3) (17.3)
Total costs (A) 149.2 140.2
Group vacant property costs** (3.0) (0.9)
Share of JV vacant property costs** (1.0) (0.3)
Total costs excluding vacant property costs (B) 145.2 139.0
Rental income 307.7 282.0
Share of JV rental income 120.5 116.0
Total gross rental income (C) 428.2 398.0
Total EPRA cost ratio (including vacant property costs) (A)/(C) 34.8% 35.2%
Total EPRA cost ratio (excluding vacant property costs) (B)/(C) 33.9% 34.9%
* Excludes software as a service costs (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 yield movement
NOI yield Yield movement (bps)
% H1 H2 FY
Wholly-owned 5.30% 2 7 9
USAF 5.30% 1 11 12
LSAV 4.70% 1 17 18
Rental properties (Unite share) 5.20% 1 10 11
Property related capital expenditure
FY2025 FY2024
Wholly owned Share of Group Wholly owned Share of Group
JVs share JVs share
London 15.7 21.9 37.6 13.0 18.5 31.5
Prime regional 17.6 5.9 23.5 12.4 6.1 18.5
Major regional 28.5 11.4 39.9 36.8 13.8 50.6
Provincial 8.0 3.1 11.1 2.6 4.5 7.1
Total rental properties 69.8 42.3 112.1 64.8 42.9 107.7
Acquisitions - - - 282.9 34.5 317.4
Developments 209.8 - 209.8 263.7 - 263.7
Capitalised interest 26.8 - 26.8 15.5 - 15.5
Total property related capex 306.4 42.3 348.7 626.9 77.4 704.3
EPRA LTV
2025 2024
£m £m
Investment property (owned) 6,083.3 5,852.0
Investment property (under development) 456.9 451.4
Intangibles 12.9 10.4
Total property value and other eligible assets 6,553.1 6,313.8
Cash at bank and in hand 145.5 364.7
Borrowings (1,889.2) (1,874.8)
Net other payables (97.6) (33.9)
EPRA net debt (1,841.3) (1,544.0)
EPRA loan to value 28.1% 24.4%
Glossary
Adjusted earnings EPRA EPRA net initial yield (NIY)
An alternative performance measure based on EPRA earnings, adjusted to remove The European Public Real Estate Annualised NOI generated by the Group's rental properties expressed as a
the impact of software as a service cost (net of deferred tax) and other items
percentage of their fair value, taking into account notional acquisition
of an exceptional nature. The items have been excluded from adjusted earnings Association, who produce best practice recommendations for financial costs.
to improve the comparability of results year-on-year. reporting.
EPRA topped up net initial yield (NIY)
Adjusted earnings per share / EPS EPRA cost ratio
EPRA Net Initial Yield adjusted to include the effect of the expiration of
The earnings per share based on adjusted earnings and weighted average number The ratio of property operating expenses, overheads and management fees, rent free periods (or other unexpired lease incentives such as discounted rent
of shares in issue (basic). against rental income, calculated on an EPRA basis. periods or step rents).
Adjusted EPS yield EPRA earnings EPRA vacancy rate
Adjusted EPS as a percentage of opening EPRA NTA (diluted). EPRA earnings exclude movements relating to changes in values of investment The ratio of the estimated market rental value of vacant spaces against the
properties, profits/losses from the disposal of properties, swap/debt break estimated market rental value of the entire property portfolio (including
costs, interest rate swaps and the related tax effects. vacant spaces).
Adjusted net debt
Net debt per the balance sheet, adjusted to remove IFRS 16 lease liabilities EPRA earnings per share / EPS ESG
and the unamortised fair value of debt recognised on the acquisition of
Liberty Living. The earnings per share based on EPRA earnings and weighted average number of Environmental, Social and Governance.
shares in issue (basic).
Basis points (BPS)
Full occupancy
EPRA like-for-like rental growth
A basis point is a term used to describe a small percentage, usually in the
Fully occupancy is defined as occupancy in excess of 97%.
context of change, and equates to 0.01%. The growth in rental income measured by reference to the part of the portfolio
of the Group that has been consistently in operation, and not under
development nor subject to disposal, and which accordingly enables more
meaningful comparison in underlying rental income levels. GRESB
Diluted earnings / EPS
GRESB is a benchmark of the Environmental, Social and Governance (ESG)
Where earnings values per share are used "basic" measures divide the earnings
performance of real assets.
by the weighted average number of issued shares in issue throughout the EPRA Net Tangible Assets (NTA)
period, whilst the diluted measure also takes into account the effect of share
options which have been granted and which are expected to be converted into EPRA NTA includes all property at market value but excludes the mark to market
shares in the future. of financial instruments, deferred tax and intangible assets. EPRA NTA Gross asset value (GAV)
provides a consistent measure of NAV on a going concern basis.
The fair value of rental properties, leased properties and development
properties.
Diluted NTA/NAV
EPRA Net Tangible Assets per share
Where NTA/NAV per share is used, "basic" measures divide the NTA/NAV by the
number of shares issued at the reporting date, whilst the diluted measure also The diluted NTA per share figure based on EPRA NTA. The Group
takes into account the effect of share options which have been granted and
which are expected to be converted into shares in the future (both for the Wholly owned balances plus Unite's interests relating to USAF and LSAV.
additional number of shares that will be issued and the value of additional
consideration that will be received in issuing them). EPRA Net Reinstatement Value (NRV)
EPRA NRV includes all property at market value but excludes the mark to market Group debt
of financial instruments, deferred tax and real estate transfer tax. EPRA NRV
Direct let assumes that entities never sell assets and represents the value required to Wholly owned borrowings plus Unite's share of borrowings attributable to USAF
rebuild the entity. and LSAV.
Properties where short-hold tenancy agreements are made directly between Unite
and the student.
EPRA Net Disposal Value (NDV) HMO
EBITDA EPRA NDV includes all property at market value, excludes the mark to market of Houses in multiple occupation, where buildings or flats are shared by multiple
financial instruments but includes the fair value of fixed interest rate debt tenants who rent their own rooms and the property's communal spaces on an
The Group's adjusted EBIT, adding back depreciation and amortisation. and the carrying value of intangible assets. EPRA NDV represents the individual basis.
shareholders' value in a disposal scenario.
IFRS NAV per share
IFRS equity attributable to the owners of the parent company from the
consolidated balance sheet divided by the total number of shares of the Parent
Company in issue at the reporting date.
Interest cover ratio (ICR)
Calculated as EBIT divided by the sum of net financing costs and IFRS 16 lease
liability interest costs.
Lease Net debt to EBITDA Resident ambassadors
Properties which are leased to universities for a number of years. Net debt as a proportion of EBITDA. Student representatives who engage with students living in the property to
create a community and sense of belonging.
Like-for-like metrics Net financing costs (EPRA)
SaaS - Software as a Service
Like-for-like is the change in metric, on a gross basis, calculated using Interest payable on borrowings less interest capitalised into developments and
properties owned throughout the current and previous period. finance income. Software that allows users to connect to and use cloud-based software via
remote access.
Loan to value (LTV) Net operating income (NOI)
See-through (also Unite share)
Net debt as a proportion of the value of the rental properties, excluding The Group's rental income less property operating expenses.
balances in respect of leased properties under IFRS 16. Prepared on a
Wholly owned balances plus Unite's share of balances relating to USAF and
see-through basis. In the opinion of the Directors, this measure enables an LSAV.
appraisal of the indebtedness of the business, which closely aligns with key
covenants in the Group's agreements. Net-zero carbon
Net zero carbon operations by 2030 covers scope 1 and 2 emissions from our Senior Leadership
buildings, including all building energy used by our student tenants, as well
Loan to value post IFRS 16 as selected scope 3 emissions as per the BBP Climate Change Commitment. Directors (including the executive committee and Company Secretary) and Heads
of Function.
Net debt as a proportion of the value of the rental properties, including
balances in respect of leased properties under IFRS 16. Prepared on a
see-through basis. NOI margin
The Group's NOI expressed as a percentage of rental income.
TCFD
LTV (EPRA)
The Taskforce on Climate-related Financial Disclosures develops voluntary,
Net debt as a proportion of the value of the rental properties including Nomination agreements consistent climate-related financial risk disclosures for use by companies in
balances in respect of leased properties and all other assets and liabilities.
providing information to investors, lenders, insurers and other stakeholders.
Agreements at properties where Universities have entered into a contract to
reserve rooms for their students, usually guaranteeing occupancy. The
Universities usually either nominate students to live in the building and
LSAV Unite enters into short-hold tenancies with the students or the University Total accounting return
enters into a contract with Unite and makes payment directly to Unite.
The London Student Accommodation Joint Venture (LSAV) is a joint venture
Growth in diluted EPRA NTA per share plus dividends paid, expressed as a
between Unite and GIC, in which both hold a 50% stake. LSAV has a maturity percentage of diluted EPRA NTA per share at the beginning of the period. In
date of September 2032.
the opinion of the Directors, this measure enables an appraisal of the return
Provincial generated by the business for shareholders during the year.
Properties located in Bournemouth, Coventry, Loughborough, Medway, Portsmouth
Major regional and Swindon.
Total shareholder return
Properties located in Aberdeen, Birmingham, Cardiff, Glasgow, Leeds,
Leicester, Liverpool, Newcastle, Nottingham, Sheffield and Southampton.
The growth in value of a shareholding over a specified period, assuming
Prime regional dividends are reinvested to purchase additional shares.
Properties located in Bristol, Durham, Bath, Edinburgh, Manchester and Oxford.
Net asset value (NAV)
USAF/the fund
The total of all assets less the value of all liabilities at each reporting
date. Property operating expenses The Unite UK Student Accommodation Fund (USAF) is Europe's largest fund
focused purely on income-producing student accommodation investment assets.
Operating costs directly related to rental properties, therefore excluding
central overheads The fund is an open-ended infinite life vehicle with unique access to Unite's
Net debt (EPRA)
development pipeline. Unite acts as fund manager for the fund, as well as
owning a significant minority stake.
Borrowings net of cash. IFRS 16 lease liabilities are excluded from net debt
on an EPRA basis. In the opinion of the Directors, net debt is a useful Rental growth
measure to monitor the overall cash position of the Group.
Calculated as the year-on-year change in the average annual price for sold WAULT
beds. In the opinion of the Directors, this measure enables a more meaningful
comparison in rental income as it excludes the impact of changes in occupancy. Weighted average unexpired lease term to expiry.
Net debt per balance sheet
Borrowings, IFRS 16 lease liabilities and the mark to market of interest rate
swaps, net of cash. Rental properties (leased) / Sale and leaseback Wholly owned
Properties that have been sold to a third party investor then leased back to Balances relating to properties that are 100% owned by The Unite Group PLC or
the Group. Unite is also responsible for the management of these assets on its 100% subsidiaries.
behalf of the owner.
Company information
Unite Group
Executive Team
Joe Lister
Chief Executive
Michael Burt
Chief Financial Officer
Registered office
1(st) Floor, Welcome Building, Avon Street, Bristol BS2 0PS
Registered Number in England
03199160
Auditor
Deloitte LLP
1 New Street Square, London EC4 3HQ
Financial Advisers
J.P. Morgan Cazenove
25 Bank Street, London E14 5JP
Deutsche Numis Securities
21 Moorfields, London EC2Y 9DB
Registrars
Computershare Investor Services plc
PO Box 82
The Pavilions
Bridgwater Road
Bristol BS99 7NH
Financial PR Consultants
Sodali & Co
122 Leadenhall Street
City of London, EC3V 4AB
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