Student accommodation firm has record development pipeline
Student accommodation firm Unite saw a 14 per cent increase in earnings over the last sis months to £125m.
The company said that rocketing demand and a shrinking private sector has led to a record £1.5bn development pipeline.
The company has also announced it has raised £447m in a stock market fund raise.
Chief executive Joe Lister said: “We have had a strong first half, with 14 per cent growth in adjusted earnings underpinned by full occupancy, rental growth and substantial investment into our platform and portfolio.
“There is an acute and growing shortage of student homes, which is amplified by a shrinking private rental sector and depressed levels of new PBSA development.
Unite has a crucial role to play in partnering with universities to deliver new supply of high-quality, affordable accommodation where the need is greatest, which also frees up local family homes in the process.”
He added: “Our development pipeline has grown to a record £1.5 billion for delivery into the strongest university markets, including our first university joint venture with Newcastle University. We are uniquely positioned to secure further opportunities to support the growth of our university partners through our long standing and trusted relationships, in-house development capability and best-in-class operating platform.
“Our alignment to the UK’s strongest universities, alongside a growing range of attractive investment opportunities and a more supportive policy environment, puts us in a strong position to deliver continued long-term growth for shareholders.”
Speaking about the fundraise Mr Lister added: “This successful completion of our capital raise reflects the significant investor support for Unite Students and our growth prospects as well as recognition of the continued strong fundamentals of the student accommodation sector.
“The proceeds will support a doubling of our committed pipeline by year end to over £1bn and see us acquiring assets with asset management potential from USAF to enhance our future returns. This capital raise enables us to accelerate the delivery of new, high quality, affordable student accommodation where it is needed most and support the growth ambitions of our university partners.”
Unite said it is confident of a 98-99% occupancy and rental growth of at least 7% for the next academic year.
Earnings growth is expected to accelerate from 2026 as development completions increase.
There is significant unmet need for high-quality, value-for-money student homes.
New PBSA supply is 60 per cent below pre-pandemic levels and there are100,000-150,000 fewer HMO beds available.
Unite has planning consent secured for 2,400 beds in London, Bristol and Glasgow.
