Profits at student property specialist return to pre-pandemic levels

Richard Smith

Profits before tax were up by four per cent to £358m at student accommodation firm Unite over the course of the last year.

The company said that earnings and dividends have passed their pre-pandemic levels as students across the UK return to campuses.

The Bristol company had 99 per cent occupancy rates across the country and saw growth of 3.5 per cent in rents.

Next year is also looking healthy with 83 per cent of its properties reserved which is being driven by  rebooking and new agreements with universities.

Chief executive Richard Smith said: “We delivered a strong operational performance in 2022, with earnings and dividends surpassing their pre-pandemic level, driven by a return to full occupancy, improving rental growth and investment into our estate.

“The outlook for the business and the UK Higher Education sector is strong with demand underpinned by demographic growth, high application rates and increasing international student numbers. PBSA supply cannot keep pace with growing student demand at the same time as HMO landlords are leaving the sector.”

He added: “We are confident that new development opportunities will emerge over the next 12 months, which we remain uniquely positioned to deliver through our university relationships and development capability. Our strong leasing performance also supports earnings growth in 2023 despite higher interest and operating costs.

“We recognise the cost-of-living pressures being faced by students and parents and are confident that our fixed price all-inclusive offer, student support programmes and balanced approach to rental increases will continue to provide value for money.”

The company is working on four new developments and carried out £46m of refurbishment last year.

It added that a shortage of quality student homes is continuing to create significant opportunities to grow Unites business.

The current value of Unite’s property portfolio is £5,690m an increase of four per cent.

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