Unite Group FY performance returns to pre-pandemic peaks

Student accommodation provider Unite Group said on Tuesday that its full-year performance had come in ahead of pre-pandemic peak levels and pointed to a "strong outlook" for 2023-24.

Unite Group stated adjusted earnings had risen 48% to £163.4m, or 40.9p on a per share basis, while IFRS pre-tax profits increased 4% to £358.0m.

The FTSE 100-listed also declared a full-year dividend of 32.7p per share for the twelve months ended 31 December, a marked improvement on the prior year's DPS of 22.1p per share.

Unite added that its EPRA net tangible assets per share rose 5% to 927.0p, while its IFRS net assets per share jumped 7% to 945.0p and its loan-to-value ratio increased two percentage points to 31%.

It also highlighted a return to full occupancy and a 3.5% rental growth for the 2022-23 academic year.

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.

"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."

As of 0840 GMT, Unite shares were up 0.30% at 988.0p.

Reporting by Iain Gilbert at Sharecast.com