Unite Group hikes dividend despite drop in pre-tax profits
Student accommodation developer Unite saw first-half profits slide as a result of decreased property valuation gains, but still managed to book a rise in underlying earnings and boost its dividend.
FTSE 250
19,450.67
17:14 18/04/24
FTSE 350
4,334.00
17:14 18/04/24
FTSE All-Share
4,290.02
16:54 18/04/24
Real Estate Investment Trusts
2,205.22
17:14 18/04/24
Unite Group
920.50p
16:40 18/04/24
In the six months to the end of June, pre-tax profit declined 12% to £125.5m, but earnings from operational activities, or EPRA, rose 16% to £61.2m
As a result of the improved EPRA, Unite lifted its dividend 8% year-on-year to 10.25p.
"The first half of 2019 has been a transformative period for Unite," said chief executive Richard Smith. "We have delivered further growth in our sustainable earnings during the first half, supporting an 8% increase in our interim dividend."
Looking forward, Smith maintained his "positive outlook" for the business, with a record 92% of beds already reserved for the 2019-20 academic year.
"As such, we remain confident in a rental growth outlook of 3-3.5% for 2019-20 and 2020-21," he said.
Smith also highlighted Unite's proposed £1.4bn acquisition of Liberty Living, which provides the group with a portfolio with a gross asset value of £7bn, comprised of approximately 75,000 beds across the UK.
At 0825 BST, Unite shares were up 0.86% to 1,053p.