Unite Group (UTG) H1 2025 earnings summary

Executive summary

• Achieved strong H1 2025 performance with 3% adjusted EPS and dividend growth, 7.4% like-for-like rental growth, and 15% adjusted earnings growth, supported by record demand from UK and international students and portfolio investment.

• Portfolio 93% aligned to Russell Group cities, with 88% of beds reserved for 2025/26 and a robust development pipeline delivering £90m of NOI.

• Significant growth opportunities identified through university partnerships, off-campus development, and accretive acquisitions, including diligence on Empiric.

• Platform, portfolio, and partnerships underpin resilience, with alignment to top universities and a broad customer base.

• Strategic focus on quality, earnings growth, and total returns above cost of capital.

Financial highlights

• Adjusted earnings for H1 2025 reached £144.2m (up 15% YoY); adjusted EPS at 29.5p (+3% YoY); interim dividend up 3% to 12.8p.

• EPRA NTA per share increased 1.4% to 986p, supporting a 4% total accounting return; IFRS NAV per share up 2% to 998p.

• Like-for-like rental growth of 7.4% in H1, driven by strong rental growth and occupancy.

• NOI margin stable at 72.7%; EBIT margin at 71.7%.

• Net debt: £1,717m; LTV: 26%; net debt/EBITDA: 5.3x; interest cover: 6.9x.

Outlook and guidance

• Reiterated FY2025 guidance: adjusted EPS of 47.5-48.25p (+2-4% YoY), 4-5% rental growth, and 97%+ occupancy targeted.

• Total accounting return guidance of 8-10% for 2025, before property yield movements.

• 80% dividend payout ratio maintained; financial guidance unchanged for 2025, supported by strong H1 and positive outlook for 2025-2026.

• Strong demand anticipated post-A-level results, with continued momentum in university partnerships and investment opportunities.