Unite Group (UTG) Trading Update summary

Trading performance and outlook

• 85% of beds sold for 2025/26, with strong demand from both UK and international students; targeting 97-98% occupancy.

• Rental growth of 4-5% expected for 2025/26, supporting reiterated adjusted EPRA EPS guidance of 47.5-48.25p for FY2025.

• Nomination agreements cover 56% of beds, reflecting robust university partnerships.

• Student applications from UK 18-year-olds up 2%, and student visa applications up 29% year-to-date.

Policy and regulatory environment

• Government's Industrial Strategy and Immigration White Paper highlight the importance of international students and higher education.

• New visa rules reduce post-study work visas from 24 to 18 months, with a potential levy on international student income.

• Renters' Rights Bill expected to exempt purpose-built student accommodation, with significant impact anticipated for the HMO sector.

Development and investment activity

• Planning approved for a 2,000-bed Newcastle joint venture; first phase targeted for 2028/29.

• Joint planning application submitted for 2,300 new beds in Manchester; entry into joint venture expected by end of 2025.

• Four projects under review by the Building Safety Regulator, with ongoing efforts to mitigate approval delays.