Unite Group (UTG) Trading Update summary

Trading performance and rental growth

• Achieved like-for-like rental growth of 8.2% and 97.5% occupancy for 2024/25, supported by strong demand from UK and international students.

• Rental growth drove Q3 property valuation increases: USAF up 1.5%, LSAV up 1.6%; year-to-date, USAF up 4.4%, LSAV up 5.3%.

• Adjusted EPS guidance for FY2024 reiterated at the upper end of 45.5-46.5p.

• Expecting 4-5% rental growth for the 2025/26 academic year, supported by demographic trends and constrained supply.

Student demand and sector trends

• UK 18-year-old undergraduate acceptances rose 3% YoY, with high-tariff universities seeing 8% growth.

• International undergraduate acceptances were broadly flat, but postgraduate international recruitment declined due to visa changes.

• Nomination agreements with university partners increased to 57% of the portfolio, including four new multi-year Russell Group deals for over 2,500 beds.

Investment, development, and regulatory update

• £450m equity raise proceeds are being deployed; 4,600 new beds to be delivered by 2028 at a cost of £913m.

• Progressing property acquisitions and new developments in Newcastle, Bristol, Glasgow, and London.

• Building Safety Act adds six months to new project timelines; 13 active cladding remediation projects in 2024, with 12 more planned for 2025.