FoggyIsle.XYZ | Market's view on Unite

Unite Students has received planning permissions for major student accommodation schemes in Bristol and London, reaffirming their guidance for a rental growth of at least 6% for the academic year 2024/25.
The company continues to progress its record £1.3 billion development pipeline with secured planning approvals, anticipating further opportunities for development and acquisitions at attractive returns.
Savills research indicates an urgent need for approximately 100,000 more student beds in London to meet demand, with London’s student to bed ratio at 3.6, the highest in the UK.
Despite a decline in overseas students taking up postgraduate places in the UK, Unite’s focus remains on the undergraduate market which is less impacted.
Unite’s financial position is strong with a low loan-to-value ratio, allowing for possible expansion of their development pipeline.
A final dividend of 23.6p per share has been proposed, marking an 8% increase from the previous year, reflecting a payout ratio of 80% of adjusted EPS.
Unite has secured a joint venture with Newcastle University to develop 2000 beds, demonstrating strong trust and partnership with the university.
The company has been highlighted as one of Britain’s three best REITs by Investors Chronicle, indicating strong fundamental attributes for long-term investment.
A new 600-bed student accommodation project in Temple Quarter, Bristol further expands Unite’s portfolio.
Unite’s CEO transition is expected to be smooth, with the incoming CEO already familiar with the company’s operations.
Projections indicate a growing under-supply of student accommodation, beneficial for rental growth and occupancy levels.
New developments include an 800-bed scheme in Glasgow aimed to address the shortage of student accommodations in the area.
Concerns exist about potential risks from government policies on international students and the impact of build cost inflation on new developments.
Unite has successfully raised £300m at 905p per share, with the funds aimed at supporting a £600m development pipeline.
The company has secured a significant financing facility of £400m from LGIM, enhancing its financial flexibility for future projects.