Unite Students has published its interim results for the period ended 30 June 2023, reporting a strong first half in which a growth in earnings was supported by a return to full occupancy.

Alongside the results, Unite has also announced a proposed capital raise to raise gross proceeds of approx. £300m to enable Unite to continue to invest in its market-leading platform and deliver much-needed PBSA.

Results highlights:

  • Adjusted EPS up 15% to 27.5p (H1 2022: 24.0p)
  • Reservations of 98% for 2023/24 (2022/23: 92%)
  • Growing demand from university partners, accounting for 54% of beds for 2023/24 (2022/23: 52%)
  • Development pipeline totals £850 million and 4,806 beds in the strongest university cities
  • Enhancing portfolio quality through £140 million refurbishment pipeline

Richard Smith, Chief Executive of Unite Students, commented:

“We have had a strong first half, with growth in earnings driven by a return to full occupancy.

“The need for new student homes is the greatest we have seen for several years. The private rental sector is in retreat and a supply crunch is building amid growing student numbers. We are focused on delivering our substantial development and asset management pipeline across the UK, as well as working with university partners to help unlock the potential of their campuses. In doing this, Unite will continue to play a major role in creating new supply of high-quality, affordable accommodation where the need is greatest.

“We continue to invest in our portfolio and customer offer and our rental increases have tracked the rise in our costs. Our all-inclusive, fixed-price offer, which allows students to benefit from our buying power on utilities, compares very favourably to HMOs and, in many cases, we remain cheaper.

“We expect market conditions and our alignment to the UK’s strongest universities to support a positive outlook for our business for a number of years. This creates a range of compelling investment opportunities, which we will balance with ongoing capital discipline. We remain confident in our continued growth.”

Please also see attached the capital raise and retail offer announcements.

Capital Raise highlights:

  • Unite intends to use the net proceeds to commit to two new PBSA development schemes, in Bristol and London, and accelerate its asset management initiatives that improve customer experience
  • At a time when the need for new student homes is the greatest Unite has seen for several years, this will help Unite to create new supply and support the growth of university partners
  • It will also further strengthen Unite’s high-quality balance sheet and support a reduction in LTV
  • A separate retail offer was made concurrently on PrimaryBid to provide retail investors with an opportunity to also participate
  • The Board believes the current market environment offers a compelling multi-year opportunity underpinned by growing demand for Higher Education, a decrease in the supply of PBSA compared with pre-pandemic levels and the need for universities to grow and improve their accommodation offer