The Unite Group, a London-listed student accommodation developer, has announced its confident projection of at least 5% rental growth for the academic year ending in 2025. This comes as the company reports robust demand for the upcoming academic year.
Reaffirming their previous guidance, Unite Group expects adjusted earnings per share for 2023 to be at the upper end of the 43-44 pence (55-56 cents) range. This positive outlook is attributed to higher-than-anticipated rental income in the first term of the 2023-24 academic year, which helped offset increased operating costs in the second half of the financial year.
Impressively, Unite Group has already sold 71% of its beds for the upcoming 2024-2025 academic year. This figure slightly surpasses the record-breaking 70% achieved at the same period last year.
As of December 31, the Unite UK Student Accommodation Fund saw a quarter-on-quarter increase of 2.1% on a like-for-like basis, with a valuation of £2.99 billion ($3.81 billion). Conversely, the London Student Accommodation Joint Venture experienced a 0.7% decline on a like-for-like basis to reach £1.92 billion.
