Results for the year ended 31 December 2025
Summary by AI BETAClose X
PRESS RELEASE
24 February 2026
THE UNITE GROUP PLC
('Unite Students', 'Unite', the 'Group', or the 'Company')
RESULTS FOR THE YEAR ENDED 31 DECEMBER 2025
RESPONDING TO CHANGE AND DELIVERING OUR PLAN
Joe Lister, Chief Executive of Unite Students, commented:
"Unite Students delivered a robust performance in 2025, with strong trading across the majority of our portfolio offset by weaker demand in a small number of cities for the 2025/26 academic year. Growing domestic demand for higher education, improving international mobility and constrained housing supply underpin the long-term prospects for the sector. Students continue to place high value on the residential university experience, supporting sustained demand for the high‑quality accommodation and living experience that we provide.
"We have started to deliver on the strategic plan set out at the end of 2025, focusing on closer alignment to the strongest universities, building on our university partnerships and taking decisive action on costs. We have also demonstrated our disciplined approach to capital, having commenced a £100 million share buyback in January and this morning announcing the sale of St Pancras Way to USAF.
"While there is much to do, we are making early progress and building momentum. Delivering the benefits from our plan, together with the Empiric acquisition, provides a strong platform for 2027 and beyond."
|
Year ended |
31 December 2025 |
31 December 2024 |
Change |
|
Adjusted earnings1,3 |
£232.3m |
£213.8m |
9% |
|
Adjusted EPS1,3 |
47.5p |
46.6p |
2% |
|
IFRS profit attributable to owners |
£97.6m |
£441.9m |
(78%) |
|
IFRS EPS (diluted) |
19.9p |
96.1p |
(79%) |
|
Dividend per share |
37.7p |
37.3p |
1% |
|
Total accounting return (TAR)1 |
2.1% |
9.6% |
|
|
As at |
31 December 2025 |
31 December 2024 |
Change |
|
EPRA NTA per share1 |
955p |
972p |
(2%) |
|
IFRS net assets per share |
966p |
982p |
(2%) |
|
Net debt: EBITDA4 |
6.0x |
5.5x |
0.5x |
|
Loan to value2 |
27% |
24% |
+3ppts |
HIGHLIGHTS
Continued rental growth for 2025/26, demonstrating value of our platform
· 4.0% rental growth and 95.2% occupancy for the 2025/26 academic year (2024/25: 8.2% and 97.5%)
· +2% YoY growth in adjusted EPS to 47.5p (2024: 46.6p)
· IFRS EPS (diluted) reduced to 19.9p (2024: 96.1p)
· 0.5% LfL valuation decline, reflecting 3.8% rental growth and 11bps yield expansion
· TAR of 2.1%, reflecting 2% reduction in EPRA NTA to 955p (2024: 9.6% and 972p)
Growing HE demand in a more competitive leasing market
· 5% increase in UK 18-year-old applicants for the 2026/27 academic year
· Strongest student demand and housing need at the highest-quality universities
· New PBSA supply 50% below pre-pandemic levels and competing HMO sector in decline
· 68% reserved for 2026/27 (2025/26: 71%), reflecting more cautious booking trends
· Continued demand from strong university partners, with 55% of beds nominated for 2026/27 (2025/26: 59%)
Increasing alignment to the UK's strongest universities
· 67% aligned to high-tariff universities, growing to 80% through disposals and committed development
· Enhanced offer to returning students through acquisition of high-quality Empiric portfolio in 2026
· Over 1,000 new beds delivered in Bristol and Edinburgh for the 2025/26 academic year
· £27 million NOI upside from off-campus development completions from 2027
Delivering our strategic priorities
· Newcastle and Manchester Metropolitan JVs to deliver 4,300 new beds between 2028-2030
· Completed Empiric acquisition in January 2026 and increased cost synergies to £17 million p.a.
Demonstrating our disciplined approach to capital allocation
· Targeting disposals of £300-400m p.a., £214 million completed in 2025 (Unite share: £142 million)
· Agreed disposal of St Pancras Way, London to USAF for £186 million (Unite share: £126 million)
· Initial £100 million share buyback programme underway and delivering attractive returns
2026 Guidance
· 2026/27 income expected at lower end of range for 2-3% rental growth and 93-96% occupancy
· Empiric's 2025/26 income below expectations ahead of integration to our platform
· Cost of debt expected to increase to 4.3% in 2026 (2025: 3.9%)
· 2026 adjusted EPS guidance of 41.5-43.0p, reflecting lower Empiric income and occupancy
1. The financial statements are prepared in accordance with International Financial Reporting Standards (IFRS). These financial highlights are based on the European Public Real Estate Association (EPRA) best practice recommendations and these performance measures are published as they are intended to help users in the comparability of these results across other listed real estate companies in Europe. The metrics are also used internally to measure and manage the business and to align to the performance related conditions for Directors' remuneration. See glossary for definitions.
2. Excludes IFRS 16 related balances recognised in respect of leased properties. Wholly owned balances plus Unite's share of balances relating to USAF, LSAV and University Partnerships. See glossary for definitions.
3. Adjusted earnings and adjusted EPS remove the impact of SaaS implementation costs from EPRA earnings and EPRA EPS. See glossary for definitions and note 7 for calculations and reconciliations.
4. See glossary for definitions
PRESENTATION
A live webcast of the presentation including Q&A will be held today at 08:30am GMT for investors and analysts. The webcast can be accessed via https://brrmedia.news/UTG_FY25 and will be available for playback on our website (https://www.unitegroup.com) after the event.
To register for the event or to receive dial-in details, please contact unite@sodali.com.
For further information, please contact:
Unite Students
Joe Lister / Mike Burt / Saxon Ridley Tel: +44 117 302 7005
Press office Tel: +44 117 450 6300
Sodali & Co
Ben Foster / Sam Austrums / Louisa Henry Tel: +44 20 7250 1446
CHIEF EXECUTIVE'S REVIEW
Demand for UK Higher Education sector remains strong, underpinned by demographic growth, high participation rates and the quality and global reputation of the UK's universities. Higher-tariff universities continue to capture an increased share of student numbers, driving increased housing need in the strongest cities and locations. This is coming at the expense of lower-tariff universities where housing demand has also been impacted by growing numbers of students choosing to live at home.
The majority of our portfolio is delivering strong levels of occupancy and rental growth, but we have experienced challenges from weaker demand and higher supply in some cities. We are responding to this change through a renewed focus on operational excellence and optimal capital allocation. During the year, we increased our alignment to high-tariff universities from 64% to 67% and are targeting 80% as we align our portfolio even more closely with the strongest universities.
The acquisition of Empiric's high-quality 7,700-bed portfolio across 66 properties, which is 81% aligned to high-tariff universities, completed towards the end of January 2026 and allows us to better serve the attractive Returner market segment.
Growing earnings and dividend
Lettings performance for the 2024/25 and 2025/26 academic years supported growth in adjusted earnings to £232.3 million and adjusted EPS of 47.5p, up 9% and 2% respectively year-on-year. The growth in adjusted EPS also reflects the increased share count following our capital raise in July 2024. IFRS profit reduced to £97.6 million and diluted EPS to 19.9p (2024: £441.9 million and 96.1p), reflecting a valuation decrease for our property portfolio compared to the prior year. We have proposed a final dividend of 24.9p which, if approved, takes the total dividends to 37.7p for the year, representing a year-on-year increase of 1%.
Total accounting returns for the year were 2.1%, reflecting dividends paid in the year and a 2% reduction in EPRA NTA per share to 955p due to a 0.5% decline in LfL property valuations. Our net debt: EBITDA and LTV ratios increased to 6.0x and 27% respectively, reflecting an increase in net debt during the year.
Our key financial performance indicators are set out below:
|
Financial highlights1 |
2025 |
2024 |
|
Adjusted earnings |
£232.3m |
£213.8m |
|
Adjusted EPS |
47.5p |
46.6p |
|
IFRS profit |
£97.6m |
£441.9m |
|
IFRS diluted EPS |
19.9p |
96.1p |
|
Dividend per share |
37.7p |
37.3p |
|
Total accounting return |
2.1% |
9.6% |
|
EPRA NTA per share |
955p |
972p |
|
IFRS net assets per share |
966p |
982p |
|
Net debt: EBITDA |
6.0x |
5.5x |
|
Loan to value |
27% |
24% |
1. See glossary for definitions and note 7 for alternative performance measure calculations and reconciliations. A reconciliation of profit before tax to EPRA earnings and adjusted earnings is set out in note 7 of the financial statements.
Growing higher education demand in a more competitive leasing market
A record number of UK 18-year-olds started university in 2025/26, with 2% growth in the number of new undergraduates. Growth was particularly strong at high-tariff universities where acceptances grew 7%, while medium-tariff providers saw 2% growth and low-tariff experienced a 2% reduction. This growth supported an increase in the proportion of beds let to universities through nomination agreements to 59% (2024/25: 57%) but was offset by weaker sales to international postgraduate students and an increase in students choosing to live at home, which particularly impacted lower-ranked universities.
Overall, our portfolio delivered 95.2% occupancy and rental growth of 4.0% for the 2025/26 academic year (2024/25: 97.5% and 8.2% respectively). The majority of our portfolio performed strongly, with 19 of 22 cities averaging 97% occupancy. Vacancies were concentrated in three regional cities (Leicester, Nottingham and Sheffield), where weaker demand combined with high levels of existing and new supply. We also saw lower occupancy in new buildings or buildings where we delivered large capital projects, which were slower to let in a more competitive leasing environment.
Housing supply remains constrained
New supply of PBSA is down 50% on pre-pandemic levels, with around 17,000 new beds expected in 2026, reflecting viability challenges created by higher costs of construction and funding, as well as the time required to secure planning and Building Safety Regulator (BSR) approvals. Weekly rents now need to be at least £230 for new PBSA development outside of London to be viable, meaning there is little prospect of new PBSA supply in many markets. Build-to-Rent (BTR) is a source of growing competition in larger regional cities, particularly for international students, but new supply of BTR faces many of the same viability issues.
Obsolescence of older university accommodation continues to impact supply, with 5,000-10,000 beds being removed from the market each year due to building age and the need to operate buildings more sustainably.
Over half of students who need term-time accommodation live in HMOs where many private landlords are choosing to leave the sector due to rising mortgage costs and increasing regulation. The Renters' Rights Act introduces new regulations for HMO landlords and rights for tenants from which PBSA is exempt. From May 2026, entering tenancy agreements more than six months before the start date will be banned, disrupting HMO lettings to students early in the 2027/28 sales cycle. The ability for students to exit HMO tenancies with two months' notice will also reduce income security for private landlords. HMO supply has fallen by 9% over the last four years and we expect this trend to continue.
Delivering our strategy
At our investor event in November, we set out how we are responding to changes in our market. Our focus is on delivering operational excellence from our best-in-class platform and ensuring optimal capital allocation to deliver the strongest risk-adjusted returns for shareholders.
We will focus on six priorities to help deliver on these objectives.
Operational excellence
· High-quality, growing income - We are targeting above 97% occupancy in our core cities and above-inflation rental growth, in line with our long-term performance. This is underpinned by our target to grow university nomination agreements to 60% of beds from 54% (including Empiric) which will be achieved by delivering our university joint ventures, winning share from competitors and exiting assets with lower university demand.
· Taking action on costs - We are being proactive in right-sizing our cost base to reflect more challenging market conditions and ensure that we deliver efficiencies from our recent investment in new technology platforms.
· Deliver our business plan for Empiric - There is a significant opportunity to improve occupancy across the Empiric portfolio over the next two years, alongside delivery of our cost synergies, which supports earnings accretion.
Optimal capital allocation
· Increase alignment to the strongest universities - We expect the UK's strongest universities to outperform and capture a growing share of student numbers in the next 5-10 years. Our committed and future investment activity aims to increase the portfolio's weighting to high-tariff universities, from 67% currently to 80% over the medium term, leading to a more focused, higher-quality portfolio with a presence in 18-20 cities. This realignment is a key enabler of our return to higher occupancy.
· Grow university partnerships - Our first two university joint ventures, with Newcastle University and Manchester Metropolitan University, are now formed and will see us deliver 4,300 new beds on-campus at affordable rents over the next five years. Building on the strength of our university relationships, we aim to secure one new university partnership per year from our pipeline of active opportunities, including new development and stock transfer.
· Deploy capital at the best risk-adjusted returns - An increased rate of disposals and lower development capex will see the Group move from net investor to net seller, generating £100-200 million p.a. of surplus capital. We will allocate capital to the opportunities offering the strongest risk-adjusted returns, which are currently expected to be new university partnerships and share buybacks, while maintaining the strength of our balance sheet.
Progress since our investor event
We have made good early progress in delivering against our priorities since our investor event in November. Before the year end, we implemented a c.20% reduction in our central staff costs and have increased our annual cost synergy target for Empiric to £17 million.
Since December, we have formed two university joint ventures with Newcastle University and Manchester Metropolitan University, which will see us deliver 4,300 new beds on-campus between 2028 and 2030.
In January 2026, we launched a £100 million share buyback programme to return surplus capital to shareholders. This was funded through reduced off-campus development activity, having chosen to defer delivery of our Freestone Island project in Bristol and exit our TP Paddington development in London.
The acquisition of Empiric's high-quality 7,700-bed portfolio completed towards the end of January 2026. The portfolio is 81% aligned to high-tariff universities, overlapping with our portfolio in 15 cities, and broadens our product offer for returning students.
We are also today announcing the disposal of St Pancras Way in London to USAF for £186 million (Unite share: £126 million), which forms part of the Group's target to accelerate disposals to £300-400 million p.a. (Unite share).
Acquisition of Empiric Student Property
The acquisition of Empiric, which completed in January 2026, brings a high-quality 7,700-bed PBSA portfolio and enables us to better meet the needs of the attractive Returner student segment. The acquisition delivers a significant increase in Unite's addressable market, enabling the Group to attract and retain more students throughout their academic journey, including the c.35,000 first-year students currently living with Unite. Returning students want a more independent experience, living in smaller groups and with a less institutional feel, which Empiric's portfolio offers through the Hello Student brand.
For the 2025/26 academic year, sales performance has been weaker than expected, with occupancy at 89% and rental growth of 4.5%. We are now just over three weeks post-completion and our priority is enhancing Empiric's commercial performance, with our central commercial team and local teams engaged with Empiric to support sales. We are moving at pace to open our sales channels to Empiric properties, including our significantly larger international agent network and China sales office, in advance of full integration later this year which will benefit the 2027/28 sales cycle. We continue to see significant potential in the business, which we are well placed to unlock through our long-standing university relationships and best-in-class operating platform.
We are also confident in our ability to deliver cost synergies from the acquisition and have validated many of our pre-acquisition assumptions, which support an increase to our annual synergy target to £17 million from 2027.
More supportive government policy for Higher Education
Higher Education (HE) contributes over £250 billion to the UK economy, creates new opportunities and life experiences for young people, and provides global influence through the soft power of education. The HE sector also plays a key part in increasing skill levels in support of the Government's mission to kickstart economic growth.
The Government has increased UK tuition fees for the 2025/26 academic year by 3.1% and confirmed it intends to increase tuition fees for each of the next two academic years by around 2.75%. Government policy is increasingly supportive of international students, the International Education Strategy published in January 2026 details ambitious plans to increase the UK HE sector's international standing, grow international recruitment and increase the value of education exports by 20% over the next five years. The UK's recent return to the Erasmus+ programme will also strengthen ties with the European Union. We expect these measures to improve the global competitiveness of UK universities at a time when a number of competing global destinations are increasing restrictions on international student numbers.
Universities are long-standing and adaptable institutions, and many are making changes to their cost bases to improve their financial sustainability. We expect these financial conditions to create new partnership opportunities with universities as they seek to deliver cost efficiencies and release funding for reinvestment into their academic programmes.
Current trading
Student numbers
UCAS undergraduate data for the 2026/27 academic year shows 5% growth in UK 18-year-old applicants, our key customer demographic. Student demand remains strongest for the high-tariff universities to which we have aligned our portfolio, where applicants are up by 6%. International undergraduate applicants are 5% up for 2026/27, with 10% growth from China. As expected, there has been a further modest increase in students intending to live at home, increasing 1ppt to 28% of applications from UK school leavers. Given growth in overall applications, we expect c.3% growth in the undergraduate intake living away from home this September.
International postgraduate demand has reduced in the past two years following changes in visa policies and increased competition from alternative study destinations, despite the strength of the UK's HE offering. We expect universities to respond by increasing recruitment of international undergraduates to mitigate reduced postgraduate demand.
Letting progress
Across the Group's portfolio (excluding Empiric), 68% of rooms are now sold for the 2026/27 academic year (2025/26: 71%). We expect the booking trends experienced in the 2025/26 sales cycle to continue for 2026/27, with more students choosing to book later and accommodation demand increasingly concentrated at the strongest universities. Nomination agreements account for 55% of beds for 2026/27 (2025/26: 59%), with some, predominantly low-tariff universities choosing not to renew or holding off committing to new agreements as they look to balance security of accommodation for their students with their financial commitment to beds early in the cycle. Engagement with university partners has been positive in recent weeks, reflecting strong undergraduate applications, and we typically secure further nomination agreements through the remainder of the sales cycle.
Encouragingly, direct-let sales in recent weeks have been ahead of last year, with pricing adjustments helping to stimulate sales in those markets with lower occupancy in 2025/26. In keeping with last year, we are seeing students delay their purchasing decisions, following discounting and increased use of incentives by our competitors late in the past two sales cycles.
Like-for-like rental growth on rooms sold to date is 2.4%, with growth through nomination agreements offsetting the impact of modest price reductions on direct-let sales.
2026/27 income guidance
Based on our current rate of sale and future nominations pipeline, we expect to deliver occupancy and rental growth towards the lower end of our guidance ranges of 93-96% and 2-3% respectively for the 2026/27 academic year. This translates to like-for-like income growth of 0-2% (previously 0-4%).
Across the Empiric portfolio, 22% of rooms are now sold for the 2026/27 academic year. The slower sales performance reflects a delayed start to the sales cycle following a technology upgrade and the more cautious leasing behaviour seen in the Unite portfolio. Based on our initial assessment, we anticipate Empiric's letting performance to be in line with our direct-let portfolio for the 2026/27 academic year. The full benefit of our sales platform to Empiric will be realised for the 2027/28 sales cycle.
Earnings guidance
We expect to deliver adjusted EPS of 41.5-43.0p in 2026 (2025: 47.5p), principally reflecting the impact of lower Empiric income and occupancy.
Empiric's lower than expected income for 2025/26 will impact performance in 2026, particularly in H1, resulting in a c.1.0-1.5p reduction in adjusted EPS net of initial cost synergies. Thereafter, we expect an improvement in Empiric's income performance as we integrate it onto our platform and realise the full benefit of cost synergies from 2027.
Outlook
Demand for UK Higher Education remains strong, underpinned by growing domestic demand and increasing mobility of international students. Together with constrained housing supply, this supports sustainable growth in our rents and earnings over the long term.
There is greatest demand and most enduring appeal for the residential experience at the UK's strongest universities and our strategy is focused on increasing our alignment to these universities. We are uniquely positioned to meet university needs thanks to our best-in-class operating platform, providing the opportunity to grow and extend our already strong partnerships.
We have made early progress in delivery of the strategic plan set out at the end of 2025, focusing on our priorities of operational excellence and optimal capital allocation. We will build on this momentum during 2026 as we also begin to realise value from our acquisition of Empiric. Delivering on these priorities provides a strong platform for 2027 and beyond.
OPERATIONS REVIEW
Stronger cities continue to deliver
We achieved occupancy of 95.2% across our portfolio for the 2025/26 academic year (2024/25: 97.5%) as changing student behaviour at lower-ranked universities and slower leasing following major projects impacted lettings. The strength of our relationships with universities, the quality and affordability of our portfolio and focus on UK customers saw lettings outperform the wider PBSA sector, where occupancy averaged around 86%.
Annual rents increased by 4.0% on a like-for-like basis for the 2025/26 academic year (2024/25: 8.2%), with 4.6% growth across our nominated beds. This reflected our success in agreeing increased rental levels on renewals of single-year and new multi-year nomination agreements, where our university partners recognise the value our accommodation provides. Rents for direct-let tenancies increased by 3.6%, partly impacted by a reduction in average tenancy length of around 0.5 weeks to 47.6 weeks.
UK universities attract young people from around the world for the quality of learning and life experience they offer. This demand for university education and our accommodation is supported by demographic growth, with the UK population of 18-year-olds forecast to grow 6% (50,000) by 2030, and strong participation rates. We are also seeing a more stable policy environment for international recruitment following publication of the Government's new International Education Strategy.
Strongest universities taking market share
Overall, the undergraduate intake for 2025/26 increased by 2% to 578,000 (2024/25: 565,000), with a record number of UK 18-year-olds starting courses. We have been deliberate in aligning our portfolio to high- and medium-tariff universities, where the number of accepted applicants grew by 7% and 2% respectively for the 2025/26 academic year. In contrast, lower-tariff universities saw a 2% reduction in acceptances, marking an acceleration of the trend of the past decade where higher-tariff universities have captured a growing share of student demand. In response to this trend, our investment activity aims to increase our portfolio's weighting to high-tariff universities from 67% currently to 80% over the medium term.
International demand broadly stable
Recruitment of international students stabilised in 2025 after the 14% fall in student visa issuance in 2024 following visa policy changes and a review of the Graduate Route. The proportion of our 2025/26 customers from outside the UK was stable at 28% (2024/25: 28%), with more bookings from international undergraduates offsetting fewer bookings from Chinese postgraduates.
Recent data indicates broadly stable international student numbers, with 5% growth in international applicants through UCAS for the 2026/27 academic year balanced by fewer study visa applications in recent months.
Students seeking value from university
Students are increasingly selective when choosing where to study, with a growing focus on graduate outcomes and earnings potential as they seek to ensure they achieve value for money from their time at university. This is supported by data showing that the average Russell Group student enjoys a c.£350,000 lifetime earnings premium over a non-graduate, with the premium reducing materially for lower-ranked courses.
The highest-quality universities continue to see healthy accommodation demand as the enduring appeal of the UK's top universities attracts students from around the world. At lower-tariff providers, an increasing proportion of students are choosing to live at home as an alternative to the traditional residential experience. At these universities, around half of students now choose to live at home to reduce the overall cost of university, compared to only 15% at high-tariff providers.
New supply impacting some cities
New supply is taking longer to reach stabilised occupancy in a more competitive leasing market, with our new openings in 2025 65% occupied on completion. These new deliveries accounted for around a third of the increase in vacancy within our portfolio in 2025/26.
It is typical to see a period of lower occupancy and rental growth while a city adjusts to an increase in new supply, with Nottingham particularly impacted in 2025. We expect a reduction in new supply over the coming years as viability remains challenging for new development, reducing the impact of new openings outside of the strongest cities.
Continuing demand from universities
We have maintained a high proportion of income let to universities, with 37,660 beds (59% of total) provided under nomination agreements for 2025/26 (2024/25: 38,326 and 57%). The increase in the percentage of beds under nomination agreements reflects universities' growing reliance on private providers to meet their accommodation needs and our position as the partner of choice. We saw further improvement in our University Trust Score to +81 (2024: +80), recognising the strength of our partnerships, sector-leading student welfare offer, and thought leadership in the sector.
The unexpired term of our nomination agreements increased to 6.1 years for 2025/26 (2024/25: 5.8 years), reflecting the strength of our relationships and universities' willingness to commit to high-quality accommodation. A balance of nomination agreements and direct-let beds provides the benefit of having income secured by universities, as well as the ability to offer rooms to re-bookers and postgraduates and determine market pricing on an annual basis. We are targeting an increase in beds under nomination agreements to 60% going forward, aided by our university joint ventures and new developments as well as planned disposals.
83% of our nomination agreements by income are multi-year and therefore benefit from annual fixed or inflation-linked uplifts based on RPI or CPI (2024/25: 67%). The remaining agreements are single year, and we achieved a renewal rate of 77% with universities for 2025/26 where we sought to renew (2024/25: 81%).
|
Agreement length |
Noms beds 2025/26 |
% Noms income 2025/26 |
|
Single year |
6,039 |
17% |
|
2-5 years |
14,659 |
40% |
|
6-10 years |
4,151 |
12% |
|
11-20 years |
6,728 |
16% |
|
20+ years |
6,083 |
15% |
|
Total |
37,660 |
100% |
UK students account for 72% of our customers for 2025/26 (2024/25: 72%), making up a large proportion of the beds under nomination agreements with universities. This represents a significant increase in our weighting to UK students over recent years, compared to 60% immediately prior to the pandemic, and reflects our success in growing the proportion of beds under nomination agreements and retaining second- and third-year students who might have historically moved into the HMO sector.
Postgraduates make up 16% of our customer base and non-first year undergraduates accounted for a further 21% of our bookings for the 2025/26 academic year (2024/25: 17% and 27%), reflecting the greater proportion of beds let through nomination agreements which predominantly house first-year students and fewer sales to returning UK students. The acquisition of Empiric broadens our offering to postgraduate and non-first year undergraduate students, who typically seek greater independence, and supports our strategy of increasing the segmentation of our customer offer to capture market share from the traditional HMO sector.
Occupancy by type and domicile by academic year
|
|
|
Direct let |
|
|||
|
|
Nominations |
UK |
China |
EU |
Non-EU |
Total |
|
2022/23 |
52% |
24% |
14% |
2% |
7% |
99% |
|
2023/24 |
53% |
24% |
13% |
2% |
8% |
100% |
|
2024/25 |
57% |
22% |
13% |
1% |
5% |
98% |
|
2025/26 |
59% |
17% |
12% |
1% |
6% |
95% |
Acquisition of Empiric
Empiric's Hello Student brand delivered occupancy of 89% for the 2025/26 academic year and rental growth of 4.5%. This letting performance was below our expectations at the time of appraising the acquisition, reflecting more challenging recent leasing conditions. As a result, the Empiric portfolio is expected to contribute lower income and earnings in the first half of FY2026.
We are working closely with the Empiric team to drive performance across the portfolio. We have started marketing Hello Student properties to our customers in the 15 cities where our portfolios overlap and added their properties to our international distribution channels. Our priority is to return the Empiric portfolio to full occupancy over the next two sales cycles. We expect leasing performance for Empiric to be broadly in line with the Unite Students direct-let portfolio for 2026/27.
Taking action on costs
Property operating costs increased by 10% in 2025 (2024: 8%), principally driven by higher staff costs, increased marketing activity and additional central and other costs. Higher staff costs reflect our commitment to the Real Living Wage, resulting in an average 5% pay increase for city operations staff, as well as increases to employer's National Insurance contributions. Marketing costs increased due to higher costs of acquisition in a more competitive sales environment. Utility costs were broadly flat compared to the prior year, with increases in charges and levies offset by a reduction in consumption through our continued investment in energy efficiency initiatives. Other cost increases reflected higher council tax costs as a result of lower occupancy in certain cities and increased building insurance premiums.
At the end of the year, we reduced our central team costs by approximately 20%, responding to lower income for the 2025/26 academic year. We will maintain an appropriate cost base to reflect the operational performance of the business. These changes support our expectation for flat property and central costs in 2026 for the Unite business (excluding Empiric).
|
Property operating expenses breakdown |
2025 £m |
2024 £m |
Change |
|
Staff costs |
(37.2) |
(34.0) |
10% |
|
Utilities |
(30.7) |
(30.5) |
1% |
|
Summer cleaning |
(5.5) |
(5.3) |
4% |
|
Marketing |
(8.3) |
(7.0) |
19% |
|
Central costs |
(20.1) |
(18.0) |
12% |
|
Other |
(32.3) |
(27.1) |
19% |
|
Property operating expenses |
(134.2) |
(121.9) |
10% |
Technology enhancing customer experience and margins
Our technology upgrade programme delivered significant milestones in 2025 as we launched a new customer management system, finance system and learning platform for our people. The final phase of delivery in 2026 will deliver new booking and property management platforms. We expect to incur a further £10 million of costs in 2026 as the programme concludes. We expect to achieve a payback on our investment through enhanced utilisation of our portfolio and cost efficiencies, which will increase our EBIT margin by around 1% over the medium term, including £7 million p.a. of cost savings.
PROPERTY REVIEW
Our property portfolio saw a 0.1% decrease in valuations on a like-for-like basis during the year (Unite share: 0.5% decrease), as increases in property yields and capital expenditure offset rental growth. The see-through net initial yield of the portfolio was 5.2% at 31 December 2025 (31 December 2024: 5.1%), which reflects like-for-like yield expansion of 11 basis points in the year.
Investment activity in the UK student accommodation sector remains strong, with around £4 billion traded in 2025. Private equity and institutional investors have remained active in the sector, attracted by a positive outlook for rental growth, which reflects strong demand and constrained supply in many cities. Investor demand is greatest for newly-built assets and older assets, with value-add opportunities in strong markets.
Like-for-like capital growth1
|
£m |
Valuation 31 Dec 2025 |
Rental growth/ other |
Yield movement |
Capital expenditure |
Total |
|
Wholly owned |
4,233 |
101 |
(89) |
(52) |
(40) |
|
USAF |
2,844 |
127 |
(64) |
(45) |
18 |
|
LSAV |
2,083 |
105 |
(80) |
(15) |
10 |
|
Total (Gross) |
9,160 |
333 |
(233) |
(112) |
(12) |
|
Total (Unite share) |
6,083 |
|
|
|
(30) |
|
|
|
|
|
|
|
|
% capital growth |
|
|
|
|
|
|
Wholly owned |
|
2.5% |
(2.2)% |
(1.3)% |
(1.0)% |
|
USAF |
|
4.6% |
(2.3)% |
(1.6)% |
0.7% |
|
LSAV |
|
5.1% |
(3.9)% |
(0.7)% |
0.5% |
|
Total (Gross) |
|
3.8% |
(2.6)% |
(1.3)% |
(0.1)% |
|
Total (Unite share) |
|
3.3% |
(2.5)% |
(1.3)% |
(0.5)% |
1. Excludes leased properties and fire safety expenditure costs
93% by value of the portfolio is income generating is (31 December 2024: 93%) and properties under development remained at 7% (31 December 2024: 7%) with the impact of new openings from the development pipeline balanced by capital expenditure for on-site projects during the year.
The PBSA investment portfolio, inclusive of Empiric, is 32% weighted to London by value on a Unite share basis and expected to remain around this level on a built-out basis following completion of our committed development pipeline.
Limited new supply
Supply of PBSA grew by around 10,000 beds in 2025, net of beds leaving the market, equivalent to 1.5% growth in PBSA supply (Source: Cushman and Wakefield). This remains significantly below levels of new supply in the period prior to the pandemic. Weekly rents of around £230 are now required to make development viable outside London, above market rents in 85% of our regional cities. In response to increasing costs, new supply is increasingly focused on higher price studio accommodation and is targeting a different market segment to our predominantly cluster-flat portfolio. Positively, we saw build cost inflation moderate during the year, although the availability of skilled labour remains tight, and build costs remain around 50% higher than five years ago.
The Building Safety Act has added three approval gateways to the design, build and occupation of new buildings adding 6-12 months to development programmes. During the year we were pleased to secure three pre-construction approvals from the Building Safety Regulator for our university partnership and uncommitted off-campus development projects.
We expect the combination of complex planning, increasing regulation, and higher build and funding costs to restrict the delivery of new supply for several years. We expect new supply in 2026 to maintain 2025 levels, before slowing significantly from 2027.
Increasing alignment to the strongest universities
University joint ventures
Strengthening our partnerships with universities through joint ventures for on-campus accommodation has been an objective of the business for several years and has the potential to be a significant source of growth in the years to come. Our first two university joint ventures in Newcastle and Manchester will deliver 4,300 beds by 2030 and contribute a combined £47 million (Unite share: £29 million) to net operating income, delivering a blended 7.4% yield-on-cost including recurring management fees. The projects will deliver high-quality accommodation at a range of price points, underpinned by demand from our university partners.
At our Castle Leazes joint venture in Newcastle, planning was granted in the first half and construction is now underway. This supports delivery of the first phase of the 2,000-bed project for 2028/29 academic year.
In Manchester, following the grant of planning permission and pre-construction approvals, construction is underway for the development of 2,300 new beds at Cambridge Halls for Manchester Metropolitan University. The first phase of the project targets delivery for the 2029/30 academic year. The partnership will redevelop the university's 770-bed halls, which is over 30 years old and no longer meets student needs. The joint venture will include over 400 beds based on a new cluster-flat design with a larger communal kitchen, allowing us to offer these rooms at a c.15% lower rent than standard designs.
We are in active discussions with a range of high-quality universities for further partnerships, which we are looking to progress over the next 12-18 months. These include discussions around stock transfer and refurbishment of existing university accommodation, as well as new development both on- and off-campus. We aim to secure one further joint venture per year, recognising the scale and complexity of these projects.
Completed schemes
During the year, we delivered over 1,000 new beds for 2025/26 academic year, with 623 beds at Avon Point in Bristol and 402 beds at Burnet Point in Edinburgh. Avon Point is well located for University of Bristol's new Temple Quarter campus, and the university has nominated 54% of beds for an initial 14-year term. At Burnet Point, we delivered 298 beds in cluster flats, as well as 104 beds in two- and three-bed clusters in a separate block. These smaller flats are let to postgraduate students, university staff and other young professionals. In the current sales environment, new openings have been slower to lease-up due to increased availability in the wider market. We expect our 2025 openings to deliver a meaningful improvement in occupancy for the 2026/27 academic year with the benefit of a full leasing cycle.
Off-campus development
We have increased our return requirements for new investment to reflect higher funding costs and increased delivery and leasing risks in the current environment. We are now seeking development yields on new direct-let schemes in excess of 8% in regional markets and 7% in London. These hurdles assume a university nominating a significant portion of the beds.
Our focus is now on successfully delivering our on-site schemes and seeking opportunities for further university joint ventures, including on-campus projects and stock transfer, building on our successes over the past year.
We are committed to two off-campus development schemes, totalling 1,650 beds in London and Glasgow. The projects have £109 million remaining costs to complete and will add a combined £21 million to net operating income from the 2027/28 academic year.
Construction is progressing well at our 719-bed Hawthorne House project in Stratford, which includes a new academy school. Construction will complete in June, and the project requires transitional approval from the Building Safety Regulator in advance of occupation in September. We are working with the Regulator and our supply chain to secure approval in line with our target completion date. 51% of the beds are nominated to University of the Arts London under a long-term agreement.
At Central Quay in Glasgow, we have started construction of the 934-bed project, supporting delivery for the 2027/28 academic year. The scheme is well located for University of Glasgow, a QS Global Top 100 university, with whom we have a long-standing relationship.
Secured development and partnerships pipeline
|
|
Type¹ |
Target delivery |
Secured beds/ units |
Total completed value |
Total devel. costs |
Capex in period |
Capex remaining |
Forecast NTA remaining⁵ |
Forecast yield on cost |
|
|
|
|
no. |
£m |
£m |
£m |
£m |
£m |
% |
|
Off-campus pipeline |
|
|
|
|
|
|
|
|
|
|
Hawthorne House, Stratford² |
Noms |
2026 |
719 |
248 |
196 |
53 |
21 |
30 |
6.1% |
|
Central Quay, Glasgow |
Noms/DL |
2027 |
934 |
161 |
125 |
18 |
88 |
30 |
7.4% |
|
Total off-campus pipeline |
|
|
1,653 |
409 |
321 |
71 |
109 |
60 |
6.6% |
|
University JV |
|
|
|
|
|
|
|
|
|
|
Castle Leazes, Newcastle³ |
JV |
2028/29 |
2,009 |
318 |
267 |
27 |
240 |
33 |
7.2% |
|
Cambridge Halls, Manchester⁴ |
JV |
2029/30 |
2,302 |
465 |
367 |
10 |
357 |
72 |
7.5% |
|
Total on-campus pipeline |
|
|
4,311 |
783 |
634 |
37 |
597 |
105 |
7.4% |
|
Total committed pipeline |
|
|
5,964 |
1,191 |
955 |
108 |
706 |
165 |
7.1% |
|
Total committed pipeline (Unite share) |
|
|
891 |
710 |
91 |
478 |
127 |
7.0% |
|
1. Direct-let (DL), Nominated (Noms) and Joint Venture (JV)
2. Yield on cost assumes the sale of academic space for c.£45 million
3. Unite share 51%. Yield on cost includes management fees in NOI and deducts development management fee from costs
4. Unite share 69%. Yield on cost includes management fees in NOI and deducts development management fee from costs
5. Unite share
Future off-campus pipeline
Our future pipeline includes an additional 2,900 beds for schemes where we have optionality on whether to proceed based on the risk-adjusted returns of projects relative to other investment opportunities. We will be disciplined when committing further capital to these projects, which will likely require a nomination underpin from a university for a significant portion of the beds.
We own three consented development sites, of which 83% by value is in London. We are reviewing options for these projects to deliver best value for shareholders, including disposal or potential third-party funding. While we explore options, we have deferred delivery of our 500-bed Freestone Island project in Bristol. Our Meridian Square and King's Place projects in London have also been delayed following an extended timeline to secure necessary approvals prior to construction.
We have also decided not to proceed with our TP Paddington development in London. This follows the grant of planning permission on appeal, which fulfilled our contractual commitment to the landowner. The 605-bed project was not financially viable based on our increased return requirements and an extended delivery programme. We have recognised a c.£10 million write-off of planning costs, which has been excluded from adjusted earnings and have no further commitments to the landowner.
Disposals
We continue to enhance the quality of the portfolio and manage our balance sheet leverage by recycling capital through disposals. During the year, we completed the sale of 10 properties in Aberdeen, Leicester, Leeds, Nottingham and Sheffield for £214 million (Unite share: £142 million). This included the sale of a portfolio of nine properties for £212 million (Unite share: £140 million) at a blended yield of 6.4% and priced c.1% below December 2024 book value, which completed in August 2025. The proceeds will be recycled into university joint ventures and asset management activity in our strongest markets.
We will continue to recycle capital from disposals to maintain net debt: EBITDA in the 6-7x range and LTV around c.30-35% on a built-out basis. We will target future disposals of around £300-400 million p.a. (Unite share), which will release £100-200 million p.a. of surplus capital for reinvestment. Disposals will be made up from a combination of lower growth assets, similar to those sold in 2025, stabilised assets in core markets, and lower-yielding or non-income producing assets. These disposals will enhance portfolio quality and be accretive to earnings as proceeds are reinvested.
Following the year end, we agreed the sale of St Pancras Way, a 571-bed asset in central London, to USAF for £186 million (Unite share: £126 million), subject to technical due diligence. The building was developed by Unite in 2014 and is undergoing a light refurbishment to the common areas. The transaction will be funded by existing cash headroom in USAF and the issue of new USAF Units (the 'New Units'), to be fully underwritten by Unite. Unite will receive minimum net proceeds of £115m in cash and increase its ownership of USAF increase to approximately 32%, subject to USAF investors choosing to take-up their pre-emption rights.
Asset management
In the year, investment in asset management and refurbishment activity totalled £44 million (Unite share: £30 million), delivering a yield-on-cost of 8.1%. The 10 projects included full refurbishment of existing rooms, upgrades to common spaces and enhancements to the environmental performance of the properties.
Fire safety
Fire safety is a critical part of our health and safety strategy, and we have a track record of leading the sector on fire safety standards through our proactive approach. During the period, we completed fire safety improvements on eight properties across our estate and spent £66 million (Unite share: £36 million) on fire safety capex during the year. Our year-end balance sheet includes committed fire safety spend of £80 million (Unite share: £46 million), the costs for which will be incurred over the next two years.
During the year, we reached agreement with contractors for recovery of £14 million of remediation costs (Unite share: £8 million) in relation to 10 properties. In total, we have now agreed settlements totalling £86 million (Unite share: £59 million). We expect to recover 50-75% of total cladding remediation costs through claims from contractors, although the settlement and recognition of these claims is likely to lag costs incurred to remediate properties. We anticipate the remediation programme to complete by 2031 with net spend reducing materially over time.
FINANCIAL PERFORMANCE
The Group uses alternative performance measures (APMs), which are not defined or specified under IFRS. These APMs, which are not considered to be a substitute for IFRS measures, provide additional helpful information and include, among others, measures based on the European Public Real Estate Association (EPRA) best practice recommendations. The metrics are used internally to measure and manage the business.
Earnings and adjusted earnings
We delivered a robust operating performance in 2025, with adjusted earnings increasing by 9% to £232.3 million (2024: £213.8 million), driven by growth in like-for-like rental income and investment activity. NOI growth more than offset higher overhead and finance costs when compared to the prior year. Adjusted EPS grew 2% to 47.5p (2024: 46.6p), reflecting the growth in adjusted earnings and increased share count following our July 2024 equity raise.
|
|
2025 £m |
2024 £m |
|
Rental income |
428.2 |
398.0 |
|
Property operating expenses |
(134.2) |
(121.9) |
|
Net operating income (NOI) |
294.0 |
276.1 |
|
NOI margin |
68.7% |
69.4% |
|
Management fees |
17.3 |
17.3 |
|
Overheads |
(48.5) |
(38.4) |
|
Finance costs |
(46.7) |
(44.0) |
|
Development costs and other items |
1.6 |
(9.1) |
|
EPRA earnings |
217.7 |
201.9 |
|
SaaS implementation costs |
14.6 |
11.9 |
|
Adjusted earnings |
232.3 |
213.8 |
|
|
|
|
|
Adjusted EPS |
47.5p |
46.6p |
|
EPRA EPS |
44.5p |
44.0p |
|
EBIT margin |
65.9% |
68.1% |
A reconciliation of profit after tax to EPRA earnings and adjusted earnings is set out in note 2.2b to the financial statements.
IFRS profit attributable to owners of the parent company reduced to £97.6 million in the year (2024: £441.9 million), reflecting the increase in adjusted earnings of £18.5 million, a revaluation loss of £73.7 million (2024: £239.6 million gain) and a £22.5 million loss for the valuation of interest rate swaps and cancellation costs (2024: £3.5 million loss).
|
|
2025 £m |
2024 £m |
|
Adjusted earnings |
232.3 |
213.8 |
|
SaaS implementation costs |
(14.6) |
(11.9) |
|
EPRA earnings |
217.7 |
201.9 |
|
Valuation gains/(losses) and profit/(loss) on disposal¹ |
(73.7) |
239.6 |
|
Changes in valuation of interest rate swaps and debt break costs |
(22.5) |
(3.5) |
|
Non-recurring costs² |
(9.7) |
- |
|
Non-controlling interest and other items |
(14.2) |
6.0 |
|
IFRS profit before tax |
97.6 |
444.0 |
|
Adjusted earnings per share |
47.5p |
46.6p |
|
IFRS diluted earnings per share |
19.9p |
96.1p |
1. Includes TP Paddington abortive costs
2. Includes restructuring costs and Empiric acquisition costs to date
A reconciliation of profit before tax to adjusted earnings and EPRA earnings is expanded in section 7 of the financial statements.
Rental growth and profitability
Rental income increased by £30.2 million to £428.2 million, up 8% compared to 2024. Like-for-like rental income, excluding the impact of major refurbishments, acquisitions, disposals and development completions, increased by 5% during the year, reflecting strong rental growth but modestly lower occupancy for the year. Non-like-for-like income grew by £15.3 million, with additional rental income from development completions and asset management schemes exceeding the impact of income forgone through disposals.
Property operating expenses increased by 9% for like-for-like properties, primarily driven by higher staff costs due to the 5% increase in the Real Living Wage and higher Employer's National Insurance contributions. Marketing costs increased due to higher costs of acquisition in a more competitive sales environment. Other cost increases included higher council tax as a result of lower occupancy in certain cities and increased building insurance premiums.
Together, this resulted in a 6% increase in net operating income to £294.0 million (2024: £276.1 million) or 3% on a like-for-like basis.
|
|
FY 2025 |
|
FY 2024 |
|
YoY change |
|||||
|
£m |
Wholly- owned |
Share of Fund/JV |
Total |
|
Wholly- owned |
Share of Fund/JV |
Total |
|
£m |
% |
|
Rental income |
|
|
|
|
|
|
|
|
|
|
|
Like-for-like properties |
236.4 |
82.7 |
319.1 |
|
227.4 |
76.8 |
304.2 |
|
14.9 |
5% |
|
Non-like-for-like properties |
71.2 |
37.9 |
109.1 |
|
54.6 |
39.2 |
93.8 |
|
15.3 |
16% |
|
Total rental income |
307.6 |
120.6 |
428.2 |
|
282.0 |
116.0 |
398.0 |
|
30.2 |
8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating expenses |
|
|
|
|
|
|
|
|
|
|
|
Like-for-like properties |
(77.1) |
(24.7) |
(101.8) |
|
(70.4) |
(23.3) |
(93.7) |
|
(8.1) |
9% |
|
Non-like-for-like properties |
(22.3) |
(10.1) |
(32.4) |
|
(16.8) |
(11.4) |
(28.2) |
|
(4.2) |
15% |
|
Total property operating expenses |
(99.4) |
(34.8) |
(134.2) |
|
(87.2) |
(34.7) |
(121.9) |
|
(12.3) |
10% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating income |
|
|
|
|
|
|
|
|
|
|
|
Like-for-like properties |
159.3 |
58.0 |
217.3 |
|
157.0 |
53.5 |
210.5 |
|
6.8 |
3% |
|
Non-like-for-like properties |
48.9 |
27.8 |
76.7 |
|
37.8 |
27.8 |
65.6 |
|
11.1 |
17% |
|
Total net operating income |
208.2 |
85.8 |
294.0 |
|
194.8 |
81.3 |
276.1 |
|
17.9 |
6% |
Management fee income from joint ventures remains unchanged at £17.3 million (2024: £17.3 million), with the benefit of higher income and property valuations offset by the impact of redemptions in USAF over the past two years.
Overheads increased by £10.1 million to £48.5 million (2024: £38.4 million). During the year, Software as a Service (SaaS) implementation costs relating to our technology upgrade programme totalled £19.4 million, for which a deferred tax credit of £4.8 million was recognised (2024: £15.9 million and £4.0 million). Excluding SaaS implementation costs, overheads increased by £6.6 million driven by a £2.4 million increase in central staff costs, £1.2 million of dual running costs from relocation of offices and £1.7 million lower VAT recovery due to increased costs relating to property letting activity and a £1.3 million inflationary increase across the remainder of the cost base.
Our EBIT margin reduced to 65.9% (2024: 68.1%) due to cost growth outpacing rental increases as a result of lower occupancy.
Finance costs increased to £46.7 million in 2025 (2024: £44.0 million), reflecting an increase in our average cost of debt to 3.9% (2024: 3.6%) due to refinancing activity and higher rates on new debt. Capitalised interest linked to our development pipeline increased to £26.8 million (2024: £15.5 million) in line with increased levels of development activity.
Development costs and other items include a £4.2 million non-recurring Newcastle University joint venture fee.
We are targeting to hold costs flat in 2026 for the Unite business (excluding Empiric), reflecting the reduction in our central overhead at the end of 2025 and discipline around other cost lines.
EPRA NTA
EPRA net tangible assets (NTA) per share, our key measure of NAV, decreased by 2% to 955p at 31 December 2025 (31 December 2024: 972p). EPRA net tangible assets were £4,685 million at 31 December 2025, a £73 million decrease from £4,758 million in the prior year.
The main drivers of the £73 million decrease in EPRA NTA and 17p decrease in EPRA NTA per share were an increase in property valuation yields and capital expenditure, which were partially offset by rental growth.
|
|
£m |
Diluted pence per share |
|
EPRA NTA as at 31 December 2024 |
4,758 |
972 |
|
Investment portfolio |
116 |
24 |
|
Yield movement |
(148) |
(30) |
|
Development portfolio |
(18) |
(4) |
|
Fire safety capex net of claims |
(15) |
(3) |
|
Other |
(8) |
(4) |
|
EPRA NTA as at 31 December 2025 |
4,685 |
955 |
IFRS net assets decreased by 2% in the year to £4,734 million (31 December 2024: £4,812 million), principally driven by net valuation movements and retained profits. On a per share basis, IFRS NAV decreased by 2% to 966p (31 December 2024: 982p).
Property portfolio
The valuation of our property portfolio at 31 December 2025, including our share of property assets held in USAF, LSAV and the Newcastle University joint venture, was £6,601 million (31 December 2024: £6,375 million). The £226 million increase in portfolio value reflects the valuation movements outlined above, capital expenditure and interest capitalised on developments.
Summary balance sheet
|
|
31 December 2025 |
|
31 December 2024 |
||||
|
|
Wholly- owned £m |
Share of fund/JV £m |
Total £m |
|
Wholly- owned £m |
Share of fund/JV £m |
Total £m |
|
Rental properties1 |
4,221 |
1,863 |
6,084 |
|
4,025 |
1,827 |
5,852 |
|
Rental properties (leased) |
60 |
- |
60 |
|
72 |
- |
72 |
|
Properties under development |
438 |
19 |
457 |
|
451 |
- |
451 |
|
Total property |
4,719 |
1,882 |
6,601 |
|
4,588 |
1,827 |
6,375 |
|
Net debt |
(1,212) |
(532) |
(1,744) |
|
(989) |
(521) |
(1,510) |
|
Lease liability |
(74) |
- |
(74) |
|
(73) |
- |
(73) |
|
Other assets/(liabilities) |
(65) |
(33) |
(98) |
|
1 |
(35) |
(34) |
|
EPRA net tangible assets |
3,368 |
1,317 |
4,685 |
|
3,487 |
1,271 |
4,758 |
|
IFRS NAV |
3,417 |
1,317 |
4,734 |
|
3,547 |
1,265 |
4,812 |
|
LTV |
|
|
27% |
|
|
|
24% |
1. Rental properties (owned) includes assets classified as held for sale in the IFRS balance sheet
Return on equity (total accounting return)
Dividends paid of 37.7p (2024: 36.0p), together with growth in EPRA NTA, resulted in a total accounting return of 2.1% in the year (2024: 9.6%). Our adjusted EPS yield (measured against opening EPRA NTA) decreased to 4.9% in the year (2024: 5.1%), reflecting NTA growth in the prior year.
Cash flow and net debt
During the year, net debt increased to £1,744 million (2024: £1,510 million). The key components of the movement in net debt were an inflow from operational cash of £189 million, disposals of £142 million, offset by total capital expenditure of £349 million and dividend payments of £175 million.
In 2026, we expect see-through net debt to be broadly stable as planned capital expenditure on investment and development activity will offset anticipated property disposals.
Debt financing and liquidity
We are focused on maintaining a strong and flexible balance sheet and use debt to support our growth and enhance risk-adjusted returns. We manage our financing risk by ensuring that we have a diversified range of funding sources, well-laddered debt maturities and appropriate hedging of future interest rates.
We closely monitor our interest cover and net debt to EBITDA ratios. In 2025, interest cover decreased to 6.0x (2024: 6.2x) and net debt to EBITDA increased to 6.0x (2024: 5.5x), reflecting the impact of increased borrowing. We aim to maintain an ICR ratio of 3.5-4.0x and a net debt to EBITDA ratio of 6-7x.
LTV increased to 27% at 31 December 2025 (31 December 2024: 24%), reflecting increased net debt and a more modest increase in our property valuations. We expect to maintain LTV between 30-35% on a built-out basis, while maintaining healthy leverage metrics on a cashflow basis.
We remain committed to active portfolio management through capital recycling and are targeting disposals of around £300-400 million p.a. (Unite share).
At the end of the year, Standard & Poor's affirmed The Unite Group credit rating at BBB+, reflecting our leverage targets, robust capital position and track record.
|
Key debt statistics (Unite share basis) |
31 Dec 2025 |
31 Dec 2024 |
|
See-through net debt |
£1,744m |
£1,510m |
|
LTV |
27% |
24% |
|
Net debt: EBITDA ratio |
6.0x |
5.5x |
|
Interest cover ratio |
6.0x |
6.2x |
|
Average debt maturity |
4.0 years |
3.8 years |
|
Average cost of debt |
3.9% |
3.6% |
|
Proportion of investment debt at fixed rate |
100% |
100% |
Funding activity
As at 31 December 2025, the wholly-owned Group had £651 million of cash and debt headroom (31 December 2024: £1,024 million), comprising £36 million of cash balances and £615 million of undrawn debt (2024: £274 million and £750 million respectively).
In June, USAF refinanced its £395 million 2025 bonds through a new £400 million eight-year secured loan with Rothesay Life. The new facility completes refinancing activity in USAF with no maturities now due before 2029.
In December, the Group refinanced its £750 million RCF with five existing relationship banks into a new three-year facility, extendable by up to two further years. Following this refinancing, the SMBC £150 million unsecured term loan was repaid in advance of its maturity in March 2027.
In December, the Group entered into a joint venture with Newcastle University (Unite share: 51%) supported by a £150 million development facility with Rothesay Life. Debt drawdowns are expected to commence in May 2027.
In January 2026, the Group entered into a joint venture with Manchester Metropolitan University (Unite share: 69%) supported by a £236 million development facility with PIMCO. Debt drawdowns are expected to commence in October 2027.
Interest rate hedging arrangements and cost of debt
Our average cost of debt increased to 3.9% in the year (2024: 3.6%) as new debt was issued at higher prevailing rates. At the year-end, 100% of the Group's debt was subject to fixed or capped interest rates (31 December 2024: 100%), providing protection against future changes in interest rates. We expect our average cost of debt to increase to 4.3% for 2026 and 4.5% for 2027 based on our hedging position, forecast future drawings, planned refinancing events and market interest rate expectations. We expect a reduction in capitalised interest in 2026 to £10-15 million (2025: £26.8 million), driven by a reduced level of development activity. The Group's average debt maturity has remained broadly unchanged at 4.0 years (31 December 2024: 3.8 years).
Dividend
We are proposing a final dividend payment of 24.9p per share (2024: 24.9p), totalling 37.7p for the full year (2024: 37.3p) and representing a 1% increase compared to 2024. This represents a payout ratio of 79% of adjusted EPS. The final dividend will be fully paid as a Property Income Distribution (PID) of 24.9p, which will fully satisfy our PID requirement for the 2025 financial year.
Subject to approval at Unite's Annual General Meeting on 15 May 2026, the dividend will be paid on 29 May 2026 to shareholders on the register at close of business on 17 April 2026.
During 2025, scrip elections were received for 5% and 10% of shares in issue for the 2024 final dividend and 2025 interim dividend respectively. The Company does not intend to offer a scrip alternative for the 2025 final dividend.
The Company intends to maintain a stable dividend payout in 2026, distributing 37.7p for the financial year, balancing confidence in the medium-term outlook with the expected reduction in adjusted EPS for the year ahead.
Tax and REIT status
The Group holds REIT status and is exempt from tax on its property business. During the year, we recognised a corporation tax charge of £3.1 million (2024: £4.8 million charge) with the decrease primarily due to lower taxable profits from interest income.
Funds and joint ventures
The table below summarises the key financials at 31 December 2025 for our co-investment vehicles USAF and LSAV.
|
|
Property assets |
Net debt
|
Other liabilities |
Net assets |
Unite share of NTA |
Total return |
Maturity |
Unite share |
|
|
£m |
£m |
£m |
£m |
£m |
|
|
|
|
USAF |
2,844 |
(697) |
(35) |
2,112 |
614 |
3.3% |
Infinite |
30% |
|
LSAV |
2,083 |
(647) |
(50) |
1,386 |
685 |
4.3% |
2032 |
50% |
Property valuations increased by 0.7% for USAF and 0.5% in LSAV over the year, on a like-for-like basis, with rental growth more than offsetting the impact of increases to property yields. Property yields increased by 12bps for USAF and 18bps for LSAV to a weighted average yield of 5.3% and 4.7% respectively.
During the year, £117 million of USAF redemption requests were cleared, with £105 million traded on the secondary market at an average 2% discount to NAV and £12 million paid to unitholders out of disposal proceeds. Unite's ownership of USAF increased by 0.7% to 29.8% following redemptions paid to unitholders during the year. USAF has capital available to invest, which will part fund the acquisition of St Pancras Way from Unite for £186 million, increasing USAF's portfolio weighting to London.
Management fees
During the year, the Group recognised net fees of £17.3 million from its fund and asset management activities (2024: £17.3 million), which remained unchanged in the year. The benefit of increased fees from higher income and property valuations were offset by lower fees following redemptions in USAF over the past two years.
|
|
2025 £m |
2024 £m |
|
USAF asset management fee |
12.3 |
12.4 |
|
LSAV asset and property management fee |
5.0 |
4.9 |
|
Total fees |
17.3 |
17.3 |
Responsibility statement of the directors in respect of the annual financial report
We confirm that to the best of our knowledge:
· The financial statements, prepared in accordance with the relevant financial reporting framework, give a true and fair view of the assets, liabilities, financial position and profit or loss of the company and the undertakings included in the consolidation taken as a whole
· The strategic report includes a fair review of the development and performance of the business and the position of the company and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face
· The annual report and financial statements, taken as a whole, are fair, balanced and understandable and provide the information necessary for shareholders to assess the Group's position and performance, business model and strategy.
Joe Lister Mike Burt
Chief Executive Chief Financial Officer
24 February 2026
Forward-looking statements
The preceding preliminary statement has been prepared for the shareholders of the Company, as a body, and for no other persons. Its purpose is to assist shareholders of the Company to assess the strategies adopted by the Company and the potential for those strategies to succeed and for no other purpose. The preliminary statement contains forward-looking statements that are subject to risk factors associated with, among other things, the economic, regulatory and business circumstances occurring from time to time in the sectors and markets in which the Group operates. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a wide range of variables that could cause actual results to differ materially from those currently anticipated. No assurances can be given that the forward-looking statements will be realised. The forward-looking statements reflect the knowledge and information available at the date of preparation. Nothing in the preliminary statement should be considered or construed as a profit forecast for the Group. Except as required by law, the Group has no obligation to update forward-looking statements or to correct any inaccuracies therein.
Primary statements
Consolidated income statement
Consolidated statement of comprehensive income
Consolidated balance sheet
Consolidated statement of changes in shareholders' equity
Statement of cash flows
Section 1: Basis of preparation
Section 2: Results for the year
2.1 Segmental information
2.2 Earnings
2.3 Net assets
2.4 Revenue and costs
2.5 Tax
Section 3: Asset management
3.1 Wholly owned property assets
3.2 Investments in joint ventures
Section 4: Funding
4.1 Borrowings
4.2 Interest rate swaps
4.3 Net financing costs
4.4 Gearing
4.5 Covenant compliance
4.6 Equity
4.7 Dividends
Section 5: Working capital
5.1 Cash and cash equivalents
5.2 Credit risk
Section 6: Post balance sheet events
Section 7: Alternative performance measures
Glossary
Company information
CONSOLIDATED INCOME STATEMENT
For the year ended 31 December 2025
|
|
Note |
2025 £m |
2024 £m |
|
Rental income |
2.4 |
307.7 |
282.0 |
|
Other income |
2.4 |
25.1 |
17.3 |
|
Total revenue |
|
332.8 |
299.3 |
|
Cost of sales |
|
(96.8) |
(86.4) |
|
Operating expenses |
|
(57.9) |
(43.9) |
|
Expected credit losses |
|
(2.6) |
(0.9) |
|
Results from operating activities before (losses)/gains on property
|
|
175.5 |
168.1 |
|
Loss on disposal of property |
|
(1.3) |
(9.8) |
|
Write-off of inventories |
3.1 |
(12.0) |
- |
|
Net valuation (losses)/gains on property (owned and under development) |
3.1 |
(72.3) |
186.7 |
|
Net valuation losses on property (leased) |
|
(12.9) |
(1.9) |
|
Profit before net financing (costs)/gains and share of joint venture profit |
|
77.0 |
343.1 |
|
Loan interest and similar charges |
4.3 |
(13.0) |
(19.4) |
|
Interest on lease liability |
4.3 |
(7.6) |
(8.8) |
|
Mark to market changes in interest rate swaps |
4.3 |
(22.5) |
(0.4) |
|
Swap cancellation and loan break costs |
4.3 |
- |
(3.1) |
|
Finance (costs) |
|
(43.1) |
(31.7) |
|
Finance income |
4.3 |
6.1 |
16.7 |
|
Net financing (costs)/gains |
|
(37.0) |
(15.0) |
|
Share of joint venture profit |
3.3b |
57.7 |
115.9 |
|
Profit before tax |
|
97.7 |
444.0 |
|
Current tax |
2.5a |
(3.1) |
(4.8) |
|
Deferred tax |
2.5a |
3.0 |
2.6 |
|
Profit for the year |
|
97.6 |
441.8 |
|
Profit for the year attributable to |
|
|
|
|
Owners of the Parent Company |
|
97.6 |
441.9 |
|
Non-controlling interest |
|
- |
(0.1) |
|
|
|
97.6 |
441.8 |
|
Earnings per share |
|
|
|
|
Basic |
2.2c |
19.9p |
96.3p |
|
Diluted |
2.2c |
19.9p |
96.1p |
All results are derived from continuing activities.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2025
|
|
Note |
2025 £m |
2024 £m |
|
Profit for the year |
|
97.6 |
441.8 |
|
Share of joint venture movements in effective hedges |
3.3b |
(0.5) |
(2.3) |
|
Other comprehensive income for the year |
|
(0.5) |
(2.3) |
|
Total comprehensive income for the year |
|
97.1 |
439.5 |
|
Attributable to |
|
|
|
|
Owners of the Parent Company |
|
97.1 |
439.6 |
|
Non-controlling interest |
|
- |
(0.1) |
|
|
|
97.1 |
439.5 |
All other comprehensive income may be classified as profit and loss in the future.
There are no tax effects on items of other comprehensive income.
CONSOLIDATED BALANCE SHEET
|
At 31 December 2025 |
Note |
2025 £m |
2024 £m |
2022 £m |
|
|||
|
Assets |
|
|
|
|
|
|||
|
Investment property (owned) |
3.1 |
4,220.4 |
4,025.5 |
3,623.4 |
|
|||
|
Investment property (leased) |
3.1 |
60.3 |
71.8 |
90.3 |
|
|||
|
Investment property under development |
3.1 |
438.4 |
451.4 |
202.7 |
|
|||
|
Investment in joint ventures |
3.3b |
1,317.3 |
1,265.0 |
1,226.6 |
|
|||
|
Other non-current assets |
|
21.6 |
14.8 |
15.4 |
|
|||
|
Interest rate swaps |
4.2 |
26.9 |
46.0 |
73.2 |
|
|||
|
Right-of-use assets |
|
8.3 |
4.7 |
2.7 |
|
|||
|
Deferred tax asset |
2.5d |
11.2 |
8.2 |
3.6 |
|
|||
|
Total non-current assets |
|
6,104.4 |
5,887.4 |
5,238.0 |
|
|||
|
Assets classified as held for sale |
3.1 |
- |
92.6 |
- |
|
|||
|
Interest rate swaps |
4.2 |
17.1 |
7.4 |
|
|
|||
|
Inventories |
|
5.4 |
13.6 |
12.8 |
|
|||
|
Trade and other receivables |
|
138.0 |
144.6 |
105.2 |
|
|||
|
Cash and cash equivalents |
5.1 |
35.8 |
274.3 |
38.0 |
|
|||
|
Total current assets |
|
196.3 |
532.5 |
156.0 |
|
|||
|
Total assets |
|
6,300.7 |
6,419.9 |
5,393.9 |
|
|||
|
Liabilities |
|
|
|
|
||||
|
Lease liabilities |
|
(5.8) |
(6.0) |
(4.8) |
|
|||
|
Trade and other payables |
|
(230.2) |
(255.5) |
(191.5) |
|
|||
|
Current tax liability |
|
(6.2) |
(1.2) |
(0.8) |
|
|||
|
Provisions |
|
- |
(5.1) |
(29.5) |
|
|||
|
Total current liabilities |
|
(242.2) |
(267.8) |
(226.6) |
|
|||
|
Borrowings |
4.1 |
(1,256.2) |
(1,273.8) |
(1,265.9) |
|
|||
|
Lease liabilities |
|
(68.5) |
(66.8) |
(87.5) |
|
|||
|
Total non-current liabilities |
|
(1,324.7) |
(1,340.6) |
(1,353.4) |
|
|||
|
Total liabilities |
|
(1,566.9) |
(1,608.4) |
(1,580.0) |
|
|||
|
Net assets |
|
4,733.8 |
4,811.5 |
3,813.9 |
|
|||
|
Equity |
|
|
|
|
|
|||
|
Issued share capital |
|
122.5 |
122.2 |
100.1 |
|
|||
|
Share premium |
|
2,876.6 |
2,876.9 |
2,162.0 |
|
|||
|
Merger reserve |
|
40.2 |
40.2 |
40.2 |
|
|||
|
Retained earnings |
|
1,693.8 |
1,770.8 |
1,479.0 |
|
|||
|
Hedging reserve |
|
0.7 |
1.4 |
6.2 |
|
|||
|
Equity attributable to the owners of the Parent Company |
|
4,733.8 |
4,811.5 |
3,787.5 |
|
|||
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
For the year ended 31 December 2025
|
|
Note |
Issued share capital £m |
Share premium £m |
Merger reserve £m |
Retained earnings £m |
Hedging reserve £m |
Total £m |
|
At 1 January 2025 |
|
122.2 |
2,876.9 |
40.2 |
1,770.8 |
1.4 |
4,811.5 |
|
|
|
|
|
|
|
|
|
|
Profit for the year |
|
- |
- |
- |
97.6 |
- |
97.6 |
|
Other comprehensive income for the year: |
|
|
|
|
|
|
|
|
Share of joint venture movements in effective hedges |
|
- |
- |
- |
- |
(0.5) |
(0.5) |
|
Total comprehensive income for the year |
|
- |
- |
- |
97.6 |
(0.5) |
97.1
|
|
Fair value of share-based payments |
|
- |
- |
- |
1.5 |
- |
1.5 |
|
Own shares acquired |
|
- |
- |
- |
(0.8) |
- |
(0.8) |
|
Unwind of realised swap gain |
|
- |
- |
- |
- |
(0.2) |
(0.2) |
|
Dividends paid to owners |
|
- |
- |
- |
(175.3) |
- |
(175.3) |
|
Scrip dividend related share issue |
|
0.3 |
(0.3) |
- |
- |
- |
- |
|
At 31 December 2025 |
|
122.5 |
2,876.6 |
40.2 |
1,693.8 |
0.7 |
4,733.8 |
|
|
Note |
Issued share capital £m |
Share premium £m |
Merger reserve £m |
Retained earnings £m |
Hedging reserve £m |
Attributable to owners of the parent £m |
Non-controlling interest £m |
Total £m |
|
At 1 January 2024 |
|
109.4 |
2,447.6 |
40.2 |
1,466.0 |
3.8 |
4,067.0 |
26.1 |
4,093.1 |
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the year |
|
- |
- |
- |
441.9 |
- |
441.9 |
(0.1) |
441.8 |
|
Other comprehensive income for the year: |
|
|
|
|
|
|
|
|
|
|
Share of joint venture mark to market movements on hedged instruments |
|
- |
- |
- |
- |
(2.3) |
(2.3) |
- |
(2.3) |
|
Total comprehensive income for the year |
|
- |
- |
- |
441.9 |
(2.3) |
439.6 |
(0.1) |
439.5 |
|
Shares issued |
|
12.8 |
429.3 |
- |
- |
- |
442.1 |
- |
442.1 |
|
Deferred tax on share-based payments |
|
- |
- |
- |
0.1 |
- |
0.1 |
- |
0.1 |
|
Fair value of share-based payments |
|
- |
- |
- |
2.1 |
- |
2.1 |
- |
2.1 |
|
Own shares acquired |
|
- |
- |
- |
(1.5) |
- |
(1.5) |
- |
(1.5) |
|
Unwind of realised swap gain |
|
- |
- |
- |
- |
(0.1) |
(0.1) |
- |
(0.1) |
|
Dividends paid to owners |
|
- |
- |
- |
(137.8) |
- |
(137.8) |
- |
(137.8) |
|
Disposals of non-controlling interest |
|
- |
- |
- |
- |
- |
- |
(26.0) |
(26.0) |
|
At 31 December 2024 |
|
122.2 |
2,876.9 |
40.2 |
1,770.8 |
1.4 |
4,811.5 |
- |
4,811.5 |
For the year ended 31 December 2024
STATEMENT OF CASH FLOWS
For the year ended 31 December 2025
|
|
Note |
2025 £m |
2024 £m |
|
Net cash flows from operating activities |
5.1 |
166.5 |
216.4 |
|
Investing activities |
|
|
|
|
Redemption of units / investment in joint ventures |
|
(11.7) |
27.9 |
|
Payments for investment property |
|
- |
(347.8) |
|
Capital expenditure on properties |
|
(242.5) |
(267.9) |
|
Acquisition of intangible assets |
|
(8.6) |
(5.1) |
|
Acquisition of plant and equipment |
|
(4.2) |
(2.5) |
|
Proceeds from sale of investment property |
|
91.0 |
123.1 |
|
Interest received |
|
6.1 |
16.7 |
|
Dividends received |
|
29.5 |
27.6 |
|
Net cash flows from investing activities |
|
(140.4) |
(428.0) |
|
Financing activities |
|
|
|
|
Proceeds from the issue of share capital |
|
- |
442.0 |
|
Payments to acquire own shares |
|
(0.8) |
(1.5) |
|
Interest paid in respect of financing activities |
|
(47.5) |
(35.6) |
|
Repayment of lease liabilities |
|
(12.9) |
(8.8) |
|
Swap cancellation and loan break costs |
|
- |
(3.1) |
|
Purchase of Swap Premium |
|
(13.1) |
- |
|
Proceeds from non-current borrowings |
|
135.0 |
543.7 |
|
Repayment of borrowings |
|
(150.0) |
(350.5) |
|
Dividends paid to the owners of the parent company |
|
(153.7) |
(124.2) |
|
Withholding tax paid on distributions |
|
(21.6) |
(13.6) |
|
Net cash flows from financing activities |
|
(264.6) |
448.4 |
|
Net (decrease)/increase in cash and cash equivalents |
|
(238.5) |
236.8 |
|
Cash and cash equivalents at start of year |
|
274.3 |
37.5 |
|
Cash and cash equivalents at end of year |
|
35.8 |
274.3 |
NOTES TO THE FINANCIAL STATEMENTS
Section 1: Basis of preparation
The financial information set out above does not constitute the company's statutory accounts for the years ended 31 December 2025 or 2024 but is derived from those accounts. Statutory accounts for 2025 have been delivered to the Registrar of Companies, and those for 2025 will be delivered in due course. The auditors have reported on those accounts; their reports were (i) unqualified (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006 in respect of the accounts for 2025 or 2024.
Going concern
In determining the appropriate basis of preparation of the financial statements, the Directors are required to consider whether the Group can continue in operational existence for at least 12 months from the date of this report. Following the acquisition of Empiric Student Property plc on 28th January 2026, the Group has also considered the impact of Empiric's cash flows and covenants in its going concern assessment.
The Directors have considered a range of scenarios for future performance through the 2025/26 and 2026/27 academic years. This included a base case assuming cash collection and performance for the 2025/26 academic year remains in line with current expectations and sales performance for the 2026/27 academic year is consistent with published guidance; and a reasonable worst-case scenario where income for the 2026/27 academic year is impacted by reduced sales, equivalent to occupancy of around 90%.
The impact of our sustainability asset transition plans are included within the capex element of our cash flows, which have been modelled to align with the Group's net zero carbon targets. Under each of these scenarios, the Directors are satisfied that the Group has sufficient liquidity and will maintain covenant compliance over the next 12 months. To further support the Directors' going concern assessment, a "Reverse Stress Test" was performed to determine the level of performance at which adopting the going concern basis of preparation may not be appropriate. This involved assessing the minimum amount of income required to ensure financial covenants would not be breached. Within the tightest covenant, occupancy could fall to approximately 80% in the Group and 68% in the funds before a breach would occur. The Group has capacity for property valuations to fall by around 30% in the Group and 35% in the funds before a breach of LTV and gearing covenants in facilities where such covenants exist. Were income or asset values to fall beyond these levels, the Group has certain cure rights, such that an immediate default could be avoided.
The Directors are satisfied that the possibility of such an outcome is sufficiently remote that adopting the going concern basis of preparation is appropriate.
Accordingly, after making enquiries and having considered forecasts and appropriate sensitivities, the Directors have formed a judgement, at the time of approving the financial statements, that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, being at least 12 months from the date of these financial statements.
Section 2: Results for the year
IFRS performance measures
|
|
Note |
2025 |
2024 |
2025 |
2024 |
|
Profit after tax |
2.2b |
97.6 |
441.9 |
19.9 |
96.3p |
|
Net assets |
2.3d |
4,733.8 |
4,811.5 |
967.5 |
982p |
EPRA performance measures
|
|
Note |
2025 |
2024 |
2025 |
2024 |
|
EPRA earnings |
2.2c |
217.7 |
201.9 |
44.5 |
44.0p |
|
Adjusted earnings* |
2.2c |
232.3 |
213.8 |
47.5 |
46.6p |
|
EPRA NTA |
2.3d |
4,684.9 |
4,758.4 |
955 |
972p |
* See glossary for definition and note 2.2b for reconciliation to IFRS measure.
2.1 Segmental information
The Board of Directors monitors the business along two activity lines:
· The Operations segment manages rental properties, owned directly by the Group or by joint ventures. Its revenues are derived from rental income and asset management fees earned from joint ventures. The way in which the Operations segment adds value to the business is set out in the Operations review. The Operations segment is the main contributor to adjusted earnings and adjusted EPS and these are therefore the key indicators which are used by the Board to monitor the Group's financial performance. The Board does not manage or monitor the Operations segment through the balance sheet and therefore no segmental information for assets and liabilities is provided.
· The Group's Property business undertakes the acquisition and development of properties. The way in which the Property segment adds value to the business is set out in the Property review.
The reportable segments for the years ended 31 December 2025 and 31 December 2024 are Operations and Property.
The Group undertakes its Operations and Property activities directly and through joint ventures with third parties. The joint ventures are an integral part of each segment and are included in the information used by the Board to monitor the business.
Detailed analysis of the performance of each of these reportable segments is provided in the following sections 2.2 to 2.3. The Group's properties are located exclusively in the United Kingdom. The Group therefore has one geographical segment.
2.2 Earnings
EPRA earnings and adjusted earnings amend IFRS measures by removing principally the unrealised investment property valuation gains and losses such that users of the financial statements are able to see the extent to which dividend payments (dividend per share) are underpinned by earnings arising from operational activity. In accordance with the IFRIC guidance, costs relating to software as a service arrangements are expensed as incurred and excluded from adjusted earnings, rather than being capitalised. The reconciliation between profit attributable to owners of the Parent Company and EPRA earnings is available in note 2.2b
2.2a) EPRA earnings
2025
|
|
Unite £m |
Share of joint ventures |
Group on Total £m |
||
|
USAF £m |
LSAV £m |
Total £m |
|||
|
Rental income |
307.7 |
59.2 |
61.3 |
120.5 |
428.2 |
|
Property operating expenses |
(99.4) |
(19.6) |
(15.2) |
(34.8) |
(134.2) |
|
Net operating income |
208.3 |
39.6 |
46.1 |
85.7 |
294.0 |
|
Management fees |
22.2 |
(4.9) |
- |
(4.9) |
17.3 |
|
Overheads |
(47.1) |
(0.6) |
(0.8) |
(1.4) |
(48.5) |
|
Interest on lease liabilities |
(7.6) |
- |
- |
- |
(7.6) |
|
Net financing costs |
(9.1) |
(12.8) |
(17.2) |
(30.0) |
(39.1) |
|
Operations segment result |
166.7 |
21.3 |
28.1 |
49.4 |
216.1 |
|
Property segment result |
5.0 |
- |
- |
- |
5.0 |
|
Unallocated to segments |
(2.9) |
(0.2) |
(0.3) |
(0.5) |
(3.4) |
|
EPRA earnings |
168.8 |
21.1 |
27.8 |
48.9 |
217.7 |
|
Software as a service cost |
14.6 |
- |
- |
- |
14.6 |
|
Adjusted earnings |
183.4 |
21.1 |
27.8 |
48.9 |
232.3 |
Included in the above is rental income of £20.7 million and property operating expenses of £11.6 million relating to sale and leaseback properties. Included in the above is also rental income of £4.1 million and property operating expenses of £1.2 million, relating to a build-to-rent property. Unallocated to segments includes the fair value of share-based payments of (£1.5 million), contributions to the Unite Foundation and social causes of (£1.0 million), a deferred tax credit of £3.3 million and a current tax charge of (£3.1 million). Depreciation and amortisation totalling (£6.9 million) is included within overheads. The software as a service costs are presented net of deferred tax of £4.8 million.
2.2a) EPRA earnings (continued)
2024
|
|
Unite Students £m |
Share of joint ventures |
Group on Total £m |
||
|
USAF £m |
LSAV £m |
Total £m |
|||
|
Rental income |
282.0 |
59.0 |
57.0 |
116.0 |
398.0 |
|
Property operating expenses |
(87.2) |
(20.7) |
(14.0) |
(34.7) |
(121.9) |
|
Net operating income |
194.8 |
38.3 |
43.0 |
81.3 |
276.1 |
|
Management fees |
21.9 |
(4.6) |
- |
(4.6) |
17.3 |
|
Overheads |
(37.5) |
(0.5) |
(0.4) |
(0.9) |
(38.4) |
|
Interest on lease liabilities |
(8.8) |
- |
- |
- |
(8.8) |
|
Net financing costs |
(6.9) |
(11.5) |
(16.8) |
(28.3) |
(35.2) |
|
Operations segment result |
163.5 |
21.7 |
25.8 |
47.5 |
211.0 |
|
Property segment result |
(3.8) |
- |
- |
- |
(3.8) |
|
Unallocated to segments |
(4.8) |
(0.2) |
(0.3) |
(0.5) |
(5.3) |
|
EPRA earnings |
154.9 |
21.5 |
25.5 |
47.0 |
201.9 |
|
Software as a service cost |
11.9 |
- |
- |
- |
11.9 |
|
Adjusted earnings |
166.8 |
21.5 |
25.5 |
47.0 |
213.8 |
Included in the above is rental income of £20.3 million and property operating expenses of £11.5 million relating to sale and leaseback properties. Included in the above is also rental income of £4.0 million and property operating expenses of £1.2 million, relating to a build-to-rent property. Unallocated to segments includes the fair value of share-based payments of (£2.3 million), contributions to the Unite Foundation and social causes of (£0.6 million), a deferred tax credit of £2.6 million and a current tax charge of (£5.1 million). Depreciation and amortisation totalling (£5.7 million) is included within overheads. The software as a service costs are presented net of deferred tax of £4.0 million.
2.2b) IFRS reconciliation to EPRA earnings and adjusted earnings
EPRA earnings excludes movements relating to changes in values of investment properties (owned, leased and under development), profits/losses from the disposal of properties and swap/debt break costs which are included in the profit reported under IFRS. EPRA earnings and adjusted earnings reconcile to the profit attributable to owners of the Company as follows:
|
|
Note |
2025 £m |
2024 £m |
| Profit attributable to owners of the Parent Company |
|
97.6 |
441.9 |
|
Net valuation losses/(gains) on investment property (owned) |
3.1 |
72.3 |
(186.7) |
|
Losses on property disposals (owned) |
|
1.3 |
9.8 |
|
Write-off of inventories and other fixed assets |
|
12.0 |
- |
|
Net valuation losses on investment property (leased) |
3.1 |
12.9 |
1.9 |
|
Amortisation of fair value of debt recognised on acquisition |
|
(2.3) |
(4.1) |
|
Share of joint venture (gains)/losses on investment property |
3.3b |
(5.2) |
(67.0) |
|
Share of joint venture property disposals |
3.3b |
1.6 |
2.4 |
|
Swap cancellation and loan break costs |
4.3 |
- |
3.1 |
|
Mark to market changes on interest rate swaps |
4.3 |
22.5 |
0.4 |
|
Current tax relating to property disposals |
|
- |
0.2 |
|
Deferred tax |
2.5d |
(1.2) |
- |
|
Cladding compensation |
|
(3.5) |
- |
|
Costs relating to the acquisition of Empiric |
|
4.9 |
- |
|
Restructuring costs |
|
4.8 |
- |
|
EPRA earnings |
|
217.7 |
201.9 |
|
Software as a service cost previously capitalised |
|
14.6 |
11.9 |
|
Adjusted earnings |
|
232.3 |
213.8 |
2.2c) Earnings per share
Basic EPS calculation is based on the earnings attributable to the equity shareholders of The Unite Group PLC and the weighted average number of shares which have been in issue during the year. Basic EPS is adjusted in line with EPRA guidelines in order to allow users to compare the business performance of the Group with other listed real estate companies in a consistent manner and to reflect how the business is managed on a day-to-day basis.
|
|
Note |
2025 |
2024 |
2025 |
2024 |
|
Earnings |
|
|
|
|
|
|
Basic |
|
97.6 |
441.9 |
19.9 |
96.3 |
|
Diluted |
|
|
|
19.9 |
96.1 |
|
EPRA |
2.2b |
217.7 |
201.9 |
44.5 |
44.0 |
|
Diluted EPRA |
|
|
|
44.5 |
43.9 |
|
Adjusted earnings |
2.2b |
232.3 |
213.8 |
47.5 |
46.6 |
|
Diluted adjusted earnings |
|
|
|
47.5 |
46.5 |
|
|
|
|
|
|
|
|
|
|
|
|
2025
|
2024
|
|
Weighted average number of shares (thousands) |
|
|
|
|
|
|
Basic |
|
|
|
489,258 |
458,969 |
|
Dilutive potential ordinary shares (share options) |
|
|
|
758 |
1,087 |
|
Diluted |
|
|
|
490,016 |
460,056 |
Movements in the weighted average number of shares have resulted from the equity raise in July 2024, employee share-based payment schemes and the scrip dividend.
In 2025, there were 231,792 options excluded from the potential dilutive shares that did not affect the diluted weighted average number of shares (2024: 37,319).
2.3 Net assets
2.3a) EPRA NTA
EPRA NTA makes adjustments to IFRS measures by removing the fair value of financial instruments and the carrying value of intangibles. The reconciliation between IFRS NAV and EPRA NTA is available in note 2.3c.
|
2025
|
Unite Students £m |
Share of joint ventures |
Group on |
|||||
|
|
USAF £m |
LSAV £m |
Other university partnerships £m |
Total £m |
Total £m |
|
||
|
Investment property (owned)* |
4,220.4 |
843.4 |
1,019.5 |
- |
1,862.9 |
6,083.3 |
|
|
|
Investment property (leased) |
60.3 |
- |
- |
- |
- |
60.3 |
|
|
|
Investment property (under development) |
438.4 |
- |
- |
18.5 |
18.5 |
456.9 |
|
|
|
Total property portfolio |
4,719.1 |
843.4 |
1,019.5 |
18.5 |
1,881.4 |
6,600.5 |
|
|
|
Debt |
(1,248.2) |
(279.7) |
(361.3) |
- |
(641.0) |
(1,889.2) |
|
|
|
Lease liabilities |
(74.3) |
- |
- |
- |
- |
(74.3) |
|
|
|
Cash |
35.8 |
71.7 |
38.0 |
- |
109.7 |
145.5 |
|
|
|
Net debt
|
(1,286.7) |
(208.0) |
(323.3) |
- |
(531.3) |
(1,818.0) |
|
|
|
Other assets and (liabilities) |
(52.0) |
(20.7) |
(10.9) |
(1.1) |
(32.7) |
(84.7) |
|
|
|
EPRA net assets |
3,380.4 |
614.7 |
685.3 |
17.4 |
1,317.4 |
4,697.8 |
|
|
|
Intangible assets
|
(12.8) |
(0.1) |
- |
- |
(0.1) |
(12.9) |
|
|
|
EPRA NTA |
3,367.6 |
614.6 |
685.3 |
17.4 |
1,317.3 |
4,684.9 |
|
|
|
Loan to value** |
26% |
25% |
32% |
n/a |
28% |
27% |
|
|
|
Loan to value post IFRS 16 |
27% |
25% |
32% |
n/a |
28% |
28% |
|
|
2.3a) EPRA NTA (continued)
|
2024
|
Unite Students £m |
Share of joint ventures |
Group on
Total £m |
||
|
USAF £m |
LSAV £m |
Total £m |
|||
|
Investment property (owned)* |
4,025.5 |
829.6 |
996.9 |
1,826.5 |
5,852.0 |
|
Investment property (leased) |
71.8 |
- |
- |
- |
71.8 |
|
Investment property (under development) |
451.4 |
- |
- |
- |
451.4 |
|
Total property portfolio |
4,548.7 |
829.6 |
996.9 |
1,826.5 |
6,375.2 |
|
Debt |
(1,263.7) |
(273.1) |
(338.0) |
(611.1) |
(1,874.8) |
|
Lease liabilities |
(72.8) |
- |
- |
- |
(72.8) |
|
Cash |
274.3 |
70.4 |
20.0 |
90.4 |
364.7 |
|
Net debt |
(1,062.2) |
(202.7) |
(318.0) |
(520.7) |
(1,582.9) |
|
Other assets and (liabilities) |
11.7 |
(22.6) |
(12.6) |
(35.2) |
(23.5) |
|
EPRA NTA |
3,498.2 |
604.3 |
666.3 |
1,270.6 |
4,768.8 |
|
Intangible assets Net Tangible Assets |
(10.4) |
- |
- |
- |
(10.4) |
|
Net Tangible Assets |
3,487.8 |
604.3 |
666.3 |
1,270.6 |
4,758.4 |
|
Loan to value** |
22% |
24% |
32% |
29% |
24% |
|
Loan to value post IFRS 16 |
23% |
24% |
32% |
29% |
25% |
* Investment property (owned) includes assets classified as held for sale in the IFRS balance sheet.
** LTV calculated excluding investment properties (leased) and the corresponding lease liabilities. LTV is an APM - see section 8.
2.3b) Movement in EPRA NTA during the year
Contributions to EPRA NTA by each segment during the year is as follows:
|
2025 |
Note |
Unite Students £m |
|
Share of joint ventures |
Group on Total £m |
||
|
USAF £m |
LSAV £m |
Other University partnerships £m |
Total £m |
||||
|
Operations |
|
|
|
|
|
|
|
|
Operations segment result |
2.2a |
166.7 |
21.3 |
28.1 |
- |
49.4 |
216.1 |
|
Add back amortisation of intangibles |
3.3b |
4.3 |
- |
- |
- |
- |
4.3 |
|
Total Operations |
|
171.0 |
21.3 |
28.1 |
|
49.4 |
220.4 |
|
Property |
|
|
|
|
|
|
|
|
Rental growth |
|
19.5 |
21.0 |
43.4 |
- |
64.4 |
83.9 |
|
Yield movement |
|
(89.3) |
(19.0) |
(40.0) |
- |
(59.0) |
(148.3) |
|
Disposals (losses) |
|
(1.3) |
(1.6) |
- |
- |
(1.6) |
(2.9) |
|
Investment property (losses)/gains (owned) |
|
(71.1) |
0.4 |
3.4 |
- |
3.8 |
(67.3) |
|
Investment property loss (leased) |
3.1 |
(12.9) |
- |
- |
- |
- |
(12.9) |
|
Disposals losses investment property (leased) |
|
- |
- |
- |
- |
- |
- |
|
Investment property loss (under development) |
3.1 |
(2.5) |
- |
- |
(0.2) |
(0.2) |
(2.7) |
|
Pre-contract/other development costs |
2.2a |
5.0 |
- |
- |
- |
- |
5.0 |
|
Total Property |
|
(81.5) |
0.4 |
3.4 |
(0.2) |
3.6 |
(77.9) |
|
Unallocated |
|
|
|
|
|
|
|
|
Shares issued |
|
- |
- |
- |
- |
- |
- |
|
Investment in joint ventures |
|
11.6 |
(16.6) |
(12.9) |
17.9 |
(11.6) |
- |
|
Dividends paid |
|
(175.3) |
- |
- |
- |
- |
(175.3) |
|
Swap cancellation and debt break costs |
|
(13.1) |
- |
- |
- |
- |
(13.1) |
|
Purchase of intangibles |
|
(8.6) |
- |
- |
- |
- |
(8.6) |
|
Share based payment charge |
|
(1.5) |
- |
- |
- |
- |
(1.5) |
|
Write-off of inventories and other fixed assets |
|
(12.0) |
- |
- |
- |
- |
(12.0) |
|
Costs relating to the acquisition of Empiric |
|
(4.9) |
- |
- |
- |
- |
(4.9) |
|
Restructuring and other non-recurring write-offs |
|
(5.8) |
5.1 |
0.4 |
(0.3) |
5.2 |
(0.6) |
|
Total Unallocated |
|
(209.6) |
(11.5) |
(12.5) |
17.6 |
(6.4) |
(216.0) |
|
Total EPRA NTA movement in the year |
|
(120.1) |
10.2 |
19.0 |
17.4 |
46.6 |
(73.5) |
|
Total EPRA NTA brought forward |
|
3,487.8 |
604.3 |
666.3 |
- |
1,270.6 |
4,758.4 |
|
Total EPRA NTA carried forward |
|
3,367.7 |
614.5 |
685.3 |
17.4 |
1,317.2 |
4,684.9 |
* Investment property gains (owned) includes gains on assets classified as held for sale in the IFRS balance sheet.
The £0.6 million Other balance within the Unallocated segment includes restructuring costs of (£4.8 million), the purchase of own shares of (£0.8 million), contributions to the Unite Foundation and other social causes of (£1.7 million) and tax credits of £3.1 million.
|
2024 |
Note |
Unite Students £m |
Share of joint ventures |
Group on Total £m |
||
|
USAF £m |
LSAV £m |
Total £m |
||||
|
Operations |
|
|
|
|
|
|
|
Operations segment result |
2.2a |
163.5 |
21.7 |
25.8 |
47.5 |
211.0 |
|
Add back amortisation of intangibles |
3.3b |
4.0 |
- |
- |
- |
4.0 |
|
Total Operations |
|
167.5 |
21.7 |
25.8 |
47.5 |
215.0 |
|
Property |
|
|
|
|
|
|
|
Rental growth |
|
269.6 |
29.7 |
46.4 |
76.1 |
345.7 |
|
Yield movement |
|
(107.0) |
(2.8) |
(4.3) |
(7.1) |
(114.1) |
|
Disposal (losses) |
|
(5.5) |
(2.4) |
- |
(2.4) |
(7.9) |
|
Investment property (losses)/gains (owned)* |
|
157.1 |
24.5 |
42.1 |
66.6 |
223.7 |
|
Investment property losses (leased) |
3.1 |
(1.9) |
- |
- |
- |
(1.9) |
|
Disposals losses investment property (leased) |
|
(4.3) |
- |
- |
- |
(4.3) |
|
Investment property losses (under development) |
3.1 |
24.1 |
- |
- |
- |
24.1 |
|
Pre-contract/other development costs |
2.2a |
(3.8) |
- |
- |
- |
(3.8) |
|
Total Property |
|
171.2 |
24.5 |
42.1 |
66.6 |
237.8 |
|
Unallocated |
|
|
|
|
|
|
|
Shares issued |
|
442.1 |
- |
- |
- |
442.1 |
|
Investment in joint ventures |
|
28.3 |
(18.7) |
(9.6) |
(28.3) |
- |
|
Dividends paid |
|
(137.8) |
- |
- |
- |
(137.8) |
|
Swap cancellation and debt break cost |
|
(3.5) |
- |
- |
- |
(3.5) |
|
Purchase of intangibles |
|
(5.1) |
- |
- |
- |
(5.1) |
|
Share based payment charge |
|
(2.4) |
- |
- |
- |
(2.4) |
|
Other |
|
2.5 |
(3.4) |
(1.5) |
(4.9) |
(2.4) |
|
Total Unallocated |
|
324.1 |
(22.1) |
(11.1) |
(33.2) |
290.9 |
|
Total EPRA NTA movement in the year |
|
662.8 |
24.1 |
56.8 |
80.9 |
743.7 |
|
Total EPRA NTA brought forward |
|
2,825.0 |
580.2 |
609.5 |
1,189.7 |
4,014.7 |
|
Total EPRA NTA carried forward |
|
3,487.8 |
604.3 |
666.3 |
1,270.6 |
4,758.4 |
The £2.4 million Other balance within the Unallocated segment includes the purchase of own shares of (£1.5 million), contributions to the Unite Foundation and other social causes of (£0.6 million), tax credits of £2.6 million.
2.3c) Reconciliation to IFRS
To determine EPRA NTA, net assets reported under IFRS are adjusted to exclude the fair value of financial instruments, associated tax and the carrying value of intangibles.
To determine EPRA NRV, net assets reported under IFRS are adjusted to exclude the fair value of financial instruments, associated tax and real estate transfer tax.
To determine EPRA NDV, net assets reported under IFRS are adjusted to exclude the fair value of financial instruments but include the fair value of fixed interest rate debt and the carrying value of intangibles.
The net assets reported under IFRS reconcile to EPRA NTA, NRV and NDV as follows:
2025
|
|
Note |
NTA |
NRV |
NDV |
|
Net asset reported under IFRS |
|
4,733.8 |
4,733.8 |
4,733.8 |
|
Mark to market interest rate swaps |
|
(44.0) |
(44.0) |
- |
|
Unamortised fair value of debt recognised on acquisition |
|
7.9 |
7.9 |
7.9 |
|
Mark to market of fixed rate debt |
|
- |
- |
8.9 |
|
Intangibles per IFRS balance sheet |
|
(12.8) |
- |
- |
|
Real estate transfer tax |
|
- |
435.9 |
- |
|
EPRA reporting measures |
|
4,684.9 |
5,133.6 |
4,750.6 |
2024
|
|
Note |
NTA |
NRV |
NDV |
|
Net assets reported under IFRS |
|
4,811.5 |
4,811.5 |
4,811.5 |
|
Mark to market interest rate swaps |
|
(53.6) |
(53.6) |
- |
|
Unamortised swap gain |
|
(1.0) |
(1.0) |
(1.0) |
|
Mark to market of fixed rate debt |
|
- |
- |
31.7 |
|
Unamortised fair value of debt recognised on acquisition |
|
11.1 |
11.1 |
11.1 |
|
Current tax
|
|
0.8 |
0.8 |
- |
|
Intangibles per IFRS balance sheet |
|
(10.4) |
- |
- |
|
Real estate transfer tax |
|
- |
467.4 |
- |
|
EPRA reporting measures |
|
4,758.4 |
5,236.2 |
4,853.3 |
2.3d) NAV, NTA, NRV and NDV per share
The Board uses EPRA NTA to monitor the performance of the Property segment on a day-to-day basis.
|
|
Note |
2025 |
2024 |
2025 |
2024 |
|
Net assets |
|
4,733.8 |
4,811.5 |
966 |
982 |
|
EPRA NTA |
2.3a |
4,684.9 |
4,758.4 |
956 |
974 |
|
EPRA NTA (diluted) |
|
4,685.6 |
4,761.4 |
955 |
972 |
|
EPRA NRV |
2.3c |
5,133.6 |
5,236.2 |
1,048 |
1,071 |
|
EPRA NRV (diluted) |
|
5,134.3 |
5,239.2 |
1,046 |
1,069 |
|
EPRA NDV |
2.3c |
4,750.6 |
4,853.3 |
970 |
993 |
|
EPRA NDV (diluted) |
|
4,751.3 |
4,856.3 |
968 |
994 |
|
Number of shares (thousands) |
2025 |
2024 |
|
Basic |
489,853 |
488,792 |
|
Outstanding share options |
962 |
1,308 |
|
Diluted |
490,815 |
490,100 |
2.4 Revenue and costs
The Group earns revenue from the following activities:
|
|
|
Note |
2025 £m |
2024 £m |
|
Rental income* |
Operations segment |
2.2a |
307.7 |
282.0 |
|
Management fees |
Operations segment |
|
17.3 |
17.3 |
|
Cladding compensation |
|
|
3.5 |
- |
|
Joint venture formation fee |
Property segment result |
|
4.3 |
- |
|
Total revenue |
|
332.8 |
299.3 |
|
* EPRA earnings includes £428.2 million (2024: £398.0 million) of rental income, which is comprised of £307.7 million (2024: £282.0 million) recognised on wholly owned assets and a further £120.5 million (2024: £116.0 million) from joint ventures, which is included in share of joint venture profit/(loss) in the consolidated income statement.
The cost of sales included in the consolidated income statement includes property operating expenses of £96.8 million (2024: £86.4 million).
2.5 Tax
As a REIT, rental profits and gains on disposal of investment properties are exempt from corporation tax. The Group pays UK corporation tax on the profits from its residual business, including management fees received from joint ventures, together with UK income tax on rental income that arises from investments held by offshore subsidiaries in which the Group holds a non-controlling interest.
2.5a) Tax - income statement
The total taxation charge/(credit) in the income statement is analysed as follows:
|
|
2025 £m |
2024 £m |
|
Corporation tax on residual business income arising in UK companies |
3.3 |
4.9 |
|
Income tax on UK rental income arising in non-UK companies |
- |
0.1 |
|
Prior year adjustments |
(0.2) |
(0.2) |
|
Current tax charge |
3.1 |
4.8 |
|
Reversal of deferred tax provision in respect of REIT property business assets |
(2.7) |
- |
|
Origination and reversal of temporary differences |
- |
(2.6) |
|
Adjustments in respect of prior periods |
(0.3) |
- |
|
Deferred tax (credit) |
(3.0) |
(2.6) |
|
Total tax charge/(credit) in income statement |
0.1 |
2.2 |
The movement in deferred tax is shown in more detail in note 2.5d.
In the income statement, a tax debit of £0.1 million arises on a profit before tax of £97.7 million. The taxation charge that would arise at the standard rate of UK corporation tax is reconciled to the actual tax charge as follows:
|
|
2025 £m |
2024 £m |
|
Profit before tax |
97.7
|
444.0 |
|
Income tax using the UK corporation tax rate of 25% |
24.6 |
111.0 |
|
Property rental business profits exempt from tax in the REIT Group |
(48.4) |
(42.7) |
|
Property revaluations not subject to tax |
15.9 |
(66.6) |
|
Mark to market changes in interest rate swaps not subject to tax |
5.1 |
(0.4) |
|
Unrealised gains on investments |
- |
(0.4) |
|
Effect of other permanent differences |
3.4 |
1.4 |
|
Effect of tax deduction transferred to equity on share schemes |
- |
0.1 |
|
Prior years adjustments |
(0.5) |
(0.2) |
|
Total tax charge/(credit) in income statement |
0.1 |
2.2 |
As a UK REIT, the Group is exempt from UK corporation tax on the profits from its property rental business. Accordingly, the element of the Group's profit before tax relating to its property rental business has been separately identified in the reconciliation above.
No deferred tax asset has been recognised in respect of the Group's accumulated tax losses on the basis that they are not expected to be utilised in future periods. At 31 December 2025 these losses totalled £14.7 million (2024: £15.3 million).
Although the Group does not pay UK corporation tax on the profits from its property rental business, it is required to distribute 90% of the profits from its property rental business after accounting for tax adjustments as a Property Income Distribution (PID). PIDs are charged to tax in the same way as property income in the hands of the recipient. For the year ended 31 December 2025, the required PID is expected to be fully paid by the end of 2026.
2.5b) Tax - other comprehensive income
Within other comprehensive income a tax charge totalling £nil (2024: £nil) has been recognised.
2.5c) Tax - statement of changes in equity
Within the statement of changes in equity a tax credit totalling £nil (2024: £0.2 million charge) has been recognised representing deferred tax. An analysis of this is included below in the deferred tax movement table.
2.5d) Tax - balance sheet
The table below outlines the deferred tax (assets)/liabilities that are recognised in the balance sheet, together with their movements in the year:
2025
|
|
At 31 December 2024 £m |
Charged/(credited) £m |
Charged/(credited) £m |
At 31 December 2025 £m |
|
Property, plant and machinery |
(7.2) |
(3.1) |
- |
(10.3) |
|
Share schemes |
(1.0) |
0.1 |
- |
(0.9) |
|
Net tax (assets) |
(8.2) |
(3.0)* |
- |
(11.2) |
* The £3.0 million credit above includes tax movements totalling £3.0 million in respect of Property, plant and machinery and Share schemes, which are included in EPRA, which is why they are not included in the IFRS reconciliation in note 2.2b).
2024
|
|
At 31 December 2023 £m |
Charged/(credited) £m |
Charged/(credited) £m |
At 31 December 2024 £m |
|
Investments |
0.4 |
(0.4) |
- |
- |
|
Property, plant and machinery and provisions |
(4.9) |
(2.3) |
- |
(7.2) |
|
Share schemes |
(1.1) |
- |
0.1 |
(1.0) |
|
Tax value of carried forward losses recognised |
- |
0.1 |
(0.1) |
- |
|
Net tax (assets) |
(5.6) |
(2.6)* |
- |
(8.2) |
*The £2.6m credit above includes tax movements totalling £2.3m in respect of Property, plant and machinery and losses that are included in EPRA earnings, which is why they are not included in the IFRS reconciliation in note 2.2b).
Section 3: Asset management
3.1 Wholly owned property assets
The Group's wholly owned property portfolio is held in four groups on the balance sheet at the carrying values detailed below.
In the Group's EPRA NTA all these groups are shown at market value, except where otherwise stated.
i) Investment property (owned)
These are assets that the Group intends to hold for a long period to earn rental income or capital appreciation. The assets are measured at fair value in the balance sheet with changes in fair value taken to the income statement.
ii) Investment property (leased)
These are assets the Group sold to institutional investors and simultaneously leased back. These right-of-use assets are measured at fair value in the balance sheet with changes in fair value taken to the income statement.
iii) Investment property (under development)
These are assets which are currently in the course of construction and which will be transferred to Investment property on completion. The assets are initially recognised at cost and are subsequently measured at fair value in the balance sheet with changes in fair value taken to the income statement.
iv) Investment property classified as held for sale
These are assets whose carrying amount will be recovered through a sale transaction rather than to hold for long-term rental income or capital appreciation. This condition is regarded as met only when the sale is highly probable and the investment property is available for immediate sale in its present condition. Management must be committed to the sale which should be expected to qualify for recognition as a completed sale within one year from the date of classification. The assets are measured at fair value in the balance sheet, with changes in fair value taken to the income statement. They are presented as current assets in the IFRS balance sheet.
Valuation process
The valuations of the properties are performed twice a year on the basis of valuation reports prepared by external, independent valuers, having an appropriate recognised professional qualification. The fair values are based on market values as defined in the RICS Appraisal and Valuation Manual, issued by the Royal Institution of Chartered Surveyors, and taking account of committed fire safety and external façade works as provided by Unite Group. CB Richard Ellis Ltd, Jones Lang LaSalle Ltd, and Messrs Knight Frank LLP Chartered Surveyors acted as valuers for both 2024 and 2025, Savills Ltd were added as valuers in 2025.
The valuations are based on:
Information provided by the Group such as current rents, occupancy, operating costs, terms and conditions of leases and nomination agreements and capital expenditure. This information is derived from the Group's financial systems and is subject to the Group's overall control environment.
Assumptions and valuation models used by the valuers - the assumptions are typically market related, such as yield, discount rates and Net Operating Income. These are based on their professional judgement and market observation.
The fair value of the Group's wholly owned properties and the movements in the carrying value of the Group's wholly owned property portfolio during the year ended 31 December 2025 are shown in the table below.
|
2025 |
Investment property (owned) £m |
Investment property (leased) £m |
Investment property under development £m |
Total £m |
|
At 1 January 2025 |
4,025.5 |
71.8 |
451.4 |
4,548.7 |
|
Additions |
- |
- |
- |
- |
|
Cost capitalised |
77.6 |
1.4 |
152.4 |
231.4 |
|
Interest capitalised |
- |
- |
26.8 |
26.8 |
|
Transfer from investment property under development |
188.9 |
- |
(188.9) |
- |
|
Disposals |
(1.8) |
- |
(0.8) |
(2.6) |
|
Net valuation gains/(losses) |
(69.8) |
(12.9) |
(2.5) |
(85.2) |
|
Carrying value at 31 December 2025 |
4,220.4 |
60.3 |
438.4 |
4,719.1 |
Investment property (owned) includes an Asset Held for Sale of £4.0 million.
The fair value of the Group's wholly-owned properties and the movements in the carrying value of the Group's wholly-owned property portfolio during the year ended 31 December 2024 are shown in the table below.
|
2024 |
Investment property (owned) £m |
Investment property (leased) £m |
Investment property under development £m |
Total £m |
|
At 1 January 2024
|
3,694.3 |
84.7 |
174.7 |
3,953.7 |
|
Additions |
282.9 |
- |
64.9 |
347.8 |
|
Cost capitalised |
68.3 |
2.2 |
198.8 |
269.3 |
|
Interest capitalised |
- |
- |
15.5 |
15.5 |
|
Transfer from investment property under development |
37.0 |
- |
(37.0) |
- |
|
Transfer from work in progress |
- |
- |
17.9 |
17.9 |
|
Transfer to assets held for sale |
(92.6) |
- |
- |
(92.6) |
|
Disposals |
(112.2) |
(13.2) |
(7.5) |
(132.9) |
|
Valuation gains |
228.4 |
- |
33.9 |
262.3 |
|
Valuation losses |
(65.8) |
(1.9) |
(9.8) |
(77.5) |
|
Net valuation gains/(losses) |
162.6 |
(1.9) |
24.1 |
184.8 |
|
Committed fire safety and external facade works |
(14.8) |
- |
- |
(14.8) |
|
Carrying and market value at 31 December 2024 |
4,025.5 |
71.8 |
451.4 |
4,548.7 |
Assets classified as held for sale at 31 December 2024 are comprised of £92.6 million of investment property (owned). Assets held for sale are reported within the Property segment and represent a portfolio of properties (split across the Group and joint ventures) intended to be sold within the next 12 months.
Total interest capitalised in investment properties (owned) and investment properties under development at 31 December 2025 was £108.7 million (2024: £81.9 million) on a cumulative basis.
Total internal costs capitalised in investment properties (owned) and investment properties under development was £92.6 million at 31 December 2025 (2024: £84.4 million) on a cumulative basis
Capital Commitments
The Company has contractual commitments of £151.8 million due within one year (2024: £324.7 million) and £406.1 million due within two to four years (2024: £263.0 million). This relates to land, property, plant, and equipment as well as committed development costs.
Recurring fair value measurement
All investment and development properties are classified as Level 3 in the fair value hierarchy.
|
Class of asset |
2025 £m |
2024 £m |
|
|
London - rental properties |
1,316.0 |
1,286.7 |
|
|
Prime regional - rental properties |
1,512.8 |
1,314.2 |
|
|
Major regional - rental properties |
1,226.6 |
1,346.7 |
|
|
Provincial - rental properties |
96.1 |
100.7 |
|
|
London - development properties |
372.0 |
269.5 |
|
|
Prime regional - development properties |
21.0 |
157.7 |
|
|
Major regional - development properties |
40.8 |
13.0 |
|
|
London build-to-rent |
69.8 |
69.8 |
|
|
Prime regional build-to-rent - development properties |
3.7 |
11.2 |
|
|
Investment property (owned) |
4,658.8 |
4,569.5 |
|
|
Investment property (leased) |
60.3 |
71.8 |
|
|
Market value (including assets classified as held for sale) |
4,719.1 |
4,641.3 |
|
|
Investment property (classified as held for sale) |
- |
(92.6) |
|
|
Market value |
4,719.1 |
4,548.7 |
|
The valuations have been prepared in accordance with the latest version of the RICS Valuation - Global Standards (incorporating the International Valuation Standards) and the UK national supplement (the Red Book) based on net rental income, estimated future costs, occupancy, property management costs and the net initial yield or discount rate.
Where the asset is leased to a university, the valuations also reflect the length of the lease, the allocation of maintenance and insurance responsibilities between the Group and the lessee, and the market's general perception of the lessee's creditworthiness.
The resulting valuations are cross-checked against comparable market transactions.
For development properties, the fair value is usually calculated by estimating the fair value of the completed property (using the discounted cash flow method) less estimated costs to completion.
Fair value using unobservable inputs (Level 3)
|
|
2025 £m |
2024 £m |
|
Opening fair value |
4,548.7 |
3,953.7 |
|
Additions |
- |
347.8 |
|
Gains and (losses) recognised in income statement |
(85.2) |
184.8 |
|
Transfer to assets held for sale |
- |
(92.6) |
|
Capital expenditure |
258.2 |
302.7 |
|
Disposals |
(2.6) |
(132.9) |
|
Committed fire safety and external facade works |
- |
(14.8) |
|
Closing fair value |
4,719.1 |
4,548.7 |
|
Investment property (owned) |
- |
92.6 |
|
Closing fair value (including assets classified as held for sale) |
4,719.1 |
4,641.3 |
Quantitative information about fair value measurements using unobservable inputs (Level 3)
2025
|
|
Fair value £m |
Valuation |
Unobservable inputs |
Range |
Weighted average |
|
|
London - |
1,316.0 |
RICS Red Book |
Net rental income (£ per week) |
£224 - £508 3% 4.4% - 4.8% |
347 3% 4.5% |
|
|
Prime regional - |
1,512.8 |
RICS Red Book |
Net rental income (£ per week) |
£168 - £377 2% - 3% 4.5% - 7.2% |
205 3% 5.2% |
|
|
Major regional - |
1,226.6 |
RICS Red Book |
Net rental income (£ per week) |
£100 - £232 3% 5.3% - 7.0% |
169 3% 5.8% |
|
|
Provincial - |
96.1 |
RICS Red Book |
Net rental income (£ per week) |
£127 - £166 3% 7.5% - 16.2% |
142 3% 9.0% |
|
|
London - |
372.0 |
RICS Red Book |
Estimated cost to complete (£m) |
£21m - £136m £311 - £513 3% 4.5% - 4.5% |
£71 £358 3% 4.5% |
|
|
Prime regional - |
21.0 |
RICS Red Book |
Estimated cost to complete (£m) |
£56m £263 3% 4.5% |
£56m £263 3% 4.5% |
|
|
Major regional - |
40.8 |
RICS Red Book |
Estimated cost to complete (£m) |
£88m £241 3% 5.4% |
£88m £241 3% 5.4% |
|
|
|
4,585.3 |
|
|
|
|
|
|
Investment property - (BTR) |
68.7 |
RICS Red Book |
Net rental income (£ per week) |
£504.7 3% 4.6% |
£504.7 3% 4.6% |
|
|
Development property - (BTR) |
4.9 |
RICS Red Book |
Estimated cost to complete (£m) |
£29m £370 3% 4.8% |
£29m £370 3% 4.8% |
|
|
|
73.6 |
|
|
|
|
|
|
Investment property (leased) |
60.2 |
Discounted cash flows |
Net rental income (£ per week) |
£119 - £213 2% - 4% 10.0% |
£155 3% 10.0% |
|
|
Fair value at 31 December 2025 |
4,719.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
Fair value £m |
Valuation |
Unobservable inputs |
Range |
Weighted average |
|
|
London - |
1,286.7 |
RICS Red Book |
Net rental income (£ per week) |
£214 - £479 2% - 3% 4.2% - 4.8% |
£351 3% 4.5% |
|
|
Prime regional - |
1,314.2 |
RICS Red Book |
Net rental income (£ per week) |
£160 - £342 2% - 9% 4.3% - 7.1% |
£221 4% 5.1% |
|
|
Major regional - |
1,346.7 |
RICS Red Book |
Net rental income (£ per week) |
£87 - £224 2% - 6% 5.1% - 7.9% |
£158 3% 6.2% |
|
|
Provincial - |
100.7 |
RICS Red Book |
Net rental income (£ per week) |
£119 - £171 2% - 6% 7.2% - 38.1% |
£133 4% 14.7% |
|
|
London - |
269.5 |
RICS Red Book |
Estimated cost to complete (£m) |
£71m - £171m 3.0% 4.4.% - 4.5% £299 - £485 |
£123m 3% 4.5% £345 |
|
|
Prime regional - |
157.7 |
RICS Red Book |
Estimated cost to complete (£m) |
£22m - £263m 3% 4.4% - 5.2% £247 - £271 |
£165m 3% 4.6% £258 |
|
|
Major regional - |
13.0 |
RICS Red Book |
Estimated cost to complete (£m) |
£107m 3% 5.4% £236 |
£107m 3% 5.4% £236 |
|
|
|
4,488.5 |
|
|
|
|
|
|
Investment property - (BTR) |
69.8 |
RICS Red Book |
Net rental income (£ per week) |
£490 3% 4.6% |
£490 3% 4.6% |
|
|
Development property - (BTR) |
11.2 |
RICS Red Book |
Estimated cost to complete (£m) |
£17m 3% 4.4% £226 |
£17m 3% 4.4% £226 |
|
|
|
4,569.5 |
|
|
|
|
|
|
Investment property (leased) |
71.8 |
Discounted cash flows |
Net rental income (£ per week) Estimated rental growth (% p.a.) Discount rate (yield) (%) |
£119 - £233 1% - 5% 10.0% |
£156 3% 10.0% |
|
|
Fair value at 31 December 2024 |
4,641.3 |
|
|
|
|
|
Fair value sensitivity analysis
A decrease in net rental income or occupancy will result in a decrease in the fair value, whereas a decrease in the discount rate (yield) will result in an increase in fair value. There are inter-relationships between these rates as they are partially determined by market rate conditions. These two key sources of estimation uncertainty are considered to represent those most likely to have a material impact on the valuation of the Group's investment property (owned and development) within the next 12 months as a result of reasonably possible changes in assumptions used. The potential effect of such reasonably possible changes has been assessed by the Group and is set out below:
|
Class of assets |
Fair value at |
+5% |
-5% |
+25 bps |
-25 bps |
|
Rental properties |
|
|
|
|
|
|
London |
1,316.0 |
1,370.2 |
1,237.0 |
1,234.9 |
1,381.1 |
|
Prime regional |
1,512.8 |
1,579.9 |
1,426.5 |
1,432.5 |
1,581.3 |
|
Major regional |
1,226.6 |
1,286.6 |
1,158.7 |
1,169.9 |
1,280.2 |
|
Provincial |
96.1 |
100.9 |
91.4 |
93.4 |
99.0 |
|
Development properties |
|
|
|
|
|
|
London |
372.0 |
388.0 |
355.2 |
354.4 |
390.9 |
|
Prime regional |
21.0 |
22.0 |
19.9 |
19.9 |
22.2 |
|
Major regional |
40.8 |
42.9 |
38.8 |
39.0 |
42.8 |
|
Build-to-rent properties |
|
|
|
|
|
|
London |
68.7 |
71.4 |
64.5 |
64.3 |
71.9 |
|
Prime regional |
4.9 |
5.2 |
4.7 |
4.7 |
5.2 |
|
Market value |
4,658.9 |
4,867.1 |
4,396.7 |
4,413.0 |
4,874.6 |
3.2 Investments in joint ventures
The Group has three joint ventures:
|
Joint venture |
Group's share of assets/results 2025 (2024) |
Objective |
Partner |
Legal entity in which |
|
The UNITE UK Student Accommodation Fund (USAF) |
29.8% (29.1%) |
Operate student accommodation throughout the UK |
Consortium of investors |
UNITE UK Student Accommodation Fund, |
|
London Student Accommodation |
50% (50%) |
Operate student accommodation |
GIC Real Estate Pte, Ltd Real estate investment vehicle of |
LSAV Unit Trust, a Jersey Unit Trust and LSAV (Holdings) Ltd, incorporated in Jersey |
|
Newcastle University Joint Venture (NUJV)* |
51% |
Redevelop and operate student accommodation in Newcastle |
Newcastle University |
Unite Newcastle Holdco GP Limited |
* On 22nd of December 2025, the Group entered into a joint venture with Newcastle University
3.3a) Net assets and results of the joint ventures
The summarised balance sheets and results for the year, and the Group's share of these joint ventures are as follows:
2025
|
Summarised balance sheet |
USAF £m |
LSAV £m |
Uni-JV £m |
Total £m |
||||||||
|
Gross |
Share |
Gross |
Share |
Gross |
Share |
Gross |
Share |
|
||||
|
Investment property |
2,826.5 |
843.4 |
2,039.0 |
1,019.5 |
36.2 |
18.5 |
4,901.3 |
1,881.4 |
|
|||
|
Cash and cash equivalents |
239.9 |
71.6 |
76.0 |
38.0 |
- |
- |
315.9 |
109.6 |
|
|||
|
Borrowings Non-Current |
(937.3) |
(279.7) |
(722.6) |
(361.3) |
- |
- |
(1,659.9) |
(641.0) |
|
|||
|
Borrowings Current |
- |
- |
- |
- |
- |
- |
- |
- |
|
|||
|
Swap assets |
- |
- |
- |
- |
- |
- |
- |
- |
|
|||
|
Other current assets |
- |
- |
- |
- |
32.7 |
16.7 |
32.7 |
16.7 |
|
|||
|
Other current liabilities |
(69.4) |
(20.7) |
(21.8) |
(10.9) |
(35.0) |
(17.8) |
(126.2) |
(49.4) |
|
|||
|
Net assets |
2,059.8 |
614.6 |
1,370.6 |
685.3 |
33.9 |
17.4 |
3,464.2 |
1,317.3 |
|
|||
|
Swap liabilities |
- |
- |
- |
- |
- |
- |
- |
- |
|
|||
|
EPRA net assets |
2,111.8 |
614.6 |
1,3870.6 |
685.3 |
33.9 |
17.4 |
3,464.2 |
1,317.3 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|||
|
Summarised income statement |
|
|
|
|
|
|
|
|
|
|||
|
Rental income |
198.7 |
59.0 |
120.5 |
60.2 |
- |
- |
319.2 |
119.2 |
|
|||
|
Other income |
0.7 |
0.2 |
2.1 |
1.1 |
- |
- |
2.8 |
1.3 |
|
|||
|
Total Revenue |
199.4 |
59.2 |
122.6 |
61.3 |
- |
- |
322.0 |
120.5 |
|
|||
|
Cost of sales
|
(65.9) |
(19.6) |
(30.5) |
(15.2) |
- |
- |
(96.4) |
(34.8) |
|
|||
|
Operating expenses |
(2.8) |
(0.6) |
(1.5) |
(0.8) |
- |
- |
(4.3) |
(1.4) |
|
|||
|
Results from operating activities before (losses)/gains on property
|
130.7 |
39.0 |
90.6 |
45.3 |
- |
- |
221.3 |
84.3 |
|
|||
|
Loss on disposal of property |
(5.0) |
(1.6) |
- |
- |
- |
- |
(5.0) |
(1.6) |
|
|||
|
Net valuation movement
|
7.0 |
2.0 |
6.8 |
3.4 |
(0.3) |
(0.2) |
13.5 |
5.2 |
|
|||
|
Net financing (costs)/gains |
(45.0) |
(12.8) |
(34.4) |
(17.2) |
- |
- |
(79.4) |
(30.0) |
|
|||
|
Profit before tax |
87.7 |
26.6 |
63.0 |
31.5 |
(0.3) |
(0.2) |
150.4 |
57.9 |
|
|||
|
Taxation |
(0.1) |
- |
(0.3) |
(0.2) |
- |
- |
(0.4) |
(0.2) |
|
|||
|
Profit for the year after tax |
87.6 |
26.6 |
62.7 |
31.3 |
(0.3) |
(0.2) |
150.0 |
57.7 |
|
|||
|
Other comprehensive expense |
- |
- |
(1.0) |
(0.5) |
- |
- |
(1.0) |
(0.5) |
|
|||
|
Total comprehensive (expense)/income |
87.6 |
26.6 |
61.7 |
30.8 |
(0.3) |
(0.2) |
149.0 |
57.2 |
|
|||
|
Dividends received from the joint ventures during the year |
- |
16.6 |
- |
12.9 |
- |
- |
- |
29.5 |
|
|||
2024
|
Summarised balance sheet |
USAF £m |
LSAV £m |
Total £m |
||||||||||
|
|
Gross |
Share |
Gross |
Share |
Gross |
Share |
|
||||||
|
Investment property |
2,847.3 |
829.6 |
1,993.8 |
996.9 |
4841.1 |
1,826.5 |
|
||||||
|
Cash and cash equivalents |
241.6 |
70.4 |
40.0 |
20.0 |
281.6 |
90.4 |
|
||||||
|
Borrowings Non-Current |
(937.3) |
(273,1) |
(276.0) |
(138.0) |
(1,213.3) |
(411.1) |
|
||||||
|
Borrowings Current |
- |
- |
(400.0) |
(200.0) |
(400.0) |
(200.0) |
|
||||||
|
Swap assets |
- |
- |
- |
- |
- |
- |
|
||||||
|
Other current assets |
7.9 |
2.3 |
22.8 |
11.4 |
30.7 |
13.7 |
|
||||||
|
Other current liabilities |
(85.7) |
(25.0) |
(47.8) |
(23.9) |
(133.5) |
(48.9) |
|
||||||
|
Net assets |
2,073.8 |
604.2 |
1,332.8 |
666.4 |
3,406.6 |
1,270.6 |
|
||||||
|
Minority interest |
- |
- |
- |
- |
- |
- |
|
||||||
|
Swap liabilities |
- |
- |
- |
- |
- |
- |
|
||||||
|
EPRA net assets |
2,073.8 |
604.2 |
1,332.8 |
666.4 |
3,406.6 |
1,270.6 |
|
||||||
|
|
|
|
|
|
|
|
|
||||||
|
Summarised income statement |
|
|
|
|
|
|
|
||||||
|
Rental income |
207.5 |
58.8 |
112.2 |
56.1 |
319.7 |
114.9 |
|
||||||
|
Other income |
0.7 |
0.2 |
1.8 |
0.9 |
2.5 |
1.1 |
|
||||||
|
Total Revenue |
208.2 |
59.0 |
114.0 |
57.0 |
322.2 |
116.0 |
|
||||||
|
Cost of sales
|
(73.1) |
(20.7) |
(28.0) |
(14.0) |
(101.1) |
(34.7) |
|
||||||
|
Operating expenses |
(2.6) |
(0.7) |
(1.4) |
(0.7) |
(4.0) |
(1.4) |
|
||||||
|
Results from operating activities before (losses)/gains on property
|
132.5 |
37.6 |
84.6 |
42.3 |
217.1 |
79.9 |
|
||||||
|
Profit/(loss) on disposal of property |
(8.5) |
(2.4) |
- |
- |
(8.5) |
(2.4) |
|
||||||
|
Net valuation movement
|
81.4 |
26.2 |
81.5 |
40.8 |
162.9 |
67.0 |
|
||||||
|
Net financing (costs)/gains |
(40.5) |
(11.5) |
(33.6) |
(16.8) |
(74.1) |
(28.3) |
|
||||||
|
Profit before tax |
164.9 |
49.9 |
132.5 |
66.3 |
297.4 |
116.2 |
|
||||||
|
Taxation |
(0.1) |
- |
(0.6) |
(0.3) |
(0.7) |
(0.3) |
|
||||||
|
Profit for the year after tax |
164.8 |
49.9 |
131.9 |
66.0 |
296.7 |
115.9 |
|
||||||
|
Other comprehensive expense |
(0.7) |
(0.3) |
(3.6) |
(2.0) |
(4.3) |
(2.3) |
|
||||||
|
Total comprehensive (expense)/income |
164.1 |
47.6 |
128.3 |
64.0 |
292.4 |
113.6 |
|
||||||
|
Dividends received from the joint ventures during the year |
|
13.8 |
|
13.8 |
|
27.6 |
|
||||||
USAF and LSAV use derivatives to hedge their borrowings. These derivatives are designated in cash flow hedge relationships which are considered to be fully effective. The share of joint venture mark to market movements on hedging instruments is recognised in the Group's Other Comprehensive Income within the share of joint venture mark to market movements on hedging instruments. The total notional value of borrowings in hedge relationships at 31 December 2025 is £340 million (2024: £340 million).
3.3b) Movement in carrying value of the Group's investments in joint ventures
The carrying value of the Group's investment in joint ventures increased by £52.3 million during the year ended 31 December 2025 (2024: £46.0 million increase), resulting in an overall carrying value of £1,317.3 million (2024: £1,265.0 million).
The following table shows how the movement has arisen:
|
|
2025 £m |
2024 £m |
|
Recognised in the income statement: |
|
|
|
Operations segment result |
49.4 |
47.5 |
|
Non-controlling interest share of Operations segment result |
- |
(0.2) |
|
Management fee adjustment related to trading with joint venture |
5.0 |
4.8 |
|
Net valuation (losses)/gains on investment property |
5.2 |
67.0 |
|
Property disposals |
(1.6) |
(2.4) |
|
Ineffective swap |
- |
(0.4) |
|
Other |
(0.3) |
(0.4) |
|
|
57.7 |
115.9 |
|
Recognised in equity: |
|
|
|
Movement in effective hedges |
(0.5) |
(2.3) |
|
Other adjustments to the carrying value: |
|
|
|
Joint venture with Newcastle University |
17.9 |
- |
|
Profit adjustment related to trading with joint venture |
(5.0) |
(4.8) |
|
Disposal of non-controlling interest |
- |
(27.9) |
|
Additional capital invested in USAF |
11.7 |
(7.4) |
|
Distributions received |
(29.5) |
(27.5) |
|
Increase/(Decrease) in carrying value |
52.3 |
46.0 |
|
Carrying value at 1 January |
1,265.0 |
1,219.0 |
|
Carrying value at 31 December |
1,317.3 |
1,265.0 |
3.3c) Transactions with joint ventures
The Group acts as asset and property manager for the joint ventures and receives management fees in relation to these services.
In addition, the Group is entitled to performance fees from USAF and LSAV if the joint ventures outperform certain benchmarks. No performance fees were recognised in the year (2025: £nil).
|
|
2025 £m |
2024 £m |
|
USAF |
17.2 |
16.9 4.8 21.4 |
|
LSAV |
5.0 |
4.9 |
|
Asset management fees |
22.2 |
21.8 |
|
Investment management fees |
- |
- |
|
Total fees |
22.2 |
21.8 |
Fees from joint ventures are shown net of the Group's share of the cost to the joint ventures. The Group's share of the management fees to the joint ventures is £4.9 million (2024: £4.6 million), which results in management fees from joint ventures of £17.3 million being shown in the Operating segment result in note 2.2a (2024: £17.3 million).
Section 4: Funding
4.1 Borrowings
The table below analyses the Group's borrowings which comprise bank and other loans by when they fall due for payment:
|
|
Group - Carrying value |
Company - Carrying value |
||
|
2025 £m |
2024 £m |
2025 £m |
2025 £m |
|
|
Non-current |
|
|
|
|
|
In more than one year but not more than two years |
- |
147.6 |
- |
147.6 |
|
In more than two years but not more than five years |
704.1 |
572.3 |
704.1 |
572.3 |
|
In more than five years |
544.1 |
543.8 |
544.1 |
543.8 |
|
|
1,248.2 |
1,263.7 |
1,248.2 |
1,263.7 |
|
Unamortised fair value of debt recognised on acquisition |
8.0 |
10.1 |
|
- |
|
Total borrowings |
1,256.2 |
1,273.8 |
1,248.2 |
1,263.7 |
In addition to the borrowings currently drawn as shown above, the Group has available undrawn facilities of £615 million (2024: £750.0 million). A further overdraft facility of £10 million (2024: £10.0 million) is also available.
The carrying value and fair value of the Group's borrowings is analysed below:
|
Group |
2025 |
2024 |
||
|
Carrying value £m |
Fair value £m |
Carrying value £m |
Fair value £m |
|
|
Level 1 IFRS fair value hierarchy |
975.0 |
969.5 |
975.0 |
956.6 |
|
Other loans and unamortised arrangement fees |
273.2 |
269.9 |
288.7 |
275.4 |
|
Total borrowings |
1,248.2 |
1,239.4 |
1,263.7 |
1,232.0 |
|
Company |
2025 |
2024 |
||
|
Carrying value £m |
Fair value £m |
Carrying value £m |
Fair value £m |
|
|
Level 1 IFRS fair value hierarchy |
975.0 |
969.5 |
975.0 |
956.6 |
|
Other loans and unamortised arrangement fees |
273.2 |
269.9 |
288.7 |
274.4 |
|
Total borrowings |
1,248.2 |
1,239.4 |
1,263.7 |
1,232.0 |
The fair value of loans classified as Level 1 in the IFRS fair value hierarchy is determined using quoted prices in active markets for identical liabilities.
The following table shows the changes in liabilities arising from financing activities:
2025
|
Group |
At 1 January 2025 as reported |
Financing cash flows |
Interest expense |
Fair Value adjustments |
Other |
At 31 December 2025 |
|
Borrowings |
1,273.8 |
(15.0) |
- |
(1.1) |
(1.5) |
1,256.2 |
|
Lease liabilities |
72.8 |
(12.9) |
7.6 |
- |
6.8 |
74.3 |
|
Interest rate swaps |
(53.4) |
(13.0) |
- |
22.5 |
(0.1) |
(44.0) |
|
Total liabilities from financing activities |
1,293.2 |
(40.9) |
7.6 |
21.4 |
5.2 |
1,286.5 |
|
Company |
|
|
|
|
|
|
|
Borrowings |
1,263.7 |
(15.0) |
- |
0.2 |
(0.7) |
1,248.2 |
|
Interest rate swaps |
(53.4) |
(13.0) |
- |
22.5 |
(0.1) |
(44.0) |
|
Total liabilities from financing activities |
1,210.3 |
(28.0) |
- |
22.7 |
(0.8) |
1,204.2 |
2024
|
Group |
At 1 January 2024 as reported |
Financing cash flows |
Interest expense |
Fair Value adjustments |
Other |
At 31 December 2024 |
|
Borrowings |
1,081.6 |
193.2 |
- |
(4.1) |
3.1 |
1,273.8 |
|
Lease liabilities |
83.8 |
(19.8) |
8.8 |
- |
- |
72.8 |
|
Interest rate swaps |
(56.0) |
- |
- |
0.4 |
2.2 |
(53.4) |
|
Total liabilities from financing activities |
1,109.4 |
173.4 |
8.8 |
(3.7) |
5.3 |
1,293.2 |
|
Company |
|
|
|
|
|
|
|
Borrowings |
468.6 |
800.0 |
- |
0.2 |
(5.1) |
1,263.7 |
|
Interest rate swaps |
(56.0) |
- |
- |
0.4 |
2.2 |
(53.4) |
|
Total liabilities from financing activities |
412.5 |
800.0 |
- |
0.6 |
(2.9) |
1,210.3 |
4.2 Interest rate swaps
The Group uses interest rate swaps to manage the Group's exposure to interest rate fluctuations. In accordance with the Group's treasury policy, the Group does not hold or issue interest rate swaps for trading purposes and only holds swaps which are considered to be commercially effective.
The following table shows the fair value of interest rate swaps which at 31 December 2025 are not designated in accounting hedge relationships:
|
|
2025 £m |
2024 £m |
|
Current |
17.1 |
7.4 |
|
Non-current |
26.9 |
46.0 |
|
Fair value of interest rate swaps |
44.0 |
53.4 |
The fair value of interest rate swaps has been calculated by a third-party, discounting estimated future cash flows on the basis of
market expectations of future interest rates, representing Level 2 in the IFRS 13 fair value hierarchy. At 31 December 2025, the fair value above comprises current assets of £17.1 milion and non-current assets of £26.9 million (2024: current assets of £7.4 million and non-current assets of £46.0 million).
4.3 Net financing costs/(gains)
|
Recognised in the income statement: |
2025 £m |
2024 £m |
|
Interest income |
(6.1) |
(16.7) |
|
Finance income |
(6.1) |
(16.7) |
|
Gross interest expense on loans |
42.1 |
39.0 |
|
Amortisation of fair value of debt recognised on acquisition |
(2.3) |
(4.1) |
|
Interest capitalised |
(26.8) |
(15.5) |
|
Loan interest and similar charges |
13.0 |
19.4 |
|
Interest on lease liabilities |
7.6 |
8.8 |
|
Mark to market changes on interest rate swaps |
22.5 |
0.4 |
|
Swap cancellation and loan break costs |
0.0 |
3.1 |
|
Finance costs |
43.1 |
31.7 |
|
Net financing costs |
37.0 |
15.0 |
The average cost of the Group's wholly-owned debt at 31 December 2025 is 3.0% (2024: 3.3%). The overall average cost of debt on an EPRA basis is 3.9% (2024: 3.6%).
4.4 Gearing
LTV is a key indicator that the Group uses to manage its indebtedness. The Group also monitors gearing, which is calculated using EPRA net tangible assets (NTA) and adjusted net debt. Adjusted net debt excludes IFRS 16 lease liabilities, the unamortised fair value of debt recognised on acquisition and mark to market of interest rate swaps as shown below.
The Group's gearing ratios are calculated as follows:
|
|
Note |
2025 £m |
2024 £m |
|
Cash and cash equivalents |
5.1 |
35.8 |
274.3 |
|
Non-current borrowings |
4.1 |
(1,256.2) |
(1,273.8) |
|
Lease liabilities |
4.6a |
(74.3) |
(72.8) |
|
Interest rate swaps |
4.2 |
44.0 |
53.4 |
|
Net debt per balance sheet |
|
(1,250.7) |
(1,018.9) |
|
Lease liabilities |
4.6a |
74.3 |
72.8 |
|
Unamortised fair value of debt recognised on acquisition |
2.3c |
7.9 |
11.1 |
|
Adjusted net debt |
|
(1,168.5) |
(935.0) |
|
Reported net asset value |
2.3c |
4,733.8 |
4,811.5 |
|
EPRA NTA |
2.3c |
4,684.9 |
4,758.4 |
|
Gearing |
|
|
|
|
Basic (net debt/reported net asset value) |
|
26% |
21% |
|
Adjusted gearing (adjusted net debt/EPRA NTA) |
|
25% |
20% |
|
Loan to value |
2.3a |
27% |
24% |
4.5 Covenant compliance
The Group monitors its covenant position and the forecast headroom available on a monthly basis. At 31 December 2025, the Group was in full compliance with all of its borrowing covenants.
The Group's unsecured borrowings carry several covenants. The covenant regime is IFRS based and gives the Group substantial operational flexibility, allowing property acquisitions, disposals and developments to occur with relative freedom.
|
|
2025 |
2024 |
||
|
Covenant |
Actual |
Covenant |
Actual |
|
|
LTV |
< 60% |
26% |
- |
- |
|
Gearing |
<1.50 |
0.26 |
<1.50 |
0.21 |
|
Unencumbered assets ratio |
>1.70 |
3.84 |
>1.70 |
4.48 |
|
Secured gearing |
<0.25 |
- |
<0.25 |
- |
|
Development assets ratio |
<30% |
7% |
<30% |
8% |
|
Joint venture ratio |
<55% |
22% |
<55% |
22% |
|
Interest cover |
>2.00 |
32.80 |
>2.00 |
81.56 |
4.6 Equity
The Company's issued share capital has increased during the year as follows:
|
Called up, allotted and fully paid |
2025 |
2024 |
||||
|
No. of |
Ordinary shares £m |
Share Premium £m |
No. of |
Ordinary shares £m |
Share Premium £m |
|
|
At 1 January |
488,792,074 |
122.2 |
2,876.9 |
435,854,542 |
109.4 |
2,447.6 |
|
Shares issued (capital raise) |
- |
- |
- |
50,000,000 |
12.1 |
430.1 |
|
Shares issued (scrip dividend) |
1,146,199 |
0.3 |
(0.3) |
2,808,461 |
0.7 |
(0.7) |
|
Shares issued options exercised |
105,298 |
- |
- |
129,071 |
- |
(0.1) |
|
At 31 December |
490,043,571 |
122.5 |
2,876.6 |
488,792,074 |
122.2 |
2,876.9 |
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company. All shares rank equally with regard to the Company's residual assets.
4.7 Dividends
During the year, the Company paid the final 2024 dividend of £125.8 million - 24.9p per share - and an interim 2025 dividend of £62.6 million - 12.8p per share (2024: final 2023 dividend of £64.0 million - 23.6p per share - and an interim 2024 dividend of £52.0 million - 12.4p).
After the year-end, the Directors proposed a final dividend per share of 24.9p (2024: 24.9p), bringing the total dividend per share for the year to 37.7p (2024: 37.4p). No provision has been made in relation to this dividend.
The Group has modelled tax adjusted property business profits for 2025 and 2025 and the PID requirement in respect of the year ended 31 December 2025 is expected to be satisfied by the end of 2025.
Section 5: Working capital
5.1 Cash and cash equivalents
The Group's cash position at 31 December 2025 was £35.8 million (2024: £274.3 million). Of this balance, £nil million was cash equivalents money market deposits, £35.8 million was cash.
The Group's cash balances include £1.2 million (2024: £1.1 million) whose use at the balance sheet date is restricted by funding agreements to pay operating costs.
The Group generates cash from its operating activities as follows:
|
|
Note
|
|
||
|
2025 £m |
2024 £m |
|
||
|
Profit for the year |
|
97.6 |
441.8 |
|
|
Adjustments for: |
|
|
|
|
|
Depreciation and amortisation |
3.3 |
6.9 |
5.7 |
|
|
Write-off of inventories and other fixed assets |
|
12.0 |
- |
|
|
Fair value of share based payments |
|
1.5 |
2.4 |
|
|
Change in value of investment property (owned and under development) |
3.1 |
72.3 |
(186.7) |
|
|
Change in value of investment property (leased) |
3.1 |
12.9 |
1.9 |
|
|
Net finance costs |
4.3 |
6.9 |
2.7 |
|
|
Interest payment for leased assets |
|
7.6 |
8.8 |
|
|
Swap break and debt exit costs |
|
- |
3.1 |
|
|
Mark to market changes in interest rate swaps |
|
22.5 |
0.3 |
|
|
Loss on disposal of investment property |
|
1.3 |
9.8 |
|
|
Share of joint venture profit |
3.3b |
(57.7) |
(115.9) |
|
|
Trading with joint venture adjustment |
3.3c |
4.9 |
4.6 |
|
|
Tax charge/(credit) |
2.5a |
0.1 |
2.1 |
|
|
Cash flows from operating activities before changes in working capital |
188.8 |
180.6 |
||
|
Decrease/(increase) in trade and other receivables |
|
6.7 |
(12.0) |
|
|
(Increase)/decrease in inventories |
|
(3.8) |
(5.3) |
|
|
Increase/(decrease) in trade and other payables |
|
(20.8) |
48.2 |
|
|
Cash flows from operating activities |
|
170.9 |
211.5 |
|
|
Tax paid/(received) |
|
(4.4) |
4.9 |
|
|
Net cash flows from operating activities |
|
166.5 |
216.4 |
|
5.2 Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations. It arises principally from the Group's cash balances, the Group's receivables from customers and joint ventures and loans provided to the Group's joint ventures.
At the year-end, the Group's maximum exposure to credit risk was as follows:
|
|
Note |
2025 £m |
2024 £m |
|
Cash |
5.1 |
35.8 |
274.3 |
|
Trade receivables |
5.2 |
11.2 |
37.5 |
|
Amounts due from joint ventures (excluding loans that are capital in nature) |
5.2 |
30.7 |
56.7 |
|
|
|
77.7 |
368.5 |
5.2a) Cash
The Group operates investment guidelines with respect to surplus cash. Counterparty limits for cash deposits are largely based upon long-term ratings published by credit rating agencies and credit default swap rates. Deposits were placed with financial institutions with A- or better credit ratings.
5.2b) Trade receivables
The Group's customers can be split into two groups - (i) students (individuals) and (ii) commercial organisations including universities. The Group's exposure to credit risk is influenced by the characteristics of each customer.
5.2c) Joint ventures
Amounts receivable from joint ventures fall into two categories - working capital balances and investment loans. The Group has strong working relationships with its joint venture partners, and the joint ventures have strong financial performance, retain net asset positions and are cash generative, and therefore the Group views this as a low credit risk balance. No impairment has therefore been recognised in 2025 or 2024.
Section 6: Post balance sheet events
The Group has reviewed events up to 24 February 2026 and have identified the following non-adjusting events after the reporting period:
On 9 January 2026, the Group announced that it had launched a £100 million share buyback programme to return surplus capital to shareholders. The programme will complete by 30 June 2026.
On 28 January 2026, the Group completed the acquisition of Empiric Students Property (Empiric), bringing the Hello Students brand into the business. The acquisition was for total consideration of c£530 million. The consideration is comprised of a combination of cash and Unite shares for each Empiric share. A total of 56,547,696 new ordinary shares in the Company were submitted for admission to trading on the London Stock Exchange's main market for listed securities on 29 January 2026. Cash consideration totalled £204 million.
The initial accounting for the business combination was not complete when these financial statements were authorised for issue.
On 3 February 2026, the Group entered into a joint venture with Manchester Metropolitan University to redevelop the Cambridge Halls site in Manchester. The joint venture will deliver approximately 2,302 purpose-built student accommodation beds. The Group will hold a 69% interest and will act as developer, operator, and asset manager, with Manchester Metropolitan University holding the remaining 31% interest.
The Group has reviewed events up to 24 February 2026 and have determined that no other material post balance sheet events have occurred.
Section 7: Alternative performance measures
The Group uses alternative performance measures (APMs), which are not defined or specified under IFRS. These APMs, which are not considered to be a substitute for IFRS measures, provide additional helpful information. APMs are consistent with how business performance is planned, reported and assessed internally by management and the Board. The APMs below have been calculated on a see through/Unite Group share basis, as referenced to the notes to the financial statements. Reconciliations to equivalent IFRS measures are included in notes 2.2b and 2.2c. Definitions can also be found in the glossary.
Adjusted earnings of the Group excludes the non-recurring impact of one-off transactions, improving comparability between reporting periods.
Non-EPRA measures may not have comparable calculation bases between companies and therefore may not provide meaningful industry-wide comparability.
|
|
Note |
2025 |
2024 |
|
EBIT |
|
|
|
|
Net operating income (NOI) |
2.2a |
294.0 |
276.1 |
|
Management fees |
2.2a |
17.3 |
17.3 |
|
Overheads |
2.2a |
(29.1) |
(22.5) |
|
|
|
282.2 |
270.9 |
|
EBIT margin % |
|
|
|
|
Rental income |
2.2a |
428.2 |
398.0 |
|
EBIT |
7 |
282.2 |
270.9 |
|
|
|
65.9% |
68.1% |
|
EBITDA |
|
|
|
|
Net operating income |
2.2a |
294.0 |
276.1 |
|
Management fees |
2.2a |
17.3 |
17.3 |
|
Overheads |
2.2a |
(29.1) |
(22.5) |
|
Depreciation and amortisation |
|
6.9 |
5.7 |
|
|
|
289.1 |
276.6 |
|
|
|
|
|
|
Net debt |
|
|
|
|
Cash |
2.3a |
145.5 |
364.7 |
|
Debt |
2.3a |
(1,889.2) |
(1,874.8) |
|
|
|
(1,743.7) |
(1,510.1) |
|
|
|
|
|
|
EBITDA : Net debt |
|
|
|
|
EBITDA |
7 |
288.1 |
276.6 |
|
Net debt |
7 |
(1,743.7) |
(1,510.1) |
|
Ratio |
|
6.0 |
5.5 |
|
Interest cover (Unite Group share) |
|
|
|
|
EBIT |
7 |
282.2 |
270.9 |
|
Net financing costs |
2.2a |
(39.1) |
(35.2) |
|
Interest on lease liability |
2.2a |
(7.6) |
(8.8) |
|
Total interest |
|
(46.7) |
(44.0) |
|
Ratio |
|
6.0 |
6.2 |
Reconciliation: IFRS profit before tax to EPRA earnings and adjusted earnings
|
|
Note |
2025 |
2024 |
|
IFRS profit before tax |
|
97.7 |
444.0 |
|
Net valuation (gains)/losses on investment property |
2.2b |
67.1 |
(253.7) |
|
(Gains)/losses on property disposals |
2.2b |
2.9 |
12.2 |
|
Write-off of inventory and fixed assets |
|
12.0 |
- |
|
Net valuation losses on investment property (leased) |
2.2b |
12.9 |
1.9 |
|
Amortisation of fair value of debt recognised on acquisition |
2.2b |
(2.3) |
(4.1) |
|
Changes in valuation of interest rate swaps |
2.2b |
22.5 |
0.4 |
|
Swap cancellation and debt exit fees |
|
- |
3.1 |
|
Non-controlling interest, tax and other items |
|
4.9 |
(1.9) |
|
EPRA earnings |
|
217.7 |
201.9 |
|
Software as a service cost |
|
14.6 |
11.9 |
|
Adjusted earnings |
|
232.3 |
213.8 |
Adjusted EPS yield
|
|
Note |
2025 |
2024 |
|
Adjusted EPS (A) |
|
47.5p |
46.6p |
|
EPRA NTA 1 January (B) |
|
972p |
920p |
|
Adjusted EPS yield (A/B) |
|
4.9% |
5.1% |
Total accounting return
|
|
Note |
2025 |
2024 |
|
Opening EPRA NTA (A) |
2.3d |
972p |
920p |
|
Closing EPRA NTA |
2.3d |
955p |
972p |
|
Movement in EPRA NTA |
|
(17p) |
52p |
|
2024 final dividend |
4.9 |
24.9p |
23.6p |
|
2025 interim dividend |
4.9
|
12.8p |
12.4p |
|
Total movement in NTA (B) |
|
20.7p |
88.0p |
|
Total accounting return (B/A) |
|
2.1% |
9.6% |
EPRA Performance Measures
Summary of EPRA performance measures
|
|
|
2025 |
2024 |
2025 |
2024 |
|
EPRA earnings |
|
217.7 |
201.9 |
44.5 |
44.0 |
|
Adjusted earnings |
|
232.3 |
213.8 |
47.5 |
46.6 |
|
EPRA NTA |
|
4,684.9 |
4,758.4 |
955 |
972 |
|
EPRA NRV |
|
4,697.7 |
5,236.2 |
957 |
1,069 |
|
EPRA NDV |
|
4,741.9 |
4,853.3 |
966 |
994 |
|
EPRA net initial yield |
|
|
|
4.8% |
4.8% |
|
EPRA topped-up net initial yield |
|
|
|
4.8% |
4.8% |
|
EPRA like-for-like gross rental income |
|
|
|
4.9% |
7.5% |
|
EPRA vacancy rate |
|
|
|
4.6% |
2.0% |
|
EPRA cost ratio (including vacancy costs) |
|
|
|
34.8% |
35.2% |
|
EPRA cost ratio (excluding vacancy costs) |
|
|
|
33.9% |
34.9% |
* Adjusted earnings calculated as EPRA earnings less software as a service cost (net of deferred tax).
EPRA like-for-like rental income (calculated based on total portfolio value of £9.2 billion)
|
£m |
Like for like properties |
Development property |
Other properties* |
Total EPRA |
|
2025 |
|
|
|
|
|
Rental income |
319.1 |
3.2 |
105.9 |
428.2 |
|
Property operating expenses |
(101.8) |
(1.1) |
(31.3) |
(134.2) |
|
Net rental income |
217.3 |
2.1 |
74.6 |
294.0 |
|
2024 |
|
|
|
|
|
Rental income |
304.2 |
0.4 |
93.4
|
398.0 |
|
Property operating expenses |
(93.7) |
(0.2) |
(28.0) )) |
(121.9) |
|
Net rental income |
210.5 |
0.2 |
65.4 |
276.1 |
|
Like-for-like net rental income £m |
6.8 |
|
|
|
|
Like-for-like net rental income % |
3.2% |
|
|
|
|
Like-for-like gross rental income £m |
14.9 |
|
|
|
|
Like-for-like gross rental income % |
4.9% |
|
|
|
*Other properties includes acquisitions, disposals, major refurbishments and changes in ownership.
EPRA vacancy rate
|
|
2025 £m |
2024 £m |
|
Estimated rental value of vacant space |
14.8 |
6.5 |
|
Estimated rental value of the whole portfolio |
321.3 |
320.3 |
|
EPRA vacancy rate |
4.6% |
2.0% |
EPRA net initial yield
|
|
2025 |
2024 |
|
Net operating income (£m) |
300.6 |
305.5 |
|
Property market value (£m) |
5,836.9 |
5,948.2 |
|
Notional acquisition costs (£m) |
378.5 |
392.2 |
|
|
6,215.4 |
6,340.4 |
|
EPRA Net initial yield (%) * |
4.8% |
4.8% |
|
Difference in projected versus historical GOI |
0.4% |
0.3% |
|
Unite net initial yield |
5.2% |
5.1% |
* No lease incentives are provided by the Group and accordingly the Topped Up Net Initial Yield measure is also 4.8% (2024: 4.8%).
EPRA cost ratio
|
|
2025 £m |
2024 £m |
|
Property operating expenses |
99.4 |
87.2 |
|
Overheads* |
27.7 |
21.6 |
|
Development costs and other items |
(5.0) |
3.8 |
|
Unallocated expenses |
7.7 |
8.8 |
|
|
129.8 |
121.4 |
|
Share of JV property operating expenses |
34.8 |
34.7 |
|
Share of JV overheads expenses |
1.4 |
0.9 |
|
Share of JV unallocated expenses |
0.5 |
0.5 |
|
|
166.5 |
157.5 |
|
Less: Joint venture management fees |
(17.3) |
(17.3) |
|
Total costs (A) |
149.2 |
140.2 |
|
Group vacant property costs** |
(3.0) |
(0.9) |
|
Share of JV vacant property costs** |
(1.0) |
(0.3) |
|
Total costs excluding vacant property costs (B) |
145.2 |
139.0 |
|
Rental income |
307.7 |
282.0 |
|
Share of JV rental income |
120.5 |
116.0 |
|
Total gross rental income (C) |
428.2 |
398.0 |
|
Total EPRA cost ratio (including vacant property costs) (A)/(C) |
34.8% |
35.2% |
|
Total EPRA cost ratio (excluding vacant property costs) (B)/(C) |
33.9% |
34.9% |
* Excludes software as a service costs (net of deferred tax).
** Vacant property costs reflect the per bed share of operating expenses allocated to vacant beds.
Unite's EBIT margin excludes non-operational expenses which are included within the EPRA cost ratio above.
The Group capitalises costs in relation to staff costs and professional fees associated with property development activity.
EPRA yield movement
|
|
NOI yield |
Yield movement (bps) |
||
|
% |
H1 |
H2 |
FY |
|
|
Wholly-owned |
5.30% |
2 |
7 |
9 |
|
USAF |
5.30% |
1 |
11 |
12 |
|
LSAV |
4.70% |
1 |
17 |
18 |
|
Rental properties (Unite share) |
5.20% |
1 |
10 |
11 |
Property related capital expenditure
|
|
FY2025 |
|
FY2024 |
||||
|
Wholly owned |
Share of JVs |
Group share |
|
Wholly owned |
Share of JVs |
Group share |
|
|
London |
15.7 |
21.9 |
37.6 |
|
13.0 |
18.5 |
31.5 |
|
Prime regional |
17.6 |
5.9 |
23.5 |
|
12.4 |
6.1 |
18.5 |
|
Major regional |
28.5 |
11.4 |
39.9 |
|
36.8 |
13.8 |
50.6 |
|
Provincial |
8.0 |
3.1 |
11.1 |
|
2.6 |
4.5 |
7.1 |
|
Total rental properties |
69.8 |
42.3 |
112.1 |
|
64.8 |
42.9 |
107.7 |
|
Acquisitions |
- |
- |
- |
|
282.9 |
34.5 |
317.4 |
|
Developments |
209.8 |
- |
209.8 |
|
263.7 |
- |
263.7 |
|
Capitalised interest |
26.8 |
- |
26.8 |
|
15.5 |
- |
15.5 |
|
Total property related capex |
306.4 |
42.3 |
348.7 |
|
626.9 |
77.4 |
704.3 |
EPRA LTV
|
|
2025 £m |
2024 £m |
|
Investment property (owned) |
6,083.3 |
5,852.0 |
|
Investment property (under development) |
456.9 |
451.4 |
|
Intangibles |
12.9 |
10.4 |
|
Total property value and other eligible assets |
6,553.1 |
6,313.8 |
|
Cash at bank and in hand |
145.5 |
364.7 |
|
Borrowings |
(1,889.2) |
(1,874.8) |
|
Net other payables |
(97.6) |
(33.9) |
|
EPRA net debt |
(1,841.3) |
(1,544.0) |
|
EPRA loan to value |
28.1% |
24.4% |
Glossary
|
Adjusted earnings An alternative performance measure based on EPRA earnings, adjusted to remove the impact of software as a service cost (net of deferred tax) and other items of an exceptional nature. The items have been excluded from adjusted earnings to improve the comparability of results year-on-year.
Adjusted earnings per share / EPS The earnings per share based on adjusted earnings and weighted average number of shares in issue (basic).
Adjusted EPS yield Adjusted EPS as a percentage of opening EPRA NTA (diluted).
Adjusted net debt Net debt per the balance sheet, adjusted to remove IFRS 16 lease liabilities and the unamortised fair value of debt recognised on the acquisition of Liberty Living.
Basis points (BPS) A basis point is a term used to describe a small percentage, usually in the context of change, and equates to 0.01%.
Diluted earnings / EPS Where earnings values per share are used "basic" measures divide the earnings by the weighted average number of issued shares in issue throughout the period, whilst the diluted measure also takes into account the effect of share options which have been granted and which are expected to be converted into shares in the future.
Diluted NTA/NAV Where NTA/NAV per share is used, "basic" measures divide the NTA/NAV by the number of shares issued at the reporting date, whilst the diluted measure also takes into account the effect of share options which have been granted and which are expected to be converted into shares in the future (both for the additional number of shares that will be issued and the value of additional consideration that will be received in issuing them).
Direct let Properties where short-hold tenancy agreements are made directly between Unite and the student.
EBITDA The Group's adjusted EBIT, adding back depreciation and amortisation. |
|
EPRA The European Public Real Estate Association, who produce best practice recommendations for financial reporting.
EPRA cost ratio The ratio of property operating expenses, overheads and management fees, against rental income, calculated on an EPRA basis.
EPRA earnings EPRA earnings exclude movements relating to changes in values of investment properties, profits/losses from the disposal of properties, swap/debt break costs, interest rate swaps and the related tax effects.
EPRA earnings per share / EPS The earnings per share based on EPRA earnings and weighted average number of shares in issue (basic).
EPRA like-for-like rental growth The growth in rental income measured by reference to the part of the portfolio of the Group that has been consistently in operation, and not under development nor subject to disposal, and which accordingly enables more meaningful comparison in underlying rental income levels.
EPRA Net Tangible Assets (NTA) EPRA NTA includes all property at market value but excludes the mark to market of financial instruments, deferred tax and intangible assets. EPRA NTA provides a consistent measure of NAV on a going concern basis.
EPRA Net Tangible Assets per share The diluted NTA per share figure based on EPRA NTA.
EPRA Net Reinstatement Value (NRV) EPRA NRV includes all property at market value but excludes the mark to market of financial instruments, deferred tax and real estate transfer tax. EPRA NRV assumes that entities never sell assets and represents the value required to rebuild the entity.
EPRA Net Disposal Value (NDV) EPRA NDV includes all property at market value, excludes the mark to market of financial instruments but includes the fair value of fixed interest rate debt and the carrying value of intangible assets. EPRA NDV represents the shareholders' value in a disposal scenario.
|
|
EPRA net initial yield (NIY) Annualised NOI generated by the Group's rental properties expressed as a percentage of their fair value, taking into account notional acquisition costs.
EPRA topped up net initial yield (NIY) EPRA Net Initial Yield adjusted to include the effect of the expiration of rent free periods (or other unexpired lease incentives such as discounted rent periods or step rents).
EPRA vacancy rate The ratio of the estimated market rental value of vacant spaces against the estimated market rental value of the entire property portfolio (including vacant spaces).
ESG Environmental, Social and Governance.
Full occupancy Fully occupancy is defined as occupancy in excess of 97%.
GRESB GRESB is a benchmark of the Environmental, Social and Governance (ESG) performance of real assets.
Gross asset value (GAV) The fair value of rental properties, leased properties and development properties.
The Group Wholly owned balances plus Unite's interests relating to USAF and LSAV.
Group debt Wholly owned borrowings plus Unite's share of borrowings attributable to USAF and LSAV.
HMO Houses in multiple occupation, where buildings or flats are shared by multiple tenants who rent their own rooms and the property's communal spaces on an individual basis.
IFRS NAV per share IFRS equity attributable to the owners of the parent company from the consolidated balance sheet divided by the total number of shares of the Parent Company in issue at the reporting date.
Interest cover ratio (ICR) Calculated as EBIT divided by the sum of net financing costs and IFRS 16 lease liability interest costs.
|
|
Lease Properties which are leased to universities for a number of years.
Like-for-like metrics Like-for-like is the change in metric, on a gross basis, calculated using properties owned throughout the current and previous period.
Loan to value (LTV) Net debt as a proportion of the value of the rental properties, excluding balances in respect of leased properties under IFRS 16. Prepared on a see-through basis. In the opinion of the Directors, this measure enables an appraisal of the indebtedness of the business, which closely aligns with key covenants in the Group's agreements.
Loan to value post IFRS 16 Net debt as a proportion of the value of the rental properties, including balances in respect of leased properties under IFRS 16. Prepared on a see-through basis.
LTV (EPRA) Net debt as a proportion of the value of the rental properties including balances in respect of leased properties and all other assets and liabilities.
LSAV The London Student Accommodation Joint Venture (LSAV) is a joint venture between Unite and GIC, in which both hold a 50% stake. LSAV has a maturity date of September 2032.
Major regional Properties located in Aberdeen, Birmingham, Cardiff, Glasgow, Leeds, Leicester, Liverpool, Newcastle, Nottingham, Sheffield and Southampton.
Net asset value (NAV) The total of all assets less the value of all liabilities at each reporting date.
Net debt (EPRA) Borrowings net of cash. IFRS 16 lease liabilities are excluded from net debt on an EPRA basis. In the opinion of the Directors, net debt is a useful measure to monitor the overall cash position of the Group.
Net debt per balance sheet Borrowings, IFRS 16 lease liabilities and the mark to market of interest rate swaps, net of cash.
|
|
Net debt to EBITDA Net debt as a proportion of EBITDA.
Net financing costs (EPRA) Interest payable on borrowings less interest capitalised into developments and finance income.
Net operating income (NOI) The Group's rental income less property operating expenses.
Net-zero carbon Net zero carbon operations by 2030 covers scope 1 and 2 emissions from our buildings, including all building energy used by our student tenants, as well as selected scope 3 emissions as per the BBP Climate Change Commitment.
NOI margin The Group's NOI expressed as a percentage of rental income.
Nomination agreements Agreements at properties where Universities have entered into a contract to reserve rooms for their students, usually guaranteeing occupancy. The Universities usually either nominate students to live in the building and Unite enters into short-hold tenancies with the students or the University enters into a contract with Unite and makes payment directly to Unite.
Provincial Properties located in Bournemouth, Coventry, Loughborough, Medway, Portsmouth and Swindon.
Prime regional Properties located in Bristol, Durham, Bath, Edinburgh, Manchester and Oxford.
Property operating expenses Operating costs directly related to rental properties, therefore excluding central overheads
Rental growth Calculated as the year-on-year change in the average annual price for sold beds. In the opinion of the Directors, this measure enables a more meaningful comparison in rental income as it excludes the impact of changes in occupancy.
Rental properties (leased) / Sale and leaseback Properties that have been sold to a third party investor then leased back to the Group. Unite is also responsible for the management of these assets on behalf of the owner. |
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Resident ambassadors Student representatives who engage with students living in the property to create a community and sense of belonging.
SaaS - Software as a Service Software that allows users to connect to and use cloud-based software via remote access.
See-through (also Unite share) Wholly owned balances plus Unite's share of balances relating to USAF and LSAV.
Senior Leadership Directors (including the executive committee and Company Secretary) and Heads of Function.
TCFD The Taskforce on Climate-related Financial Disclosures develops voluntary, consistent climate-related financial risk disclosures for use by companies in providing information to investors, lenders, insurers and other stakeholders.
Total accounting return Growth in diluted EPRA NTA per share plus dividends paid, expressed as a percentage of diluted EPRA NTA per share at the beginning of the period. In the opinion of the Directors, this measure enables an appraisal of the return generated by the business for shareholders during the year.
Total shareholder return The growth in value of a shareholding over a specified period, assuming dividends are reinvested to purchase additional shares.
USAF/the fund The Unite UK Student Accommodation Fund (USAF) is Europe's largest fund focused purely on income-producing student accommodation investment assets. The fund is an open-ended infinite life vehicle with unique access to Unite's development pipeline. Unite acts as fund manager for the fund, as well as owning a significant minority stake.
WAULT Weighted average unexpired lease term to expiry.
Wholly owned Balances relating to properties that are 100% owned by The Unite Group PLC or its 100% subsidiaries. |
Company information
Unite Group
Executive Team
Joe Lister
Chief Executive
Michael Burt
Chief Financial Officer
Registered office
1st Floor, Welcome Building, Avon Street, Bristol BS2 0PS
Registered Number in England
03199160
Auditor
Deloitte LLP
1 New Street Square, London EC4 3HQ
Financial Advisers
J.P. Morgan Cazenove
25 Bank Street, London E14 5JP
Deutsche Numis Securities
21 Moorfields, London EC2Y 9DB
Registrars
Computershare Investor Services plc
PO Box 82
The Pavilions
Bridgwater Road
Bristol BS99 7NH
Financial PR Consultants
Sodali & Co
122 Leadenhall Street
City of London, EC3V 4AB
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