Unite Students (LSE:UTG) has announced the sale of nine assets comprising 3,656 student beds to Lone Star Funds for £212 million. This move aligns with the company’s strategic plan to concentrate on universities ranked in the high and mid tiers, aiming for sustainable rental growth. The deal, expected to close by August 2025, will enable Unite to reinvest capital into its core markets and meet shareholder redemption requests, while maintaining its full-year earnings guidance.
Unite Group plc’s outlook remains positive, supported by strong financial results, ongoing strategic initiatives, and favorable market valuations. The company’s consistent revenue growth and profitability, along with robust partnerships, highlight promising future potential. However, the presence of negative free cash flow presents a liquidity risk that will require careful management.
About Unite Group plc
Unite Students is the UK’s leading owner, operator, and developer of purpose-built student accommodation (PBSA). Managing over 150 properties across 23 university locations, the company provides en-suite rooms and a range of services to approximately 70,000 students. Established in 1991, Unite is a Real Estate Investment Trust (REIT) listed on the London Stock Exchange, dedicated to raising standards in the student housing sector.
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