Unite Group (LSE:UTG) has reported that 95.6% of its student accommodation beds have been sold for the 2026/27 academic year, slightly ahead of the comparable period last year, while quarterly property valuations declined across its USAF and LSAV investment funds.
The UK student accommodation provider recorded like-for-like rental income growth of 0.6%, despite a modest reduction in average rents. The company also maintained its earnings guidance for 2026 as it continued its asset disposal programme and efforts to reduce leverage.
Unite is targeting property disposals of between £300 million and £400 million during 2026, focusing on assets considered to offer lower growth potential. The programme forms part of a broader strategy to concentrate its accommodation portfolio around universities with higher levels of student demand.
The group intends to reduce its future portfolio to approximately 55,000 to 60,000 beds, compared with its current estate of more than 70,000 beds. The planned changes are intended to increase the proportion of properties associated with universities identified by the company as having more consistent accommodation demand.
Unite also provided an update on the integration of Empiric’s Hello Student platform. The business has sold approximately 92% of its available beds for the 2026/27 academic year and is expected to deliver like-for-like rental income growth of around 5%.
The company is pursuing cost savings through the integration of Hello Student into its wider operations, although the supplied update did not specify the financial value of the anticipated synergies.
Separately, Unite reported declines in the quarterly valuations of properties held by its Unite UK Student Accommodation Fund (USAF) and London Student Accommodation Joint Venture (LSAV).
The valuation reductions reflected an increase in property investment yields, alongside lower income expectations for certain assets. Higher valuation yields generally result in lower property valuations when other factors remain unchanged.
The group said demand for purpose-built student accommodation and investor interest in the sector remained supportive, although the valuation movements reflected changes in required investment returns and income assumptions.
Unite continues to pursue its portfolio restructuring programme while maintaining its existing 2026 earnings guidance. The planned disposals and integration activities form part of its approach to managing its property portfolio and financial position.
Unite Group plc is a London-listed owner, manager and developer of purpose-built student accommodation, operating more than 70,000 beds across university towns and cities in the UK. Its business includes accommodation provided through university nomination agreements and properties let directly to students.
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