Unite Group (LSE:UTG) reported a 2% year-on-year decline in adjusted net income for the first half of 2026, with higher financing costs and the impact of previous asset disposals weighing on earnings during the period.
The student accommodation provider generated adjusted net income of £142 million, while reporting an IFRS pretax loss of £417.10 million. The statutory loss was primarily driven by a 6.4% reduction in the value of its property portfolio during the first half.
Management said adjusted earnings were affected by increased interest expenses, the effect of properties sold during 2025 and slightly lower occupancy levels. Adjusted earnings per share declined 8%, reflecting initial dual-running costs associated with the acquisition of Empiric Student Property as well as the impact of a larger share count.
During the period, Unite completed £165 million of share buybacks and disposed of £130 million of assets as part of its ongoing capital management strategy. The company reported EPRA net tangible assets per share of £8.65 and a net asset value per share of £8.79.
Despite the softer first-half performance, Unite maintained its full-year 2026 adjusted earnings per share guidance of between 41.5p and 43.0p. The group expects occupancy levels of 94% to 96% and rental growth of between 1% and 2% for the 2026/27 academic year.
The company said demand remains strong at the UK’s leading universities, supported by a continued shortage of purpose-built student accommodation. Improved reservation trends and targeted sales initiatives have also contributed to encouraging leasing activity ahead of the 2026/27 academic year.
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