Unite Group Announces £100m Share Buyback While Reworking Development Pipeline

Unite Group plc (LSE:UTG) has reaffirmed its earnings guidance for 2025 and reported stable trading conditions, while unveiling a £100 million share buyback funded by a reallocation of capital away from lower-return development opportunities.

The student accommodation specialist said demand remains resilient, with 64% of beds already reserved for the 2026/27 academic year. Despite a slower-than-usual start to the current lettings cycle—linked to universities delaying the renewal of nomination agreements—the group continues to target occupancy levels of 93–96% alongside annual rental growth of between 2% and 3%.

As part of a broader reshaping of its pipeline, Unite has cancelled its TP Paddington development and deferred a scheme in Bristol. Capital is instead being directed toward higher-conviction projects, including major university joint ventures in Newcastle and Manchester, as well as the Hawthorne House development in Stratford. The company also expects to recognise an exceptional £10 million planning-related write-off as a result of these changes.

On valuations, Unite reported modest like-for-like declines in the fourth quarter across its USAF and LSAV funds, although both vehicles delivered small capital gains over the full year. Cost discipline remains a priority, with head office restructuring under way and anticipated efficiencies expected to emerge from the planned acquisition of Empiric Student Property.

Management said these actions are designed to strengthen returns and position the business for a resumption of earnings growth from 2027. While the group benefits from strong underlying financial performance, attractive valuation metrics, and a high dividend yield, technical indicators currently point to a more cautious near-term market trend.

More about Unite Group plc

Unite Group plc, through its Unite Students brand, is the UK’s largest owner, manager, and developer of purpose-built student accommodation. The group operates a substantial portfolio across major university cities, including London, and is increasingly focused on high-tariff institutions and long-term partnerships with universities to deliver stable, sustainable returns.