Unite Group (LON:UTG) Issues Quarterly Earnings Results

Unite Group (LON:UTG) posted its quarterly earnings data on Tuesday. The company reported GBX 27.10 earnings per share for the quarter, Digital Look Earnings reports. Unite Group had a negative net margin of 143.81% and a negative return on equity of 10.94%.

Here are the key takeaways from Unite Group’s conference call:

• Leasing momentum improved: Unite Students is 89% reserved versus 87% last year, while Hello Student reached 77% occupancy and is now 10 points ahead of the market. Management raised Hello Student’s expected occupancy to 88%-90% and cited stronger direct bookings and returner demand.
• The company is refocusing its portfolio on approximately 55,000-60,000 beds across 20 cities serving the strongest U.K. universities, where management expects demand to outpace supply, supporting 95%-97% occupancy, CPI-linked rental growth and higher margins over time.
• Unite completed GBP 165 million of share buybacks in the first half and expects GBP 300 million-GBP 400 million of disposals this year, with proceeds earmarked for balance-sheet strength, development, university partnerships and additional buybacks. Empiric integration is ahead of plan, with annualized synergies increased to GBP 18 million.
• First-half adjusted EPS fell 8% to GBP 0.271, EPRA NTA per share declined 9% to GBP 8.65, and property values dropped 6.4% as average yields widened to 5.5%. Net debt to EBITDA rose to 7.5x after the Hello Student acquisition, while higher funding costs, fire-safety remediation and a softer transaction market remain headwinds.
• Full-year 2026 adjusted EPS guidance was reiterated at GBP 0.415-GBP 0.43, despite a GBP 0.006 second-half earnings impact from the Renters’ Rights Act. Management remains cautious about international postgraduate demand and the upcoming clearing period, even though current reservations are ahead of last year.

Unite Group Price Performance

Shares of Unite Group stock traded up GBX 13 during midday trading on Thursday, reaching GBX 546. The company had a trading volume of 2,220,853 shares, compared to its average volume of 11,045,586. The company has a market capitalization of £2.81 billion, a price-to-earnings ratio of 27.44, a price-to-earnings-growth ratio of 3.20 and a beta of 0.95. The company has a current ratio of 23.17, a quick ratio of 0.73 and a debt-to-equity ratio of 46.65. The stock has a fifty day simple moving average of GBX 522.13 and a 200 day simple moving average of GBX 514.08. Unite Group has a 1-year low of GBX 442.20 and a 1-year high of GBX 764.

Wall Street Analysts Forecast Growth

UTG has been the topic of a number of research analyst reports. JPMorgan Chase & Co. decreased their price target on Unite Group from GBX 690 to GBX 640 and set an “overweight” rating on the stock in a research report on Wednesday. Jefferies Financial Group reiterated a “hold” rating and issued a GBX 503 price objective on shares of Unite Group in a research report on Wednesday. Berenberg Bank reissued a “buy” rating and issued a GBX 623 price objective on shares of Unite Group in a research note on Tuesday. UBS Group restated a “buy” rating and set a GBX 585 target price on shares of Unite Group in a report on Friday, July 3rd. Finally, Deutsche Bank Aktiengesellschaft lifted their price target on Unite Group from GBX 600 to GBX 640 and gave the company a “buy” rating in a report on Wednesday. Six equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. Based on data from MarketBeat, Unite Group has an average rating of “Moderate Buy” and a consensus price target of GBX 686.38.

About Unite Group

Unite Students is the UK’s largest owner, manager and developer of purpose-built student accommodation, serving the country’s world-leading Higher Education sector. We provide homes to 70,000 students across 157 properties in 23 leading university towns and cities. We currently partner with over 60 universities across the UK.

Our people are driven by a common purpose: to provide a ‘Home for Success’ for the students who live with us. Unite’s accommodation is safe and secure, high quality and affordable.