Unite Group delivers strong rental growth in Q3 as valuations increase

8th Oct 2024 07:38

(Sharecast News) - Student accommodation developer Unite delivered a strong lettings performance in the third quarter, with occupancy levels already close to the full-year target.

In a trading update for the three months to 30 September, Unite said occupancy across the portfolio is 97.5% for the 2024/25 academic year, just short of the 98-99% full-year target.

"This remains underpinned by demand from our university partners through nomination agreements, which have increased to 57% of our portfolio (2023/24: 53%)," the company said.

Meanwhile, four new multi-year agreements have been secured with Russell Group partners starting this academic year for more than 2,500 beds.

Like-for-like rental growth for the 2024/25 academic year was 8.2% by the end of the period, up from 7% at the half-year stage.

Rental growth has helped increase valuations for the Unite UK Student Accommodation Fund and the London Student Accommodation Joint Venture by 1.5% and 1.6%, respectively over the quarter.

"The outlook for the business is positive with strong student demand at a time of limited new supply and ongoing investment into our portfolio and platform. This supports rental growth of 4-5% for the 2025/26 academic year," said chief executive Joe Lister.