Student accommodation provider Unite Group on Thursday reported a rise in its portfolio valuation during the second quarter, reflecting better sales performance to date for the 2021-2022 academic year and expectation of a return to full occupancy as Covid restrictions are lifted.
The FTSE 250 company said its Unite UK Student Accommodation Fund property portfolio was valued at £2.8bn, up 1.4% on a like-for-like basis. Its London Student Accommodation Joint Venture (LSAV) was valued at £1.702bn, reflecting a 1.9% increase and 2bps of yield compression on a like-for-like basis during the quarter.
The portfolio comprises 29,627 beds in 76 properties across 20 University towns and cities in the UK. Unite said 83% of rooms are now reserved for the 2021/22 academic year.
Unite has also now collected 95% of rent due for the 2020-2021 academic year, excluding the effect of the 10-week rental discount offered for the second semester. The collected rent represents 92% of forecasted rent for the academic year as a whole, it added.
“The sustained momentum in our sales reflects the strength of student demand for the 2021/22 academic year and greater visibility over an enhanced campus experience this autumn,” said chief financial officer Joe Lister.
“There remains some uncertainty over travel restrictions for international students and, assuming these are eased in time for the start of the academic year, we anticipate a return to full occupancy and 2-3% rental growth in 2021/22.”
