Unite Group announce an interim 2024 dividend of £52.0 million - 12.4p per share (2023: final 2022 dividend 21.7p and an interim dividend 11.8p).
After the year-end, the Directors proposed a final dividend per share of 24.9p (2023: 23.6p), bringing the total dividend per share for the year to 37.3p (2023: 35.4p). No provision has been made in relation to this dividend.
The Group has modelled tax adjusted property business profits for 2024 and 2025 and the PID requirement in respect of the year ended 31 December 2024 is expected to be satisfied by the end of 2025.
Other financial highlights include:
Strong rental growth for 2024/25, demonstrating value of their platform
8.2% rental growth and 97.5% occupancy for the 2024/25 academic year (2023/24: 7.4% and 99.8%)
Occupancy significantly ahead of 94% sector average, underpinned by nomination agreements
+5% YoY growth in adjusted EPS to 46.6p (2023: 44.3p)
Growing student demand continues to outpace constrained housing supply
2% increase in university applications by UK 18-year-olds for 2025/26
More supportive environment for international students with most recent visa issuance up 14% YoY
70% reserved for 2025/26 (2024/25: 79%), reflecting a normalisation in demand
Strong demand from university partners with 57% of beds nominated for 2025/26 (2024/25: 57%)
New PBSA supply 60% below pre-pandemic levels and competing HMO sector in decline
Sustained earnings growth from our best-in-class platform
On-track to deliver rental growth of 4-5% for 2025/26 and 97-98% occupancy
Guidance for adjusted EPS of 47.5-48.25p in 2025
Targeting 8-10% Total Accounting Return (TAR) in 2025, before yield movement
Increasing alignment to the UK's strongest universities
£281 million of value-add acquisitions in strong markets (Unite share: £210 million)
£304 million of disposals to enhance portfolio quality (Unite share: £161 million)
Rental portfolio enhanced through £48 million of investments at a 10% yield on cost
Development pipeline adding scale in the strongest markets
£1,048 million committed pipeline fully funded, 100% in Russell Group cities at 6.8% yield on cost
Debut university JV with Newcastle University, with public consultation underway for second JV
Committed pipeline adding £71 million to NOI (Unite share) in next four years
Strong balance sheet underpinned by growing portfolio valuation
4.8% like-for-like portfolio valuation increase to £6.0 billion (Unite share) (2023: 1.2% and £5.5 billion)
TAR of 9.6%, reflecting 6% growth in EPRA NTA to 972p (2023: 2.9% and 920p)
Net debt: EBITDA reduced to 5.5x (2023: 6.1x), with LTV of 24% (2023: 28%)
Cost of debt expected to increase to 4.1% in 2025 (2024: 3.6%)
