Unite Group (UTG) Q1 2026 TU earnings summary

Executive summary

• 74% of beds reserved for the 2026/27 academic year, slightly below last year’s 76%.

• Direct let sales are outperforming the market by 1-2 points, supported by proactive pricing and strong demand from Chinese students.

• Focus on repositioning towards higher-quality assets aligned with top universities, with high-tariff universities increasing demand and entering longer-term agreements.

• Integration of the Empiric (Hello Student) portfolio is progressing, with sales up 11 points since the prelims and targeting mid-80s occupancy.

• Asset disposal program on track, with £130 million completed or under offer and a further £500 million being marketed.

Financial highlights

• Adjusted EPS guidance reaffirmed at GBP 0.415-GBP 0.43 for the year.

• USAF portfolio valued at £2,798 million (down 1.7% like-for-like in Q1 2026); LSAV at £2,034 million (down 2.4%).

• GBP 3 million of GBP 9 million targeted cost savings secured; Empiric integration delivering £3 million annualised cost synergies, targeting £9 million in 2026 and £17 million from 2027.

• Share buyback program has deployed GBP 85 million of GBP 100 million, with plans to extend as disposals progress.

• Quarterly rental growth: USAF 0.1%, LSAV 0.4%.

Outlook and guidance

• Guidance for occupancy and rental growth reaffirmed at the lower end of 93-96% and 2%-3% for 2026/27.

• On track to deliver £300-400 million in asset disposals in 2026.

• Hello Student portfolio expected to reach around 85% occupancy for 2026/27.

• 2027 earnings guidance is premature; focus remains on returning to earnings growth, with further updates expected later in the year.

• Portfolio repositioning aims for 80% high-tariff university alignment and 60% nominations.