Unite Group (UTG) Q1 2026 TU earnings summary

Executive summary

• 74% of beds reserved for the 2026/27 academic year, slightly below last year, supporting 2%-3% rental growth guidance.

• High tariff universities are increasing demand and entering longer-term agreements, while lower-tier universities remain cautious.

• Integration of the Empiric (Hello Student) portfolio is progressing, with sales up 11 points since prelims and expected to reach around 85% occupancy.

• GBP 3 million of GBP 9 million targeted cost savings secured; operational teams are incentivized and web/international sales are performing well.

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

Financial highlights

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

• Cost savings and Empiric synergies (GBP 9 million this year, GBP 17 million run rate by 2027) are on track.

• Rental growth guidance maintained at 2%-3%, with a 1% headwind from slightly shorter tenancy lengths.

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

• Energy and interest costs are fully hedged for the current year; utility costs hedged through 2026 and 70% for 2027.

Outlook and guidance

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

• 2027 earnings guidance is premature; focus remains on returning to earnings growth.

• Further updates on reservations and disposals expected at AGM in mid-May and in July.