Unite Group (UTG) Q2 2026 TU earnings summary

Executive summary

• Reservations are ahead of last year at 86% for the 2026/27 academic year, driven by strong direct marketing, targeted pricing, and performance at leading universities.

• Occupancy guidance is 94%-96% with 1%-2% rental growth, supported by robust undergraduate demand and targeted pricing adjustments.

• Empiric (Hello Student) portfolio integration is progressing well, with reservations at 71% for 2026/27, improved sales channels, and operational synergies exceeding targets.

• Trading performance in H1 is in line with expectations, and EPS guidance for the year is reaffirmed at GBP 0.415-GBP 0.430 (41.5-43.0p), reflecting a one-off impact from the Renters' Rights Act.

• On track to deliver £300-400 million of disposals in 2026 to align with top UK universities.

Financial highlights

• EPS guidance for the year remains at GBP 0.415-GBP 0.430 (41.5-43.0p per share).

• GBP 165 million (£165 million) of share buybacks completed in H1 at an average price of GBP 5.05 (505p), acquiring 32.7 million shares (c.6% of issued capital).

• GBP 130 million (£130 million) in asset disposals completed so far this year, with over £600 million of assets either completed or actively marketed.

• Valuations at Unite share/USAF expected to be down 6%-6.5% at half year, impacting NTA.

Outlook and guidance

• On track to deliver 0%-2% income growth for the 2026, 2027 academic year.

• Anticipated occupancy of 94%-96% and rental growth of 1%-2% for 2026/27.

• Undergraduate intake expected to rise 1%-3% year-over-year; international postgraduate demand remains soft but stabilizing.

• Rental growth for Empiric/Hello Student expected to align with Unite performance.