Unite Group (UTG) Q3 2026 TU earnings summary

Executive summary

• 95.6% of beds sold for 2026/27, with 0.6% like-for-like income growth; FY2026 adjusted EPS guidance reiterated at 41.5–43.0p.

• Strategy targets a 55,000–60,000-bed future portfolio focused on stronger universities, from 70,500 beds at 30 September 2026.

• £200m of disposals completed year to date, with £300–400m targeted in 2026; proceeds support deleveraging and committed capex.

Financial highlights

• RevPOR declined 0.3%, reflecting shorter tenancies and a shift toward undergraduates; multi-year nomination rents grew just over 3.5%, while rents on newly let beds and new agreements fell just over 2%.

• Flexible and short-term lettings generated ~2% of income; management sees potential to add up to 0.5 percentage point to income growth in 2027.

• Q3 like-for-like revaluation declined 3.7%, including 10bps yield expansion; weaker income at disposal assets also contributed.

• USAF portfolio value fell 4.0% like-for-like to £2,815m and LSAV fell 3.4% to £1,900m in Q3; weighted average yields were 5.5% and 5.1%, respectively.

Outlook and guidance

• FY2026 adjusted EPS guidance remains 41.5–43.0p; 2026 income growth is within guidance, and 2027 earnings guidance is expected early in 2027.

• Future portfolio of 55,000–60,000 beds is expected to sustain high occupancy and rental growth; management cited limited new supply in target cities beyond 2027.

• Hello Student expects ~5% like-for-like income growth in 2026/27; £18m annual synergies are expected from 2027, with integration on track for Q4 completion.

• Semester and short-term lets could add up to 0.5 percentage point to income growth, subject to pricing and delivery costs.