Unite Group Plc

First-half adjusted EPS was 27.1p, down 8% year over year. Rental income increased 1.5% on a like-for-like basis, helped by short-term lettings that added 0.5 percentage point to occupancy. EPRA net tangible assets per share fell 9% to 865p, and property yields moved up 29 basis points to an average of 5.5%. The portfolio revaluation was minus 6.4%, and the interim dividend was unchanged at 12.8p. Management reiterated full-year 2026 earnings guidance of 41.5p to 43p and said net debt-to-EBITDA was 7.5x on a pro forma basis at June. They also said they completed GBP 165 million of share buybacks in H1 and sold GBP 130 million of assets in the first half. For Hello Student, occupancy was 77%, up 9 points, and the company now expects 88% to 90% occupancy; Unite said its overall occupancy guidance remains 94% to 96%.

Joe Lister framed the strategy as a deliberate repositioning toward the U.K.'s strongest universities, arguing that demand and outcomes are increasingly concentrated in that segment. He emphasized that Unite wants fewer, stronger markets, more nominations at top universities, and a higher-quality portfolio with more consistent occupancy and rental growth. His tone was confident but measured: he repeatedly noted that the next few weeks of clearing are critical and that the company is not getting ahead of itself.

Michael Burt said first-half performance was in line with expectations despite a tougher trading environment. He highlighted 1.5% like-for-like rental income growth, 29 basis points of yield expansion to 5.5%, a 9% decline in EPRA NTA per share to 865p, and adjusted EPS of 27.1p, down 8% due to higher interest costs and Hello Student acquisition timing. He also pointed to capital discipline, including GBP 165 million of buybacks, pro forma net debt-to-EBITDA of 7.5x, expected leverage reduction back toward 6x to 7x over the next 12 months, and unchanged full-year earnings guidance of 41.5p to 43p.

Analysts pressed on disposal timing, valuation declines, capital allocation, Hello Student upside, and whether occupancy guidance was conservative. Management said GBP 300 million to GBP 400 million of disposals this year remains the target, with GBP 130 million sold already, about GBP 500 million on the market, and just over GBP 100 million under offer, while acknowledging the market is softer and pricing will be determined by buyers. On occupancy, management said it is being cautious because clearing is competitive and prior cycles showed uncertainty, even though bookings are ahead of last year. They also said Hello Student has improved quickly under Unite's platform and that each 1% of Hello occupancy is worth just under GBP 1 billion in income.