Unite Group Plc

First-half performance was described as in line with expectations. Like-for-like rental income increased 1.5%, and short-term lettings added 0.5 percentage point to occupancy. Adjusted EPS decreased 8% to 27.1p, and the interim dividend was unchanged at 12.8p. EPRA net tangible assets per share fell 9% to 865p, while property values declined 6.4% and property yields rose 29 basis points to an average of 5.5%. Net debt-to-EBITDA was 7.5x on a pro forma basis at June after the Hello Student acquisition. Management reiterated full-year 2026 earnings guidance of 41.5p to 43p, said the occupancy target for Hello Student has been lifted to 88% to 90%, and kept Unite occupancy guidance at 94% to 96%.

Joe Lister framed the quarter as a strategic transition toward a smaller but higher-quality portfolio centered on the U.K.'s strongest universities. He said demand is strongest at high-tariff universities, noted 7% applications growth to those institutions, and argued the group’s platform can deliver higher occupancy at lower cost. His tone was confident but disciplined, emphasizing capital allocation, selective disposals, and buybacks rather than growth at any price.

Michael Burt said H1 was in line with expectations and highlighted that rental income rose 1.5% like-for-like while costs were held broadly stable through proactive staffing and central cost actions. He cited adjusted EPS of 27.1p, EPRA NTA per share of 865p, a 6.4% property value decline, and a 29 basis point rise in average yields to 5.5%. He also noted GBP 165 million of share buybacks in H1, a pro forma net debt-to-EBITDA ratio of 7.5x, and said leverage should move back toward the 6x to 7x target over the next 12 months as disposals progress.

Analysts focused on the disposal program, valuation pressure, capital allocation, occupancy guidance, and the strength of the HMO market. Management said GBP 130 million of disposals had been completed, around GBP 500 million of assets were being marketed, and another GBP 100 million was under offer, while stressing they are not sellers at any price. On occupancy, management kept guidance at 94% to 96% despite running ahead of last year, saying they were being cautious because clearing remains competitive and international postgraduate demand is hard to predict. On capital allocation, they said buybacks, developments, and university partnerships will all be weighed against risk-adjusted returns, with buybacks especially relevant while the portfolio is being repositioned.