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UTG Unite Group Plc

957.00
12.50 (1.32%)
18 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Unite Group Plc LSE:UTG London Ordinary Share GB0006928617 ORD 25P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  12.50 1.32% 957.00 957.00 958.00 958.00 942.50 942.50 964,933 16:35:21
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Real Estate Agents & Mgrs 276.1M 119.4M 0.2966 32.28 3.85B
Unite Group Plc is listed in the Real Estate Agents & Mgrs sector of the London Stock Exchange with ticker UTG. The last closing price for Unite was 944.50p. Over the last year, Unite shares have traded in a share price range of 835.00p to 1,069.00p.

Unite currently has 402,581,000 shares in issue. The market capitalisation of Unite is £3.85 billion. Unite has a price to earnings ratio (PE ratio) of 32.28.

Unite Share Discussion Threads

Showing 1476 to 1497 of 1500 messages
Chat Pages: 60  59  58  57  56  55  54  53  52  51  50  49  Older
DateSubjectAuthorDiscuss
28/2/2024
13:50
On a less optimistic note....

'UK universities hit by fall in overseas students taking up postgraduate places'

'Commercial data offers first broad snapshot of enrolment since government tightened migration policy'



International Students contribute £42bn to the UK economy each year and play an important role in subsidizing Undergraduate Courses. The Govt can't stop trying to put a spoke in the wheel of this highly successful and sizeable part of our economy and UK's Global soft-(super)-power.

However, Unite will not be effected as it isn't catering to mature International Students with families and is focussed primarily on the Undergraduate market.

maddox
28/2/2024
13:41
Thanks speedsgh,

Please to hear that on the Uni JVs - we have six meaningful discussions in progress.

The -1% decline in EPRA NTA is reflective of the higher interest rate environment - which I think it's safe to assume will grow again once rates normalise.

We are extremely conservatively financed with a Loan-to-Value of 28%. I'd suggest that this might be expanded to accommodate a more ambitious development pipeline (hopefully with Uni JV deals).

maddox
27/2/2024
10:57
Final dividend: 23.60p
Payment date: 24/5/24
Ex-div: 18/4/24

We are proposing a final dividend payment of 23.6p per share (2022: 21.7p), making 35.4p for the full year (2022: 32.7p) and representing an 8% increase compared to 2022. This represents a payout ratio of 80% of adjusted EPS. The final dividend will be fully paid as a Property Income Distribution (PID) of 23.6p, which we expect to fully satisfy our PID requirement for the 2023 financial year.

Subject to approval at Unite's Annual General Meeting on 16 May 2024, the dividend will be paid in either cash or new ordinary shares (a 'scrip dividend alternative') on 24 May 2024 to shareholders on the register at close of business on 19 April 2024. The last date for receipt of scrip elections will be 2 May 2024.

speedsgh
27/2/2024
10:56
920p as at 31/12/23 EPRA NTA
928p as at 30/6/23 EPRA NTA
927p as at 31/12/22 EPRA NTA
940p as at 30/6/22 EPRA NTA
882p as at 31/12/21 EPRA NTA
837p as at 30/6/21 EPRA NTA
818p as at 31/12/20 EPRA NTA
828p as at 30/6/20 EPRA NTA
847p as at 31/12/19 EPRA NTA
812p as at 30/6/19 EPRA NTA
790p as at 31/12/18
761p as at 30/6/18
720p as at 31/12/17
669p as at 30/6/17
646p as at 31/12/16
620p as at 30/6/16
579p as at 31/12/15
521p as at 30/6/15
434p as at 31/12/14

speedsgh
19/2/2024
07:20
Unite have landed a sizeable Uni deal - a joint venture with Newcastle University to develop 2000 beds.

Unite will act as developers and ongoing asset manager with a 51% ownership, putting in 51.2% of the £250m capital. The 51% share is all important in ceding overall control of the jv to Unite; this signifies the trust that Newcastle Uni is placing in Unite. Unite's strong reputation places them in pole position to secure such deals with Unis - deals which will be long-term and upon which the Uni's students' well-being will be dependent.

This is a nice Uni partnership deal that will hopefully be a model for others; the effect of which will be to accelerate development in a hugely under-provided market.

maddox
19/1/2024
12:14
The immediate fall-back in UTG's share price suggests that it's responding to the influence of the inflation rate/interest rate figures. The 'surprise' slight rise in inflation in December will perhaps cause interest rate cuts to be postponed.

The consensus remains intact - that interest rates have peaked - so it's perhaps just a matter of timing.

maddox
29/12/2023
11:52
Investors Chronicle Feature - Britain's three best REITS - IC's 'Mitchell Labiak selects three property companies with outstanding attributes for the long-term investor.'

Essentially, the market cycle (interest rates) is turning back in favour of property REITS but rather than solely rely on this ML looks at the fundamentals. He selects Unite, along-side Segro(SGRO) and Shaftsbury Capital (SHC) as the REITS with the highest quality fundamental characteristics to deliver the best long-term investment performance.

maddox
21/12/2023
12:29
Unite Students to build 600-bed student accommodation at Temple Quarter, Bristol -
speedsgh
19/12/2023
13:50
UTG appears to be breaking out of the channel we've been in since around March 2023. As I post 1040p and trailing yield of c.3%.

The outlook for UTG in 2024 is IMHO on-balance looking very positive.

The handover from Richard Smith CEO to Joe Lister current CFO, following a Board managed selection process, will undoubtedly be smooth. They have worked together for 13 years in their respective roles. Joe has been very impressive as CFO and is an excellent choice.

The market environment couldn't be more positive. Demand for PBSA is growing at the same time as private student landlords are exiting the market - such that the undersupply is widening. The effect of course is to drive up rents and make PBSA the lower cost option further supporting demand and occupancy levels.

It appears that we have hit peak UK interest rates and thus the attraction of Gilts will wane in 2024. Switching into assets with a growing yield will look increasingly attractive. However, there is a wide spectrum of opinion about when we'll see cuts to interest rates, how fast they'll come down and where they will rest.

On the risk side there are a few areas to keep an eye on:

Build cost inflation is likely to remain a dampening factor on the economics of new build. This may equilibrate as this is passed on to lower land prices assisted by less competition from other uses such as office and retail. Although we might anticipate Build to Rent (BtR) demand to grow in response to attractive rental yields to add competition for development sites. So, quite a dynamic picture may unfold - that might itself make investment decisions more difficult.

Thankfully, the Govt appears not to be acting against international students to any meaningful extent - despite the continuing stupidity of including students in ONS immigration figures. Nevertheless, with immigration remaining politically sensitive International Students are a soft target, so this risk remains to the fore.

Another pandemic I'm completely discounting - this is the most serious risk as we have witnessed first-hand but is extremely unlikely.

Substitution risk, from on-line learning - Covid-19 has proven this to be unattractive as a replacement to in-person teaching.

Up-side risk: A large Uni deal is a possibility but whilst much mentioned by mgt - doesn't seem to materialise.

I’d be very happy to be contradicted on any of the above – always better to have alternative views to avoid missing obvious risk factors or overly optimistic (a particular fault of mine).

maddox
24/10/2023
22:59
Ha Ha I assume your post is aimed at Blackhorse-down strawberry. I doubt he'll see your post as he's posted widely and indiscriminately to try and support his latest trade.

I follow WJG as operating in PBSA, as I also follow ESP and DIGS, but not invested. He started ramping around 20 Sep, WJG share price c. 41p so about 12% down currently.

Unlike UTG, WJG are solely focussed on property development which is suffering due to high interest rates that means no one wants to buy their developments. If WJG can pull through into a more benign interest environment then they are probably a steal at the moment - but too risky for me.

maddox
05/10/2023
08:30
Trading Update for Q3

Highlights

>> 99.7% occupancy for the 2023/24 academic year (2022/23: 97.9%)

>> Rental growth of 7.3% for the 2023/24 academic year

>> Property values broadly stable in Q3 (USAF: +0.2%, LSAV -0.2%)

>> Development pipeline 5,600 beds.

Market back drop is highly supportive as under-supply of student accommodation is growing, exacerbated by private HMO owners leaving the market. With rental sector experiencing huge demand and above inflation rental increases PBSA offers a better value and high quality choice.

As a REIT all this should flow through to yield. A huge amount of capital has flowed out of the market and into Gilts but as interest rates approach their peak - the attraction should be waning.

maddox
05/10/2023
07:14
Moving to WJG , better value
blackhorse23
13/9/2023
12:14
New 800-bed development in Glasgow -

Unite Students, the UK's leading owner, manager and developer of student accommodation, today announces that it has entered an option agreement to acquire a new 800-bed development scheme in central Glasgow, subject to planning.

The new development will help address the acute shortage of student accommodation in Glasgow, which is home to three institutions within the UK's top 75 universities, and increases Unite's portfolio in the city to 3,000 beds. The Group expects to deliver the scheme as a university partnership with at least half of the beds to be let on a multi-year nominations agreement to a leading university.

The scheme has a total development cost of £95 million and is expected to deliver a yield on cost of around 7.5%. Planning approval is targeted during H1 2024, enabling delivery for the 2026/27 academic year. The Group expects to fund the project from capital recycling through disposals.

Development pipeline update

We have continued to make good progress on delivery of our committed development pipeline since our interim results. Morriss House in Nottingham reached practical completion in August and is fully let for the 2023/24 academic year.

Following our £300 million equity issue, work has started on-site at our Temple Quarter development in Bristol. The planning process for Meridian Square in Stratford is also progressing in line with expectations with approval targeted in Q4 2023.

Michael Burt, Unite Students Group Investment Director, commented:

"Our latest development will create new supply of high quality, affordable student accommodation in Glasgow to support the continued growth of our university partners. We are also making good progress in delivering the two new developments funded from the proceeds of our recent capital raise. Our development pipeline now totals 5,600 beds in the strongest university cities, as we work to address the urgent need for new student housing at a time when the private rental sector is in retreat."

speedsgh
01/9/2023
12:34
The Chronic Investor asks:
'Is the student accommodation market in a bubble?'



I find the IC increasingly journalistic rather than analytic - so despite the click-bait title - it cites plenty of evidence that the supply/demand imbalance is set to further widen.

Specifically, it quotes research 'Student accommodation website StuRents calculates that there is currently a shortage of 283,000 student beds in the UK, and forecasts that this will rise to 621,000 by 2026 based on the number of PBSA buildings in the planning stages and further surges in student numbers.'

And IC concludes 'But the size of the gap between the number of beds and the number of students looks high enough to carry the sector for at least a few years.'

Unite recently reported that the supply of new PBSA beds had fallen from c. 27-32k per annum over the previous four years to 19k in 2022 and projected 12k in 2023. So, I'd suggest that their conclusion is somewhat an understatement.

maddox
29/7/2023
06:08
LGIM provides landmark £400m facility to Unite -
speedsgh
26/7/2023
06:19
If you missed the Results presentation yesterday, here is the recording:



Loads of great insight into the market in addition to the financials etc.

maddox
25/7/2023
17:31
Yes, £300m raised at 905p and the share price has recovered closing at 962p - so a nice 6.3% gain for subscribers - £4m of which was retail money. We now have a healthy £600m development pipeline, rising rents and some (at long last) Uni deals to look forward to.
maddox
25/7/2023
12:53
It seems Unite had little trouble in raising the £300m they were looking for. I can't say that I am surprised.
speedsgh
24/7/2023
19:41
Reflecting on Unite's statements and fundraise - the extent of student accommodation crisis was evident last year - I get the impression that the Unis have now finally woken up the impact this will have on constraining their intake for 23/24.

The widening mismatch between demand and supply has been foreseeable for years - when the development climate was far more benign - cheap capital and low build-cost inflation. Now this problem is going to be far more difficult and expensive to resolve - and cannot be resolved quickly. This does however play into the hands of Unite in their negotiation with Unis to provide them with the student beds that they require.

maddox
24/7/2023
16:23
After market close - UTG have just released their 1H23 Results and are looking to raise £300m via a placing and separate retail offer via Primary Bid. The funds will be used:

'The Placing will enable Unite to continue to invest in its market-leading platform and enhance future earnings growth. The Company intends to use the net proceeds of the Capital Raise (the "Net Proceeds") to commit to two new PBSA development schemes and accelerate asset management initiatives to enhance future returns.'

'Background to the Capital Raise' - Selective edits - link below.

'The Board believes the current market environment offers a compelling multi-year opportunity to accelerate the Company's growth.'

'structural factors continue to drive a demand/supply imbalance for the Company's product. Demographic growth will see the population of UK 18-year-olds increase by 140,000 (19%) by 2030. Application rates to university have also grown steadily over recent years, reflecting the value young adults place on a higher level of education and the life experience and opportunities it offers. Demand from international students also continues to grow, as reflected in the 2% increase in undergraduate applications for the 2023/24 academic year.'

'The Company also sees opportunities to secure new development opportunities at attractive returns and is in advanced discussions for a number of schemes in London and prime regional markets. Moreover, the Company has seen a growing willingness from universities to explore more strategic options to grow and improve their accommodation offer, given the vital role it plays in helping them to attract and grow student numbers. This includes a number of advanced discussions for strategic partnerships with universities for the development of new accommodation on- and off-campus, as well as the stock transfer and refurbishment of existing university accommodation.'



I've been anticipating the Unis to be looking for partnerships for a long time - looks like it might now be happening.

maddox
10/7/2023
06:56
A highly positive Q2 trading update from Unite just published:

Richard Smith, Unite Students Chief Executive Officer, commented:

"Reservations for the 2023/24 academic year remain at record levels, with 98% of rooms now sold, reflecting strong demand from both students and universities and the attractiveness of our fixed-priced all-inclusive offer. This supports an improvement in our rental growth guidance to around 7% for the 2023/24 academic year. Our strong leasing performance will continue to support our property valuations as the market adjusts to an environment of higher interest rates."

The strong demand has lifted the value of the two property funds that UTG manages and partly ownes, these are:

>> USAF – Unite own 28.2% - like-for-like asset value increased 1.2% during the quarter; and

>> LSAV – Unite own 50% - like-for-like asset value increased 1.1% during the quarter.



The performance isn't being reflected in the share price as Financial Institutions move their money out of the UK stock market and into fixed rate investments; attracted by the rising interest rates. On Friday's close of 847p the prospective yield is 4.38% currently. Last Wednesday's UK Gilt auction priced the latest issue maturing in 2025 at 5.668% - the highest rate since 2007. So, yield seekers have a no risk alternative home for their funds. However, UTG offers growth and a growing yield which Gilts don't - so the attraction is short-term.

The high demand for student property, widening undersupply and attractive yield on development underpins a long-term growth trajectory for Unite.

maddox
16/5/2023
10:04
'International students boost UK economy by £41.9 billion'

'A new report, The costs and benefits of international higher education students to the UK, published jointly by Universities UK International (UUKi), the Higher Education Policy Institute (HEPI) and Kaplan International Pathways in collaboration with London Economics, reveals the growing importance of international students to local economies throughout the UK.'



If correct that figure is colossal - it could put the Universities Sector right at the top in terms of generating foreign earnings for the UK. After taking account of the impact on public services the net benefit is still £37bn. For comparison the Legal Services Sector 's foreign earnings were £5m in 2017 (Law Society figs).

The Govt has unfortunately turned once more against international students in their vain efforts to reduce immigration. This time targeting Post Grads bringing relatives - presumably that would bar a husband or wife? Why they include students in the immigration figures I don't understand. A previous report had found that virtually all university students returned home and was not a pathway for immigration.

The report also highlights that the benefits are well distributed across the regions of the UK. Hopefully, this might positively influence local planners reviewing PBSA applications.

maddox
Chat Pages: 60  59  58  57  56  55  54  53  52  51  50  49  Older

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