Unite Share Discussion Threads

[maddox] 30/8/2012 12:11

These are a very good set of results - better than expected. The NAV has grown as predicted to 335p per share up 5.34% on 31 Dec 2012 (318p). The focus on profitability has delivered a doubling of profits and near trebling of eps.

The outlook statements are also positive, which is refreshing against the general market gloom, with strong demand and rental income growth continuing.

All in all, very positive and nothing that I can see to take the shine off.

[maddox] 27/8/2012 23:47

Unite's share price has risen markedly from circa 180p in late June to 223p as I post, which may just signal a change in sentiment towards unloved Unite. Despite this rise the shares remain on a 30% discount to the last reported NAV (318p, 31/12/2011).

It is difficult to find a justification for such a wide discount.

The half year results are due this Thursday 30th Aug and I expect the NAV to rise again. UTG retains a 16.3% stake in the Unite Student Accommodation Fund (USAF). USAF has just reported its value has continued to rise; driven by property value growth of 1.8% in the last qtr to 30th Jun, following 0.8% growth in the previous qtr. As UTG and the USAF have the same type of property, student accommodation, a simple read-across would suggest Unite's NAV will have grown similarly.

Typical of property companies Unite is highly geared (84%, 31/12/2011) which in the current climate goes someway to explain the discount. However, Unite has demonstrated that it can secure financing even in difficult market conditions. It did this again last May arranging an £121m 10-year debt facility from Legal & General – such that its next refinancing will not be necessary until 2014. On the other hand Unite has also been able to sell property to third parties at reasonable prices, this to free up capital for new developments.

Unite has also been taking steps to reduce its cost base to improve profitability, and it'll be interesting to see what progress has been made on this.

Overall, I expect a solid set of results on Thursday that will support the recent share price rise, and a view that a 42% discount to NAV is undeserved.

[eipgam] 16/7/2012 21:40

No idea.... but it will take a hell of an uplift for me to get my money back. Last NAV was good and perhaps take up for next years students is looking good?

Where I live, there has been an incredible amount of investment in new 'sheltered' accom for students... so much so that there are loads of empty flats that used to be for students.

[ben gunn] 16/7/2012 21:30

Help....What's up?

[ben gunn] 06/6/2012 15:04

UTG up 6%...any ideas why?
(Still have a small holding and stalking for a larger one)

[ben gunn] 06/6/2012 11:38

UTG up 6%...any ideas why?
(Still have a small holding and stalking for a larger one)

[typo56] 16/3/2012 11:08

I think the're going to be a bit lively today, especially at close.

[rochdae] 02/3/2012 21:10

Back into these....

[maddox] 07/9/2011 13:55

Student take up is 89% ahead of 87% at a similar point last year.

...and nine grand or not - I doubt that there will be many empty places or rooms - with the £stg decline and foreign students eager to take up the places.

At a share price of 185p and NAV of 310p the shares are trading at 40% discount - or looking at it another way the share price would need to rise 67% to match its asset value!

However, the other driver to the share price is the plan to develop another 4,000 beds in London by 2014 - and they are well on their way with this. This would still leave them with less than 4% market share. A market with a huge undersupply and circa 100,000 foreign students.

....so best not buy these goldpot, sorry I mEAN BEST NOT BUY THESE GOLDPOT.

[bisiboy] 17/8/2011 18:37

this year will be good
next year is the one to worry about

[goldpot] 16/8/2011 08:48

wOULDNT WANT TO BE BUYING THESE WITH STUDENT FEES AT £9000 I SHOULD THINK STUDENT TAKE UP IS DOWN THE PAN THIS YEAR.

[nermil] 23/5/2011 16:10

I do believe there is a lot going for the student accommodation market. Always did even back when I worked in research for DTZ Research. Every study I saw showed the gap between supply and demand in that sector and it still does. Constant lack of supply and upwardly fixed demand (there will always be demand for university education). I think their modular construction arm is extremely interesting. But what puzzles me is the building life of 60 years? What do they do knock it down and start all over again? The company through this arm also seems to have good income potential from other markets, military, key worker, affordable housing, etc.

But I am concerned about its p/e of 17 (taken from ADVFN financials). Land securities is trading at 5 and British Land at 4. Of course Bovis is trading at 42!! That last one is nuts. I'd be tempted to short the thing on principle alone if I wasn't so terrified or spread betting lol

[rochdae] 20/5/2011 20:57

Yes, time to get back into these. Looks like a good story again.

Roch

[eipgam] 20/5/2011 13:20

Unite Group Buy target 310p Numis Securities Ltd

[nellie1973] 08/2/2011 16:47

Broker notes out

[praipus] 01/12/2010 21:21

Seem to be offering some sort of redemption facility.

[praipus] 12/10/2010 17:35

Dividend for October and November has just been announced.

[praipus] 23/9/2010 09:53

ADVFN EPIC: AMEX:UTG seems to pull up an LSE listed real estate fund but the purpose of this thread is to discuss the United States listed:

Reaves Utility Income Fund

which pays a monthly dividend.

[nellie1973] 27/8/2010 18:00

Tipped in press-BUY

[undervaluedassets] 07/7/2010 08:57

what is the problem here? anyone know ?

or should I say ratrher what is the perceived problem here?

[davidosh] 18/6/2010 10:13

There is a thread running here if any of you want to add with your knowledge...