Unite Share Discussion Threads

[beltd] 19/1/2022 09:52

You would think this offers value at this level..... but who knows the markets

[maddox] 16/1/2022 19:30

Hi a_game,

I think Covid has been the 'Black Swan' for Unite - but I'd welcome suggestions of other risks to the business - events, circumstances, competitive pressures that might damage the business?

[a_game] 16/1/2022 16:17

This is certainly a buy and forget stock. You can't go wrong here, unless a black swan appears ;)

[maddox] 11/1/2022 08:55

Very encouraging update on trading and valuations from Unite this morning. Good news on all fronts - trading, development pipeline and asset values.

Current trading appears to be returning to normal levels despite the continuing Covid situation - which is fantastic news. Looking forward Unite are seeing strong demand for 2022/23 from both domestic and international students. They are not taking any chances on international students and are intending to retain their domestic students. UTG are clearly keen to hit their occupancy targets.

Competition for prime city centre locations is more favourable for Unite in the wake of Covid. So, the pipeline will hopefully be expanded further with some juicy development opportunities.

There is also strong investor demand for student accommodation as an asset class. This is leading to higher valuations and thus acceptance of lower yields - the 'yield compression' mentioned in the rns.

Covid has highlighted the robust demand from young people for the university experience. On-line learning has its obvious advantages but Covid has also revealed its limitations. The 'right of passage' that a degree course at a university represents has been fully stress-tested and has come through strongly.

The future outlook for Unite is looking very positive.

[maddox] 31/12/2021 11:27

I was just listening to Ricky Gervais having a rant about Covid (and Boris Johnson). He was lamenting the effect of Covid on young people's live - what should be some of 'the best years' of their life'. He said "I didn't go to college to study .... being stuck at home for three years doing things on ZOOM - isn't my idea of a college experience". Yep, very sad.



However, there seems to be light appearing at the end of this long dark tunnel. And, somewhat surprisingly it appears to be Omicron, the latest variant. The evidence is mounting that whilst it spreads like wild-fire it is a significantly less serious infection, especially for those double-vaccinated. Also, as it is displacing the far more dangerous Delta variant it should actually reduce the illness and death. We thus appear to be following South Africa's path quite closely. Their peak of hospitalisation is now past and was c.62% below their Delta peak and Omicron is subsiding as fast as it spread.



I hope and pray that this will be the end of the Covid-19 pandemic and we can look forward to a more normal 2022.

Wishing you all a Happier and prosperous New Year.

Maddox

[speedsgh] 20/10/2021 20:27

Links to Capital Markets Day presentation & webcast available here -

[madengland_] 11/10/2021 13:56

Absolutely Maddox. Feels to me like a short term opportunity to add to holdings.

[maddox] 11/10/2021 11:55

I think we we have an excellent management team running the business and I was somewhat surprised that they fell a tad short of their occupancy target. However, we've been an exceptionally chaotic situation as a result of Covid and particularly the flip-flopping on travel restrictions. So, understandable in the circumstances. What has been more starkly revealed by Covid - is how robust this sector is. This Covid period will be a blip on the chart in a couple of years time.

Unite are hosting a Capital Markets Day on Tues 19 October which should shed some light on their future strategy. The backdrop is very supportive. The demand for PBSA is running well ahead of supply and a number of Unis have fallen short of their promises to accommodate first-year undergrads. This must provide opportunities for Unite and I'm hoping we'll learn more on this on Tuesday.

[madengland_] 08/10/2021 10:23

Mildly short term disappointing on the rental front, interesting and not a huge concern to me or UTG more to the point. They clearly know how to improve the income. A lot long term dividend yield potential at this level and you could imagine private equity running numbers at this level. Still remains on my buying list

[madengland_] 06/10/2021 11:06

Lack of news I'd imagine. Looking forward to seeing the updated valuation. The rental situation should be very positive

[thufirhawat] 30/9/2021 00:23

What’s up with this price? Overweight according to the banks… but declining?

[speedsgh] 29/9/2021 20:09

Looking weak again. Trading near bottom of longer term rising channel.

[madengland_] 09/9/2021 10:17

UTG being the lead once more. Smart

[madengland_] 08/9/2021 12:31

Covid jitters. I will certainly buy a lot more if this drops.

[maddox] 10/8/2021 10:23

A-Level results today
A record number of students have received results giving them a first choice confirmed place 395k up 8%. With about another 30k places available through clearing.

[madengland_] 05/8/2021 17:36

Great news

[speedsgh] 05/8/2021 15:07

Council backs major student accommodation plans -

Plans for the redevelopment of a site in Nottingham to provide purpose-built student accommodation and new commercial space have been backed by the council.

Unite Group sought full planning permission to demolish and redevelop most of a brownfield site at 406 And 408 Derby Road.

Built development on the site currently comprises three car showrooms, occupied by Lexus, Toyota and Jaguar, one of which will be retained.

Plans include the construction of a part three, part four, part five and part six-storey student accommodation building, consisting of 700 student beds and shared communal spaces.

Approximately 19,000 sq ft of flexible commercial floorspace for use by the University of Nottingham will also be provided.

A total of 315 cycle parking spaces will be located within a secure and covered internal store.

The student accommodation will be operated by Unite Students, which will create a number of direct jobs upon completion of the scheme.

The development will also generate a number of jobs at the construction stage.

A statement lodged with Nottingham City Council on behalf of the applicant said: "The development meets a strategically identified need in an appropriate and sustainable area, delivering well designed and high-quality student bed spaces and flexible commercial floorspace which will create jobs contribute to the economy, improve access to open space, and encourage sustainable forms of transport.

"The development will also be highly sustainable, energy efficient, and ecologically beneficial."

The scheme has now been approved, subject to conditions.

[madengland_] 05/8/2021 08:42

I'm not a chartist but it looks like we have broken a major resistance point....

[maddox] 02/8/2021 11:32

UTG H1 Results - extremely solid. Covid has impacted income and thus also NAV so a double hit but UTG showing great resilience and this effect is starting to unwind. They also announced a new 1000 bed development in Stratford, London.

Whilst, market recovery is underway with a return to face-to-face teaching we're not out of the woods yet. We've still to see the return of a fresh intake of international students and UK clearing out-turn to determine the final level of demand. A few Universities are saying they will continue with remote teaching - but I can't see that lasting - it's not what students want and if that is what's on offer they will go elsewhere.

Just a couple of points I'll highlight.

UTG's revenue is 80% covered by nomination agreements or UK students. Of the remaining 20% exposure to international students - a third of these are already in the UK.

UTG have identified that student's top concern is climate change and are responding positively: UTG's development in Paddington is aiming for zero carbon rating. This green initiative will of course also enhance their ESG credentials.

Unite is having to absorb additional costs to remove HPL cladding on some of their properties. They are looking to recover costs from the developers but this will probably take some time.

University deals are under discussion - that should add additional NAV growth. The LSAV fund has capacity and are actively seeking more PBSA property in London. These deals take time to complete - so not expecting a rush of deals here.

Funding is looking rock solid and Unite has the prospect of further reducing the cost of its debt. LTV is a conservative 30% giving capacity to fund further deals and/or developments.

So we're on course for a full recovery and UTG are extremely well positioned for further growth - accepting that Covid may have further twists in its tail.

Regards Maddox

[madengland_] 01/8/2021 12:31

Demand for place at university will rise 40% in 4 yearshttps://www.thetimes.co.uk/article/27f3d816-f239-11eb-a52c-53a486091545?shareToken=3aa4ac5981c62cc1f0a27bac35fd9a03

[maddox] 26/7/2021 09:58

Interesting development in China: Chinese students being an important portion of the International Student Market for UK Unis. China is making for-profit provision of after-school tutoring illegal.



This is targeting the pre-University age-group and I cannot see any direct implications for UK Universities operating in the UK (happy to have other's opinions ofc). However, those UK Universities that have set-up in China, or thinking of doing so, such as Xi'an Jiaotong-Liverpool University or Nottingham’s Ningbo Campus - this must be a concern.

Regards Maddox

[madengland_] 12/7/2021 12:32

As in dividend yield

[madengland_] 12/7/2021 12:30

Thanks Maddox a very balanced and articulate reply to my very anodyne question. I believe as you do the long term value of this share is a good deal higher than current price, with mgt well positioned to grow the yield long term

[maddox] 11/7/2021 13:52

FT: Landlords swap offices for student housing as pandemic hastens change

'Two moves by Blackstone — the sale of BNY Mellon’s London office in St Paul’s to Italian insurer Generali for £465m, sealed this week according to people familiar with the deal, and an approach to buy student housing operator GCP Student Living — are a sign of how landlords are repositioning their portfolios as the pandemic accelerates structural trends.

Covid-19 has hastened the decline of two key commercial property sectors — retail and offices — and prompted landlords to pile into alternatives they believe will fare better.

Top of their shopping list are: warehouses, supported by the ecommerce boom; rental flats and student housing, made attractive by home shortages and growing student populations across Europe; and life sciences campuses, buoyed by huge investment in research and development.'