Unite Share Discussion Threads

[madengland_] 09/9/2021 09:17

UTG being the lead once more. Smart

[madengland_] 08/9/2021 11:31

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

[maddox] 10/8/2021 09:23

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 16:36

Great news

[speedsgh] 05/8/2021 14:07

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 07:42

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

[maddox] 02/8/2021 10:32

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 11:31

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 08:58

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 11:32

As in dividend yield

[madengland_] 12/7/2021 11:30

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 12:52

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.' 

[maddox] 11/7/2021 10:58

Hi madengland,

That's not something that I typically do - the share price will reflect a share's intrinsic value in the long-term but is determined by the market sentiment of buyers and sellers at any particular point in time. A point in time price prediction is beyond me.

I'll thus reframe my answer to your question. I expect UTG to hit 1400p once it becomes clear that international students can return and teaching is back to normal. We have yet to see the full benefit of the Liberty acquisition reflected in the figures. As an asset class uncorrelated with the economy I foresee it becoming highly appealing to FIs.

[madengland_] 10/7/2021 12:37

What's your year end price target Maddox?

[maddox] 10/7/2021 07:40

Ahead of the half-year results, due on the 27 July, today we have the Quarterly Fund Valuation Report as at 30 June 21 for the two funds that Unite manages. These are in addition to Unite’s wholly owned student accommodation portfolio.

The two funds are:

USAF – Unite own 22% - like-for-like asset value increased 1.4% during the quarter; and

LSAV – Unite own 50% - like-for-like asset value increased 1.9% during the quarter.

Thus, we can expect to see a bounce-back in NAV as the sector returns to a semblance of normality. The bookings for 2021/22 at 83% are ahead of the 81% for this time last year but still behind the 89% of 2019. As Covid restrictions and travel ease up into the UK Unite anticipate a catch-up in bookings later in the Summer.

[maddox] 04/7/2021 09:52

Yes, interesting development - just picking some points out from the report suggests DIGS is undervalued. Mkt Cap Fridays' close at 169.2p is £769.89m yet their reported NAV for 31 March is 178.82p (updated release on 21 June) but DIGS state:

'The Company remains in discussions with the Consortium. However, following discussions with the Company's independent valuer, the Board is anticipating a material increase in its property valuation for the period to 30 June 2021.'

The bid is being organised by large FIs using Scape as the vehicle, the firm that currently manages the property portfolio on DIGS behalf. It is possible that, if successful, the structure might more closely resemble UTG with off b/s funding and property/letting management, if they keep DIGS' stock market quote.

We'll need to keep an eye on this. Either way, it highlights the attraction of this sector to large, sophisticated FIs.

[madengland_] 03/7/2021 06:52

GCP Student Living reveals takeover approach by Scape Living and iQSA Holdcohttps://www.thetimes.co.uk/article/1b3a22b2-db62-11eb-8f14-0bb645f59db0?shareToken=c80613e7fb55317a4e1ea233f1f887c2

[maddox] 18/6/2021 07:54

Yes, also with less office workers commuting into town centers student accommodation and spending should be all the more welcome. Not to mention that for hospitality and retail students' part-time labour may fill the short-fall.

[madengland_] 18/6/2021 07:12

Encouraging to see business as usual. The strategy remains intact and being executed, with funds flowing as required. With all the cries for more affordable housing (with mass student accommodation easing appeal of HMO) in many of the cities Unite serve, and equally much office space becoming available, you'd imagine there is rich pickings for Unite

[maddox] 18/6/2021 06:47

Unite have sold a couple of London properties for £342m to LSAV its joint venture fund . LSAV is 50:50 owned by Unite and GIC (the Singapore sovereign wealth fund)- a relationship that was extended for another ten years in May.

This is a return to business as normal. Unite is selling wholly owned assets off its own balance sheet into its off-b/s fund, thus recycling £238m of capital to fund current developments, whilst retaining a 50% interest through the fund. It will continue to manage and let the property as part of the deal.

The LSAV portfolio was valued on the 31 March at weighted average yield of 4.4%, whereas the £342 was at a sale price yield of 4%. This suggests that there has been further rise in London property values; we'll see in the next quarterly fund valuations.

[madengland_] 15/6/2021 10:32

Lmao "Students also taking bold action in day-to-day life - 88% say they now limit air travel annually for environmental reasons"Until lockdown lifts! Lol

[maddox] 23/5/2021 12:31

The Brokers Analysts opinions are gradually improving post the full year results and the more positive outlook:

Strong Buy........3(1)
Buy...............1(1)
Neutral...........6(7)
Sell..............0(0)
Strong Sell.......1(1)
..................11(10) (brackets the figs captured 22 March)

Source: Share.com

Also, great to get the dividend (12.75p)on Friday.

[madengland_] 13/5/2021 15:35

Certainly a nice top up opportunity, thanks to our Middle East friends ongoing inability to talk

[speedsgh] 13/5/2021 08:12

"Don't you love a down day..." or two! Most welcome when you're trying to build a position :o)

[maddox] 11/5/2021 21:26

Don't you love a down day - so apparently it's as a result of a fear of inflation leading to rising interest rates. With the amount of debt the Govt has accumulated it is difficult to contemplate anything more than a marginal rise.

The firms that are subject to adverse inflationary effects are those with rising input prices but without the pricing power to pass on the increased costs in their own prices.

So, nothing much to worry about IMHO.