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 Shares Traded Last Trade
  -21.50 -2.68% 780.00 1,161,632 16:35:15
Bid Price Offer Price High Price Low Price Open Price
780.00 781.00 794.00 755.50 794.00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Real Estate Investment & Services 156.20 -101.20 -31.50 2,264
Last Trade Time Trade Type Trade Size Trade Price Currency
17:35:00 O 11,938 780.00 GBX

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Unite (UTG) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
2020-03-30 17:29:43780.0011,93893,116.40O
2020-03-30 16:36:12773.983,36026,005.56O
2020-03-30 16:36:01776.426,36249,395.84O
2020-03-30 16:17:35779.964,03031,432.43O
2020-03-30 16:13:21777.0850388.54O
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Unite (UTG) Top Chat Posts

Unite Daily Update: Unite Group Plc is listed in the Real Estate Investment & Services sector of the London Stock Exchange with ticker UTG. The last closing price for Unite was 801.50p.
Unite Group Plc has a 4 week average price of 577p and a 12 week average price of 577p.
The 1 year high share price is 1,351p while the 1 year low share price is currently 577p.
There are currently 290,314,503 shares in issue and the average daily traded volume is 1,942,862 shares. The market capitalisation of Unite Group Plc is £2,264,453,123.40.
maddox: With the completion of the takeover of Liberty Living on 29 Nov an additional 72,6 million Unite shares were admitted to the stock market. This has thus lifted the market capitalisation significantly (Mkt cap on 16 Nov19 was £3.41bn (sp 1176p) on 7 Dec 19 mkt cap £4.49bn (sp 1234p). A279;This together with the subsequent share price appreciation has led Unite's market capitalisation to rise to £4,84bn currently - where it is knocking on the door of the FT100 index. The next quarterly review of the FT100 constituents will take place on the 11 March - so just three weeks away. As things currently stand Unite is larger than the bottom nine firms in the FT100 but ranks 6th from the top of the FTSE 250 index. So promotion is far from certain and Unite may just fall short and end up on the FT100 Reserve List. On the other hand we may see a run-up in the share price as Financial Institutions position themselves to take advantage ahead of the Tracker Funds. Anyway nice to have a nag in this derby! Regards, Maddox
maddox: I've been waiting for the CMA to sign-off on the takeover of Liberty Living. Now received, this is a huge step forward for Unite - the number one in the market taking over the number three. It consolidates Unite's position as the market leader and delivers a significant operational scale-up and with it the prospects of efficiency gains. What I was somewhat surprised by was the quality of the Liberty Living property portfolio, focused similarly to Unite, on top-flight universities and how good the fit is with Unite's own portfolio. There is certainly no drop in quality as a result of this takeover. One aspect where Liberty were performing better than Unite is half-term lets - filling vacant rooms when the students are at home or on holiday. So there may be a few learning points to be taken on board along with the portfolio. The deal also brings Liberty's owner, Canada Pension Plan Investment Board ("CPPIB"), on-board as an investor. It is having deep-pocketed long-term strategic investors that gives Unite the fire-power for similar large deals. This is a huge differentiator from the other purpose-built student accommodation (PBSA)specialist developers and managers. So a fantastic deal in a market that still exhibits positive demand and rental growth. This set against an increasingly worrying macro-economic back-drop. The un-correlated nature of this sector of the property market is a highly attractive characteristic. If, as seems possible, the Treasury feels the need to drop interest rates - our asset-backed cash machine will look ever more a safe haven for financial institutions' money. Needless to say my Dec 2020 share price target of 1035p has been passed a year early (1135p as I post). So congratulations to all holders and I'm looking forwards to see how the portfolio integration proceeds and additional value is generated. Regards Maddox
maddox: The full year 2018 results are as strong as expected. The highlight for me being the uplift in the dividend by 28% year-on-year to 29p. With the share price closing at 916p as I write the yield is 3.71% which is in it's range of 3 - 4%. However, the advantage of buying into a share like Unite that is growing its income year after year and increasing the dividend pay-out is that on my historic cost of purchase I'm now getting an equivalent yield of over 15%. The much used description of a share like Unite as being a 'bond proxy' couldn't be more wrong in my opinion: It ignores the key attribute that these shares tend to have of increasing their payout whereas bonds don't. Other key highlights: EPRA earnings - +25% EPRA eps - +13% (less due to share issue to buy properties) EPRA NAV - +10% (following some disposals for re-investment) The LTV is a highly conservative 29% with the cost of debt falling to 3.8% (4.1% - 2017) and destined to fall to 3.6% as they increase the debt to build-out their current forward development pipeline of 6,579 beds. When this current pipeline (further additions will be made to it) Unite forecast an EPRA eps of 47p - 51p so a circa 38% - 50% uplift. As 85% of these earnings will be paid-out as dividends we are looking at 39.95p - 43.35p in divs and a projected share price of 1077p - 1168p (based on the current yield). On top of this there are prospective Unite's university partnership deals - that are taking longer to come to fruition than I had hoped. I'd recommend anyone interested in Unite to look at their H2 Results presentation: hTTp:// that gives excellent background information on the market. There is still a large under capacity of student accommodation, numbers are rising and supply is falling. All this underpins an optimistic outlook despite Brexit or further economic travails. Regards Maddox
maddox: Unite has staged a dramatic climb in share price from the recent low of 797p on the 27th Dec to what today looks to be if it holds a new all-time high. Currently c.920p as I post. So c.15% in about a month. I get the impression that there aren't many personal investors in Unite and that it's Financial Institutions that are moving the sp; which is why the moves can be large in either direction as they transact in scale. What is also interesting is that looking at the recent reported daily transaction volumes seem to be declining whilst the share price is rising? This suggests that the Unite stock is tightly held and that the price rise is not managing to entice out sellers to satisfy demand. Regards Maddox
maddox: I'm already over-exposed to this sector so cannot contemplate further investment, but really like the WJG business model. As you say, the fact that they utilize their client's capital is very attractive. But overall I prefer Unite's asset backing - the LTV is c.35% so very conservatively financed with high covenants and long-term. I've long thought that Unite's yield might be a key factor in the lack of PI following. Property investors tend to be looking for income and Unite's share price never makes them look good value. Was that a factor for you?
maddox: Another insightful RNS from Unite - a disposal of a student property in London for £135m. This time the buyer is another quoted specialist student property REIT GCP Student Living (DIGS). GCP will be getting an initial yield on purchase of 4.5%. What is interesting is that the property was in Unite's books valued at 6% lower which puts it on a yield of 4.7% indicating how conservatively valued UTG's assets might be. Unite's share price is already well below the last reported NAV of 647p - if this 6% underestimation of asset values is consistent across the portfolio the NAV would be 710p. HTTP://
maddox: Extremely solid full year results from Unite the highlights being: >> Final dividend up 26% to 12p (2015: 9p) making 18p for the year up 20% overall; >> EPRA Net Asset Value up 12% to 646p per share; >> Like-for-like rental growth 3.8% for the full year (2015: 3.8%); >> The statutory reported profit is £201.4 million (2015: £388.4 million), down on 2015 due to the large property revaluation gain taken into the 2015 figures; and >> Conservatively financed loan-to-value LTV of 34%. The outlook for Unite is positive as well: >> Current reservations at record levels for 17/18 academic year at 73%; >> No material impact seen or anticipated from Brexit; >> Supply/Demand imbalance continues with 185k more applicants than university places in 16/17; >> Unite forecast rental growth of 3 - 3.5% in 2017. Mr Market appears to have liked these results with the share price at 626p at close from 611p the previous night's close. Regards, Maddox
maddox: Another positive trading update from Unite this morning covering the current 2016/17 academic year. Key points: >> Occupancy 98% >> Rental growth + 3.8% >> On track for EPS yield growth of 4.5% for 2016. >> Market - 2016/17 sees record student numbers up c.40k The growth in student numbers is further exacerbating the existing under-supply of student accommodation. Another positive point is that the growth has been strongest in Unite's target locations. With a positive outlook and development pipeline of a further 5,500 beds transparency of future growth in NAV and income is excellent and with Reit conversion will be seeing a likely 10% increase in the payout ratio. The future is of course uncertain but it's difficult to find any points of concern that would explain the recent fall in the share price. As I post the share price is 566p against last reported NAV of 620p as at 30 June. Regards, Maddox
maddox: A tip for Unite investors.... The hedgies have to borrow stock in order to sell short. Typically, the Nominees holding investors' shares will lend the stock to shorters for a fee. If you object to your shares being used to drive down the share price of your holding - you can prevent it. Just place a Limit Order to sell your holding at a much higher price - say for UTG the 770p JPM target. This prevents the Nominee from lending your stock or makes them have to recall it from the shorter. Regards, Maddox
maddox: Hi Chaps, I've been having a look at this dip in the share price and it appears that we have a couple of hedge funds shorting the stock just prior to the Morgan Stanley down grade report - Basso Capital Management & CQS (UK)LLP. Far be it for me to suggest that this is a coordinated bear raid. What is interesting is that the report is based on the student market contracting and this affecting Unite. However, it might also be expected to also affect ESP and DIGS - whereas their share prices have remained very resilient - DIGS is up as I post. Also, I'm far from persuaded by the report. There is a huge under supply of student accommodation. Last year 25,000 beds were added but student numbers increased by 60,000. There would have to be some cataclysmic event to bring this market into balance - so I'm satisfied that Unite is still an attractive investment in the short, medium and long-term. Unite's NAV was 620p at 30th June and Morgan Stanley share price target is 590p, other analysts targets are up to 770p so UTG are looking good value at the 550p share price as I post. What we are being presented with is a great opportunity to buy on the dip. However, as we have seen on previous Unite dips - it tends to be a spike - so you may need to be quick before the hedgies cover their positions and it charges back up again. Regards, Maddox
Unite share price data is direct from the London Stock Exchange
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