Share Name Share Symbol Market Type Share ISIN Share Description
Unite Group 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
  -0.50p -0.06% 907.00p 908.00p 909.00p 909.00p 901.50p 907.00p 361,182 16:35:08
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Real Estate Investment & Services 128.3 245.8 90.8 10.0 2,388.98

Unite Group Share Discussion Threads

Showing 1176 to 1199 of 1200 messages
Chat Pages: 48  47  46  45  44  43  42  41  40  39  38  37  Older
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
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
Unite provide additional updates on the progress of the two student property funds that they run. Today’s RNS provides the independent Quarterly Fund Valuation Report for these funds’ performance for the year to 31st Dec 2018. The two funds are: USAF – Unite own 25% - like-for-like asset value growth of 5.0% for the year; and LSAV – Unite own 50% - like-for-like asset value growth of 8.4% for the year. So, an excellent performance for the year, and obviously a very encouraging read-across to Unite's full year results to be reported on 27 February. The current year trading has also "started strongly" with 67% rooms sold for the 2019/20 academic year that starts Autumn 2019. With Brexit-deal, or no-Brexit deal Unite's investment case is looking compelling. I find Unite a very reassuring place to have one's money against a backdrop of economic and political uncertainty. Regards, Maddox
At very long last Sajid Javid, The Home Secretary has published the White Paper proposals for the post-Brexit Immigration System. Obviously the more controversial proposals have taken the headlines, such as the £30k salary threshold debate, however there are some welcome proposals for UK Universities catering to foreign students: "The White Paper proposals will also ensure there is no limit on the number of genuine international students, who can come to the UK to study. Proposals extend the time they can stay post-study to find employment to six months for those who have completed a bachelor’s or master’s degree and 12 months for those who have completed a PhD." hTTps:// The UK has been taking a very hard line on foreign students by not allowing them, as other counties do, to stay on for a period to gain work experience after graduating. Essentially, they are a soft target towards reducing UK immigration numbers. However, a The Home Office paper published last year on “exit checks” data – a proper count of all people who are actually known to have left the UK – found 176,317 – 97.4% – of 181, 024 international students from outside the EEA left on time. This itself is probably an underestimate as others in the remaining 2.6% might have also left but via routes not subject to exit checks, such as via Northern Ireland. Foreign Students are estimated to contribute £25bn to the UK economy and play an important role in supporting the UK University Sector through the high fees they pay. Other countries' more welcoming attitude towards foreign students means that they are growing their numbers far more strongly than the UK. Hopefully, this White Paper will make the UK more attractive once more. Regards Maddox
'CBRE’s first-ever Student Accommodation Index found that capital value growth across all student property was 6.5% in the period to September 2018, compared to 4.5% last year, while net rents rose 3.4% over the same period. At the national level annual total returns were 12.3% for the year to September while the CBRE index found that London-based student accommodation outperformed the regions across all three measures.' hxxps://
Good article in Citiwire: 'Brexit won’t bother investors in student property, says GCP' By Michelle McGagh 07 Sep, 2018 hTTp:// Whilst featuring GCP the arguments apply equally well to Unite.
'Give foreign students longer visas' says Universities UK The international director of Universities UK, Vivienne Stern, has called for a new visa to be created that would allow foreign students to get work experience in the UK for two years after they've graduated. She told BBCR4 Today Programme that international students are invaluable to British education and economy. The UK has been taking a very hard line on foreign students by not allowing them, as other counties do, to stay on for a period to gain work experience after graduating. Essentially, they are a soft target towards reducing UK immigration numbers. However, a recent The Home Office paper on “exit checks” data – a proper count of all people who are actually known to have left the UK – found 176,317 – 97.4% – of 181, 024 international students from outside the EEA left on time. This itself is probably an underestimate as others in the remaining 2.6% might have also left but via routes not subject to exit checks, such as via Northern Ireland. Foreign Students are estimated to contribute £25bn to the UK economy and play an important role in supporting the UK University Sector through the high fees they pay. Other countries' more welcoming attitude towards foreign students means that they are growing their numbers far more strongly than the UK. Regards Maddox
Just thought that I'd note that Unite closed at another high - and at an auspicious 888p! Unite is now consistently trading at a premium to EPRA NAV (761p at 30 June). This is justified by the growth trajectory unite is on. They signed three University deals in the last period, namely Aston Student Village, Oxford Brooks and Kings in London. However, they are in discussion on a further six deals (totalling c, 4000 - 6000 beds). Cheers Maddox
Unite hitting a new high at 865p. This follows news of planning approval for 928 bed development in the heart of Leeds bringing their Leeds portfolio up to 4,376. This is bang on Unite's strategy of building scale in locations with high-ranking universities. Leeds is a major university town with a student population of 58,000 with Leeds and Leeds Becket having options on half of Unites' current capacity. Unite shares have advanced 85p (c.11%)so far this year so any shareholder that opted for the scrip dividend at 805p should be feeling pleased. Regards Maddox
Unite returns to the London market for the first time since 2013 with a University Partnership Deal for a 1000 bed development. The advantage of a partnership agreement is that the financial return is underwritten by the University, in this case Kings College. There is a shortage of accommodation for Universities to place their first year and foreign students. So a 'nomination' agreement with Unite to allow the Uni to allocate the beds to their students suits both partners. Regards Maddox
Just want to highlight that I think Unite’s latest (RNS 8 Dec 17) is one of the eight University deals that Unite has under evaluation, part of a new strategic initiative: 'UNITE EXTENDS UNIVERSITY PARTNERSHIPS WITH OXFORD ACQUISITION Unite Students, the UK's leading manager and developer of student accommodation, has exchanged contracts on a development site in Oxford. It has, in parallel, agreed commercial terms with Oxford Brookes University for a 25-year nominations agreement covering the site, which will extend its partnership with Unite to 1,350 beds. Planning consent for the development has been granted subsequent to exchange. The new development is expected to provide 885 new beds and will be delivered for the 2019/20 academic year with total development costs expected to be around £75 million. Anticipated returns are in line with our stated targets for University Partnerships.' This new strategic initiative was revealed at Unite’s recent Capital Markets Day, held significantly at the Aston University Campus. They bought the whole of Aston’s student accommodation, Aston Student Village, in Feb 2017 for £227m. This was the first deal of this nature and could be the spark to consolidation of the sector. This is a very large potential opportunity for Unite as there is nearly as much student property owned by the university sector (280,000 beds) as in the private sector (300,000 beds). Another key piece of news at the Capital Markets Day was that they ‘have eight opportunities totalling 6,000 – 8,000 under active evaluation’. These deals might be either: >> Sale of student property to Unite but with commitments to upgrade and nomination agreements; >> On-campus development in partnership with the university; or >> Off-campus development in partnership with the university, supported by a nomination agreement. The theme of the Capital Markets Day was all about Unite's 'university partnerships’. This supported by the fact that 60% of Unite’s purpose built student accommodation is pre-let to universities to house their first-year students under what are called ‘nomination agreements’. Unite are clearly positioning themselves as the prime candidate for similar deals - for which they are ideally positioned: >> The Aston deal reflects Unite’s access to substantial funding through its co-investment partners (50% of funds came from GIC, Singapore's sovereign wealth fund); >> As the pioneer and largest independent provider of purpose-built student accommodation (PBSA) Unite's existing scale of operation and infrastructure puts it in a strategically strong position (operating 49,000 beds 2017/18 academic year; and >> They have long-established relationships with universities and are thus a known entity. This last point may be crucial as Unite won the Aston deal at a reasonable initial yield of 5% in a competitive tender process. The universities may not be happy selling to a faceless institution in view of the continuing need for a close working relationship. Other signs that Unite is clearing the decks for action have been: Unite have brought their debt leverage down to 30% giving them plenty of headroom to take on more debt; • A new lower cost £500m unsecured debt facility has been agreed (being unsecured gives great flexibility as to how this debt is deployed); and • Achieved a high investment grade (BBB from Standard & Poor’s and Baa2 from Moody’s) for their debt. Whether or how quickly Unite's strategic aspirations in this new arena are realised is of course uncertain. In the meantime, I’m happy looking at the current secured development pipeline of 6,500 beds through to 2020. Regards Maddox
Nothing to say since July? Thought the fire in Manchester would have caused some postings.
high park
Think its a typo...3 is £ sign on my computer!! If i depress the keys correctly!! As a shareholder for a long time and keen to help others, i saw this today in the Times, so thought i would share.....!
Hi bothdavis, Don't know where you got the £32m figure from? How about editing your post and I'll delete this line in mine. Firstly, and most important from a student safety viewpoint all 132 of Unite's properties have been judged, by local fire and rescue services, to be safe for occupation. However, Unite have 6 buildings out of 132 that have the Grenfall Tower-type aluminium/composite cladding. On four of them it is cosmetic (less than 25%) and two are 75% cladded. Should they need to replace the cladding the estimated cost is £1m - £2m in capital cost and between £0.5m - £1.5m in lost revenue. This is a small financial impact and a small price to pay to ensure their students are safe, Regards, Maddox
Cladding Risk at Student Halls The largest provider of student accomadation may need to close 600 rooms and spend 32 million replacing cladding after the Grenfell Tower fire. Unite, which owns 49,000 beds in 24 cities, said that tests on 132 of its buildings found that six in Bristol, London, Portsmouth and Leeds did not come up to standards. Fire officials concluded that after some alterations the buildings were safe, but a second test was being conducted into the panels. Unite said that if the second test found that the panels needed replacing, it could also result in lost earnings of as much as £1.5 million.
Ahead of the half-year results, due on the 26th July, today we have the Quarterly Fund Valuation Report that gives a good early indication of performance. As well as Unite’s wholly owned student digs Unite run a couple of student property funds of which they own a percentage: The two funds are: USAF – Unite own 23% LSAV – Unite own 50% These funds are independently valued for their large financial institution investors, and the good news is that USAF is up 0.9% and LSAF up 0.5% during the quarter. Also, quoted: ‘Reservations for Unite's portfolio stand at 89% for the coming 2017/18 academic year, compared to 87% at the same time last year, and is supportive of achieving target occupancy of 98% across the portfolio and rental growth of 3.0% - 3.5% for the full year.’ So solid progress is likely to be reported on the 26 July with strong demand and the outlook is positive for the full year. I note Mr Market likes the news and has marked the shares up 11p to 651p as I post. Regards Maddox
In response to Unite's latest £34m acquisition through it's USAF managed fund, Proactive Investors quote Broker Liberum: "We believe Unite offers one of the best combinations of capital and income growth in the sector, with forecast total returns of 12% p.a., and trading at a 10% discount to NAV. Forecast growth is anticipated to come from RPI linked rents and a secure development pipeline. While the cycle of yield compression may be over for student accommodation, we believe Unite's prospects for income growth remains attractive, and that the capitalisation of that gain to NAV will continue to support total returns," it said, 'Shares in UNITE dipped 3p to 633.50p. Liberum has a price target of 720p.' [...]
Maddox - you'll know more about UTG than I do, but my impression is that it's as much a property developer as a rent-taker. Property developers tend to command lower ratings (more risk when downtrun comes), and the company's gearing is there to finance development rather than leverage rental income. Hence dividends tend to be lower.
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?
Hi Maddox - held DIGS first, then ESP. I soon had doubts about ESP (over-expansion, stretched management? - anyway, it's been a bit dull). WJG builds stuff and gets staged payments - ie. de-risked construction. It also manages student lets for investors who don't want the hassle. Both these companies are protected from a sector downturn, I think. London will be most in demand for DIGS, and WJG is diversifying into build-to-rent. Both are debt free. UTG seems to be vertically integrated so it has exposure to the sector at every stage. Also has debt, though LTV 30% isn't a big issue. It certainly seems well-managed, so - good luck, should do OK.
Hi jonwig, Yep, thanks for posting - nice to have some company. Why have you chosen DIGS and WJG over Unite?
You seem to be alone here Maddox! I have a lot of exposure to the sector (DIGS and WJG) otherwise would be in this too. DIGS say that Woburn Place is in need of extensive redevelopment taking over a year. Clearly there will be a future uplift in value, and DIGS is a London specialist. Both sides come out of this well-satisfied I imagine.
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://
Investors Chronicle have tipped Unite this week, following the results: Bull points: >> Record reservation levels >> Strong earnings visibility >> Solid rental growth >> Reit status boosting the dividend Bear points: >> Uncertainty over foreign student numbers >> Strong competition for land IC View: 'Earnings growth in the next few years is likely to be significant. And while there may be doubts about the number of overseas students arriving, there is still a huge shortage of purpose-built space.' 'And yet the shares are trading at a noteworthy discount to forecast net asset value. Buy.' HTTP://
Chat Pages: 48  47  46  45  44  43  42  41  40  39  38  37  Older
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