Unite Share Discussion Threads

[rochdae] 05/2/2014 10:27

Nice announcement this am... growing rapidly outside London now. Shrewd move..

[rochdae] 02/2/2014 17:31

Me, too Maddox. Might pick up a few more if we have a bit of weakness ahead...


Roch

[maddox] 22/1/2014 21:53

Ta Roch,

No problem, good to have some company. This is a share that wont keep you awake at night. The actions taken by UTG as a result of the credit crunch has served to slow its development. These JVs will not be required in future and the next stage of UTGs maturity should be more rapid.

I'm staying on board for the ride.

Cheers Maddox

[rochdae] 21/1/2014 15:53

Cheer Maddox and lets hope for a good year here. One of my investments that I can leave to grow without too much concern.

Thanks for you input over the years by the way...

Roch

[maddox] 13/1/2014 15:59

Hi Rochdae,

Happy New Year - yep share price continues to be strong and the news is supportive. Their UK student property fund, of which they own 16%, has been a consistent performer - has another strong set of results:

THE UNITE GROUP PLC ("UNITE", the "Group", or the "Company")

VALUATION OF THE UNITE UK STUDENT ACCOMMODATION FUND AS AT 31 DECEMBER 2013 DELIVERING 12.6% TOTAL RETURN

The UNITE Group plc, the UK's leading developer and manager of student accommodation, today reports the Estimated Net Asset Value* ("NAV") of the UNITE UK Student Accommodation Fund (the "Fund", "USAF").

The NAV as at 31 December 2013 was £727.2 million, reflecting an increase of 2.0% during the fourth quarter (30 September 2013: £713.3 million), and an uplift of 6.8% over the 12 months to 31 December 2013 (31 December 2012: £678.5 million). The total return for the year including the payment of income distributions was 12.6%.

The principal components of the movement in NAV were as follows:
Effect on NAV:
.............................................Q4 2013.....2013

Movement in property values.....................1.8%.....4.3%
Movement in swap values.........................0.1%.....1.9%
Partial Landsbanki recovery.......................-......0.2%
Other factors...................................0.1%.....0.4%
Increase in NAV.................................2.0%.....6.8%

Increase in underlying gross property portfolio value on a like for like basis............................................1.1%....3.2%

In arriving at the value of the Fund, USAF's property portfolio comprising 21,673 beds in 59 properties across 19 UK towns and cities, was independently valued at £1,355 million.

The value of the property portfolio increased by 1.1% in the fourth quarter, and by 3.2% in the 12 months to 31 December 2013. The increase was driven principally by rental growth of 2.6% over the year and 3bps of yield compression in the final quarter. The portfolio is valued at an average yield of 6.64% at 31 December 2013 (30 September 2013: 6.67%).

Commenting on the Fund's valuation, Joe Lister, UNITE's Chief Financial Officer, said:

"USAF has delivered another strong performance in 2013 with a total return of 12.6%. The Fund's consistently strong results, driven by steady rental growth and high occupancy levels and in the current quarter a small compression in average valuation yields, demonstrate the continued attractiveness of USAF and the UK student accommodation sector to investors."

"In December the Government announced the removal of the student number cap from 2015, which is expected to lead to an increase in enrolments of up to 12%. USAF's portfolio is very well positioned to benefit from this expected increase in demand and, together with its low average cost of debt following extensive refinancing, the Fund is well placed to continue to outperform in the coming years."

* Estimated Net Asset Value represents the capital position of the Fund and does not include undistributed income.


Regards, Maddox

[rochdae] 11/1/2014 16:28

Just keeps moving higher...

[maddox] 26/11/2013 13:28

Hi j,

Thanks for your input. Basically the share price movements tell me it is FI buying and selling that is determining the share price movements. FIs are not patient buyers or sellers and this influence thus causes deluge or drought and the share price reacts accordingly.

Yep, fully agree, the future pipeline and the cheaper financing are the key to future success. There is also a transition occuring as UTG moves from essentially a development (NAV growth) orientation towards income generation and a more balanced profile. Many FIs in the property sector are looking for an asset backed income generating investment. My guess is that this will make UTG more attractive to these FIs.

Also, student accomodation has been an exceptionally good sector of the property market over the last few years. Its attractions are now much more widely appreciated. Have a look at Quintain (QED) - just reported - they are pulling out of some other sectors and looking to invest more in their IQ Student Property Division.

So, IMHO good future growth prospects with minimal risk.

Regards, Maddox

[rochdae] 25/11/2013 23:51

jct23,

I'd just keep it simple. Utg is a good growing company in the right sector in a good market. It should keep ticking up for some time to come imo.

Anyway, good luck with your investment.

Roch

[rochdae] 18/11/2013 17:42

Solid update. Utg a slow burner but just keeps going up. Fantastic investment in the true meaning of the word.

jct23, wish I was astute as you when I was a student. But fortunately, it was so long ago that I left with no debt to pay off. In fact I finished university in credit from student grants. I could even claim bus fares to and from college. Hard to believe those days existed.

Roch

[maddox] 18/11/2013 14:34

Hi Guys,

Yes a very positive IMS - key points for me are:

> On track to deliver strong financial performance in-line with Board expectations.

> Continuing strength of rental growth (3% f'cast target).

> The development commitments/pipeline is developing very well indeed.

> Financing increasingly strong - cost of debt reducing on refinancing and extended maturity.

There is also a good positive feel that Unite is well attuned to its student customers - which I can't believe are the easiest to keep happy. What do you think jct23 - you're in a much better position to judge than me?

Regards, Maddox

[wirralowl] 18/11/2013 09:44

Interim Statement looks good to me.... Not an investor in the shares, but keep an eye on this board as I hold UTG1, Unite's retail bond.

[jct23] 18/11/2013 07:54

latest interims just released and looks very positive over all.

hxxp://www.unite-group.co.uk/2013/11/18/interim-management-statement-2013

[jct23] 17/11/2013 16:06

Hi All,

Just gonna jump into the mix as another investor of UTG...and a very pleased one too.

In fact i'm a student and invested my student loan in this business at 283p having followed it for a while. Although my accommodation isn't from Unite it certainly feels good paying it off, courtesy of these guys! Maybe investing the student loan isn't the wisest though and I should maybe cash in at some stage...nah

hopefully good interims on Monday.

good luck all

[maddox] 07/11/2013 20:47

Hi Guys,

Great to have some company on here. UTG is a quality business and whilst the discount to adj NAV has pretty much closed out the future growth prospects appear excellent.

Obviously a successful business model attracts copycats and I note that Quintain (QED) is reporting good results with its Student Accommodation Arm iQ which it clearly intends to grow. However, whilst Quintain is focussing on London Unite is now changing its focus away from London looking for better margins. Its a large fragmented market so direct competition, from the likes of Quintain, is unlikely to be a problem.

Regards, Maddox

[citymohawk] 04/11/2013 11:49

Nice to be no board all :)

[rochdae] 28/10/2013 22:05

Grabbed a few more at £4...

Why didn't I buy more at £3?

[gswredland] 18/10/2013 16:59

Breakout beginning!..i hope

[rochdae] 18/10/2013 13:18

Yes Maddox,

Looking good, been a long time waiting here, too. Just shows that patience is the key to success...

Roch

[maddox] 18/10/2013 13:05

Hi Rochdae,

Further rise above 400p today,

Regards, Maddox

[maddox] 17/10/2013 11:10

Hi Rochdae,

Yep, probably reinforced by the latest valuation report on Unite's managed property fund - UNITE UK Student Accommodation Fund (the "Fund", "USAF").

"The NAV as at 30 September 2013 was £713.3m (£0.952 per unit), reflecting an increase in total NAV of 1.1% during the third quarter of 2013 (30 June 2013: £705.7m, £0.944 per unit)."

A 1.1% rise doesn't look like shattering performance however as it's been there or thereabout, quarter on quarter, year upon year - right through the financial crisis and looks set to continue.

The development pipeline is growing, market demand robust and the economic backdrop supportive - there are few negative factors to counter a positive outlook.

Regards, Maddox

[rochdae] 14/10/2013 17:06

Beautiful uptrend here...

[gswredland] 22/9/2013 09:43

Tipped by midas in mail on Sunday

[megordon] 30/8/2013 19:29

Well, not quite the rerating I hoped for but early days, I'm sure some of the big fund managers must have an eye on this now. Probably start to see some momentum later in the year once some of the big money is shuffled around.