Unite Group (LON:UTG) Releases Quarterly Earnings Results

Unite Group (LON:UTG) announced its quarterly earnings data on Tuesday. The company reported GBX 27.10 earnings per share (EPS) for the quarter, Digital Look Earnings reports. Unite Group had a negative net margin of 143.81% and a negative return on equity of 10.94%.

Here are the key takeaways from Unite Group’s conference call:

• Leasing momentum improved: Unite Students is 89% reserved versus 87% last year, while Hello Student reached 77% occupancy and is now 10 points ahead of the market. Management raised Hello Student’s expected occupancy to 88%-90% and cited stronger direct bookings and returner demand.
• The company is refocusing its portfolio on approximately 55,000-60,000 beds across 20 cities serving the strongest U.K. universities, where management expects demand to outpace supply, supporting 95%-97% occupancy, CPI-linked rental growth and higher margins over time.
• Unite completed GBP 165 million of share buybacks in the first half and expects GBP 300 million-GBP 400 million of disposals this year, with proceeds earmarked for balance-sheet strength, development, university partnerships and additional buybacks. Empiric integration is ahead of plan, with annualized synergies increased to GBP 18 million.
• First-half adjusted EPS fell 8% to GBP 0.271, EPRA NTA per share declined 9% to GBP 8.65, and property values dropped 6.4% as average yields widened to 5.5%. Net debt to EBITDA rose to 7.5x after the Hello Student acquisition, while higher funding costs, fire-safety remediation and a softer transaction market remain headwinds.
• Full-year 2026 adjusted EPS guidance was reiterated at GBP 0.415-GBP 0.43, despite a GBP 0.006 second-half earnings impact from the Renters’ Rights Act. Management remains cautious about international postgraduate demand and the upcoming clearing period, even though current reservations are ahead of last year.

Unite Group Stock Performance

UTG stock traded up GBX 13 during midday trading on Thursday, hitting GBX 546. The stock had a trading volume of 2,220,853 shares, compared to its average volume of 11,045,586. The firm has a market capitalization of £2.81 billion, a price-to-earnings ratio of 27.44, a P/E/G ratio of 3.20 and a beta of 0.95. Unite Group has a 52 week low of GBX 442.20 and a 52 week high of GBX 764. The stock has a 50-day simple moving average of GBX 522.13 and a 200 day simple moving average of GBX 514.08. The company has a current ratio of 23.17, a quick ratio of 0.73 and a debt-to-equity ratio of 46.65.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on the stock. Deutsche Bank Aktiengesellschaft increased their price target on shares of Unite Group from GBX 600 to GBX 640 and gave the company a “buy” rating in a report on Wednesday. JPMorgan Chase & Co. cut their price objective on shares of Unite Group from GBX 690 to GBX 640 and set an “overweight” rating for the company in a research report on Wednesday. UBS Group reiterated a “buy” rating and issued a GBX 585 target price on shares of Unite Group in a research note on Friday, July 3rd. Berenberg Bank reiterated a “buy” rating and issued a GBX 623 target price on shares of Unite Group in a research note on Tuesday. Finally, Jefferies Financial Group reissued a “hold” rating and set a GBX 503 target price on shares of Unite Group in a research report on Wednesday. Six research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, Unite Group has a consensus rating of “Moderate Buy” and an average price target of GBX 686.38.

Unite Group Company Profile

Unite Students is the UK’s largest owner, manager and developer of purpose-built student accommodation, serving the country’s world-leading Higher Education sector. We provide homes to 70,000 students across 157 properties in 23 leading university towns and cities. We currently partner with over 60 universities across the UK.

Our people are driven by a common purpose: to provide a ‘Home for Success’ for the students who live with us. Unite’s accommodation is safe and secure, high quality and affordable.