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Unite Group plc
(LSE:UTG)
Select Model
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Rating:66Neutral
Price Target:
514.00 p
▲(0.49% Upside)
Action:Reiterated
Date:07/28/26
The score is driven primarily by solid operating performance and a reasonable balance sheet, tempered by weaker cash flow conversion and volatile earnings quality. Technicals are supportive with the price above major moving averages, while valuation is mixed (high yield but relatively high P/E). The latest earnings call reinforces a constructive but transitional outlook, with reiterated guidance offset by NTA/valuation pressure and elevated leverage.
Positive Factors
Revenue growth and operating margins
Steady revenue growth and strong operating margins indicate resilient demand for Unite’s accommodation and effective property operations. This provides a durable earnings base, supports reinvestment in new beds, and gives the group greater capacity to manage costs across its portfolio.
Negative Factors
Elevated leverage after acquisition
Leverage above management’s target reduces financial flexibility for a capital-intensive property business. It can constrain development and acquisitions, increase sensitivity to financing costs, and make deleveraging dependent on successful asset disposals rather than internally generated resources.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth and operating margins
Steady revenue growth and strong operating margins indicate resilient demand for Unite’s accommodation and effective property operations. This provides a durable earnings base, supports reinvestment in new beds, and gives the group greater capacity to manage costs across its portfolio.
Read all positive factors
Unite Group plc (UTG) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£2.51B
Dividend Yield7.93%
Average Volume (3M)2.30M
Price to Earnings (P/E)―
Beta (1Y)0.65
Revenue Growth12.01%
EPS Growth-238.12%
CountryUK
Employees1,917
SectorReal Estate
Sector Strength53
IndustryREIT - Diversified
Share Statistics
EPS (TTM)-0.98
Shares Outstanding514,055,300
10 Day Avg. Volume3,073,658
30 Day Avg. Volume2,295,795
Financial Highlights & Ratios
PEG Ratio-0.35
Price to Book (P/B)0.58
Price to Sales (P/S)8.23
P/FCF Ratio-29.72
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£583.50Price Target Upside14.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)0.41
Revenue Forecast (FY)£379.63M
Unite Group plc Business Overview & Revenue Model
Company Description
Unite Students, operating under Unite Group Plc, is the United Kingdom's leading entity in the ownership, management, and development of purpose-built student accommodation (PBSA). It primarily serves the nation's renowned Higher Education sector....
How the Company Makes Money
Unite Group plc primarily makes money from rental income generated by letting rooms/beds in its purpose-built student accommodation properties to students during academic terms (and, where applicable, outside term). Revenue is earned through tenan...
Unite Group plc Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 02, 2027
Earnings Call Sentiment Neutral
The call portrayed clear operational momentum: improved reservations and direct-let sales, a successful initial integration of Hello Student, realized cost synergies, active share buybacks, and a targeted development/joint-venture pipeline. These positives are balanced by material valuation and balance-sheet headwinds (EPRA NTA down 9%, property values -6.4%, yields +29bp), an 8% decline in adjusted EPS, elevated leverage post-acquisition (7.5x net debt/EBITDA) and market/ regulatory uncertainties (slower transactions, Renters' Rights Act transitional impact, cautious university behaviour and international demand risk). Management reiterated guidance and outlined a clear disposals-and-reinvestment strategy to reshape the portfolio, signaling a constructive but transitional outlook.Positive Updates
Strong leasing and reservations momentum
Direct-let reservations and overall sales are running ahead: Unite direct-let beds were 11 percentage points ahead of the market (sector direct-let reserved at 59%), Unite portfolio reserved 89% vs 87% last year, and the group is transformed into a stronger sales position heading into clearing. Management reiterated 94%–96% occupancy guidance for the year and a future portfolio target of 95%–97% occupancy.
Negative Updates
Earnings, NTA and valuation declines
Adjusted EPS fell 8% to 27.1p in H1. EPRA net tangible assets per share decreased 9% to 865p, driven by a c.6.4% fall in property values in the half.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong leasing and reservations momentum
Direct-let reservations and overall sales are running ahead: Unite direct-let beds were 11 percentage points ahead of the market (sector direct-let reserved at 59%), Unite portfolio reserved 89% vs 87% last year, and the group is transformed into a stronger sales position heading into clearing. Management reiterated 94%–96% occupancy guidance for the year and a future portfolio target of 95%–97% occupancy.
Read all positive updates
Company Guidance
The group reiterated full‑year adjusted EPS guidance of 41.5p–43.0p and maintained overall occupancy guidance of 94%–96% for the year, while raising Hello Student's expected occupancy to 88%–90% and targeting 95%–97% occupancy (with CPI‑plus rental growth) for its refocused “future” portfolio of 55,000–60,000 beds across 20 cities. Management expects to dispose 15,000–20,000 beds (≈15% by value), target GBP300–400m of disposals this year (GBP130m completed in H1; ~GBP500m marketed; >GBP100m under offer), deliver ~6,000 new beds over the next four years (over 4,000 on site; Hawthorne House 700 beds fully let) and to reduce net debt/EBITDA back to its 6x–7x target from 7.5x pro forma at June. H1 metrics underpinning guidance include rental income LFL +1.5%, adjusted EPS 27.1p (‑8% H1), EPRA NTA 865p (‑9% H1), average property yields +29bps to 5.5%, an interim dividend unchanged at 12.8p, GBP165m of share buybacks in H1 (6% of equity; +28p NTA benefit) and a synergy/run‑rate savings target of GBP18m (GBP9m secured in 2026); management also flagged a one‑off ~0.6p H2 earnings headwind from the Renters’ Rights Act transition.Unite Group plc Financial Statement Overview
Summary
Income Statement
70
Positive
Balance Sheet
78
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 352.00M | 332.80M | 299.30M | 276.10M | 259.30M | 266.90M |
| Gross Profit | 229.50M | 222.20M | 212.90M | 199.30M | 181.20M | 194.70M |
| EBITDA | -466.60M | 127.50M | 482.00M | 146.80M | 401.40M | 182.10M |
| Net Income | -506.20M | 97.60M | 441.90M | 102.50M | 350.50M | 342.40M |
Balance Sheet | ||||||
| Total Assets | 6.84B | 6.30B | 6.42B | 5.47B | 5.40B | 5.05B |
| Cash, Cash Equivalents and Short-Term Investments | 53.10M | 35.80M | 273.20M | 37.50M | 38.00M | 109.40M |
| Total Debt | 2.11B | 1.40B | 1.35B | 1.17B | 1.36B | 1.26B |
| Total Liabilities | 2.32B | 1.57B | 1.61B | 1.38B | 1.58B | 1.50B |
| Stockholders Equity | 4.52B | 4.73B | 4.81B | 4.07B | 3.79B | 3.53B |
Cash Flow | ||||||
| Free Cash Flow | -178.00M | -92.10M | -59.10M | 15.20M | 145.60M | 156.90M |
| Operating Cash Flow | 163.80M | 154.60M | 216.40M | 153.20M | 155.30M | 160.50M |
| Investing Cash Flow | -207.60M | -176.00M | -428.00M | -109.40M | -236.70M | 207.80M |
| Financing Cash Flow | 13.60M | -217.10M | 448.40M | -44.30M | 10.00M | -597.20M |
Unite Group plc Technical Analysis
Negative
511.50
Price Trends
522.96
Negative
510.42
Negative
505.21
Negative
Market Momentum
-11.65
Positive
25.89
Positive
9.69
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:UTG, the sentiment is Negative. The current price of 511.5 is above the 20-day moving average (MA) of 508.41, below the 50-day MA of 522.96, and above the 200-day MA of 505.21, indicating a bearish trend. The MACD of -11.65 indicates Positive momentum. The RSI at 25.89 is Positive, neither overbought nor oversold. The STOCH value of 9.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:UTG.
Unite Group plc Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | £401.32M | 7.71 | 10.24% | 7.42% | 9.07% | 21.13% | |
70 Outperform | £163.43M | 16.43 | 5.76% | 7.77% | -3.39% | -59.21% | |
69 Neutral | £4.20B | 13.65 | 6.29% | 7.06% | 17.12% | -23.84% | |
68 Neutral | £4.78B | 13.70 | 5.29% | 6.54% | 7.21% | -13.23% | |
67 Neutral | £4.16B | 8.67 | 7.73% | 5.79% | 15.13% | 29.40% | |
66 Neutral | £2.51B | -4.85 | -10.94% | 7.93% | 12.01% | -238.12% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
GB:UTG
Unite Group plc
475.60
-188.87
-28.42%
GB:AEWU
AEW UK REIT
103.00
6.51
6.75%
GB:BLND
British Land Company plc
399.00
81.59
25.70%
GB:CREI
Custodian REIT
80.90
7.15
9.69%
GB:LAND
Land Securities Group plc REIT
630.00
115.61
22.47%
GB:LMP
LondonMetric Property
177.80
9.12
5.40%
Unite Group plc Corporate Events
Business Operations and StrategyFinancial Disclosures
Unite Group Sets Date for Student Accommodation Reservations Update
Neutral
Sep 10, 2026
Unite Group plc, the UK’s leading owner, manager and developer of student accommodation, will provide a reservations update on 17 September 2026 following its recent interim results. The announcement is expected to shed light on booking leve...
Regulatory Filings and Compliance
Unite Group Confirms Total Voting Rights at 514 Million Shares
Neutral
Aug 28, 2026
Unite Group plc has reported that, as of 28 August 2026, its issued share capital comprises 514,055,269 ordinary shares carrying voting rights, with no shares held in Treasury. This updated share count serves as the official denominator for invest...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Unite Group updates £2bn EMTN programme documentation
Positive
Aug 26, 2026
Unite Group plc, an award-winning UK-listed Real Estate Investment Trust founded in 1991, specialises in purpose-built student accommodation and serves the country’s higher education sector. Its portfolio spans major university towns and cit...
Regulatory Filings and Compliance
Unite Group Confirms Total Voting Rights at 514 Million Shares
Neutral
Jul 31, 2026
Unite Group plc has confirmed that, as of 31 July 2026, its issued share capital comprises 514,055,269 ordinary shares, all carrying voting rights, with no shares held in treasury. This disclosure clarifies the company’s total voting rights ...
Executive/Board Changes
Unite Group Confirms Board Change as Audit Chair Departs
Neutral
Jul 30, 2026
Unite Group plc has announced a board change involving Ross Paterson, its Independent Non-Executive Director and Chair of the Audit and Risk Committee. Paterson will join Vp plc as an Independent Non-Executive Director effective 1 September 2026, ...
Business Operations and StrategyStock BuybackFinancial Disclosures
Unite Group sharpens focus on top U.K. universities as valuations drag interim results
Negative
Jul 28, 2026
Unite Group reported interim results marked by a strategic pivot toward the U.K.’s strongest universities, planning to concentrate its portfolio in about 20 cities with 55,000–60,000 beds versus 72,000 currently. The company aims to se...
Business Operations and StrategyStock BuybackFinancial Disclosures
Unite Group Maintains Earnings Guidance Amid Strong Student Lettings and Portfolio Repositioning
Positive
Jul 8, 2026
Unite Group reported strong trading momentum for the 2026/27 academic year, with 86% of Unite beds and 71% of Empiric’s Hello Student beds already reserved, supporting guidance for modest like-for-like income growth driven by high occupancy ...
Regulatory Filings and Compliance
Unite Group Confirms Total Voting Rights and Share Capital
Neutral
Jun 30, 2026
Unite Group plc has reported its current total voting rights and share capital in line with Financial Conduct Authority disclosure requirements. As of 30 June 2026, the company’s capital comprises 514,055,269 ordinary shares carrying voting ...
Stock BuybackRegulatory Filings and Compliance
Unite Group Cancels Further Shares as Buyback Programme Reaches 32.7m Repurchases
Positive
Jun 25, 2026
Unite Group has continued to execute its previously announced share buyback programme, repurchasing 369,485 ordinary shares on 24 June 2026 at prices between 515p and 520.5p, with a volume-weighted average of 517.8676p. The company intends to canc...
Regulatory Filings and Compliance
Unite Group Admits New Shares From Performance Plan to LSE
Neutral
Jun 24, 2026
The Unite Group plc has increased its issued share capital through the admission to trading of 48,493 new ordinary shares of 25p each on the London Stock Exchange Main Market. These shares were issued under the company’s Performance Share Pl...
Regulatory Filings and Compliance
Unite Group CFO Exercises Long-Term Incentive Share Options
Neutral
Jun 24, 2026
Unite Group has reported a management share transaction involving its Chief Financial Officer, Michael Burt. He exercised long-term incentive plan options granted in 2023 over ordinary shares of 25p each in the company, following the completion of...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Unite Group Deepens Buyback With Further Share Cancellations
Positive
Jun 24, 2026
Unite Group plc has continued its ongoing share buyback programme, repurchasing 525,898 ordinary shares on 23 June 2026 via Deutsche Bank AG’s London branch, at a volume-weighted average price of about 508.2 pence. The company will cancel th...
Business Operations and StrategyStock Buyback
Unite Group Cancels New Share Buyback Tranche, Shrinking Share Count
Positive
Jun 23, 2026
Unite Group plc has continued executing its previously announced share buyback programme, repurchasing 687,536 ordinary shares on 22 June 2026 at prices between 507p and 514.5p, with a volume-weighted average price of about 511.1p. These shares wi...
Business Operations and StrategyExecutive/Board Changes
Unite Group Board Change as CPPIB Trims Stake to 7%
Neutral
Jun 23, 2026
Unite Group plc, the UK’s leading owner, manager and developer of purpose-built student accommodation, runs the Unite Students and Hello Student brands and houses 72,000 students across 208 properties in 29 university locations. The London-l...
Business Operations and StrategyStock Buyback
Unite Group Cancels Further Shares as Buyback Tops 31 Million
Positive
Jun 22, 2026
Unite Group plc has continued its ongoing share buyback programme, repurchasing 785,000 ordinary shares on 19 June 2026 at a volume-weighted average price of about 510 pence, with the shares to be cancelled. Following this latest tranche, the comp...
Stock BuybackRegulatory Filings and Compliance
Unite Group Cancels Further Shares as Buyback Reaches 30.3 Million
Positive
Jun 19, 2026
Unite Group plc has continued executing its previously announced share buyback programme, repurchasing 350,000 ordinary shares on 18 June 2026 at prices between 516.50p and 532.00p, with a volume-weighted average of 524.82p. The repurchased shares...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Unite Group Cancels Additional Shares as Buyback Programme Advances
Positive
Jun 18, 2026
Unite Group plc has continued its ongoing share buyback programme, repurchasing 350,000 ordinary shares on 17 June 2026 at prices between 520p and 530p, with a volume-weighted average price of 522.7074p. The company intends to cancel these shares,...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Unite Group Cancels Further Shares as Buyback Reaches 29.6 Million
Positive
Jun 17, 2026
Unite Group plc has continued its share buyback programme, repurchasing 350,000 ordinary shares on 16 June 2026 at prices between 523.50p and 533.00p, with a volume-weighted average price of 528.78p. The shares, bought through Deutsche Bank AGR...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Unite Group Cancels Further Shares Under Ongoing Buyback Programme
Positive
Jun 16, 2026
Unite Group plc has repurchased 350,000 ordinary shares at prices between 523.5p and 534.0p under its ongoing share buyback programme, with a volume-weighted average price of about 526.8p. The shares, acquired via Deutsche Bank AG’s London b...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Unite Group Continues Share Buyback, Cancels Further Shares
Positive
Jun 15, 2026
Unite Group plc has continued its share buyback programme, repurchasing 347,772 ordinary shares on 12 June 2026 at a volume-weighted average price of about 523p per share through Deutsche Bank’s London branch. The shares will be cancelled, r...
Stock BuybackRegulatory Filings and Compliance
Unite Group Advances Share Buyback, Cancels Additional 350,000 Shares
Positive
Jun 12, 2026
Unite Group plc has continued executing its share buyback programme, repurchasing 350,000 ordinary shares on 11 June 2026 at a volume-weighted average price of about 522 pence, with the shares to be cancelled. Following this latest transaction, th...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Unite Group Cancels Further Shares as Buyback Shrinks Free Float
Positive
Jun 11, 2026
Unite Group plc has continued executing its previously announced share buyback programme, repurchasing 132,681 ordinary shares on 10 June 2026 at prices between 515.50p and 525.00p, with a volume-weighted average price of 519.78p. The company said...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.