Unite Group Plc · LSE:UTG
Unite — Merger or Acquisition (August 2025)
24 slides from Unite's merger presentation, Aug 14, 2025
Slide 1: Acquisition of Empiric Student Property
Acquisition of Empiric Student Property Investor presentation 14 August 2025
Slide 2: Transaction summary
Transaction summary Recommended cash and share acquisition of Empiric Student Property (“Empiric”) by Unite Students (“Unite”) • Consideration of 94.2p at 13 August 2025 price³, consisting of 0.085 new Unite shares and 32 pence in cash for each Empiric share • Revised offer terms reflect current tra
Slide 3: Acquiring a high-quality, complementary portfolio
Acquiring a high-quality, complementary portfolio Shared strategic focus of alignment to the strongest universities Income by university ranking • Empiric complements Unite’s existing portfolio 100% 16% • 75,000-bed combined portfolio in 30 cities 75% 24% • Entering two new Russell Group cities (Exe
Slide 4: Increasing the addressable market
Increasing the addressable market Opportunity to attract more students across the university lifecycle Institutional PBSA is well suited to first-year undergraduate student needs, supporting the first step away from the family home but Returner students want a more independent living experience Oppo
Slide 5: Accelerating growth into the Returner market
Accelerating growth into the Returner market Opportunities to enhance performance and scale • Immediate scale in Returner market Building a leading Returner platform • Best-in-class entry point to attractive segment 15-20%+ • Acquiring c.20% below replacement cost • Building equivalent platform woul
Slide 6: Enhancing earnings growth through synergies
Enhancing earnings growth through synergies Accretive to earnings and total returns through £13.7m of identified cost savings • Attractive pricing driving earnings accretion and total return Illustrative impact of synergies on operating and G&A costs² • Revised offer terms reflect current trading £4
Slide 7: Retaining a strong capital structure
Retaining a strong capital structure Funding through existing debt capacity and retention of Empiric facilities • c.£215m cash consideration funded from existing RCF capacity Unite Empiric Pro forma1 • Retaining existing Empiric debt facilities Net debt £1,717m £332m £2,263m • 4.5% cost of £374m sec
Slide 8: Empiric current trading
Empiric current trading Empiric H1 2025 results • 5% growth in H1 earnings, 4% reduction in EPRA EPS H1 2025 H1 2024 FY 2024 • 3% growth in rental income • NOI margin impacted by utilities, marketing and bad debts EPRA earnings £14.3m £13.6m £25.9m • 0.8% increase in property values EPRA EPS 2.2p 2.
Slide 9: Empiric broadens Unite's opportunity for growth
Empiric broadens Unite’s opportunity for growth Investment aligned to leading universities and future value creation Committed investment Future growth 4,600-bed Undergraduate-led £313m future pipeline development pipeline 1 Aligned to the Off-campus + acquisitions £925m TDC strongest universities U
Slide 10: Compelling acquisition enhances future growth
Compelling acquisition enhances future growth • High-quality and complementary portfolio aligned to the strongest universities • Acquiring at c.20% discount to replacement cost • Materially increases addressable market and accelerates growth into attractive Returner segment • Significant cost synerg
Slide 11: Transaction structure and timeline
Transaction structure and timeline • Recommended cash and share offer of 0.085x new Unite shares and 32p in cash for each Empiric share • NTA discount of 3.7% based on each company’s EPRA NTA as at 30 June 20251 Consideration • Premium of 8% to Empiric’s undisturbed share price1,2 • Premium of 21% t
Slide 12: Appendices
Appendices
Slide 13: Trading update
Trading update • Encouraging student demand for 2025/26 2025/26 applications growth by university 6% tariff • UK 18-year-old applications up 2% 66% Unite alignment 50% 4% • 5% growth at high-tariff universities 2% 5% 24% • Study visa applications up 19% YTD 10% - 0% 0% (2%) • Well positioned enterin
Slide 14: Empiric offers a differentiated experience aligned to Returner preferences
Empiric offers a differentiated experience aligned to Returner preferences Student preferences evolve as they mature First year Unite Empiric Returners 450-bed 120-bed Larger Property size Smaller, more personal average average 48% 91% 6 to 8 beds Cluster size 1 to 5 beds >6 beds <6 beds 45-week 48-
Slide 15: Compelling transaction for Empiric shareholders
Compelling transaction for Empiric shareholders 75,000 beds 1 Significant enhancement in scale aligned to the strongest universities 92% in Russell Group markets 56% 2 Diversified customer base underpinned by Unite’s university relationships nominated for 2025/26 13pp higher EBIT margin 3 Sector lea
Slide 16: Growing student numbers and limited new supply
Growing student numbers and limited new supply Positive longer-term outlook for student numbers New supply meaningfully below pre-pandemic trend 11% growth in UK £100k lifetime Growing global Higher capital costs Development not Limited new supply 18-year-olds earnings premium middle class driving a
Slide 17: Positive outlook for international demand
Positive outlook for international demand • Rising global living standards support increasing Global international student numbers demand for higher education 10.0 Millions 9.0 8.0 • 6% p.a. growth in international students since 2000 6.0 • Outlook for nine million international students by 2030 4.0
Slide 18: Portfolio overview
Portfolio overview Pro Unite Empiric forma Unite share portfolio value (£m) 6,220 1,153 7,373 Gross portfolio value (£m) 9,326 1,153 10,479 Aberdeen Number of assets 152 66¹ 218 St Andrews Edinburgh Glasgow Property Average age (years) 14 10 13 Newcastle Durham Number of beds 67,729 7,717 75,446 Yor
Slide 19: Customer overview
Customer overview Unite Empiric Pro forma First-year undergraduate 56% 25% 53% Student type Returning undergraduate 27% 35% 28% Postgraduate 17% 40% 19% UK 72% 30% 68% Domicile China 16% 40% 18% Other 12% 30% 14% Direct-let 43% 98% 49% Booking type Nominations 57% 2% 51% Source: Unite, 2024/25 acade
Slide 20: Debt facilities
Debt facilities Unite Facility Drawn Maturity Empiric Facility Drawn Maturity £m £m £m £m Sustainable RCF 750 - 2026/27 RCF (HSBC) 35 - 2028 Unsecured term loan 150 150 2027 Term loan (Barings) 40 40 2028 Unsecured bond (Unite) 275 275 2028 Term loan (Barings) 80 80 2028 Unsecured bond (LL 2029) 300
Slide 21: Thanks
Thanks
Slide 22: Important notices
Important notices NOT FOR RELEASE, PRESENTATION, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION. This presentation, which has been prepared by The Unite Group plc (
Slide 23: Unite 2025 Profit Forecast
Unite 2025 Profit Forecast Unite released its 2024 financial results preliminary statement on 25 February 2025, which included the following statement: "guidance for adjusted EPS of 47.5 - 48.25p in 2025" ("Unite 2025 Profit Forecast"). The Unite 2025 Profit Forecast is referred to in this announcem
Slide 24: Quantified Financial Benefits Statement
Quantified Financial Benefits Statement This Presentation includes statements of estimated cost synergies arising from the Merger (the "Quantified Financial Benefits Statement") as set out below This presentation includes statements of estimated cost synergies arising from the Acquisition (the “Quan