Unite Group Plc · LSE:UTG
Unite — H1 2025 Earnings Presentation
44 slides from Unite's earnings presentation, Jul 29, 2025
Slide 1: Growing Opportunities
Growing Opportunities Interim results Six months ended 30 June 2025 29 July 2025
Slide 2: Contents
CONTENTS Contents 1. Performance highlights 2. Finance and property review 3. Operations review 4. Outlook 5. Q&A 6. Appendices 2
Slide 3: Performance highlights
1 Performance highlights Joe Lister, Chief Executive 3
Slide 4: Positioned for growth
PERFORMANCE HIGHLIGHTS Positioned for growth Attractive market Leading platform Supportive fundamentals Accretive investment 3% growth in adjusted EPS Record demand from Attractive acquisition Structurally growing demand UK school leavers opportunities 93% aligned to Limited new supply Russell Group
Slide 5: Strong H1 performance
PERFORMANCE HIGHLIGHTS Strong H1 performance H1 2025 H1 2024 FY 2024 • Continued growth in earnings and dividends Adjusted earnings £144.2m £125.3m £213.8m • Like-for-like rental growth of 7.4% • 3% growth in adjusted EPS and dividend Adjusted EPS 29.5p 28.7p 46.6p • Building momentum for 2025/26 Di
Slide 6: Growing student numbers and constrained supply
PERFORMANCE HIGHLIGHTS Growing student numbers and constrained 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
Slide 7: Positive outlook for international demand
PERFORMANCE HIGHLIGHTS Positive outlook for international demand • Rising global living standards support increasing demand Global international student numbers 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 internation
Slide 8: Policy support for high-quality universities
PERFORMANCE HIGHLIGHTS Policy support for high-quality universities • University education crucial to Government’s growth and skills mission • Immigration policy focused on attracting the brightest and best to the strongest universities • Expect Renters’ Rights Bill to become effective in early 2026
Slide 9: Significant growth opportunities
PERFORMANCE HIGHLIGHTS Significant growth opportunities Development University partnerships Extending off-campus on-campus our platform £925m committed pipeline 4,300 new beds for Broadening our customer offer 4,600 new beds delivery 2028-2030 Opportunity to attract and retain 100% in Russell Group
Slide 10: Finance and property review
2 Finance and property review Mike Burt, Chief Financial Officer 10
Slide 11: Financial highlights
FINANCE AND PROPERTY REVIEW Financial highlights LfL rental growth Adjusted EPS Dividend per share 7.4% 29.5p 12.8p +3% YoY +3% YoY NTA per share Total accounting return1 Net debt: EBITDA2 986p 4.0% 5.3x +1.4% in H1 1) NTA growth + dividends paid / opening NTA for 6 months 2) Trailing 12 months 11
Slide 12: Strong operating performance
FINANCE AND PROPERTY REVIEW Strong operating performance • LfL rental growth of 7.4%, reflecting strong rental growth and occupancy for 2024/25 academic year • Additional NOI through net acquisition activity and asset management projects • 9% growth in LfL operating costs, primarily driven by staff
Slide 13: Rental income driving earnings growth
FINANCE AND PROPERTY REVIEW Rental income driving earnings growth • NOI growth driven by rental increases, higher occupancy and investment activity • EBIT margin broadly stable at 71.7% (H1 2024: 71.6%) • Lower interest cost reflecting higher interest income • 3% growth in adjusted EPS and interim d
Slide 14: NAV growth and return on equity
FINANCE AND PROPERTY REVIEW NAV growth and return on equity • 14p growth in EPRA NTA to 986p, translating to 4.0% total accounting return • 1.4% LfL revaluation surplus, driven by rental growth for 2025/26 academic year • Property yields broadly stable in H1 (+1bp) at 5.1% • Recognition of developme
Slide 15: Continued investment demand for PBSA
FINANCE AND PROPERTY REVIEW Continued investment demand for PBSA £bn UK PBSA Investment volumes 12 Student • Resilient H1 PBSA investment activity iQ Roost 10 Liberty • Expect increased volumes in H2 8 Living • Private equity and institutional buyers active 6 4 Under • Anticipate further opportuniti
Slide 16: Value-enhancing investment activity
FINANCE AND PROPERTY REVIEW Value-enhancing investment activity • Continued focus on portfolio quality and ability to deliver sustainable rental growth • Portfolio 93% aligned to Russell Group cities by value • Recycling capital into stronger assets across development and refurbishment pipeline Deve
Slide 17: Off-campus development pipeline
FINANCE AND PROPERTY REVIEW Off-campus development pipeline • Fully funded for committed 4,600-bed pipeline • 100% aligned to Russell Group universities • Delivering 1,000 beds for 2025/26 in Bristol and Edinburgh • £142m total cost and 7.2% stabilised yield on cost • 14-year nomination agreement in
Slide 18: Our second university partnership
FINANCE AND PROPERTY REVIEW Our second university partnership • JV with Manchester Metropolitan University for 2,300 new beds in 2029/30 • c.£390m total development cost (Unite share: £275m) • Long-term strategic partnership • Returns in line with regional developments • Unite role as developer and
Slide 19: High-quality balance sheet
FINANCE AND PROPERTY REVIEW High-quality balance sheet 30 June 2025 30 June 2024 LTV 26% 26% • Focused on balance sheet quality Net debt:EBITDA ratio 5.3 6.1 • LTV target of c.30% Interest cover ratio 6.9 4.8 • Net debt : EBITDA target of 6-7x • ICR target of 3.5-4.0x Average cost of debt 3.8% 3.2%
Slide 20: Financial outlook for 2025
FINANCE AND PROPERTY REVIEW Financial outlook for 2025 2025/26 academic year Earnings & dividend Total accounting return 4-5% rental growth Adjusted EPS of 47.5-48.25p 8-10% (+2-4% YoY) (pre-yield movement) Targeting 97%+ occupancy 80% dividend payout Adjusted EPS yield ~5% Guidance reiterated for F
Slide 21: Operations review
3 Operations review Karan Khanna, Chief Operating Officer 21
Slide 22: Building momentum for 2025/26
OPERATIONS REVIEW Building momentum for 2025/26 • Student demand supports high occupancy 2025/26 applications growth by university tariff 6% 70% • 2% growth in applications from UK 18-year-olds 66% Unite alignment 50% 4% • 19% growth in study visa applications YTD 5% 30% 2% 24% • Strongest demand fo
Slide 23: Occupancy outlook for 2025/26
OPERATIONS REVIEW Occupancy outlook for 2025/26 • Universities continue to seek nomination agreements to meet student demand • Students increasingly choosing A-level Clearing to secure best courses, driving later booking patterns • Vacancy reflects stabilisation of development completions and new su
Slide 24: Increased customer segmentation
OPERATIONS REVIEW Increased customer segmentation Elevating our Expanding our Exploring new core brand promise affordable options Returner concepts Enhanced service 400 affordable design Burnet Court opening and welfare beds in MMU JV for 2025/26 24
Slide 25: Value-enhancing asset management
OPERATIONS REVIEW Value-enhancing asset management • Significant opportunity in £9.3bn portfolio St Pancras Way, London • Targeting 8% yield on cost • Addresses lifecycle and sustainability requirements • Excellent customer and staff feedback • Delivering in the strongest cities • Upgrading well-loc
Slide 26: Outlook
4 Outlook Joe Lister, Chief Executive 26
Slide 27: Significant growth opportunities
OUTLOOK Significant growth opportunities Investment opportunities • Broad range of investment opportunities • Growing pipeline of university JVs Risk-adjusted New Opportunity Size • Acquisition opportunities in strong markets returns investment • Increasing appeal of income producing assets Acquisit
Slide 28: Encouraging outlook
OUTLOOK Encouraging outlook • Strong H1 performance • Reiterating guidance for FY2025 • Structurally supported growth with limited new supply • Increasing availability of investment opportunities • Growing momentum in University Partnerships 28
Slide 29: Q&A
5 Q&A 29
Slide 30: Appendices
6 Appendices 30
Slide 31: Portfolio overview
APPENDICES Portfolio overview Geographical breakdown of portfolio 2025 City 2025/26 beds¹ 2023/24 full-time rank student numbers 1 London 12,578 397,877 Glasgow Edinburgh 2 Manchester 5,639 113,658 Newcastle 3 Liverpool 5,340 66,848 Durham 4 Birmingham 4,986 65,748 5 Bristol 4,709 59,344 Manchester
Slide 32: Portfolio and customer breakdown
APPENDICES Portfolio and customer breakdown Customers by domicile Distribution of beds by weekly price 30% 2024/25 2023/24 2022/23 20% UK 72% 72% 72% 10% Non-EU 26% 26% 25% 0% Other EU 2% 2% 3% RoUK London Customers by year of study¹ Bookings by type¹ Room types¹ Post graduate, Non en-suite, 5% 17%
Slide 33: University partner of choice
APPENDICES University partner of choice • Growing opportunity to strengthen university OUR UNIQUE OFFER TO UNIVERSITIES partnerships Partner of • Trusted partner with 20+ year relationships • Housing a constraint to university growth choice • Committed long-term co-investor • Quality issues with age
Slide 34: A responsible and resilient business
APPENDICES A responsible and resilient business EPC ratings A-C 99% • Ongoing investment in energy efficiency 100% A, 4% 81% • EPC >99% A-C rated (2022: 80%) 75% 57% • Energy intensity per m2 reduced 9% from 2019 baseline 50% B, 88% 44% • Further £10m investment planned for 2025 25% • Continued prog
Slide 35: Fire safety
APPENDICES Fire safety • All properties safe to operate with risk-based approach to cladding remediation works • Expect further provisions in H2 2025 • Expect to recover 50-75% of total costs through claims from contractors • Financial impact expected to lessen significantly from 2025 Net fire safet
Slide 36: 2025 financial outlook
APPENDICES 2025 financial outlook AY2024/25 AY2025/26 FY2025 Comment Operating performance Rental growth 8.2% 4-5% One term of 2025/26 income in FY2025 Occupancy 97.5% 97%+ Targeting at least 97% EBIT margin ~68.5% Up to 50bps improvement YoY Property activity (Unite share) Development capex £275-30
Slide 37: Rental portfolio analysis June 2025
APPENDICES Rental portfolio analysis 30 June 2025 Wholly owned USAF LSAV Lease Total Unite share London Value (£m) 1,336 441 1,796 - 3,573 2,366 Beds 4,072 1,863 6,643 - 12,578 38% Properties 12 6 14 - 32 Prime regional Value (£m) 1,342 934 - 22 2,298 1,642 Beds 8,517 5,526 - 618 14,661 26% Properti
Slide 38: Rental income outlook
APPENDICES Rental income outlook Group Share of JVs Unite share £m £m £m 2024 rental income 282 116 398 Completed disposals (1) (2) (3) Acquisitions from USAF 16 (5) 11 Sales to USAF (8) 2 (6) 2024 development completions 1 - 1 Assumes 97%+ 2024 rental income (pro forma)1 290 112 402 occupancy and 4
Slide 39: EPRA earnings statement
APPENDICES EPRA earnings statement USAF LSAV Unite Group Unite Group £m Wholly owned (Unite share) (Unite share) H1 2025 H1 2024 Rental income 171.9 32.4 32.3 236.6 211.8 Property operating expenses (48.1) (9.8) (6.8) (64.7) (58.6) Net operating income (NOI) 123.8 22.6 25.5 171.9 153.2 NOI margin 72
Slide 40: EPRA balance sheet
APPENDICES EPRA balance sheet USAF LSAV Unite Group Unite Group £m Wholly owned (Unite share) (Unite share) 30 Jun 2025 31 Dec 2024 Balance sheet Rental properties1 4,196 872 1,024 6,092 5,852 Leased properties 70 - - 70 72 Properties under development 548 - - 548 451 Total property portfolio/GAV 4,
Slide 41: Debt information
APPENDICES Debt information 30 Jun 2025 31 Dec 2024 Facility Drawn Maturity £m £m Net debt £1,717m £1,510m On-balance sheet LTV 26% 24% Sustainable RCF 750 - 2026/27 Net debt:EBITDA ratio 5.3x 5.5x Unsecured term loan 150 150 2027 Interest cover ratio 6.9x 6.2x Unsecured bond (Unite) 275 275 2028 Av
Slide 42: Secured development and partnerships pipeline
APPENDICES Secured development and partnerships pipeline Type1 Target Secured Total Total Capex in Capex Forecast NTA Forecast yield delivery beds/ completed development period remaining remaining on cost units value costs (Unite share) no £m £m £m £m £m % Off-campus pipeline Avon Point, Bristol Nom
Slide 43: Development capex phasing
APPENDICES Development capex phasing Committed pipeline Future pipeline 2025 – 2030 2029+ 8,900 beds / 9 projects Secured pipeline £840m development cost to go¹ Off-campus 1,100 beds / 2 projects Phasing of development cost to go1 £313m total development cost £300m c.£230m c.£200m £200m c.£170m New
Slide 44: Unite FY2025 Profit Forecast
APPENDICES Unite FY2025 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 FY2025 Profit Forecast"). The Unite FY2025 Profit Forecast is referred to