Student accommodation provider Unite’s pretax profit has fallen by 32% in the first six months of the year.
The firm reported a profit of £83.9m in the period, down from £122.8m in the same period last year.
The fall was the result of a lower revaluation surplus, caused by yield compression in 2016, the firm said. It added that the outlook for its business remained positive, with student numbers expected to remain high.
Following the tragedy at Grenfell Tower, Unite has been testing its properties’ safety, with a focus on the cladding materials of high-rise buildings.
The test results showed that samples of aluminium composite material from six of its properties did not meet safety standards. This material was found on 25% of the total cladding on four of its assets and around 70% on two.
However, local fire authorities have said that the properties remain safe for occupation after adjustments and Unite is awaiting further test results for the remainder of its estate.
Chief executive Richard Smith said: “Our properties have generated continued demand from both first-, second- and third-year students as well as from our university partners, with reservations at record levels of 91% for the 2017-18 academic year.”
Smith added: “Safety and fire safety is a key priority for us. Our buildings are designed for students and have a wide range of fire detection and prevention measures in place, supported by our fire management processes and trained staff.
“Following the tragedy at Grenfell Tower, we have completed a review of the fire safety of our estate. This, together with advice and support from local fire authorities, mean that our buildings remain safe for occupation.”
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