Surging investor demand and a strong performance from its development pipeline lifted Unite’s NAV 41p last year.
NAV growth came in part through a 23p increase in valuation, but the group itself added 17p in value through its development programme to the end of December 2014 and through retained profits (13p).
Recurring profits at the group rose over 40% from £23.1m in 2013 to £33.3m in the full year to end of December 2014.
Student beds rose by 2,000 in 2014 to 43,000 as developments came on line and the group acquired a regional portfolio.
Overall the group’s property portfolio increased 19% to £1.62bn with 45% of it in London. Loan to value has been reduced to 43% from 49% in line with the company’s target of 40%.
Despite the possible yield compression due in 2015 from major portfolio sales across the UK, Mark Allen, chief executive of Unite Group, forecast further growth would come from the group’s development pipeline.
The 483 rooms coming on stream from a development in Bristol have been fully let with a forecast yield of 9.6%, and existing developments will lead to 99% occupancy rates ahead of the September deregulation of student numbers.
The development of 2,320 beds for 2015 and 2016 in the London area has the potential to add 10p per share according to analysts.
Earnings per share rose to 17.2p from 13.6p with analysts expecting this to grow to 20p for 2015.
