Unite Group has accelerated its earning growth targets after a strong first half delivered a consensus-beating NAV and earnings.
The student accommodation provider posted a 5.2% hike in EPRA NAV to 402p and a 17.2% rise in earnings per share to 10.9p. It is now targeting a 4.5% EPS yield on NAV for this year, brought forward from 2015.
While yield compression on Unite’s £1.5bn portfolio was subdued, chief executive Mark Allan said the outlook was for yields to strengthen as transaction volumes remain heightened and distressed stock dries up.
Unite’s £524m development pipeline includes a 759-bed Portsmouth scheme (pictured).
Bridget.O’Connell@estatesgazette.com
