Unite Students has extended its 50% rent discount for students by an extra three weeks, while collecting 91% of rent due so far for the 2020/21 academic year.
The total discount period will therefore cover seven weeks, with the government’s latest lockdown restrictions running to 8 March.
Unite said this will result in a total rental income loss of up to £15m, or 4p per EPRA earnings per share for the 2021 financial year. The extra three-week period alone will amount to a £6m income loss, or 1.5p per EPRA EPS.
Students are additionally offered a four-week complimentary extension of their tenancy agreement at the end of the academic year, to extend their stay into the summer.
To be eligible for the seven-week discount, students are required to be up to date with rental payments as of 14 February this year. They must also be “checked-in” but not living in their accommodation between 18 January and 7 March.
Around half of checked-in students have returned to its buildings, according to the landlord.
The student housing provider collected 96% of rents owed in the first term of the 2020/21 academic year, and 84% of rents in term two.
Unite said it has retained headroom against all of its debt covenants, even after allowing for maximum potential take-up of the seven-week rental discount.
Richard Smith, chief executive of Unite Students, said: “Supporting students has been our priority throughout the Covid-19 pandemic, and we will continue to play our part during these exceptional circumstances. We recognise this is a challenging time for students, which is why we have extended our current 50% rent discount period.
“All our properties remain open for the tens of thousands of students who are still living in their accommodation, with our staff on hand to help. Our focus is on keeping all our students and our staff safe across all our properties.
“We also continue to work closely with our university partners and will review any material changes in the government’s guidance on universities remaining open.”
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