Unite focused on growth as revenue rises 14%

Student accommodation investor and operator Unite has its sights set on growth, as strong demand and a lack of supply pushes revenue up 14%. Revenue across the business grew to £125.3m in the six months ended 30 June, with IFRS profit more than doubling to £283.9m. Chief executive Joe Lister said: “We have had a strong first half, with 14% growth in adjusted earnings underpinned by full occupancy, rental growth and substantial investment into our platform and portfolio. “There is an acute and growing shortage of student homes, which is amplified by a shrinking private rental sector and depressed levels of new PBSA development. Unite has a crucial role to play in partnering with universities to deliver new supply of high-quality, affordable accommodation where the need is greatest, which also frees up local family homes in the process.” The group, which is raising £450m through a share placement, said it saw “significant opportunities” for growth in the sector. “Current market conditions provide the strongest investment opportunity for Unite in a number of years,” said Lister. “Our development pipeline totals £1.5bn in the strongest university cities. We are committed to the delivery of nine developments totalling 6,900 beds, which are fully funded, and expect to commit to additional developments at attractive returns in the second half of the year.” He added: “We are also tracking several further opportunities to acquire developments or income-producing assets with value-add potential at attractive pricing, where vendors are seeking liquidity. Thanks to our strong balance sheet and capabilities in development and asset management, we are well placed to secure new growth opportunities in the second half.”