Unite Students has posted a portfolio rise for the year to the end of December 2016.
The Unite UK Student Accommodation Fund (USAF) property portfolio was independently valued at £2.29bn, representing a like-for-like increase of 0.6% during the quarter and 5% over the full year. The portfolio comprises 27,441 beds in 76 properties across 24 university towns and cities in the UK.
The London Student Accommodation Joint Venture (LSAV) portfolio, was independently valued at £1.01bn, up 0.5% on a like-for-like basis in the quarter and 4% over the full year. LSAV’s portfolio comprises 6,197 beds across 14 properties in London and three properties in Edinburgh.
The USAF portfolio is valued at an average yield of 5.6% and LSAV’s portfolio at 4.9%.
Unite said the increase was driven by rental growth in the quarter.
As a result of the strong total return in USAF during 2016, Unite expects to earn a net performance fee in the region of £6m, which will be paid in units in the first quarter of 2017.
Joe Lister, Unite Students chief financial officer, said: “Demand for our high-quality, well-located student accommodation and customer offering remained strong throughout 2016. The continued high occupancy and lettings performance, as well as the limited yield compression, contributed to the strong performances of both USAF and LSAV. Bookings for the 2017/18 academic year, which opened towards the end of 2016, have also started well.”
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