Unite Students Sees Growing Student Demand Driving Rental and Valuation Growth
Why we think this is very good
The trading update from Unite Students indicates strong momentum in the business, with growing student demand driving rental growth and valuation increases across its property portfolios. The company is on track to deliver 4-5% rental growth and 97-98% occupancy for the 2025/26 academic year, underpinned by positive trends in both domestic and international student numbers. The valuation increases in USAF and LSAV further reinforce the positive outlook, with no signs of negative sentiment or headwinds mentioned in the update.
Key Points
- On track to deliver 4-5% rental growth and 97-98% occupancy for 2025/26 academic year
- Rental growth driving valuation increases of 0.7% in USAF and 0.8% in LSAV in Q1
- In advanced stages of agreeing new joint venture with Manchester Metropolitan University
- Progressing development pipeline, including 934-bed project in Glasgow and 605-bed project in London
Summary
Unite Students, the UK's largest owner, manager, and developer of student accommodation, has provided a positive trading update for the current period. The company is on track to deliver 4-5% rental growth and 97-98% occupancy for the 2025/26 academic year, underpinned by strong demand from both domestic and international students. Rental growth has also driven valuation increases of 0.7% in USAF and 0.8% in LSAV during the first quarter. The company is in advanced stages of agreeing a new joint venture with Manchester Metropolitan University and continues to progress its development pipeline.