8 October 2026
If you are covering Unite Group's latest financial results, please find below a comment from Oli Creasey, head of property research at Quilter Cheviot:
"Unite Group’s third quarter trading update has looked to deliver a message of a company that is more in control of its own destiny, with improving occupancy rates particularly across the Empiric portfolio which was acquired in early 2026. The company's reported occupancy is in line with expectations set out at the half year results, and the 2.5% (non-like-for-like) rental growth is marginally ahead. 0.6% like-for-like income growth is not quite as impressive, but still within management's guidance range.
"Recovering occupancy is the main driver of the growth, with the company prioritising students in beds ahead of actual headline rental growth. The revenue per occupied room actually fell 0.3% compared to last year, but increased occupancy has driven like-for-like growth. Management has maintained guidance for full year earnings per share, although it is an 11% fall compared to last year's earnings.
"Where Unite has less control is on valuations, which are still falling, and accelerating. Values in the company's national fund fell 4% in the quarter, and 3.4% in London. While this was partially driven by continued yield expansion, falling rents have also had an impact for the first time, although Unite points to lower occupancy for planned disposals as the driver of this. As such, it may be a short-term blip.
"However, the company's net asset value fell 9% in the first half of the year, and today's data suggests it should fall further and potentially faster in the second half. Shares closed yesterday at 442p, almost a 50% discount to the first half reported NAV, although that discount is at least partially explained by expectations that the NAV decline has further to go."
