Unite Group go from strength to strength in just 6 months

Posted by Tom Walker

Over just a six-month period, Unite group - the student accommodation provider - have reportedly increased revenues by £10.3m. Pre-tax profits were £44.6m this year, compared with £37.5m this time last year. Additionally, reservations that have been made for those students starting in September are up 2% versus the same time last year.

Unite believe that these significant improvements in the company are only set to continue. Due to changes in government policy, Unite predict there to be a much greater student demand that will consequently push the group from strength to strength. Chief executive Mark Allan revealed the company's "strategy is underpinned by three key priorities: to be the most trusted brand in our sector; to maintain the highest quality portfolio; and to have the strongest capital structure." Already holding 3,400 student beds in 10 halls of residence in Liverpool, Unite expects to grow significantly due to four regional development projects that have recently been confirmed. Allan explains that due to "the positive rental growth outlook, a growing development pipeline and recent acquisition of a high quality regional portfolio, we retain strong momentum and are now targeting a 4.5% earnings per share yield on NAV for 2014, a year ahead of our previous plans."

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