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Unite Group Confirms REIT Status

Posted by Richard Ward in

Image courtesy of Flickr, Creative Commons

Unite Group Plc has confirmed its conversion to a Real Estate Investment Trust (REIT) effective from 1 January 2017.

The company announced in 2016 it was seeking approval for various amendments to the Company's Articles of Association in regards to its proposed conversion to a Real Estate Investment Trust (REIT). A resolution to this effect, was passed on 30 November 2016 after the company held a General Meeting to discuss the matter.

The company's latest investor event held in London in December shows the company is on track to deliver against its 2016 expectations.

During the 2016-17 lettings cycle, Unite was able to achieve occupancy rates of 98% with annual like-for-like rental growth of 3.8%.

For 2017-18 the company has maintained a positive start with reserved rates increasing to 42% compared to 40% at the same point in time the previous year, while expectations are rental income will increase by 3-3.5%.

Unite operates 49,000 beds with a further 6,850 in the pipeline and will continue to focus on the UK's strongest Universities as it looks to increase the proportion of its revenue received towards higher tariff group institutions.