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Unite's Funds Report Like-for-like Growth

Posted by Richard Ward in

Image courtesy of Flickr, Creative Commons

Unite Students has announced its latest quarterly valuation update for the Unite UK Student Accommodation Fund (USAF) and the London Student Accommodation Joint Venture (LSAV) as at 31 December 2016.

As at the end of 2016, USAF's property portfolio was valued at £2,288 million, representing a like-for-like increase of 0.6% during the quarter and 5% over the full year. The fund consists of a portfolio of 27,441 student beds across 76 properties, located in 24 University towns and cities in the UK.

Meanwhile the LSAV's portfolio of student bed spaces was valued at £1,009 million, up 0.5% on a like-for-like basis in the quarter and 4% over the full year. The LSAV portfolio is made up of 6,197 bed split across 14 assets in London as well as three properties in Edinburgh.

The increase in like-for-like valuations was attributed to rental growth during the quarter, while valuation yields remained stable in the quarter with 9 basis points of yield compression across the year. The USAF portfolio achieved an average yield of 5.6%, while LSAV's was reported at 4.9%.

Due to the strong total return in USAF during 2016, Unite is expected to earn a net performance fee in the region of £6 million, which will be paid in units in the first quarter of 2017.

Commenting on the results 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."