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Unite Quarterly Update

Posted by Richard Ward in

Image courtesy of Flickr, Creative Commons

Unite Students has announced that its USAF (Unite UK Student Accommodation Fund) was valued at £2,795 million, representing a 1.4% like-for-like increase. Meanwhile, the London Student Accommodation Joint Venture (LSAV) was valued at £1,702 million, reflecting a 1.9% increase and 2bps of yield compression on a like-for-like basis.

The increase in valuations in Q2 reflects the sales performance to date for the 2021-22 academic year and the expectation of a return to full occupancy, as well as the impact of yield compression in LSAV. The USAF and LSAV portfolios are valued at weighted average yields of 5.3% and 4.3% respectively.

Regarding reservations, 83% of rooms are now let for 2021-22. Whilst this figure was up compared to the 81% recorded last year, it remains down on pre-covid levels (89%).

For 2020-21, 95% of rent has been collected, representing 92% of forecasted rent for the academic year as a whole.

Commenting on the update, Joe Lister, Unite Students Chief Financial Officer, said: "The sustained momentum in our sales reflects the strength of student demand for the 2021/22 academic year and greater visibility over an enhanced campus experience this autumn. There remains some uncertainty over travel restrictions for international students and, assuming these are eased in time for the start of the academic year, we anticipate a return to full occupancy and 2-3% rental growth in 2021/22."