Unite Group (LSE:UTG) confirmed to investors that it traded in line with expectations in the third quarter.
It reiterated its guidance for full-year adjusted earnings per share of 41.5p to 43.0p on Thursday, in a trading update covering the 2026/27 academic year, and third-quarter valuations for its two funds.
The UK's student accommodation firm said 95.6% of beds across its core Unite Students portfolio are now sold for 2026/27, versus 95.3% for the same perid last year, and within its 94-96% guidance range.
Lettings have delivered like-for-like income growth of 0.6% on Unite's share, which reflects a modest rise in occupancy offset by a 0.3% fall in annual rents, which the company said shows a shift in sales mix toward undergraduate students and shorter average tenancies.
At the Unite's Hello Student portfolio, acquired through the January takeover of Empiric Student Property, it said that 92% of beds are sold for 2026/27, up from 87% a year ago after a strong sales performance in recent weeks. Hello Student is now expected to deliver like-for-like income growth of approximately 5% for the year.
Empiric remains on track to deliver £9m of cost synergies in 2026 plus £18m of annual run-rate synergies.
"We have delivered reservations in line with our expectations as student demand and university behaviour evolved through this sales cycle", said chief executive Joe Lister, adding that the company has "conviction that the assets which will form our future portfolio will continue to deliver a superior operating performance".
Unite confirmed £200m of disposals (Unite's share) completed year-to-date, including the previously announced sale of its King's Place development, at a weighted average yield of 3.0% and a 6% discount to prevailing book value, keeping the group on track to deliver £300-400m of disposals in 2026.
A further £225m of assets (Unite's share) are under offer and expected to close in the coming months, with an additional 10,000 lower-growth beds, along with non-PBSA properties and development land, being actively marketed.
The company said it is targeting a future portfolio of 55,000 to 60,000 beds, down from 70,500 at 30 September.
Quarterly independent valuations, meanwhile, fell on a like-for-like basis. The Unite UK Student Accommodation Fund was valued at £2,815m, down 4.0% in the quarter, reflecting a 1.5% income reduction and 10 basis points of yield expansion, while the London Student Accommodation Joint Venture was valued at £1,900m, down 3.4%.
Both Unite funds had already recorded like-for-like valuation declines in the second quarter, of 2.2% for USAF and 3.7% for the London joint venture, though the company attributed it to "yield expansion" rather than rental weakness.
Unite noted that surplus capital generated through disposals will be directed toward the strongest risk-adjusted returns currently available, including buybacks and university partnerships.