Unite Group (LSE:UTG), the UK's leading owner and developer of purpose-built student accommodation, has reiterated its full-year adjusted earnings per share guidance of 41.5 to 43.0p for FY2026, with reservations for the 2026/27 academic year running ahead of the same point last year.
Across the Unite Students portfolio, 86% of beds are now reserved for 2026/27, up from 85% at this stage in the prior cycle, with the balance shifting toward direct-let sales at 33% of beds versus 27% last year and away from nomination agreements, which account for 53% compared with 58% previously.
The unchanged like-for-like income growth guidance of 0 to 2% now rests on a different mix of drivers: expected occupancy of 94 to 96% and rental growth of 1 to 2%, compared with the prior assumption of the lower end of 93 to 96% occupancy and 2 to 3% rental growth.
At the Empiric Hello Student portfolio, acquired earlier this year, 71% of beds are reserved for 2026/27 against 61% at the same point in 2025/26, with occupancy now expected to reach at least 87%, up from a previous estimate of approximately 85%.
Property valuations fell in the second quarter, with the Unite UK Student Accommodation Fund portfolio independently valued at £2,928 million, down 2.2% on a like-for-like basis, and the London Student Accommodation Joint Venture portfolio valued at £1,959 million, down 3.7%, both driven by yield expansion rather than rental weakness.
Unite said it will provide a further update on disposal strategy and portfolio repositioning alongside its interim results.
Panmure Liberum keeps Sell on Unite Group over price pressure
Panmure Liberum analyst Bjorn Zietsman says the improved reservation progression masks targeted price reductions that weigh on rental growth and reduce earnings quality.
He repeated a SELL rating with a 430p target, in a note on Wednesday, and flagged successful asset disposals as a potential thing for investors to look out for, as the student property firm works on portfolio repositioning and private market valuation support.
Zietsman also notes two‑thirds of the 2026/27 academic year falls into FY27, meaning occupancy gains achieved via lower pricing will mainly affect next fiscal year.
