Unite earnings grow 13% to a record £184 million
Unite Students, a key player in the student housing sector, just released its yearly financial report, showcasing an impressive 13% increase in earnings compared to the previous year.
Their earnings hit a record £184 million for the fiscal year ending December 31, 2023, marking a significant milestone in their journey of growth and success.
With 99.8% occupancy rate and 7.4% rental growth, achievement is backed by several factors contributing to Unite's performance.
CEO Joe Lister credits this success to a mix of full occupancy, rental growth, and substantial investment.
Unite is optimistic about the future
Looking forward, Unite is optimistic about its future prospects, with a strong outlook for reservations in the upcoming 2024/25 year. Already, an impressive 80% of beds have been booked, reflecting the continued demand for high-quality student accommodation.
Unite's strategic partnerships with universities are crucial in driving its growth trajectory – such as the recent announcement of a £250 million joint venture with Newcastle University. This venture will see the development of 2,000 beds at a prime site in the city, further solidifying Unite's position as a frontrunner in the market.
How Unite overcomes challenges
Unite reports that changes in visa rules affecting postgraduate student dependents will have minimal impact on its operations.
The alteration is expected to mainly affect postgraduate students from India and Nigeria, who are more likely to bring dependents, particularly impacting lower-ranked universities.
However, these students accounted for less than 3% of Unite's bookings for 2023/24. With a deliberate focus on aligning its portfolio with high and medium tariff universities, mainly in Russell Group markets, Unite anticipates limited direct impact due to its product offering of single occupancy rooms.
Despite this, applications data for the 2024/25 academic year remains encouraging, with total applications remaining flat compared to the previous year but still 6% higher than pre-pandemic levels. International student applications are up 1%, with growth from non-EU markets offsetting a reduction in EU applicants by 2%.
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