Unite Group (LON:UTG) Issues Quarterly Earnings Results

Unite Group (LON:UTG) issued its quarterly earnings results on Tuesday. The company reported GBX 47.50 earnings per share (EPS) for the quarter, Digital Look Earnings reports. Unite Group had a net margin of 79.68% and a return on equity of 6.45%.

Here are the key takeaways from Unite Group’s conference call:

• Sales and occupancy are weaker than a year ago, with the company tracking 68% sold vs 71% at this stage and nominations down (notably affecting Nottingham, Leicester and Sheffield), which the company says will reduce near-term occupancy and bookings.
• Management is accelerating a portfolio reposition toward higher‑tariff universities—now 67% aligned with a target of 80%—and has launched disposals (targeting £300m–£400m) and a £100m share buyback to recycle capital.
• Cost and integration actions are expected to materially offset headwinds, including a ~20% central staff cost reduction, a technology program targeting £7m annual savings, and an increased Empiric synergy target of £17m (with ~£9m in 2026).
• Outlook is cautious—management now guides to the lower end of prior ranges with expected like‑for‑like income growth of 0%–2%, rental growth at ~2%–3% (lower end), and an EPS headwind from Empiric of ~£0.01–£0.015 for 2026; the dividend will be held flat, raising the 2026 payout ratio near ~90%.
• Longer‑term growth initiatives continue, with on‑site university joint ventures underway (Newcastle and Manchester totaling 4,300 beds), committed developments expected to add ~£27m NOI by end‑2027, and selective development discipline to protect returns.

Unite Group Stock Down 8.9%

LON:UTG opened at GBX 526.50 on Tuesday. The company has a quick ratio of 0.73, a current ratio of 1.58 and a debt-to-equity ratio of 38.76. Unite Group has a 12-month low of GBX 494.10 and a 12-month high of GBX 884. The stock’s fifty day simple moving average is GBX 568.54 and its 200-day simple moving average is GBX 608.87. The firm has a market capitalization of £2.86 billion, a P/E ratio of 7.56, a P/E/G ratio of 3.20 and a beta of 1.24.

Wall Street Analysts Forecast Growth

UTG has been the subject of several research analyst reports. Berenberg Bank dropped their price objective on shares of Unite Group from GBX 855 to GBX 774 and set a “buy” rating for the company in a research report on Monday, January 26th. Panmure Gordon reiterated a “hold” rating and issued a GBX 675 price target on shares of Unite Group in a report on Tuesday, November 25th. Two equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat, Unite Group presently has a consensus rating of “Moderate Buy” and a consensus price target of GBX 884.67.

Insider Activity

In related news, insider Joe Lister bought 10,000 shares of Unite Group stock in a transaction on Friday, December 5th. The shares were purchased at an average price of GBX 526 per share, for a total transaction of £52,600. Also, insider Michael Burt purchased 10,000 shares of the stock in a transaction dated Friday, December 5th. The stock was bought at an average cost of GBX 522 per share, with a total value of £52,200. Corporate insiders own 0.75% of the company’s stock.

About Unite Group

Unite Students is the UK’s largest owner, manager and developer of purpose-built student accommodation, serving the country’s world-leading Higher Education sector. We provide homes to 70,000 students across 157 properties in 23 leading university towns and cities. We currently partner with over 60 universities across the UK.

Our people are driven by a common purpose: to provide a ‘Home for Success’ for the students who live with us. Unite’s accommodation is safe and secure, high quality and affordable.