Unite Group maintains guidance amid falling property valuations

Unite Group, the largest student accommodation owner in the United Kingdom, has maintained its 2026 guidance despite facing declining property valuations and weaker rental growth. The company expects adjusted earnings per share to fall between 41.5p and 43.0p. While 95.6% of beds are sold for the 2026/27 academic year, like-for-like income growth was limited to 0.6% due to a slight decrease in annual rent per bed.

Property valuations have seen downward pressure, with the Unite UK Student Accommodation Fund (USAF) cut by 4.0% in the third quarter and the London Student Accommodation Joint Venture (LSAV) falling by 3.4%. Chief Executive Joe Lister noted that the market is still adjusting to higher interest rates. To manage its position, the company has completed £200 million in disposals this year and expects further sales of up to £400 million in 2026.

On the stock market, Unite Group shares recently reached a 52-week low of GBX 442.20. Despite the price drop, several financial institutions maintain positive outlooks; UBS Group and Berenberg Bank have issued “buy” ratings, while JPMorgan Chase & Co. and Citigroup have adjusted their price objectives.