Unite Group (LON:UTG) Posts Earnings Results

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

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 Trading Down 8.9%

Shares of Unite Group stock opened at GBX 526.50 on Tuesday. Unite Group has a 12-month low of GBX 494.10 and a 12-month high of GBX 884. The stock has a market capitalization of £2.86 billion, a P/E ratio of 7.56, a price-to-earnings-growth ratio of 3.20 and a beta of 1.24. The company has a 50-day simple moving average of GBX 568.54 and a 200 day simple moving average of GBX 608.87. The company has a quick ratio of 0.73, a current ratio of 1.58 and a debt-to-equity ratio of 38.76.

Insider Activity

In other news, insider Michael Burt acquired 10,000 shares of the company’s stock in a transaction dated Friday, December 5th. The stock was bought at an average price of GBX 522 per share, with a total value of £52,200. Also, insider Joe Lister bought 10,000 shares of the business’s stock in a transaction dated Friday, December 5th. The stock was purchased at an average price of GBX 526 per share, with a total value of £52,600. 0.75% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

UTG has been the subject of a number of recent research reports. Panmure Gordon restated a “hold” rating and issued a GBX 675 price objective on shares of Unite Group in a research note on Tuesday, November 25th. Berenberg Bank dropped their price target 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. Two research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of GBX 884.67.

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.