USAF Estimated NAV

RNS Number : 8564B

Unite Group PLC

09 April 2013

 



PRESS RELEASE 9 April 2013

 

THE UNITE GROUP PLC

("UNITE", the "Group", or the "Company")

VALUATION OF

THE UNITE UK STUDENT ACCOMMODATION FUND

AS AT 31 MARCH 2013
Strong reservations performance underpins NAV and rental growth prospects

The UNITE Group plc, the UK's leading developer and manager of student accommodation, today reports the Estimated Net Asset Value* ("NAV") of the UNITE UK Student Accommodation Fund (the "Fund", "USAF") as at 31 March 2013.

The NAV as at 31 March was £685.3m (£0.920 per unit), reflecting an increase of 1.0% during the first quarter of 2013 (31 December 2012: £678.5m, £0.911 per unit).

The principal components of the movement in NAV were as follows:

Effect on NAV:	Q1 2013
Movement in property values	0.3%
Movement in swap values	0.6%
Increase in net cash	0.1%
Increase in NAV	1.0%
Increase in underlying gross property portfolio value	0.2%

In arriving at the value of the Fund, its property portfolio, which comprises 21,826 beds in 60 properties across 20 UK towns and cities, was independently valued at £1,323m.

The value of the assets held throughout the quarter increased by 0.2% due to rental growth since 31 December 2012. The increase in the value of the property portfolio in the quarter, after taking account of lifecycle expenditure and gearing resulted in 0.3% growth in the NAV as outlined in the table above. In line with previous years we anticipate further rental growth will be recognised in the portfolio valuation as reservation levels for the forthcoming academic year continue to build.

Average valuation yields remained stable during the quarter at 6.68%.

Commenting on the Fund's valuation, Joe Lister, UNITE's Chief Financial Officer, said:

"USAF's positive performance in the first quarter of 2013 reflects the continuing rental growth and stable valuation yields across the portfolio, and the positive movement in the market value of its interest rate swaps. Reservations across USAF's properties for the academic year starting in September 2013 stand at 56% compared to 50% at the same point in 2012, supporting our view that rental growth will be in line with recent years."

* Estimated Net Asset Value represents the capital position of the Fund and does not include undistributed income.         

ENDS

For further information, please contact:

The UNITE Group plc Joe Lister, Chief Financial Officer Sophie Joyce, Head of Communications	Tel: [phone]
FTI Consulting Stephanie Highett Dido Laurimore Faye Walters	Tel: [phone]

About The UNITE Group 

The UNITE Group is the UK's leading developer and manager of student accommodation, with a business model that focuses on two core areas:

1.         Development and Asset Management: UNITE undertakes the acquisition, planning and development of purpose-built student accommodation in the UK. Through the continuous assessment of quality and location of its investment portfolio, UNITE is well positioned to deliver value-adding strategies to those assets where further opportunities are identified. Working on behalf of its partners, UNITE acts as Fund Manager for the UNITE UK Student Accommodation Fund in which it owns a 16.4% share. UNITE also manages a number of Joint Venture partnerships.

2.         Professional property management: UNITE is home to 42,000 students in over 130 properties across 23 of the UK's strongest university cities, and has consistently proven high occupancy levels across its portfolio.

The Group works closely with higher education institutions in order to deliver high quality, well-located student accommodation at affordable prices in strong higher education markets. In 2012 UNITE won the South West Business in the Community Carbon Reduction Award for its environmental initiatives and the Global Real Estate Sustainability Benchmark (GRESB) named UNITE as a regional sector leader for sustainability.

Founded in 1991, UNITE is a FTSE 250 company listed on the London Stock Exchange (UTG). For more information, please visit www.unite-group.co.uk or www.unite-students.com.  

 

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