USAF Valuation

RNS Number : 8347P

Unite Group PLC

10 October 2011

 



10 October 2011

THE UNITE GROUP PLC

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

30 SEPTEMBER 2011 VALUATION OF THE UNITE UK STUDENT ACCOMMODATION FUND

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") as at 30 September 2011.

The NAV was £0.842 per unit, reflecting an increase of 0.6% during the third quarter of 2011 (30 June 2011: £0.837 per unit).

The principal components of the movement in the value of the units were as follows:

Movement in property values	1.7%
Movement in swap values	-1.2%
Other factors	0.1%
Increase in Estimated NAV per unit	0.6%

In arriving at the value of the Fund's units, its property portfolio, comprising 21,717 beds in 64 properties across 20 UK markets, was independently valued at £1.265 billion (30 June 2011: £1.250 billion).

The Fund's portfolio has continued to deliver strong reservations, with 99% of bed spaces let for the 2011/12 academic year up from 97% in 2010/11. The value of the assets held throughout the quarter increased by 0.9% on a like for like basis compared to 30 June 2011. The growth in value was driven by 1.2% rental growth offset by the capital costs associated with the refurbishment of three assets (720 beds) during the quarter. The rental growth at the property level results in the 1.7% growth in the value of units as outlined in the table above. The rental growth for the 2011/12 academic year reflected in property values totalled 3.1%. Valuation yields again remained stable during the quarter at 6.67% (30 June 2011: 6.67%).

The value of the units was also affected by a material negative movement in the market value of the Fund's interest rate swaps as a result of a reduction in the market price for interest rate swaps.

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

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

"The Fund has delivered another robust performance in the third quarter of 2011. We are delighted to report an exceptional year of lettings with 99% of the Fund's portfolio let for the 2011/12 academic year and further quarterly rental growth resulting in the value of the assets increasing by over 3% in the year."

For further information, please contact:

The UNITE Group plc Joe Lister, Chief Financial Officer Paul Harris, Communications Director	Tel: [phone]
FTI Consulting Stephanie Highett Dido Laurimore Laurence Jones Toyah Simpson	Tel: [phone]

About The UNITE Group

The UNITE Group is the UK's leading developer and manager of student accommodation, with an investment portfolio valued at £884m (as at December 2010). As well as managing its directly owned portfolio, UNITE acts as co-investing manager of four specialist student accommodation funds / joint ventures, including the UNITE UK Student Accommodation Fund (USAF), which has a £1.265bn portfolio, in which UNITE holds a 16% stake.

Supported by strong market fundamentals, UNITE aims to create value for shareholders through targeted development activity, delivering capital growth and increasing income through recurring profits.

Employing nearly 1,000 people in the UK, UNITE provides c. 40,000 beds to students in 131 properties across 24 cities around the country.

UNITE works closely with higher education institutions, in order to deliver high quality, well-located student accommodation in the UK's strongest markets.

Founded in 1991, UNITE is listed on the London Stock Exchange (UTG) and is a FTSE 250 company. 

www.unite-group.co.uk

www.unite-students.com

 

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