USAF Valuation

RNS Number : 6599L

Unite Group PLC

08 July 2014

 

PRESS RELEASE 8 July 2014

 

THE UNITE GROUP PLC

("Unite", "Unite Students", the "Group", or the "Company")

VALUATION OF THE UNITE UK STUDENT ACCOMMODATION FUND

AS AT 30 JUNE 2014

The Unite Group, the UK's leading manager and developer of student accommodation, today reports the estimated net asset value* ("NAV") of the Unite UK Student Accommodation Fund (the "Fund", "USAF") as at 30 June 2014. The NAV was £866.9 million (£0.999 per unit), reflecting an increase of 1.6% during the second quarter of 2014 (31 March 2014: £853.6 million, £0.984 per unit).

USAF distributes the income that it generates from the portfolio and the principal components of the underlying movement in NAV are as follows:

Effect on NAV:	Q2 2014
Movement in property values	1.3%
Movement in swap values	0.1%
Other factors	0.2%
Increase in NAV	1.6%
Increase in underlying gross property portfolio value on a like for like basis	0.9%

In arriving at the value of the Fund, USAF's property portfolio, comprising 21,673 beds in 59 properties across 19 UK towns and cities, was independently valued at £1,375 million (31 March 2014 £1,362 million).

The movement during the quarter represents a like-for-like increase of 0.9% (1.5% in the six months to 30 June) in the underlying value of the property portfolio, driven mainly by rental growth. The portfolio is valued at an average yield of 6.60% at 30 June 2014 (31 March 2014: 6.63%). As in previous years, further rental growth is expected to be achieved as reservations for the forthcoming 2014/15 academic year progress.

Reservations across USAF's properties for the academic year starting in September 2014 stand at 76% compared to 73% at the same point in 2013.

Commenting on the Fund's valuation, Joe Lister, Unite Student's Chief Financial Officer, said: "The fund continues to perform well with another strong quarter. Lettings for the forthcoming academic year are proceeding strongly at rental levels supportive of management expectations, with 76% of the portfolio now reserved, ahead of the 73% level at the same point in 2013. USAF has continued its strong track record of growing rents, with further uplifts anticipated in the third quarter as the 2014/15 academic year lettings cycle is completed."

* 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 Sally Quigg, Head of Corporate Communications	Tel: [phone] Tel: [phone]
Bell Pottinger Victoria Geoghegan Nick Lambert Elizabeth Snow	Tel: [phone]

About Unite Students

Unite Students is the UK's leading manager and developer of student accommodation. We provide a home for 41,000 students in over 120 purpose built properties across 23 of the UK's strongest university towns and cities. We have nearly 1,000 employees and work in partnership with over 50 higher education providers, as well as renting rooms directly to students.

Our culturally-diverse customers are at the heart of our business and we aim to provide a home for students that supports their success, whether defined as academic achievement, personal growth or employability. Our properties provide high quality, well-located, safe accommodation that is close to university campuses, transport and local amenities. Our rent includes a study bedroom, all bills, insurance, 24-hour security and high speed Wi-Fi throughout our buildings.

Founded in 1991, Unite Group is a FTSE 250 company listed on the London Stock Exchange. We are pursuing a sustainable growth strategy designed to make the most of the resilient nature of the student accommodation sector. We aim to maintain the strongest brand in the sector and operate the highest quality portfolio through consistent investment in and improvement to our operating platform, highly selective development activity, asset management initiatives and portfolio recycling.

In addition to our wholly owned properties, we are also invested in and operate a small number of specialist funds and joint ventures with institutional investment partners, the largest of which is the £1.38 billion Unite UK Student Accommodation Fund (USAF).

The Group's charitable trust, the Unite Foundation, supports widening access to higher education, integrating students into the community and employability. It provides scholarships for disadvantaged students at seven universities and volunteering opportunities for our students and employees through partner organisations.

For more information visit our corporate website: www.unite-group.co.uk or www.unite-students.com.

 

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