LONDON (dpa-AFX) - Unite Students (UTG.L) reported that its IFRS profit before tax for the year ended 31 December 2023 decreased to 102.5 million pounds from the prior year's 351.9 million pounds, reflecting the valuation change of its property portfolio during the year.
Profit attributable to owners of the parent company for the year was 102.5 million pounds or 24.6 pence per share down from 350.5 million pounds or 87.6 pence per share in the previous year.
Adjusted earnings increased 13% year-over-year to 184.3 million pounds, reflecting an increase in rental income and costs, with a reduction in finance costs, when compared to the prior year.
Total revenue for the year grew to 276.1 million pounds from 259.3 million pounds in the prior year.
The company is proposing a final dividend of 23.6 pence per share (compared to 21.7 pence in 2022), totaling 35.4 pence for the full year (versus 32.7 pence in 2022), reflecting an 8% increase from the previous year.
The company said it achieved occupancy of 99.8% across its total portfolio for the 2023/24 academic year compared to 99.2% in 2022/23.
Annual rents increased by 7.4% on a like-for-like basis for 2023/24, reflecting average increases of 7.7% for nomination agreements and 7.1% for direct-let tenancies.
The company said it now expects to deliver rental growth of at least 6% for 2024/25. Previously it was expected at least 5%.
According to the company, strong reservations support rental growth of least 6% for the 2024/25 academic year. Despite ongoing cost pressures, this supports an improvement in EBIT margin and 3-5% growth in adjusted earnings per share in 2024. It expects earnings growth to accelerate from 2026 as development completions increase.
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