LONDON (dpa-AFX) - Unite Group Plc. (UTG.L) said it is confident in delivering rental growth of at least 6% for the 2024/25 academic year.
The company noted that demand for the Group's accommodation remains strong, with good progress in sales since its preliminary results. Across the Group's portfolio, 86% of rooms are now reserved for the 2024/25 academic year, ahead of typical leasing pace and slightly below the record reservation rates last year's 90%.
Demand from universities continues to grow with a further 1,000 beds secured via nomination agreements since preliminary results. Demand from international students remains robust despite recent changes to UK visa rules for dependents of postgraduate taught students. International direct-lets for 2024/25 currently account for 13% of rooms, broadly in-line with the 15% let at the same stage last year.
At 31 March 2024, the Unite UK Student Accommodation Fund or USAF's property portfolio was independently valued at 2.982 billion pounds, a 0.5% reduction on a like-for-like basis during the first-quarter. Property yields were unchanged over the quarter at 5.3%. The portfolio comprises 27,922 beds in 71 properties across 19 university towns and cities in the UK.
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