Unite Group (LON:UTG) Announces Quarterly Earnings Results

Unite Group (LON:UTG) released its quarterly earnings data on Tuesday. The company reported GBX 47.50 earnings per share for the quarter, Digital Look Earnings reports. Unite Group had a net margin of 79.68% and a return on equity of 6.45%.

Here are the key takeaways from Unite Group’s conference call:

• Sales and occupancy are weaker than a year ago, with the company tracking 68% sold vs 71% at this stage and nominations down (notably affecting Nottingham, Leicester and Sheffield), which the company says will reduce near-term occupancy and bookings.
• Management is accelerating a portfolio reposition toward higher‑tariff universities—now 67% aligned with a target of 80%—and has launched disposals (targeting £300m–£400m) and a £100m share buyback to recycle capital.
• Cost and integration actions are expected to materially offset headwinds, including a ~20% central staff cost reduction, a technology program targeting £7m annual savings, and an increased Empiric synergy target of £17m (with ~£9m in 2026).
• Outlook is cautious—management now guides to the lower end of prior ranges with expected like‑for‑like income growth of 0%–2%, rental growth at ~2%–3% (lower end), and an EPS headwind from Empiric of ~£0.01–£0.015 for 2026; the dividend will be held flat, raising the 2026 payout ratio near ~90%.
• Longer‑term growth initiatives continue, with on‑site university joint ventures underway (Newcastle and Manchester totaling 4,300 beds), committed developments expected to add ~£27m NOI by end‑2027, and selective development discipline to protect returns.

Unite Group Trading Down 1.0%

Shares of UTG stock opened at GBX 490.40 on Wednesday. The company has a market capitalization of £2.67 billion, a PE ratio of 7.05, a price-to-earnings-growth ratio of 3.20 and a beta of 1.24. Unite Group has a 52-week low of GBX 488 and a 52-week high of GBX 884. The business’s fifty day moving average is GBX 567.80 and its 200 day moving average is GBX 607.11. The company has a debt-to-equity ratio of 38.76, a quick ratio of 0.73 and a current ratio of 1.58.

Insiders Place Their Bets

In other Unite Group news, insider Joe Lister purchased 10,000 shares of the stock in a transaction on Friday, December 5th. The shares were purchased at an average price of GBX 526 per share, with a total value of £52,600. Also, insider Michael Burt purchased 10,000 shares of the company’s stock in a transaction dated Friday, December 5th. The shares were acquired at an average price of GBX 522 per share, with a total value of £52,200. Insiders have acquired 57,985 shares of company stock worth $30,574,065 in the last ninety days. 0.75% of the stock is currently owned by insiders.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on the company. Panmure Gordon reiterated a “hold” rating and issued a GBX 675 price target on shares of Unite Group in a research report on Tuesday, November 25th. Berenberg Bank cut their target price on Unite Group from GBX 855 to GBX 774 and set a “buy” rating for the company in a research note on Monday, January 26th. Two equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, Unite Group presently has a consensus rating of “Moderate Buy” and a consensus price target of GBX 884.67.

Unite Group Company Profile

Unite Students is the UK’s largest owner, manager and developer of purpose-built student accommodation, serving the country’s world-leading Higher Education sector. We provide homes to 70,000 students across 157 properties in 23 leading university towns and cities. We currently partner with over 60 universities across the UK.

Our people are driven by a common purpose: to provide a ‘Home for Success’ for the students who live with us. Unite’s accommodation is safe and secure, high quality and affordable.