Unite Group, a UK student accommodation operator, said adjusted net income for the first half of 2026 fell 2% from a year earlier to £142 million. Management pointed to a combination of higher interest expenses, asset disposals completed in 2025 and reduced occupancy levels as the primary drivers behind the decline in adjusted results.
Under IFRS, the company reported a pretax loss of £417.10 million for the period, a result the group said was mainly attributable to a 6.4% fall in property values. Those valuation movements fed through to the statutory numbers, producing the sizable pretax deficit.
Adjusted earnings per share declined by 8% in the half, with the company citing initial dual-running costs associated with its acquisition of Empiric Student Property together with an increased share count as contributors to the EPS reduction.
During the first half, Unite executed £165 million of share buybacks and completed £130 million of asset disposals. The business reported EPRA net tangible assets per share of £8.65 and a net asset value per share of £8.79 at the period end.
The group confirmed it was maintaining its full-year 2026 adjusted earnings per share guidance in the range of 41.5 to 43.0 pence. For the 2026/27 academic year, Unite expects occupancy between 94% and 96% and rental growth in the range of 1% to 2%.
Market dynamics and demand
Unite said demand remains strong at the UK’s highest-demand universities amid a constrained supply of purpose-built student accommodation. The company noted that improvements in reservations and its sales initiatives have supported leasing activity for the upcoming 2026/27 academic year.
Summary of the first-half financial and operational position
- Adjusted net income: £142 million, down 2% year-on-year.
- IFRS pretax result: loss of £417.10 million, driven by a 6.4% decline in property values.
- Adjusted EPS: down 8% due to acquisition dual-running costs and a larger share count.
- Share buybacks: £165 million completed in H1; asset disposals: £130 million.
- EPRA NTA per share: £8.65; NAV per share: £8.79.
- Full-year 2026 adjusted EPS guidance maintained: 41.5 to 43.0 pence.
- 2026/27 expectations: occupancy 94% to 96%; rental growth 1% to 2%.
Outlook considerations
While statutory results reflect valuation-driven volatility, the company has retained its adjusted EPS outlook and is forecasting steady occupancy and modest rental growth for the coming academic year. Management highlights continued demand at the UK’s most in-demand university locations, supported by constrained accommodation supply and stronger reservations and sales activity.
The account of the half-year results stresses the influence of financing costs, prior disposals and integration costs from the Empiric acquisition on near-term adjusted profitability, while underlying leasing metrics are presented as resilient.