Unite Group plc (UTG) AI Stock Analysis

• Market Cap: £3.83B
• Dividend Yield: 353.37%
• Average Volume (3M): 836.89K
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.76
• Revenue Growth: 7.75%
• EPS Growth: 276.67%
• Country: UK
• Employees: 1,906
• Sector: Real Estate
• Sector Strength: 57
• Industry: REIT - Diversified
• EPS (TTM): 0.29
• Shares Outstanding: 489,383,360
• 10 Day Avg. Volume: 833,970
• 30 Day Avg. Volume: 836,893
• PEG Ratio: 0.15
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.98
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £1,050.00
• Price Target Upside: 34.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 73 Outperform
• Price Target: 9.00p ▼(-98.85%Downside)

Unite Group plc's overall stock score is primarily driven by its strong financial performance and strategic corporate events that bolster its growth prospects. The low P/E ratio and attractive dividend yield contribute positively to its valuation. However, technical indicators suggest caution due to current weak momentum.

Positive Factors

Financial Performance

The USAF and LSAV portfolio valuation increased 0.6% and 0.7% like for like, reflecting the strong rental growth.

Market Demand

Student numbers are expected to increase due to a growing UK 18-year-old population and improving trends in international student recruitment.

Sales and Agreements

Unite has sold 85% of beds for the 2025/26 academic year, with nomination agreements with universities for 56% of beds.

Negative Factors

Stock Performance

Unite's share price is more or less flat over the last three months, outperforming the UK EPRA Index which is down 6% over the same period.

Trade Barriers

Higher trade barriers on the Atlantic would have a bigger impact on European logistics coverage.

Unite Group plc Business Overview & Revenue Model

Company Description

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. Following our successful £1.4bn acquisition of Liberty Living's UK assets in November 2019, we now provide homes to 76,000 students across 177 properties in 27 leading university towns and cities. Our people are driven by a common purpose: to provide a 'Home for Success' for the students who live with us and to be the most trusted brand in the sector. We do this through quality service, quality people and quality properties, all designed on the basis of an excellent insight into students' needs and preferences. Unite's accommodation is high quality, affordable, safe and secure, and located where students want to live. Students live predominantly in en-suite study bedrooms with rents covering all bills, insurance, 24-hour security and high-speed Wi-Fi. MyUnite, our mobile app, provides practical support such as instant messaging and maintenance requests. We hold a five-star British Safety Council audit rating (out of five) following an Occupational Health and Safety audit. The audit measured our performance against a number of key safety management indicators, providing an international benchmark for safety management systems and indicating best practice for continual improvement. Our commitment to customer service is powered by an innovative, in-house operating platform. It provides a wide range of benefits to our students, such as an optimised online booking process, as well as providing us with a unique ability to drive value from our portfolio through scale efficiencies and revenue management. Our other strategic priority is delivering growing and sustainable earnings, underpinned by a strong capital structure. A key part of this strategy is growing the number of beds let through partnerships with the strongest UK universities which are experiencing record levels of student demand. We currently partner with 60 universities across the UK, guaranteeing that 52% of our rooms are let under 'nomination agreements' providing high visibility of forward occupancy and rental growth. Unite Students has spent years helping young people thrive in new situations and help them manage the big 'Leap' to university life. Our insight has identified a significant gap between student expectations and reality. To support this leap, we have developed the Leapskills programme, helping to prepare prospective students for independent living. The programme introduces students to a number of student life scenarios to provoke group discussion on conflict resolution, problem solving and gives a general insight into shared living to help closer match expectations to reality. Unite is the founder of and major donor to the Unite Foundation, a charitable trust established to support talented students facing challenging financial circumstances through the provision of free accommodation scholarships. The Foundation has so far provided scholarships for 434 young people working in close collaboration with 27 partner universities. Unite is invested in and operates two specialist funds and joint ventures with institutional investment partners: the £3 billion Unite UK Student Accommodation Fund (USAF), and the £1 billion London Student Accommodation Vehicle (LSAV). Founded in 1991 in Bristol, Unite Group is an award-winning Real Estate Investment Trust (REIT), listed on the London Stock Exchange and a member of the FTSE 250 Index.

How the Company Makes Money

Unite Group plc generates revenue primarily through the rental income derived from its portfolio of student accommodation properties. The company owns and manages a significant number of properties across key university cities in the UK, which ensures a steady demand for its accommodation offerings. Key revenue streams include room rents paid by students and, in some cases, partnerships with universities to provide accommodation solutions. Additionally, Unite Group benefits from its scale and operational efficiencies, which help optimize occupancy rates and rental yields. The company's earnings are also influenced by property valuation changes and strategic investments or divestments in its property portfolio.

Unite Group plc Financial Statement Overview

Summary

Unite Group plc demonstrates strong financial health with solid revenue growth and profitability. The company maintains a healthy balance sheet with low leverage and a high equity ratio. Despite robust operating cash flow, the negative free cash flow warrants attention, though it may be attributed to strategic capital investments aimed at future growth.

Income Statement

The company exhibits strong revenue growth with total revenue increasing from £276.1M in 2023 to £299.3M in 2024, reflecting a growth rate of 8.39%. The gross profit margin stands at an impressive 71.12%, and the net profit margin is exceptionally high at 147.62%, driven by significant net income relative to revenue. EBIT and EBITDA margins are robust at 56.18% and 161.06% respectively, showcasing efficient operational management.

Balance Sheet

The balance sheet is solid with a debt-to-equity ratio of 0.28, indicating manageable leverage. The return on equity (ROE) is an outstanding 9.18%, suggesting effective use of shareholder funds. The equity ratio is healthy at 74.95%, indicating a strong equity base relative to total assets.

Cash Flow

Operating cash flow increased from £153.2M in 2023 to £216.4M in 2024, reflecting a significant enhancement in cash-generating capability. However, free cash flow is negative at £-59.1M, indicating cash outflows from investing activities exceed cash inflows from operations, which may pose liquidity challenges if sustained.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	299.30M	276.10M	259.30M	266.90M	215.60M
Gross Profit	212.90M	199.30M	181.20M	194.70M	153.00M
EBITDA	482.00M	146.80M	235.60M	182.10M	-55.90M
Net Income	441.90M	102.50M	350.50M	342.40M	-121.00M
Balance Sheet
Total Assets	6.42B	5.47B	5.40B	5.05B	5.23B
Cash, Cash Equivalents and Short-Term Investments	273.20M	37.50M	38.00M	109.40M	338.30M
Total Debt	1.35B	1.17B	1.36B	1.26B	1.79B
Total Liabilities	1.61B	1.38B	1.58B	1.50B	1.97B
Stockholders Equity	4.81B	4.07B	3.79B	3.53B	3.23B
Cash Flow
Free Cash Flow	-59.10M	15.20M	145.60M	156.90M	26.00M
Operating Cash Flow	216.40M	153.20M	155.30M	160.50M	29.40M
Investing Cash Flow	-428.00M	-109.40M	-236.70M	207.80M	-159.40M
Financing Cash Flow	448.40M	-44.30M	10.00M	-597.20M	381.40M

Unite Group plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 782.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:UTG, the sentiment is Negative. The current price of 782 is below the 20-day moving average (MA) of 805.80, below the 50-day MA of 827.35, and below the 200-day MA of 824.35, indicating a bearish trend. The MACD of -12.53 indicates Positive momentum. The RSI at 36.96 is Neutral, neither overbought nor oversold. The STOCH value of 13.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:UTG.

Unite Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LMP	76 Outperform	£4.52B	11.37	8.66%	618.88%	122.74%	60.58%
UTG	73 Outperform	£3.83B	8.12	9.95%	353.37%	7.75%	276.67%
CREI	73 Outperform	£388.40M	9.68	9.14%	715.99%	7.81%	―
LAND	69 Neutral	£4.34B	10.97	6.13%	567.92%	0.97%	―
BLND	65 Neutral	£3.60B	10.24	6.14%	6.33%	-20.83%	―
Sector *	64 Neutral	$6.77B	15.25	-1.98%	7.08%	4.47%	-23.75%
PCTNF	―	$549.64M	11.33	7.04%	500.33%	―	―

Unite Group plc Corporate Events

Unite Group Reports Strong Rental Growth and Development Progress

Unite Group plc reports strong rental growth driving property values, with 85% of beds sold for the 2025/26 academic year and planning approval for a 2,000-bed Newcastle University joint venture. The company anticipates increased student numbers due to a growing UK 18-year-old population and international student recruitment, aiming for 97-98% occupancy. The Renters’ Rights Bill is expected to impact the HMO sector, potentially increasing costs and reducing supply. Unite’s development pipeline includes projects in Newcastle and Manchester, while USAF has refinanced its bonds, enhancing financial stability.

The most recent analyst rating on (GB:UTG) stock is a Buy with a £1070.00 price target. To see the full list of analyst forecasts on Unite Group plc stock, see the GB:UTG Stock Forecast page.

Unite Group Announces Change in Major Shareholding and System Upgrade

Unite Group plc has announced a change in the voting rights held by APG Asset Management N.V., a Netherlands-based asset management firm. The notification reveals that APG’s voting rights in Unite Group have decreased from 5.995052% to 4.807700% as of July 26, 2024. This change in shareholding may impact Unite Group’s shareholder dynamics and influence within the company, as APG is a significant investor. Additionally, Unite Group plans to implement a new internal system by July 4, 2025, to enhance the verification of such events, indicating a move towards improved operational transparency.

The most recent analyst rating on (GB:UTG) stock is a Buy with a £1070.00 price target. To see the full list of analyst forecasts on Unite Group plc stock, see the GB:UTG Stock Forecast page.

Unite Group Director Reinvests Dividend in Company Shares

Unite Group plc has announced a director dealing involving Dame Shirley Pearce, a Non-Executive Director, who has reinvested her 2024 final dividend into ordinary shares of the company. This transaction, conducted on the London Stock Exchange, reflects the director’s continued confidence in the company’s performance and future prospects.

The most recent analyst rating on (GB:UTG) stock is a Buy with a £1070.00 price target. To see the full list of analyst forecasts on Unite Group plc stock, see the GB:UTG Stock Forecast page.

Unite Group plc Announces Additional Listing of 180,000 Shares

Unite Group plc has applied for an additional listing of 180,000 Ordinary shares on The London Stock Exchange, which will be admitted to The Official List. This block listing includes shares under both the company’s Savings Related Share Option Scheme and Performance Share Plan, indicating a strategic move to enhance its financial flexibility and reward its employees. The admission is expected to commence on 11 June 2025, potentially impacting the company’s market presence and stakeholder interests positively.

The most recent analyst rating on (GB:UTG) stock is a Hold with a £1100.00 price target. To see the full list of analyst forecasts on Unite Group plc stock, see the GB:UTG Stock Forecast page.

Unite Group Proposes Acquisition of Empiric Student Property

Unite Group plc has made a non-binding proposal to acquire Empiric Student Property plc, valuing each Empiric share at 107.0 pence. This potential acquisition, which includes a mix of cash and shares, represents a significant premium over Empiric’s recent share prices. The deal could enhance Unite’s scale and growth potential, aligning with top UK universities and potentially increasing earnings and shareholder returns. However, there is no certainty that a firm offer will be made, and further announcements are expected.

The most recent analyst rating on (GB:UTG) stock is a Buy with a £1070.00 price target. To see the full list of analyst forecasts on Unite Group plc stock, see the GB:UTG Stock Forecast page.

Unite Group Proposes Acquisition of Empiric Student Property

Unite Group plc has made a non-binding proposal to acquire Empiric Student Property plc, valuing Empiric’s shares at approximately £719 million. The offer includes a mix of cash and new Unite shares, representing a significant premium over Empiric’s recent share prices. This acquisition aims to expand Unite’s portfolio and strengthen its position in the student accommodation market, potentially enhancing earnings and shareholder returns through operational synergies.

The most recent analyst rating on (GB:UTG) stock is a Buy with a £1070.00 price target. To see the full list of analyst forecasts on Unite Group plc stock, see the GB:UTG Stock Forecast page.

Unite Students Sells Nine Properties for £212 Million to Focus on Strategic Markets

Unite Students has announced the sale of nine properties, totaling 3,656 beds, for £212 million to Lone Star Funds, as part of its strategy to focus on high and mid-ranked universities and sustainable rental growth. The transaction, expected to complete in August 2025, will allow the company to reinvest in strong markets and satisfy redemption requests, while maintaining its earnings guidance for the year.

The most recent analyst rating on (GB:UTG) stock is a Buy with a £9.75 price target. To see the full list of analyst forecasts on Unite Group plc stock, see the GB:UTG Stock Forecast page.

Unite Group Chair Engages in Dividend Reinvestment

Unite Group plc announced a director dealing involving Richard Huntingford, the Chair, who participated in a dividend reinvestment program for the 2024 final dividend. This transaction involved the acquisition of 328 ordinary shares at varying prices on the London Stock Exchange, reflecting the company’s ongoing commitment to shareholder value through dividend reinvestment initiatives.

The most recent analyst rating on (GB:UTG) stock is a Buy with a £1070.00 price target. To see the full list of analyst forecasts on Unite Group plc stock, see the GB:UTG Stock Forecast page.

Unite Group PLC Announces Total Share Capital and Voting Rights

Unite Group PLC has announced its total share capital and voting rights as of May 30, 2025, in compliance with the Disclosure and Transparency Rules. The company reports a total of 489,352,205 ordinary shares with voting rights, which will be used by shareholders to determine their notification requirements under the FCA’s rules.

The most recent analyst rating on (GB:UTG) stock is a Buy with a £1070.00 price target. To see the full list of analyst forecasts on Unite Group plc stock, see the GB:UTG Stock Forecast page.

Unite Group PLC Announces Results of 2024 Scrip Dividend Election

Unite Group PLC announced the results of its 2024 final scrip dividend election, with elections received for 22,648,590 shares, representing approximately 4.63% of the company’s share capital. This will lead to the issuance of 544,183 new ordinary shares, which will be admitted to the Official List and traded on the London Stock Exchange’s Main Market. The total number of shares in issue will increase to 489,352,205, impacting shareholder calculations under the UK Financial Conduct Authority’s rules.

The most recent analyst rating on (GB:UTG) stock is a Buy with a £1070.00 price target. To see the full list of analyst forecasts on Unite Group plc stock, see the GB:UTG Stock Forecast page.

Unite Group plc Secures Shareholder Support at 2025 AGM

Unite Group plc announced that all resolutions proposed at its 2025 Annual General Meeting were successfully passed, reflecting strong shareholder support. The resolutions included key decisions such as the approval of the annual report, re-election of board members, and the renewal of share schemes, indicating stable governance and strategic continuity for the company.

The most recent analyst rating on (GB:UTG) stock is a Buy with a £1070.00 price target. To see the full list of analyst forecasts on Unite Group plc stock, see the GB:UTG Stock Forecast page.

Unite Students Partners with Manchester Metropolitan University for Major Accommodation Development

Unite Students has announced a joint venture with Manchester Metropolitan University to develop 2,300 new student beds at the Cambridge Halls site in Manchester. This strategic partnership, with a total development cost of approximately £390 million, will see Unite Students holding a 70% ownership stake and acting as developer, asset manager, and operator. The project aims to address the shortage of purpose-built student accommodation in Manchester, enhancing Unite’s operational platform in the city and supporting the university’s accommodation needs. The development is expected to commence in 2026, with completion targeted for 2029 and 2030, and will also provide additional community benefits such as new health, wellbeing, and retail offerings.

Unite Students Partners with Manchester Metropolitan University for Major Accommodation Development

Unite Students has announced a joint venture with Manchester Metropolitan University to develop 2,300 new student beds at the Cambridge Halls site in Manchester. This strategic partnership, valued at approximately £390 million, will address the shortage of student accommodation in Manchester, a city with a high demand for purpose-built student housing. Unite will hold a 70% stake in the venture, acting as developer, asset manager, and operator. The project is expected to enhance Unite’s operational platform in Manchester, supporting the university’s accommodation needs and benefiting the surrounding community.

Unite Group PLC Announces 2024 Final Dividend and Scrip Dividend Scheme

Unite Group PLC announced a 2024 final dividend of 24.9 pence, paid as a Property Income Distribution. The company is offering a Scrip Dividend Scheme to shareholders with a reference share price of 867.7 pence, calculated based on the average closing market price from 17 to 25 April 2025. The deadline for application is 8 May 2025.