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Unite Group plc (GB:UTG)
:UTG

Unite Group plc (UTG) AI Stock Analysis

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GB

Unite Group plc

(LSE:UTG)

Rating:80Outperform
Price Target:
966.00p
▲(14.73%Upside)
Unite Group plc has a favorable outlook due to strong financial performance, attractive valuation, and positive corporate events. The strategic initiatives such as acquisitions and partnerships position the company for future growth. While the technical analysis suggests cautious optimism, the overall prospects remain promising.
Positive Factors
Earnings Outlook
The outlook for FY25 remains positive with increasing demand additionally bolstered by the continuing exit of HMO landlords.
Investment Value
Shares are trading at a significant discount, providing an attractive entry point.
Market 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.
Negative Factors
Stock Performance
The company's shares have significantly underperformed over the last year.

Unite Group plc (UTG) vs. iShares MSCI United Kingdom ETF (EWC)

Unite Group plc Business Overview & Revenue Model

Company DescriptionUnite Group plc (UTG) is a leading provider of student accommodation in the United Kingdom. The company specializes in developing and managing purpose-built student housing, offering a range of living options to students from various universities. Unite Group operates primarily through its Unite Students brand, which focuses on delivering safe, secure, and well-located accommodation with comprehensive support services. Its core services include property management, development, and investment in student housing facilities.
How the Company Makes MoneyUnite Group plc generates revenue through a combination of rental income from its student accommodation properties and development activities. The primary revenue stream is derived from leasing rooms to students, usually on a contractual basis aligned with academic terms. The company also engages in property development, where it constructs new accommodation facilities and refurbishes existing ones to enhance its portfolio. Unite Group often enters into partnerships with universities to secure long-term lease agreements, ensuring a stable income stream. Additionally, the company benefits from capital gains through strategic property sales and investments in joint ventures, further diversifying its income sources.

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
85
Very Positive
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
78
Positive
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
72
Positive
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
299.30M276.10M259.30M266.90M215.60M
Gross Profit
212.90M199.30M181.20M194.70M153.00M
EBIT
168.10M154.70M227.80M174.30M119.30M
EBITDA
482.00M146.80M235.60M182.10M-55.90M
Net Income Common Stockholders
441.90M102.50M350.50M342.40M-121.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
273.20M37.50M38.00M109.40M338.30M
Total Assets
6.42B5.47B5.40B5.05B5.23B
Total Debt
1.35B1.17B1.36B1.26B1.79B
Net Debt
1.07B1.13B1.32B1.15B1.45B
Total Liabilities
1.61B1.38B1.58B1.50B1.97B
Stockholders Equity
4.81B4.07B3.79B3.53B3.23B
Cash FlowFree Cash Flow
-59.10M15.20M145.60M156.90M26.00M
Operating Cash Flow
216.40M153.20M155.30M160.50M29.40M
Investing Cash Flow
-428.00M-109.40M-236.70M207.80M-159.40M
Financing Cash Flow
448.40M-44.30M10.00M-597.20M381.40M

Unite Group plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price842.00
Price Trends
50DMA
833.58
Positive
100DMA
822.39
Positive
200DMA
840.02
Positive
Market Momentum
MACD
3.69
Negative
RSI
51.53
Neutral
STOCH
49.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:UTG, the sentiment is Positive. The current price of 842 is above the 20-day moving average (MA) of 835.97, above the 50-day MA of 833.58, and above the 200-day MA of 840.02, indicating a bullish trend. The MACD of 3.69 indicates Negative momentum. The RSI at 51.53 is Neutral, neither overbought nor oversold. The STOCH value of 49.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:UTG.

Unite Group plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBLMP
82
Outperform
£4.20B11.848.66%6.55%95.26%
GBUTG
80
Outperform
£4.11B8.739.95%5.92%7.75%276.67%
73
Outperform
£389.57M9.709.14%7.14%7.81%
68
Neutral
£3.89B11.096.14%6.28%-30.83%
64
Neutral
$423.75M11.757.04%4.71%2.51%
61
Neutral
$2.85B10.990.40%6.10%5.75%-21.23%
47
Neutral
£4.68B11.846.13%7.80%-1.73%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:UTG
Unite Group plc
842.00
-30.68
-3.52%
GB:LAND
Land Securities Group plc REIT
623.00
40.71
6.99%
GB:CREI
Custodian REIT
84.00
17.31
25.96%
GB:LMP
LondonMetric Property
201.80
19.02
10.41%
GB:BLND
British Land Company plc
394.60
-8.19
-2.03%
GB:PCTN
Picton Property Income
80.90
20.04
32.93%

Unite Group plc Corporate Events

Delistings and Listing ChangesBusiness Operations and Strategy
Unite Group plc Announces Additional Listing of 180,000 Shares
Positive
Jun 6, 2025

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.

M&A Transactions
Unite Group Proposes Acquisition of Empiric Student Property
Positive
Jun 5, 2025

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.

M&A TransactionsBusiness Operations and Strategy
Unite Group Proposes Acquisition of Empiric Student Property
Positive
Jun 5, 2025

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.

M&A TransactionsBusiness Operations and Strategy
Unite Students Sells Nine Properties for £212 Million to Focus on Strategic Markets
Positive
Jun 5, 2025

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.

Dividends
Unite Group Chair Engages in Dividend Reinvestment
Positive
Jun 3, 2025

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.

Regulatory Filings and Compliance
Unite Group PLC Announces Total Share Capital and Voting Rights
Neutral
May 30, 2025

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.

DividendsRegulatory Filings and Compliance
Unite Group PLC Announces Results of 2024 Scrip Dividend Election
Neutral
May 15, 2025

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.

Shareholder MeetingsBusiness Operations and Strategy
Unite Group plc Secures Shareholder Support at 2025 AGM
Positive
May 15, 2025

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.

Business Operations and Strategy
Unite Students Partners with Manchester Metropolitan University for Major Accommodation Development
Positive
May 1, 2025

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.

Business Operations and Strategy
Unite Students Partners with Manchester Metropolitan University for Major Accommodation Development
Positive
May 1, 2025

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.

Dividends
Unite Group PLC Announces 2024 Final Dividend and Scrip Dividend Scheme
Neutral
Apr 28, 2025

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.

M&A TransactionsBusiness Operations and Strategy
Unite Group plc Announces Change in Voting Rights Structure
Neutral
Apr 24, 2025

Unite Group plc, a UK-based company, has announced a change in its voting rights structure following an acquisition by BlackRock, Inc., a major US-based investment management corporation. BlackRock’s voting rights in Unite Group plc have increased to 6.56%, up from a previous 6.55%, indicating a slight shift in control and influence within the company. This adjustment in voting rights could impact the company’s strategic decisions and stakeholder dynamics, reflecting BlackRock’s continued interest and investment in the company.

Other
BlackRock Reduces Stake in Unite Group PLC
Neutral
Apr 10, 2025

Unite Group PLC, a UK-based company, has announced a change in the voting rights held by BlackRock, Inc., a major shareholder. BlackRock’s voting rights in Unite Group have decreased from 7.43% to 6.55%, indicating a disposal of some of its shares. This adjustment in shareholding could impact Unite Group’s shareholder dynamics and influence future corporate decisions.

Executive/Board ChangesBusiness Operations and Strategy
Unite Group plc Grants LTIP Options to Executive Directors
Neutral
Apr 8, 2025

Unite Group plc has announced the grant of long-term incentive plan (LTIP) options to its Executive Directors, CEO Joe Lister and CFO Michael Burt. The options, based on a share price of 825.0p, are tied to performance metrics such as EPRA adjusted earnings per share and shareholder returns, with a two-year holding period before they can be exercised. This move reflects the company’s strategic priorities and adaptation to the macroeconomic environment, with implications for executive motivation and shareholder value.

Business Operations and StrategyFinancial Disclosures
Unite Students Reports Strong Q1 Performance and Expands University Partnerships
Positive
Apr 8, 2025

Unite Students reports strong trading performance and property valuation growth for Q1 2025, driven by increasing student numbers and rental growth. The company is on track to achieve 4-5% rental growth and 97-98% occupancy for the 2025/26 academic year, with 75% of beds already sold. A new joint venture with Manchester Metropolitan University is in advanced stages, and several development projects are progressing, including a 934-bed development in Glasgow and a planning application for a Newcastle University joint venture. The property portfolios of USAF and LSAV saw valuation increases due to rental growth, reflecting a positive outlook for the student accommodation sector.

Regulatory Filings and Compliance
Unite Group plc Announces Total Voting Rights and Share Capital
Neutral
Mar 31, 2025

Unite Group plc has announced its total voting rights and share capital as of March 31, 2025, which consists of 488,792,550 ordinary shares with voting rights. This disclosure is in compliance with the FCA’s Disclosure and Transparency Rules, allowing shareholders to calculate and notify any changes in their interest in the company.

Shareholder MeetingsFinancial Disclosures
Unite Group PLC Publishes 2024 Annual and Sustainability Reports
Neutral
Mar 27, 2025

Unite Group PLC has published its Annual Report and Accounts for the year ending December 31, 2024, along with a Sustainability Report and Notice of Annual General Meeting. The AGM is scheduled for May 15, 2025, at the company’s registered office in Bristol. These documents are available on the company’s website and the National Storage Mechanism, providing stakeholders with insights into the company’s financial performance and sustainability initiatives.

Executive/Board ChangesRegulatory Filings and Compliance
Unite Group CEO Vests Deferred Bonus Shares
Neutral
Mar 14, 2025

Unite Group plc, a leader in the student accommodation sector, announced that its CEO, Joe Lister, has vested 5,772 shares as part of a deferred bonus from the 2022 financial year. This transaction, conducted on the London Stock Exchange, reflects the company’s adherence to the Market Abuse Regulation, signaling transparency and compliance in its executive compensation practices.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.