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Unite Group plc (GB:UTG)
LSE:UTG

Unite Group plc (UTG) AI Stock Analysis

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GB:UTG

Unite Group plc

(LSE:UTG)

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Outperform 72 (OpenAI - 5.2)
Rating:72Outperform
Price Target:
588.00p
▲(2.35% Upside)
Unite Group plc's overall stock score is driven by strong financial performance and positive corporate events, indicating confidence in its strategic direction. However, technical analysis suggests a bearish trend, which tempers the overall score. The attractive valuation with a low P/E ratio and high dividend yield provides a solid investment case, despite the current market momentum challenges.
Positive Factors
Revenue Growth
The consistent revenue growth indicates strong demand for student accommodation, reinforcing Unite Group's market position and potential for sustained earnings.
Balance Sheet Health
A low debt-to-equity ratio and high equity ratio suggest financial stability, providing Unite Group with flexibility for future investments and resilience against economic fluctuations.
Operational Efficiency
High EBIT and EBITDA margins reflect efficient management and cost control, enhancing profitability and competitive advantage in the student accommodation sector.
Negative Factors
Negative Free Cash Flow
Negative free cash flow indicates higher cash outflows from investments than inflows from operations, which could strain liquidity if not addressed through improved cash management or increased operational cash generation.
Liquidity Challenges
Sustained liquidity challenges may limit Unite Group's ability to fund new projects or respond to market opportunities, potentially impacting long-term growth prospects.
Strategic Capital Investments
While strategic investments aim for future growth, they currently pressure cash flow, necessitating careful management to ensure these investments yield expected returns without compromising financial stability.

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

Unite Group plc Business Overview & Revenue Model

Company DescriptionUnite 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 MoneyUnite Group generates revenue primarily through rental income from its extensive portfolio of student accommodation properties. The company leases these properties to students on a yearly basis, often charging premium rates for modern facilities and locations near major universities. In addition to rental income, Unite Group benefits from ancillary services such as utilities management and additional services offered to residents. The company has established partnerships with various universities, which helps secure occupancy rates and provides a stable revenue stream. The consistent demand for student housing, driven by rising enrollment in higher education and limited housing supply, further contributes to Unite Group's earnings potential.

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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue322.10M299.30M276.10M259.30M266.90M215.60M
Gross Profit95.90M212.90M199.30M181.20M194.70M153.00M
EBITDA169.20M482.00M146.80M401.40M182.10M128.50M
Net Income346.30M441.90M102.50M350.50M342.40M-121.00M
Balance Sheet
Total Assets6.43B6.42B5.47B5.40B5.05B5.23B
Cash, Cash Equivalents and Short-Term Investments83.30M273.20M37.50M38.00M109.40M338.30M
Total Debt1.35B1.35B1.17B1.36B1.26B1.79B
Total Liabilities1.55B1.61B1.38B1.58B1.50B1.97B
Stockholders Equity4.88B4.81B4.07B3.79B3.53B3.23B
Cash Flow
Free Cash Flow128.30M-59.10M15.20M145.60M156.90M26.00M
Operating Cash Flow131.70M216.40M153.20M155.30M160.50M29.40M
Investing Cash Flow-550.10M-428.00M-109.40M-236.70M207.80M-159.40M
Financing Cash Flow-86.30M448.40M-44.30M10.00M-597.20M381.40M

Unite Group plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price574.50
Price Trends
50DMA
545.51
Positive
100DMA
607.84
Negative
200DMA
703.91
Negative
Market Momentum
MACD
7.19
Negative
RSI
66.07
Neutral
STOCH
80.07
Negative
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 574.5 is above the 20-day moving average (MA) of 548.40, above the 50-day MA of 545.51, and below the 200-day MA of 703.91, indicating a neutral trend. The MACD of 7.19 indicates Negative momentum. The RSI at 66.07 is Neutral, neither overbought nor oversold. The STOCH value of 80.07 is Negative, 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 (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
£4.62B13.237.22%6.67%43.70%40.28%
75
Outperform
£4.13B11.756.14%5.85%-20.83%
73
Outperform
£4.78B19.223.85%6.34%10.69%135.58%
72
Outperform
£2.81B8.117.57%5.71%12.77%14.86%
72
Outperform
£391.29M7.5111.71%7.17%1.60%211.81%
71
Outperform
£170.73M13.387.37%7.43%-10.95%-30.09%
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:UTG
Unite Group plc
574.50
-182.93
-24.15%
GB:AEWU
AEW UK REIT
107.60
16.36
17.93%
GB:BLND
British Land Company plc
412.80
90.11
27.93%
GB:CREI
Custodian REIT
85.20
18.33
27.41%
GB:LAND
Land Securities Group plc REIT
644.00
145.40
29.16%
GB:LMP
LondonMetric Property
197.70
35.22
21.68%

Unite Group plc Corporate Events

Business Operations and StrategyStock Buyback
Unite Group Launches £100m Share Buyback to Return Surplus Capital
Positive
Jan 9, 2026

Unite Group plc has launched a share buyback programme of up to £100 million, returning surplus capital to investors in a move that underlines the board’s confidence in the company’s long-term prospects and balance sheet strength. Funded initially from capital released by deferred development activity and aligned with an ongoing target disposal programme of £300–400 million per year, the buyback will reduce the company’s issued share capital through the cancellation of repurchased shares and may support earnings per share and capital efficiency. The programme, to be executed in two stages by Deutsche Bank and J.P. Morgan under non-discretionary arrangements, begins on 9 January 2026 and will run until completion or 30 June 2026, with purchases conducted in the open market under existing shareholder authority and in compliance with UK regulatory requirements.

The most recent analyst rating on (GB:UTG) stock is a Buy with a £9.06 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 StrategyStock BuybackFinancial DisclosuresM&A Transactions
Unite Group launches £100m buyback as it reshapes pipeline and holds 2025 guidance
Positive
Jan 9, 2026

Unite Group has reaffirmed its 2025 earnings guidance and reported steady trading, with 64% of rooms already reserved for the 2026/27 academic year and targets for 93–96% occupancy and 2–3% rental growth, despite a slower start to the lettings cycle as universities delay renewing nomination agreements. The company is shifting capital away from less attractive development projects to fund a £100m share buyback, has scrapped its TP Paddington scheme and deferred a Bristol project, and is pushing ahead with major university joint ventures in Newcastle and Manchester and the Hawthorne House scheme in Stratford, while expecting an exceptional £10m planning write-off. Q4 saw modest like-for-like valuation declines in its USAF and LSAV funds, though both delivered small full-year capital growth, and Unite is tightening costs through head office restructuring and anticipated synergies from its pending Empiric Student Property acquisition, underpinning its strategy to enhance returns and resume earnings growth from 2027.

The most recent analyst rating on (GB:UTG) stock is a Buy with a £9.06 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 Confirms Share Capital and Voting Rights as of Year-End 2025
Neutral
Jan 2, 2026

Unite Group plc has reported that, as of 31 December 2025, its issued share capital comprises 490,043,571 ordinary shares, all of which carry voting rights, with no shares held in treasury. This updated share capital figure serves as the reference denominator for investors assessing whether they must disclose holdings or changes in their interests under the UK Financial Conduct Authority’s Disclosure and Transparency Rules, providing clarity and transparency around the company’s equity base for regulatory and shareholder reporting purposes.

The most recent analyst rating on (GB:UTG) stock is a Buy with a £588.00 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 Seals Newcastle JV to Deliver 2,000-Bed Castle Leazes Scheme
Positive
Dec 22, 2025

Unite Students and Newcastle University have finalised a joint venture to develop a 2,009-bed student village at Castle Leazes, replacing the university’s demolished 1960s-era housing and expanding Unite’s on-campus pipeline to 4,300 beds. With funding complete and regulatory approvals secured, construction has begun, with phased openings scheduled for the 2028/29 and 2029/30 academic years; Unite will act as developer, asset manager and operator with a 51% stake, while the university holds 49% via a 150-year lease of the site. The project is positioned as a strategic investment that enhances student experience, supports the university’s income, alleviates local housing pressure and reinforces Unite’s long-term partnership model with leading universities, including a multi-year nominations agreement for 1,600 existing beds in Newcastle during the development phase.

The most recent analyst rating on (GB:UTG) stock is a Buy with a £588.00 price target. To see the full list of analyst forecasts on Unite Group plc stock, see the GB:UTG Stock Forecast page.

Other
Unite Group Executives Acquire Shares, Signaling Confidence
Positive
Dec 8, 2025

Unite Group plc announced recent share purchases by its Chief Executive Officer, Joe Lister, and Chief Financial Officer, Michael Burt. Both executives acquired 10,000 ordinary shares each, with transactions conducted on the London Stock Exchange. This move demonstrates confidence in the company’s future prospects and could positively influence stakeholder perceptions.

The most recent analyst rating on (GB:UTG) stock is a Buy with a £588.00 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 Updates Share Capital and Voting Rights
Neutral
Dec 1, 2025

Unite Group plc has announced that as of December 1, 2025, its total share capital consists of 490,043,571 ordinary shares with voting rights, with no shares held in treasury. This figure is crucial for shareholders to determine their notification obligations under the FCA’s Disclosure and Transparency Rules, impacting how they manage their investments in the company.

The most recent analyst rating on (GB:UTG) stock is a Hold with a £578.00 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 StrategyStock BuybackFinancial Disclosures
Unite Group PLC Sets Strategic Focus on High-Tariff Universities Amid Financial Guidance for 2026
Neutral
Nov 27, 2025

Unite Group PLC announced its strategic priorities and financial guidance for 2026 at an investor event. The company plans to increase its portfolio’s focus on high-tariff universities, aiming to boost its weighting from 64% to 80%. It will accelerate disposals to reallocate capital towards university partnerships and share buybacks. Despite challenges in some cities, Unite expects a reduction in adjusted EPS by 7-10% in 2026 due to lower occupancy and rising finance costs, but remains optimistic about growth prospects from 2027.

The most recent analyst rating on (GB:UTG) stock is a Hold with a £590.00 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 StrategyStock Buyback
Unite Group PLC Targets Strategic Growth in Student Accommodation
Positive
Nov 27, 2025

Unite Group PLC announced its strategic focus on aligning its portfolio more closely with the UK’s strongest universities, aiming to increase its high-tariff weighting from 64% to 80%. The company plans to accelerate disposals to fund university partnerships and share buybacks, while targeting occupancy rates of 93-96% and rental growth of 2-3% for the 2026/27 academic year. Despite expected challenges in 2026 due to lower occupancy and rising finance costs, Unite remains confident in its long-term growth prospects, supported by strategic capital recycling and operational efficiencies.

The most recent analyst rating on (GB:UTG) stock is a Hold with a £590.00 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 Director Reinvests in Shares Through Dividend Plan
Positive
Nov 14, 2025

Unite Group plc announced a director dealing involving Dame Shirley Pearce, a Non-Executive Director, who participated in a dividend reinvestment plan. The transaction involved the reinvestment of the 2025 interim dividend into 72 ordinary shares at a price of 562.8 pence per share, totaling £405.22, conducted on the London Stock Exchange. This move reflects the company’s ongoing commitment to shareholder value and may indicate confidence in the company’s financial health and future prospects.

The most recent analyst rating on (GB:UTG) stock is a Hold with a £590.00 price target. To see the full list of analyst forecasts on Unite Group plc stock, see the GB:UTG Stock Forecast page.

Executive/Board ChangesDividends
Unite Group Announces Director’s Dividend Reinvestment
Neutral
Nov 5, 2025

Unite Group plc announced a director dealing involving Richard Huntingford, the Chair, who participated in a scrip dividend reinvestment. The transaction involved the acquisition of ordinary shares at varying prices, conducted on the London Stock Exchange, reflecting the company’s ongoing commitment to shareholder value through dividend reinvestment strategies.

The most recent analyst rating on (GB:UTG) stock is a Hold with a £590.00 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 StrategyM&A Transactions
Unite Group PLC Announces Strategic Acquisition of Empiric Student Property
Positive
Nov 3, 2025

Unite Group PLC has announced its strategic acquisition of Empiric Student Property plc, with plans to integrate and improve occupancy across Empiric’s portfolio. The company anticipates achieving annual cost synergies of at least £13.7 million, leveraging its operational platform and university relationships. The acquisition has been approved by Empiric shareholders and is currently under review by the Competition and Markets Authority, with completion expected by the second quarter of 2026. Unite remains confident in delivering earnings and dividend accretion from this acquisition, drawing on its successful integration of Liberty Living in 2019.

The most recent analyst rating on (GB:UTG) stock is a Hold with a £613.00 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
Oct 31, 2025

Unite Group plc has disclosed its total share capital and voting rights as of October 31, 2025, in compliance with the Disclosure and Transparency Rules. The company reports a total of 490,043,571 ordinary shares with voting rights, which serves as a reference for shareholders to determine their notification obligations under the FCA’s rules.

The most recent analyst rating on (GB:UTG) stock is a Hold with a £613.00 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 Announces Results of 2025 Interim Scrip Dividend Election
Neutral
Oct 17, 2025

Unite Group plc announced the results of its 2025 interim dividend scrip scheme, with elections received for 50,485,651 shares, representing a 10.31% uptake of the company’s share capital. This will lead to the issuance of 602,016 new ordinary shares, which will be listed on the London Stock Exchange on 31 October 2025, increasing the total number of shares to 490,043,571.

The most recent analyst rating on (GB:UTG) stock is a Buy with a £960.00 price target. To see the full list of analyst forecasts on Unite Group plc stock, see the GB:UTG Stock Forecast page.

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.Date of analysis: Dec 07, 2025