Unite Group plc (UTG) AI Stock Analysis

• Market Cap: £2.66B
• Dividend Yield: 5.71%
• Average Volume (3M): 2.41M
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.76
• Revenue Growth: 12.77%
• EPS Growth: 14.86%
• Country: UK
• Employees: 1,906
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 0.29
• Shares Outstanding: 490,043,580
• 10 Day Avg. Volume: 3,563,960
• 30 Day Avg. Volume: 2,414,045
• PEG Ratio: 0.03
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 12.39
• P/FCF Ratio: -62.75
• 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: £727.50
• Price Target Upside: 34.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: 588.00p ▲(8.39% 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 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 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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	322.10M	299.30M	276.10M	259.30M	266.90M	215.60M
Gross Profit	95.90M	212.90M	199.30M	181.20M	194.70M	153.00M
EBITDA	169.20M	482.00M	146.80M	401.40M	182.10M	128.50M
Net Income	346.30M	441.90M	102.50M	350.50M	342.40M	-121.00M
Balance Sheet
Total Assets	6.43B	6.42B	5.47B	5.40B	5.05B	5.23B
Cash, Cash Equivalents and Short-Term Investments	83.30M	273.20M	37.50M	38.00M	109.40M	338.30M
Total Debt	1.35B	1.35B	1.17B	1.36B	1.26B	1.79B
Total Liabilities	1.55B	1.61B	1.38B	1.58B	1.50B	1.97B
Stockholders Equity	4.88B	4.81B	4.07B	3.79B	3.53B	3.23B
Cash Flow
Free Cash Flow	128.30M	-59.10M	15.20M	145.60M	156.90M	26.00M
Operating Cash Flow	131.70M	216.40M	153.20M	155.30M	160.50M	29.40M
Investing Cash Flow	-550.10M	-428.00M	-109.40M	-236.70M	207.80M	-159.40M
Financing Cash Flow	-86.30M	448.40M	-44.30M	10.00M	-597.20M	381.40M

Unite Group plc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 542.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:UTG, the sentiment is Neutral. The current price of 542.5 is above the 20-day moving average (MA) of 526.67, below the 50-day MA of 554.51, and below the 200-day MA of 718.93, indicating a neutral trend. The MACD of -8.68 indicates Negative momentum. The RSI at 52.27 is Neutral, neither overbought nor oversold. The STOCH value of 90.99 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	80 Outperform	£4.33B	12.43	7.22%	6.64%	43.70%	40.28%
BLND	75 Outperform	£3.85B	10.97	6.14%	5.91%	-20.83%	―
LAND	73 Outperform	£4.42B	17.79	3.85%	6.34%	10.69%	135.58%
CREI	73 Outperform	£376.59M	7.22	11.71%	7.32%	1.60%	211.81%
UTG	72 Outperform	£2.66B	7.66	7.57%	5.71%	12.77%	14.86%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
PCTN	60 Neutral	£375.72M	9.62	7.51%	5.22%	-3.98%	412.08%

Unite Group plc Corporate Events

Unite Group plc Updates Share Capital and Voting Rights

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.

Unite Group PLC Sets Strategic Focus on High-Tariff Universities Amid Financial Guidance for 2026

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.

Unite Group PLC Targets Strategic Growth in Student Accommodation

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.

Unite Group Director Reinvests in Shares Through Dividend Plan

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.

Unite Group Announces Director’s Dividend Reinvestment

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.

Unite Group PLC Announces Strategic Acquisition of Empiric Student Property

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.

Unite Group plc Announces Total Share Capital and Voting Rights

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.

Unite Group Announces Results of 2025 Interim Scrip Dividend Election

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.

Unite Group Director Purchases Shares, Signaling Confidence

Unite Group plc announced a director dealing involving Ross Paterson, a Non-Executive Director, who purchased 5,000 ordinary shares at 621.19 pence each on the London Stock Exchange, totaling £31,059.66. This transaction reflects a vote of confidence in the company by its leadership, potentially influencing stakeholder perceptions and market positioning.

Unite Group Reports Strong Rental Growth and Acquisition Approval

Unite Group PLC announced a trading update and Q3 fund valuations, highlighting strong rental growth driving property values. The company sold 95.2% of beds for the 2025/26 academic year, achieving a 4.0% rental growth, slightly below the previous year’s 8.2%. Despite this, the company outperformed the wider PBSA sector, supported by strong demand from universities and international students. The acquisition of Empiric Student Property was approved by shareholders, with the Competition and Markets Authority beginning its investigation. The company’s property portfolios saw modest valuation increases, with USAF’s portfolio valued at £2,853 million and LSAV’s at £2,108 million.

Unite Group Announces Total Voting Rights and Share Capital

Unite Group plc has announced its total voting rights and share capital as of 30 September 2025, which consists of 489,441,555 ordinary shares with voting rights. This disclosure is in accordance with the Disclosure and Transparency Rules, allowing shareholders to calculate their interests in the company accurately.

Unite Group Announces 2025 Interim Dividend and Scrip Dividend Scheme

Unite Group plc announced its interim dividend for 2025, with a total of 12.8 pence per share, including a Property Income Distribution of 9.7 pence and an ordinary dividend of 3.1 pence. The company is offering a Scrip Dividend Scheme to shareholders, allowing them to receive dividends in the form of additional shares, with a reference share price set at 709.50 pence. This move is part of the company’s strategy to provide flexible dividend options to its investors, potentially impacting shareholder value and market perception.