Unite Group PLC on Tuesday reported a jump in its annual revenue as rental income grows, but said its profit fell on revaluation losses.
The Bristol-based owner, manager and developer of purpose-built student accommodation said revenue grew 6.5% to £276.1 million in 2023, from £259.3 million the year before.
This was due to a 7.2% rise in rental income to £259.2 million from £241.7 million a year prior.
However, pretax profit plunged 72% to £102.5 million from £361.9 million in 2022. This was driven by the increase in adjusted earnings of £20.9 million, a revaluation loss of £61.2 million and £17.2 million revaluation loss for interest rate swaps, the company explained.
Unite upped its final dividend by 8.8% to 23.6 pence per share from 21.7p the year before, which brings its full-year dividend for 2023 to 35.4p, up from 32.70p in 2022.
Looking ahead, Unite said it continues to see ‘strong demand’ for its student accomodation properties.
Commenting on the results, Chief Executive Officer Joe Lister said: ‘This is a strong set of results, driven by full occupancy, rental growth and substantial investment into our platform and portfolio. Our pipeline of developments, asset management projects and our new university partnership present a substantial growth opportunity for the business.
‘The supply-demand imbalance of student accommodation is acute and continues to intensify. We play a leading role in tackling this shortage, easing pressure on the wider housing market and freeing up homes for families. Our development and asset management pipeline stands at a record £1.3 billion and we are taking an innovative approach to delivering more homes for students. University partnerships provide a compelling opportunity to deliver new, high-quality accommodation and our first joint venture with Newcastle University is only possible for a business of our reputation, scale and development expertise.’
Shares in Unite were down 0.1% at 985.50 pence each in London on Tuesday morning.
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