10th January 2012
THE UNITE GROUP PLC
(“UNITE”, the “Group”, or the “Company”)
31 DECEMBER 2011 VALUATION OF
THE UNITE UK STUDENT ACCOMMODATION FUND
The UNITE Group plc, the UK's leading developer and manager of student accommodation, today reports the Estimated Net
Asset Value* ("NAV") of the UNITE UK Student Accommodation Fund (the "Fund") as at 31 December 2011.
The NAV as at 31 December 2011 was £0.857 per unit, reflecting an increase of 1.8% during the fourth quarter delivering
an uplift of 6.1% in the 12 months to 31 December 2011 (30 September 2011: £0.842 per unit, 31 December 2010: £0.808 per unit). The total return for the year includingthe payment of income distributions was 11.5%.
The principal components of the movement in the value of the units were as follows:
Effect on Estimated NAV per unit: Movement in property values Movement in swap values Other factors Increase in Estimated NAV per unit Increase in underlying gross property values | Q4 1.3%
0.4% 0.1% 1.8% 0.6% | 2011 5.9% -0.5%
0.6% 6.1% 3.4% |
In arriving at the value of the Fund’s units, its property portfolio, now comprising 21,717 beds in 63 properties across 20 UK markets, was independently valued at £1,273 million.
The movement during the fourth quarter represents an increase of 0.6% in the underlying gross property values driven by 0.6% of quarterly rental growth. In the 12 months to 31 December 2011, the value of the property portfolio held by the Fund increased by 3.4%. This was driven principally by rental growth as valuation yields remained unchanged at 6.67% throughout the year. The outlook for rental growth in 2012 remains in the 3%-4% range.
Commenting on the Fund’s valuation, Joe Lister, UNITE’s Chief Financial Officer, said:
“USAF has delivered another strong performance in 2011 with 6.1% NAV growth and a total return of 11.5%. NAV growth has been driven principally by rental growth reflecting the on-going demand for good quality, well located student accommodation, supported by the strong occupancy level achieved for the 2011/12 academic year of 99%.”
For further information, please contact:
The UNITE Group plc
Joe Lister, Chief Financial Officer
Paul Harris, Communications Director
Tel: 0117 302 7004
FTI Consulting
Stephanie Highett
Dido Laurimore
Toyah Simpson
Tel: 020 7831 3113
About The UNITE Group
The UNITE Group is the UK’s leading developer and manager of student accommodation, with a business model that
focuses on two core areas:
- Development and Asset Management: UNITE undertakes the acquisition, planning and development of purpose-built student accommodation in the UK. Through the continuous assessment of quality and location of its investment portfolio, UNITE is well positioned to deliver value-adding strategies to those assets where further opportunities are identified. Working on behalf of its partners, UNITE acts as Fund Manager for the UNITE UK Student Accommodation Fund in addition to being 16.3% shareholders. UNITE also manages a number of Joint Venture partnerships.
- Professional property management: UNITE is home to some 40,000 students and has consistently proven high occupancy levels across its portfolio.
UNITE works closely with universities and colleges, in order to deliver high quality, well-located student accommodation at affordable prices in strong higher education markets.
Founded in 1991, UNITE is listed on the London Stock Exchange (UTG).
www.unite-group.co.uk
www.unite-students.com
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