Quarterly valuation update for the USAF and LSAV – 09 January 2020

Unite Students, the UK’s leading owner, manager and developer of student accommodation, announces the quarterly property valuation of the Unite UK Student Accommodation Fund (‘USAF’) and the London Student Accommodation Joint Venture (‘LSAV’) as at 31 December 2019.

At 31 December 2019, USAF’s property portfolio was independently valued at £2,850 million, representing a like-for-like increase of 0.8% during the quarter and 3.1% for the year. The portfolio comprises 30,209 beds in 79 properties across 22 University towns and cities in the UK.

LSAV’s investment portfolio was independently valued at £1,335 million, up 2.7% in the quarter on a like-for-like basis and 7.4% for the year. LSAV’s investment portfolio comprises 8,354 beds across 12 properties in London and Aston Student Village in Birmingham.

The like-for-like valuation increase is predominantly driven by rental growth in USAF and a combination of rental growth and yield compression in LSAV. Overall the USAF portfolio is valued at an average yield of 5.3% and the LSAV portfolio is valued at an average yield of 4.4%.

The positive valuation performances in USAF and LSAV are further supported by a strong start to the 2020/21 sales cycle which is now well underway. Across the Group’s entire property portfolio, 68% (67% at the same time last year) of rooms are now sold for the next academic year.

Joe Lister, Unite Students Chief Financial Officer, commented:

“The USAF and LSAV portfolios have both performed well in 2019 with property valuation growth of 3.1% and 7.4% respectively. Returns have been delivered through high levels of occupancy, rental growth and have been enhanced by yield compression in London.

Bookings for the 2020/21 academic year have started strongly with 68% of rooms already sold, ahead of the previous year, reflecting the continued strong demand for places at the high-quality universities with which we partner.”

For further information, please contact:

Unite Students

Richard Smith / Joe Lister / Paul Richmond

Tel:  +44 117 302 7005

Powerscourt

Justin Griffiths/ Victoria Heslop

Tel: +44 20 7250 1446