Occupancy down at Unite Students, but demand surges at ‘elite’ universities
Unite Students saw a slide in occupancy across its portfolio, offset by resilient demand at top elite universities.
The student accommodation developer reported a 9 per cent increase in adjusted earnings to £232.3m for 2025. However, its statutory profit fell by 78 per cent due to a decline in the valuation of the property portfolio.
The group’s portfolio occupancy fell to 95.2 per cent for the 2025/26 academic year, down from 97.5 per cent, with vacancies concentrated in Leicester, Nottingham, and Sheffield due to high supply and weaker demand.
However, the FTSE 250 group saw demand remain robust at top-tier universities, where applicants rose by 6 per cent. As a result, Unite said it plans to increase its portfolio alignment to these institutions from 67 per cent to 80 per cent.
Unite finalised the £530m acquisition of Empiric Student Property in January 2026, adding 7,700 beds; however, the portfolio is currently underperforming with 89 per cent occupancy, well below Unite’s core portfolio.
“We are working closely with the Empiric team to drive performance across the portfolio,” it added.
The group also saw that supply in private houses in the multiple-occupation sector has fallen by 9 per cent over four years due to rising mortgage costs and new regulations, such as the Renters’ Rights Act, driving more students toward purpose-built student accommodation.
However, despite the challenging outlook, the company proposed a final dividend of 24.9p, bringing the total dividend to 37.7p for the year, a 1 per cent increase over 2024.
The results follow Unite’s £100m share buyback programme launched in January to return surplus capital to shareholders.
Chief executive Joe Lister explained that the group “delivered a robust performance in 2025, with strong trading across the majority of our portfolio offset by weaker demand in a small number of cities for the 2025/26 academic year.”
In addition to its results and disposal, Unite also announced that it had appointed Duncan Cooper as a non-executive director and chair (designate) of the audit and risk committee.
Cooper is currently the chief financial officer of Travis Perkins and was previously the group finance director of Crest Nicholson and held senior finance roles at Sainsbury’s.