Unite Group plc: Valuation vs visibility: the market is waiting

Research evidence excerpt

Unite Group plc: Valuation vs visibility: the market is waiting

bility UBS Cons.

on the 2026/27 booking cycle, postgraduate demand following recent policy changes, 12/26E 41.75 42.03

and the UK’s relative cost competitiveness. The balance between rental growth and 12/27E 42.32 42.46

occupancy was also a key point of debate, alongside execution risk concerns over the 12/28E 43.36 43.24

planned disposals. At the same time, the implications of the Renters' Rights Act for HMO

supply were constructively viewed as a potential support. Across these themes, the Zachary Gauge

Analystcommon thread is not a view that fundamentals are structurally broken, but that

zachary.gauge@ubs.com

uncertainty around timing and forward visibility remains the key constraint. +44-20-7901 5534

Our view - reiterating a conviction Buy Charles Boissier, CFA

Analyst

Our view is that this leaves the set-up more favourable than positioning implies. charles.boissier@ubs.com

Investors were broadly aligned that just delivering 2026/27 guidance (lower end of 2– +44-20-7568 4415

3% rental growth and 93–96% occupancy) would act as a clearing event, signalling

Nadir Rahman

stabilisation and removing a key overhang. We expect management to prioritise

occupancy, with UBS Evidence Lab data suggesting increasing pricing flexibility. While nadir.rahman@ubs.com

this may weigh on rental growth, the ability to offset this through higher occupancy - +44-20-7567 1750

with potential margin benefits - should still support the overall income outcome.

Looking beyond the near term, the bar for a positive shift in sentiment remains low. With

demand proving more resilient at higher-tariff institutions and supply tightening

gradually through the impact of the Renters' Rights Act, we think the risk skew remains

attractive.