Unite Group (UTG.L): Occupancy focus offsets rent growth and expect further portfolio valuation declines

Research evidence excerpt

Unite Group (UTG.L): Occupancy focus offsets rent growth and expect further portfolio valuation declines

Flash |

08 Jul 2026 02:47:14 ET │ 10 pages

Unite Group (UTG.L)

Occupancy focus offsets rent growth and expect further portfolio

valuation declines

CITI'S TAKE Buy

Price (07 Jul 26 16:30) £5.20 Management expect H1 LFL portfolio value decline of between 6-6.5%.

Target price £9.06 LFL income growth guidance reiterated, however, expected to be more

occupancy driven. As a result, occupancy guidance was revised slightly Expected share price return 74.2%

upward and rental growth guidance revised downward. The negative Expected dividend yield 7.3%

impact from Renter's rights act mainly driven by early termination of Expected total return 81.5%

tenancy agreements is captured in the guidance. 2026/27 overall Market Cap £2,673M

reservations broadly in line with 2025/26 with nominations slightly US$3,537M

lagging and direct-let performing better. No further progress on disposals

since Q1, however, management note c £500Mn of assets being marketed

and a number of transactions in advanced stages expected to complete in

H2. Aakanksha AnandAC

+44-20-7508-1045

aakanksha.anand@citi.com2026/27 reservations broadly in line with 2025/26 – 2026/27 reservations at

86% broadly in line with 2025/26 at 85%. Of this, 53% (2025/26: 58%) were let Aaron Guy

under nomination agreements and 33% through direct-let (2025/26: 27%). +44-207-986-1739

aaron.guy@citi.com

Temitayo Olayinka

Valuation decline more evident – Quarterly fund valuations indicate decline in USAF +44-20-7986-3571

valuations of -3.9% and LSAV -6%. For Unite's portfolio (wholly owned + JV), temitayo.olayinka@citi.com

management expect a LFL portfolio value decline of between 6-6.5% in H1.