First Read Unite Group plc: Demand firms up

Research evidence excerpt

First Read Unite Group plc: Demand firms up

1.75 42.02

markets. Most importantly for PBSA, demand from students intending to live away from 12/27E 42.32 42.26

home increased by 3.7% YoY versus 2.9% in January. This directly addresses one of the 12/28E 43.36 42.95

key structural concerns raised, namely that rising stay-at-home intentions could negate

Zachary Gaugethe translation of applicant growth into accommodation demand.

Analyst

zachary.gauge@ubs.com

Incrementally more bullish on Unite +44-20-7901 5534

Taken together, these data points leave us increasingly constructive on Unite. Last week

Charles Boissier, CFA

the company upgraded occupancy guidance from lower end of 93-94% to 94%-96%, Analyst

but the latest UCAS data suggest there may still be upside risk as the sector enters the charles.boissier@ubs.com

critical Clearing period. Not only are headline applicant numbers stronger than they +44-20-7568 4415

appeared in January, but the improvement is concentrated in exactly the cohorts that

Nadir Rahman

matter most for PBSA demand: international students, Chinese students, students Analyst

intending to live away from home and applicants to higher-tariff institutions. nadir.rahman@ubs.com

Furthermore, with applicants growing across all tariff categories and higher-tariff +44-20-7567 1750

demand remaining particularly strong, the probability of securing the final tranche of

nomination agreements appears to be increasing. In our view, the June update

strengthens confidence that 2026/27 demand will exceed the assumptions embedded

in current market expectations and provides further evidence that the booking

environment is tracking more favourably than feared.

Valuation: UTG trades at a spot estimate 44% discount to EPRA NTA