Unite Group plc: Strong Lettings Momentum Supports Outlook

Research evidence excerpt

Unite Group plc: Strong Lettings Momentum Supports Outlook

mptions. This was driven primarily by lower-than-expected development profits, 12/27E 43.40 43.41 0 42.20

while the portfolio revaluation itself was broadly consistent with our expectation for 12/28E 44.07 44.64 1 43.39

50bps of outward yield movement in 2026, of which around 35bps was recognised in

1H26. We continue to forecast a further 15bps of outward yield shift in 2H26, leaving Zachary Gauge

Analystour valuation outlook broadly unchanged in directional terms, albeit from a lower base.

zachary.gauge@ubs.com

We model £225m of disposals in 2H26, comprising £130m of regional PBSA assets at a +44-20-7901 5534

7.5% NIY, the disposal of Hawthorne House Academic Unit for £45m and a £60m

London development site sale. We also continue to forecast a further £260m of Charles Boissier, CFA

Analystdisposals in 2027 at an average 6.5% NIY.

charles.boissier@ubs.com

+44-20-7568 4415

Capital recycling remains a key upside lever

Nadir Rahman

Assuming this disposal programme is executed, we expect capital recycling to continue

Analyst

through additional share buybacks and therefore model a further £165m of repurchases nadir.rahman@ubs.com

in 1H27, consistent with our 2026 assumptions. Despite the sharper revaluation in +44-20-7567 1750

1H26, we remain constructive on the shares. In our view, concerns around disposal

pricing had already been reflected in sentiment and valuation prior to the results. The

lower valuation base should ultimately facilitate asset sales closer to book value in 2H26

by recognising valuation pressure upfront rather than through the disposal process itself.

In that sense, we view the 1H26 valuation adjustment as bringing forward pain that was