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Unite Group plc (GB:UTG)
LSE:UTG

Unite Group plc (UTG) AI Stock Analysis

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Unite Group plc

(LSE:UTG)

78Outperform
Unite Group plc exhibits strong financial performance with robust revenue and earnings growth, supported by a solid balance sheet and strategic capital investments. The stock's valuation is appealing, with a low P/E ratio and a strong dividend yield. Positive corporate events highlight the company's potential for continued growth. While technical indicators show some short-term volatility, the long-term outlook remains positive.
Positive Factors
Market Performance
Unite's share price is more or less flat over the last three months, outperforming the UK EPRA Index which is down 6% over the same period.
Portfolio Strength
Unite Group is well-positioned with a portfolio that has high occupancy rates and strong rental growth.
Negative Factors
Stock Performance
The company's shares have significantly underperformed over the last year.

Unite Group plc (UTG) vs. S&P 500 (SPY)

Unite Group plc Business Overview & Revenue Model

Company DescriptionUnite Students is the UK's largest owner, manager and developer of purpose-built student accommodation serving the country's world-leading Higher Education sector. Following our successful £1.4bn acquisition of Liberty Living's UK assets in November 2019, we now provide homes to 76,000 students across 177 properties in 27 leading university towns and cities. Our people are driven by a common purpose: to provide a 'Home for Success' for the students who live with us and to be the most trusted brand in the sector. We do this through quality service, quality people and quality properties, all designed on the basis of an excellent insight into students' needs and preferences. Unite's accommodation is high quality, affordable, safe and secure, and located where students want to live. Students live predominantly in en-suite study bedrooms with rents covering all bills, insurance, 24-hour security and high-speed Wi-Fi. MyUnite, our mobile app, provides practical support such as instant messaging and maintenance requests. We hold a five-star British Safety Council audit rating (out of five) following an Occupational Health and Safety audit. The audit measured our performance against a number of key safety management indicators, providing an international benchmark for safety management systems and indicating best practice for continual improvement. Our commitment to customer service is powered by an innovative, in-house operating platform. It provides a wide range of benefits to our students, such as an optimised online booking process, as well as providing us with a unique ability to drive value from our portfolio through scale efficiencies and revenue management. Our other strategic priority is delivering growing and sustainable earnings, underpinned by a strong capital structure. A key part of this strategy is growing the number of beds let through partnerships with the strongest UK universities which are experiencing record levels of student demand. We currently partner with 60 universities across the UK, guaranteeing that 52% of our rooms are let under 'nomination agreements' providing high visibility of forward occupancy and rental growth. Unite Students has spent years helping young people thrive in new situations and help them manage the big 'Leap' to university life. Our insight has identified a significant gap between student expectations and reality. To support this leap, we have developed the Leapskills programme, helping to prepare prospective students for independent living. The programme introduces students to a number of student life scenarios to provoke group discussion on conflict resolution, problem solving and gives a general insight into shared living to help closer match expectations to reality. Unite is the founder of and major donor to the Unite Foundation, a charitable trust established to support talented students facing challenging financial circumstances through the provision of free accommodation scholarships. The Foundation has so far provided scholarships for 434 young people working in close collaboration with 27 partner universities. Unite is invested in and operates two specialist funds and joint ventures with institutional investment partners: the £3 billion Unite UK Student Accommodation Fund (USAF), and the £1 billion London Student Accommodation Vehicle (LSAV). Founded in 1991 in Bristol, Unite Group is an award-winning Real Estate Investment Trust (REIT), listed on the London Stock Exchange and a member of the FTSE 250 Index.
How the Company Makes MoneyUnite Group plc generates revenue through a combination of rental income from its student accommodation properties and development activities. The primary revenue stream is derived from leasing rooms to students, usually on a contractual basis aligned with academic terms. The company also engages in property development, where it constructs new accommodation facilities and refurbishes existing ones to enhance its portfolio. Unite Group often enters into partnerships with universities to secure long-term lease agreements, ensuring a stable income stream. Additionally, the company benefits from capital gains through strategic property sales and investments in joint ventures, further diversifying its income sources.

Unite Group plc Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
337.60M259.20M259.30M266.90M215.60M156.20M
Gross Profit
252.10M182.40M181.20M194.70M153.00M115.60M
EBIT
128.80M154.70M227.80M174.30M119.30M95.20M
EBITDA
184.10M146.80M235.60M182.10M-55.90M69.80M
Net Income Common Stockholders
269.00M102.50M350.50M342.40M-121.00M-89.20M
Balance SheetCash, Cash Equivalents and Short-Term Investments
123.60M37.50M38.00M109.40M338.30M86.90M
Total Assets
2.85B5.47B5.40B5.05B5.23B5.02B
Total Debt
592.60M1.17B1.36B1.26B1.79B1.67B
Net Debt
469.00M1.13B1.32B1.15B1.45B1.59B
Total Liabilities
750.70M1.38B1.58B1.50B1.97B1.92B
Stockholders Equity
2.07B4.07B3.79B3.53B3.23B3.07B
Cash FlowFree Cash Flow
141.90M15.20M145.60M156.90M26.00M75.20M
Operating Cash Flow
139.10M153.20M155.30M160.50M29.40M80.20M
Investing Cash Flow
-99.10M-109.40M-236.70M207.80M-159.40M-376.60M
Financing Cash Flow
494.60M-44.30M10.00M-597.20M381.40M259.70M

Unite Group plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price871.50
Price Trends
50DMA
830.81
Positive
100DMA
830.98
Positive
200DMA
875.98
Negative
Market Momentum
MACD
6.95
Negative
RSI
64.02
Neutral
STOCH
88.94
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:UTG, the sentiment is Positive. The current price of 871.5 is above the 20-day moving average (MA) of 820.52, above the 50-day MA of 830.81, and below the 200-day MA of 875.98, indicating a neutral trend. The MACD of 6.95 indicates Negative momentum. The RSI at 64.02 is Neutral, neither overbought nor oversold. The STOCH value of 88.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:UTG.

Unite Group plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBLMP
78
Outperform
£3.79B17.356.48%5.89%95.26%
GBUTG
78
Outperform
£4.08B8.679.95%4.31%7.75%276.67%
60
Neutral
$3.00B12.400.61%9872.56%7.62%-2.59%
GBGCP
60
Neutral
41.912.14%9.65%
GBGPE
58
Neutral
£1.17B-1.38%2.34%-2.73%91.05%
50
Neutral
£4.10B38.851.61%7.24%-1.73%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:UTG
Unite Group plc
871.50
-31.68
-3.51%
GB:GPE
Great Portland Estates plc R.E.I.T.
302.00
-7.50
-2.42%
GB:LAND
Land Securities Group plc REIT
564.50
-18.18
-3.12%
GB:LMP
LondonMetric Property
188.40
7.19
3.97%
GB:TLW
Tullow Oil
13.62
-22.90
-62.71%
GB:GCP
GCP Infra Invt Shs GBP
72.40
7.59
11.71%

Unite Group plc Corporate Events

Other
BlackRock Reduces Stake in Unite Group PLC
Neutral
Apr 10, 2025

Unite Group PLC, a UK-based company, has announced a change in the voting rights held by BlackRock, Inc., a major shareholder. BlackRock’s voting rights in Unite Group have decreased from 7.43% to 6.55%, indicating a disposal of some of its shares. This adjustment in shareholding could impact Unite Group’s shareholder dynamics and influence future corporate decisions.

Spark’s Take on GB:UTG Stock

According to Spark, TipRanks’ AI Analyst, GB:UTG is a Outperform.

Unite Group plc exhibits strong financial performance with robust revenue and earnings growth, supported by a solid balance sheet and strategic capital investments. The stock’s valuation is appealing, with a low P/E ratio and a strong dividend yield. Positive corporate events highlight the company’s potential for continued growth. While technical indicators show some short-term volatility, the long-term outlook remains positive.

To see Spark’s full report on GB:UTG stock, click here.

Executive/Board ChangesBusiness Operations and Strategy
Unite Group plc Grants LTIP Options to Executive Directors
Neutral
Apr 8, 2025

Unite Group plc has announced the grant of long-term incentive plan (LTIP) options to its Executive Directors, CEO Joe Lister and CFO Michael Burt. The options, based on a share price of 825.0p, are tied to performance metrics such as EPRA adjusted earnings per share and shareholder returns, with a two-year holding period before they can be exercised. This move reflects the company’s strategic priorities and adaptation to the macroeconomic environment, with implications for executive motivation and shareholder value.

Spark’s Take on GB:UTG Stock

According to Spark, TipRanks’ AI Analyst, GB:UTG is a Outperform.

Unite Group plc exhibits strong financial performance with robust revenue and earnings growth, supported by a solid balance sheet and strategic capital investments. The stock’s valuation is appealing, with a low P/E ratio and a strong dividend yield. Positive corporate events highlight the company’s potential for continued growth. While technical indicators show some short-term volatility, the long-term outlook remains positive.

To see Spark’s full report on GB:UTG stock, click here.

Business Operations and StrategyFinancial Disclosures
Unite Students Reports Strong Q1 Performance and Expands University Partnerships
Positive
Apr 8, 2025

Unite Students reports strong trading performance and property valuation growth for Q1 2025, driven by increasing student numbers and rental growth. The company is on track to achieve 4-5% rental growth and 97-98% occupancy for the 2025/26 academic year, with 75% of beds already sold. A new joint venture with Manchester Metropolitan University is in advanced stages, and several development projects are progressing, including a 934-bed development in Glasgow and a planning application for a Newcastle University joint venture. The property portfolios of USAF and LSAV saw valuation increases due to rental growth, reflecting a positive outlook for the student accommodation sector.

Spark’s Take on GB:UTG Stock

According to Spark, TipRanks’ AI Analyst, GB:UTG is a Outperform.

Unite Group plc exhibits strong financial performance with robust revenue and earnings growth, supported by a solid balance sheet and strategic capital investments. The stock’s valuation is appealing, with a low P/E ratio and a strong dividend yield. Positive corporate events highlight the company’s potential for continued growth. Technical indicators suggest potential for upward momentum, although short-term volatility is noted.

To see Spark’s full report on GB:UTG stock, click here.

Regulatory Filings and Compliance
Unite Group plc Announces Total Voting Rights and Share Capital
Neutral
Mar 31, 2025

Unite Group plc has announced its total voting rights and share capital as of March 31, 2025, which consists of 488,792,550 ordinary shares with voting rights. This disclosure is in compliance with the FCA’s Disclosure and Transparency Rules, allowing shareholders to calculate and notify any changes in their interest in the company.

Shareholder MeetingsFinancial Disclosures
Unite Group PLC Publishes 2024 Annual and Sustainability Reports
Neutral
Mar 27, 2025

Unite Group PLC has published its Annual Report and Accounts for the year ending December 31, 2024, along with a Sustainability Report and Notice of Annual General Meeting. The AGM is scheduled for May 15, 2025, at the company’s registered office in Bristol. These documents are available on the company’s website and the National Storage Mechanism, providing stakeholders with insights into the company’s financial performance and sustainability initiatives.

Executive/Board ChangesRegulatory Filings and Compliance
Unite Group CEO Vests Deferred Bonus Shares
Neutral
Mar 14, 2025

Unite Group plc, a leader in the student accommodation sector, announced that its CEO, Joe Lister, has vested 5,772 shares as part of a deferred bonus from the 2022 financial year. This transaction, conducted on the London Stock Exchange, reflects the company’s adherence to the Market Abuse Regulation, signaling transparency and compliance in its executive compensation practices.

Regulatory Filings and Compliance
Unite Group Announces Total Voting Rights and Share Capital Update
Neutral
Feb 28, 2025

Unite Group plc announced that as of February 28, 2025, its share capital consists of 488,792,550 ordinary shares with voting rights. This information is crucial for shareholders to determine their notification requirements under the FCA’s Disclosure and Transparency Rules, impacting how they manage their investments in the company.

Business Operations and StrategyFinancial Disclosures
Unite Group Reports Strong 2024 Earnings and Positive Outlook for 2025/26
Positive
Feb 25, 2025

Unite Group plc reported a strong financial performance for the year ending December 2024, with a 16% increase in adjusted earnings to £213.8 million and a 5% rise in adjusted EPS to 46.6p. The company attributes its success to sustainable rental growth, high occupancy rates, and strategic investments in its portfolio. Looking ahead, Unite is optimistic about 2025/26, driven by increasing student demand and a supportive policy environment for international students. The company is well-positioned to capitalize on these opportunities with its robust development pipeline and university partnerships, aiming for continued earnings growth and enhanced portfolio quality.

Regulatory Filings and Compliance
Unite Group Announces Share Capital and Voting Rights Details
Neutral
Jan 31, 2025

Unite Group plc announced the total number of its ordinary shares with voting rights amounts to 488,792,074 as of January 31, 2025. This information is crucial for shareholders as it serves as the denominator in calculations determining their interest in the company, in line with the FCA’s Disclosure and Transparency Rules.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.