Unite full-year pre-tax profit tumbles

6th Mar 2014 07:58

- Full-year profit decline- Lifts adjusted net asset value per share- Increases dividend, upbeat about rental growth prospectsStudent accommodation manager Unite Group posted a decline in full-year pre-tax profit but said strong university applications and the prospect of increased student enrolment in the coming years bode well for rental growth prospects.Pre-tax profit fell to £77.1m in the year ended December 31st from £126.2m the year before. Total revenue fell to £101.6m from £214.6m. Adjusted net asset value (NAV) per share rose 9.1% to 382p. A final dividend of 3.2p a share has been recommended, up from 3.0p.Chief Executive Mark Allan said the results demonstrated the continued strong performance and growth of the business, with positive improvements in all key areas.He said: "Following an active year on the financing front we have established a strong capital base which has enabled us both to take advantage of the current low interest rate environment for the longer term and to secure capital to support exciting growth opportunities."Strong University applications and recent government announcements intended to increase student enrolment in the coming years bode well for rental growth prospects."Unite added that it has an excellent, fully funded development pipeline that is well positioned to provide further sustainable growth in the future. Reservations for 2014/15 were at 64%, up from 62% a year ago, at pricing of around 3% rental growth for the full year. CJ