Unite Group valuations ahead in December quarter

10th Jan 2017 07:58

(ShareCast News) - Developer and manager of student accommodation, Unite Students, released the quarterly property valuation of the Unite UK Student Accommodation Fund (USAF) and the London Student Accommodation Joint Venture (LSAV) as at 31 December 2016, on Tuesday.The FTSE 250 firm said at period end, USAF's property portfolio was independently valued at £2.29bn, representing a like-for-like increase of 0.6% during the quarter and 5% over the full year.It said the portfolio comprises 27,441 beds in 76 properties across 24 university towns and cities in the UK.LSAV's property portfolio was independently valued at £1.01bn, up 0.5% on a like-for-like basis in the quarter and 4% over the full year.Unite said that portfolio comprises 6,197 beds across 14 properties in London and three properties in Edinburgh.The increase in like-for-like valuations was driven by rental growth in the quarter, the board claimed, with valuation yields remaining stable in the quarter with nine basis points of yield compression across the year.Unite claimed the USAF portfolio is valued at an average yield of 5.6% and LSAV's portfolio at 4.9%.As a result of the strong total return in USAF during 2016, Unite expects to earn a net performance fee in the region of £6m, to be paid in units in the first quarter of 2017."Demand for our high quality, well located student accommodation and customer offering remained strong throughout 2016," said chief financial officer Joe Lister."The continued high occupancy and lettings performance, as well as the limited yield compression, contributed to the strong performances of both USAF and LSAV."Bookings for the 2017/18 academic year, which opened towards the end of 2016, have also started well."