Unite to reinstate dividend

2nd Mar 2011 07:39

Student accommodation manager Unite Group said adjusted fully diluted NAV per share rose 11% to 295p as it underlined its confidence in future trading with the reinstatement of a dividend payment this year."2010 has been an excellent year for UNITE and as we continue to work with our partners in the sector we look forward to 2011 and beyond with confidence," the group said in a company statement.Profit at a net portfolio contribution level rose to £4.1m for the year to 31 December 2010 from £0.6m during the same period in 2009 after high occupancy and continued rental growth.Unite said it intends to reinstate a dividend in 2011, "given the encouraging financial performance and positive outlook for the business."Chairman Phil White commented, "We have made timely and effective improvements to our capital structure and operating platform, which have contributed to a resilient performance in the recent challenging economic times and driven significant improvements in both profitability and Net Asset Value."He added, "We have a portfolio that is well positioned for continued rental growth, a well funded and attractive development pipeline that will add significantly to earnings in future years."Adjusted net debt reduced to £335m from £390m at 31 December 2009 largely as a result of the sale of £146m of assets to USAF.