Unite Group sees 2026/27 income at lower end of range

Unite Group sees 2026/27 income at lower end of range

Unite Group Sees 2026/27 Income at Lower End of Range Amid Sector Challenges

Unite Group, a leading UK student accommodation developer, has signaled that its 2026/27 earnings will fall toward the lower end of its projected range, citing persistent sector-wide challenges. The company anticipates a 7–10% decline in adjusted earnings per share for 2026, driven by reduced student occupancy, slower rental income growth, and delays in development completions according to company projections.

The Bristol-based firm reported muted expectations for the upcoming academic year, forecasting rental growth of 2–3% for 2026/27, down from 4% in 2025/26. Occupancy rates are projected to range between 93–96%, compared to 95.2% in the prior year as reported. These figures reflect broader industry pressures, including a decline in late-cycle Chinese postgraduate tenants—a trend attributed to geopolitical uncertainties and rising costs according to analysis.

Unite’s outlook follows the UK Competition and Markets Authority’s approval of its £634 million ($839.48 million) acquisition of Empiric Student Property, a deal aimed at consolidating market share amid softening demand as announced. However, the acquisition has not offset near-term headwinds. Empiric itself recently reported a 6% drop in occupancy, citing reduced reservations from Chinese students according to Empiric's report.

The earnings warning has weighed on Unite’s shares, which fell 6% in early trading on Thursday to their lowest level since 2015 according to market data. Analysts note that the sector’s reliance on international student demographics and macroeconomic factors continues to pose risks, despite long-term demand for purpose-built student housing.

Unite plans to provide further details during an upcoming investor event, where it will outline strategies to navigate the challenging environment. For now, the company’s 2026/27 performance underscores the fragility of the student housing market amid shifting enrollment trends and global economic dynamics.