Unite reports strong NAV growth and doubling of profits
The Unite Group has reported an increase in adjusted, diluted NAV per share of 5.3 per cent to 335 pence in the six months to 30 June 2012.
In December 2011 NAV per share was 318 pence and in June 2011 it was 310 pence.
Recurring profits from operations (net portfolio contribution) increased to GBP14.4m (year to December 2011: GBP11m, six months to June 2011: GBP7.2m).
Adjusted earnings per share increased 190 per cent to 9.0 pence (six months to June 2011: 3.1 pence), while like for like rental growth for the six months since December 2011 totalled 1.8 per cent, delivering capital growth of GBP20m.
Unite’s average portfolio initial yield was stable at 6.6 per cent, while operations cashflow increased 17.8 per cent to GBP13.9m for the period.
Interim dividend increased to 1.0 pence per share (2011 interim: 0.5 pence), with the full year dividend expected to represent 25 per cent of net portfolio contribution.
Mark Allan, chief executive of The Unite Group, says: “During the first half of 2012, the business has built on the strong operational momentum created in 2011. High occupancy, solid rental growth and cost efficiencies have underpinned a further significant improvement in the group’s profitability. The healthy level of forward reservations and the successful completion of our 2012 development pipeline suggests this will be maintained for the full year.
“Meanwhile, significant achievements in asset sales and the arrangement or extension of important debt facilities mean that the group’s financial position continues to strengthen.
“The UK economy remains challenging and we continue to be vigilant to the risks that are present as a result. However, demand for UK university places, and consequently accommodation, continues to be strong and Unite remains well placed for the future.”
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