The estimated net asset value (NAV) of the Unite UK Student Accommodation Fund (USAF) was GBP866.9 million (GBP0.999 per unit) as at 30 June 2014.
This reflects an increase of 1.6 per cent during the second quarter of 2014 (31 March 2014: GBP853.6 million, GBP0.984 per unit).
In arriving at the value of the fund, USAF’s property portfolio, comprising 21,673 beds in 59 properties across 19 UK towns and cities, was independently valued at GBP1,375 million (31 March 2014 GBP1,362 million).
The movement during the quarter represents a like-for-like increase of 0.9 per cent (1.5 per cent in the six months to 30 June) in the underlying value of the property portfolio, driven mainly by rental growth. The portfolio is valued at an average yield of 6.60 per cent at 30 June 2014 (31 March 2014: 6.63 per cent). As in previous years, further rental growth is expected to be achieved as reservations for the forthcoming 2014/15 academic year progress.
Reservations across USAF's properties for the academic year starting in September 2014 stand at 76 per cent compared to 73 per cent at the same point in 2013.
Joe Lister, Unite Student’s chief financial officer, says: “The fund continues to perform well with another strong quarter. Lettings for the forthcoming academic year are proceeding strongly at rental levels supportive of management expectations, with 76 per cent of the portfolio now reserved, ahead of the 73 per cent level at the same point in 2013. USAF has continued its strong track record of growing rents, with further uplifts anticipated in the third quarter as the 2014/15 academic year lettings cycle is completed.”