Student accommodation provider Unite has reported a loss before tax for the first half of the year, while warning that forecasts could be “materially impacted” by a second wave of coronavirus.
The company made a loss before tax of £73.9m during the six months ending 30 June, compared with £125.5m in the previous year. This was driven by valuation losses from reduced income during the Covid-19 crisis.
EPRA NAV per share was down 2% to 833p at 30 June, compared with 853p in December. EPRA earnings per share fell 12% to 20.5p.
Student accommodation provider Unite has reported a loss before tax for the first half of the year, while warning that forecasts could be “materially impacted” by a second wave of coronavirus.
The company made a loss before tax of £73.9m during the six months ending 30 June, compared with £125.5m in the previous year. This was driven by valuation losses from reduced income during the Covid-19 crisis.
EPRA NAV per share was down 2% to 833p at 30 June, compared with 853p in December. EPRA earnings per share fell 12% to 20.5p.
Unite warned that demand for student accommodation could be materially impacted by a second wave of Covid-19.
It also pointed to uncertainty over international student numbers given travel restrictions, citing findings from the British Council showing that between one-third and two-thirds of non-EU international students may cancel or delay travel plans for 2020/21.
Besides these, Unite highlighted its confidence in “the prospects for the UK’s world-class higher education” and expected strong demand for the 2021/22 academic year.
Earlier this month, Unite outlined expectations for a 10% to 20% decline in income for the 2020/21 academic year.
It also raised £300m as part of a share placing.
Unite was the first student housing provider to forgo summer term rents for its students.
Richard Smith, chief executive of Unite Students, said: “We see significant opportunities for growth through university partnerships, new developments and by attracting more of the 855,000 students currently living in houses of multiple occupancy.
“The proceeds of our recent placing will be used to accelerate growth opportunities in those markets where we see strongest demand from students.”
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