Student accommodation developer reports 9% increase in adjusted earnings to £232.3m for 2025, while strategic shift targets top-tier institutions
Unite Students has accommodation across the country(Image: Unite Group)
Unite Students experienced a dip in occupancy levels throughout its portfolio, though this was balanced by strong demand at leading elite universities.
The student accommodation provider posted a 9 per cent rise in adjusted earnings to £232.3m for 2025. Nevertheless, its statutory profit dropped by 78 per cent owing to a reduction in the valuation of the property portfolio.
The company’s portfolio occupancy declined to 95.2 per cent for the 2025/26 academic year, down from 97.5 per cent, with empty rooms primarily in Leicester, Nottingham, and Sheffield due to elevated supply and softer demand.
Nevertheless, the Bristol-headquartered FTSE 250 firm witnessed demand staying strong at top-tier universities, where applications increased by 6 per cent. Consequently, Unite stated it intends to boost its portfolio alignment to these institutions from 67 per cent to 80 per cent.
Unite completed the £530m takeover of Empiric Student Property in January 2026, bringing in 7,700 beds; though the portfolio is presently underperforming with 89 per cent occupancy, significantly beneath Unite’s core portfolio, as reported by City AM.
“We are working closely with the Empiric team to drive performance across the portfolio,” it added.
The company also observed that supply in private houses in the multiple-occupation sector has decreased by 9 per cent over four years due to climbing mortgage costs and new regulations, such as the Renters’ Rights Act, pushing more students towards purpose-built student accommodation. Despite the difficult trading environment, the company recommended a final dividend of 24.9p, taking the full-year payout to 37.7p, representing a 1 per cent rise on 2024.
The figures come on the heels of Unite’s £100m share buyback programme, launched in January to redistribute excess capital to investors.
Chief executive Joe Lister said the group “delivered a robust performance in 2025, with strong trading across the majority of our portfolio offset by weaker demand in a small number of cities for the 2025/26 academic year.”
Alongside its financial results and disposal announcement, Unite confirmed the appointment of Duncan Cooper as non-executive director and chair (designate) of the audit and risk committee.
Cooper currently serves as chief financial officer at Travis Perkins, having previously held the position of group finance director at Crest Nicholson, as well as senior finance roles at Sainsbury’s.