INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2023

RECORD RESERVATIONS, INCREASING UNIVERSITY DEMAND AND SIGNIFICANT GROWTH OPPORTUNITIES

Richard Smith, Chief Executive of Unite Students, commented:

“We have had a strong first half, with growth in earnings driven by a return to full occupancy.

“The need for new student homes is the greatest we have seen for several years. The private rental sector is in retreat and a supply crunch is building amid growing student numbers. We are focused on delivering our substantial development and asset management pipeline across the UK, as well as working with university partners to help unlock the potential of their campuses. In doing this, Unite will continue to play a major role in creating new supply of high-quality, affordable accommodation where the need is greatest.

“We continue to invest in our portfolio and customer offer and our rental increases have tracked the rise in our costs. Our all-inclusive, fixed-price offer, which allows students to benefit from our buying power on utilities, compares very favourably to HMOs and, in many cases, we remain cheaper.

“We expect market conditions and our alignment to the UK’s strongest universities to support a positive outlook for our business for a number of years. This creates a range of compelling investment opportunities, which we will balance with ongoing capital discipline. We remain confident in our continued growth.”

HIGHLIGHTS

Return to full occupancy, record demand for 2023/24

·      Adjusted EPS up 15% to 27.5p (H1 2022: 24.0p)¹

·      Record reservations of 98% for 2023/24 and rental growth of around 7% (2022/23: 92% and 3.5%)

·      Growing demand from university partners, accounting for 54% of beds for 2023/24 (2022/23: 52%)

Housing supply unable to keep pace with student demand

·      Significant unmet need for high-quality, affordable student homes

·      HMO landlords leaving the sector at a time of limited new PBSA supply

Market conditions support sustainable growth in rent and earnings

·      FY2023 EPS guidance increased to upper end of 43-44p range

·      Targeting rental growth of at least 5% for the 2024/25 academic year

Property valuations supported by growing income

·      0.8% increase in property values in the first half for like-for-like portfolio⁵

·      3.4% rental value growth more than offsetting 13 basis points of yield expansion

Continued investment in our portfolio and customer offer

·      Launched 24/7/365 physical presence and Support to Stay wellbeing programme in past year

·      £150-200m annual investment in building improvements, fire safety and sustainability

Significant opportunities to grow our platform

·      Committed pipeline of £623 million and 3,659 beds, generating a forecast 6.7% yield on cost

·      Future pipeline of £227 million at 6.7% yield on cost

·      Enhancing portfolio quality through £140 million refurbishment pipeline at over 8% yield on cost

·      Clear opportunity for strategic university partnerships for on-campus acquisition and new development

High-quality balance sheet and disciplined capital allocation

·      LTV of 31% at 30 June 2023³ (31 December 2022: 31%)

·      Trailing 12-month net debt to EBITDA reduced to 6.8x (June 2022: 7.6x)

·      Interest rates 100% fixed or capped, with 3.3% cost of debt (31 December 2021: 85% and 3.4%)

¹ Adjusted earnings and adjusted EPS remove the impact of abortive acquisition costs in 2022 from EPRA earnings and EPRA EPS. See glossary for definitions and note 7 for calculations and reconciliations

² The financial statements are prepared in accordance with International Financial Reporting Standards (IFRS). The Group uses alternative performance measures (APMs), which are not defined or specified under IFRS. These APMs, which are not considered a substitute for IFRS measures, provide additional helpful information and include measures based on the European Public Real Estate Association (EPRA) best practice recommendations The metrics are also used internally to measure and manage the business. The adjustments to the IFRS results are intended to help users in the comparability of these results across other listed real estate companies in Europe and reflect how the Directors monitor the business. See glossary for definitions

³ Excludes IFRS 16 related balances recognised in respect of leased properties. See glossary for definitions

⁴ Wholly-owned balances plus Unite’s share of balances relating to USAF and LSAV

⁵ Like-for-like properties owned at both 30 June 2023 and 31 December 2022

For further information, please contact:

Unite Students

Richard Smith / Joe Lister / Michael Burt                                          Tel: +44 117 302 7005

Unite press office                                                                               Tel: +44 117 450 6300

Powerscourt

Justin Griffiths / Victoria Heslop                                                          Tel: +44 20 7250 1446