Valuation of the UNITE UK Student Accommodation Fund as at 30 June 2014 – 08 July 2014
The Unite Group, the UK’s leading manager and developer of student accommodation, today reports the estimated net asset value* (“NAV”) of the Unite UK Student Accommodation Fund (the “Fund”, “USAF”) as at 30 June 2014. The NAV was £866.9 million (£0.999 per unit), reflecting an increase of 1.6% during the second quarter of 2014 (31 March 2014: £853.6 million, £0.984 per unit).
USAF distributes the income that it generates from the portfolio and the principal components of the underlying movement in NAV are as follows:
|Effect on NAV:||Q2 2014|
|Movement in property values||1.3%|
|Movement in swap values||0.1%|
|Increase in NAV||1.6%|
|Increase in underlying gross property portfolio value on a like for like basis||0.9%|
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 £1,375 million (31 March 2014 £1,362 million).
The movement during the quarter represents a like-for-like increase of 0.9% (1.5% 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% at 30 June 2014 (31 March 2014: 6.63%). 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% compared to 73% at the same point in 2013.
Commenting on the Fund’s valuation, Joe Lister, Unite Student’s Chief Financial Officer, said:
“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% of the portfolio now reserved, ahead of the 73% 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.”
* Estimated Net Asset Value represents the capital position of the Fund and does not include undistributed income.