Unite Students Reports Mixed Financial Results Amid Shifting Demand Patterns
The student accommodation giant Unite Students has revealed a complex financial picture for 2025, with adjusted earnings climbing while statutory profit experienced a significant decline. The company reported a 9 per cent increase in adjusted earnings, reaching £232.3 million for the year. However, this positive development was overshadowed by a dramatic 78 per cent drop in statutory profit, primarily attributed to declining valuations within the company's extensive property portfolio.
Occupancy Declines in Key Cities Contrast with Elite University Strength
Portfolio occupancy rates fell to 95.2 per cent for the 2025/26 academic year, representing a noticeable decrease from the previous year's 97.5 per cent. This decline was particularly concentrated in several major university cities, including Leicester, Nottingham, and Sheffield. Company officials cited high supply levels and weakening demand as the primary factors behind these occupancy challenges in these specific locations.
Despite these regional difficulties, Unite Students observed remarkably resilient demand at top-tier elite universities. Applicant numbers at these prestigious institutions increased by 6 per cent, demonstrating continued strong interest in high-quality student accommodation near leading academic centers. In response to this trend, the company announced strategic plans to increase its portfolio alignment with these elite universities from 67 per cent to 80 per cent, signaling a clear shift toward premium educational institutions.
Major Acquisition and Market Dynamics
In January 2026, Unite Students finalized the substantial £530 million acquisition of Empiric Student Property, adding approximately 7,700 beds to their portfolio. However, this newly acquired portfolio is currently underperforming, with occupancy rates at just 89 per cent, significantly below the company's core portfolio average. Company representatives stated they are actively collaborating with the Empiric team to improve performance across these properties.
The broader student housing market has experienced notable shifts, with supply in the private houses in multiple occupation sector declining by 9 per cent over four years. Rising mortgage costs and new regulatory measures, including the Renters' Rights Act, have driven more students toward purpose-built student accommodation like that offered by Unite Students.
Financial Strategy and Leadership Changes
Despite the challenging market outlook, Unite Students proposed a final dividend of 24.9 pence per share, bringing the total annual dividend to 37.7 pence. This represents a 1 per cent increase over 2024 levels. The company also launched a £100 million share buyback program in January to return surplus capital to shareholders.
Chief executive Joe Lister commented on the results, stating 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."
In addition to financial announcements, Unite Students revealed the appointment of Duncan Cooper as a non-executive director and chair (designate) of the audit and risk committee. Cooper brings extensive financial experience from his current role as chief financial officer of Travis Perkins and previous positions as group finance director of Crest Nicholson and senior finance roles at Sainsbury's.
