Unite Group PLC (LSE: UTG), a constituent of the FTSE 100 Index, is a UK-based real estate investment trust (REIT) specializing in purpose-built student accommodation. The company owns, manages, and develops a portfolio of over 150 properties across 23 university towns and cities, providing housing for approximately 70,000 students. Its accommodation primarily features en-suite study bedrooms, with rental packages encompassing utility bills, insurance, and 24-hour security services. This Report covers the Investment Highlights, Conclusion, and Recommendation on the stock.

Key Investment Rationale – Buy at GBX 512.00

• Earnings Momentum – Unite recorded noticeable earnings improvement in H1FY25, with adjusted earnings rising to GBP 144.2 million from GBP 125.3 million in H1FY24. The uplift reflects higher rental income, improved occupancy and contributions from completed projects. Adjusted EPS increased to 29.5p versus 28.7p, highlighting continued stability in underlying earnings despite an expanded equity base.
• Demand Support – H1FY25 benefitted from healthier sector indicators, including a 2% rise in UK applicants and a 19% YoY increase in international visa applications compared with H1FY24. These favorable trends support Unite’s rental growth expectation of 4–5% and an occupancy target of 97%, illustrating the continued appeal of purpose-built student accommodation.
• Development Pipeline – The development and partnership pipeline expanded to nearly 10,000 beds in H1FY25, noticeably higher than the position in H1FY24. With an estimated 6.8% yield on cost and an expected GBP 90 million contribution to NOI over five years, the pipeline enhances future income visibility and deepens alignment with leading university locations.
• Balance Sheet Position – Unite maintained a stable financial structure in H1FY25, with LTV at 26%, consistent with H1FY24, while net debt/EBITDA improved to 5.3x from 5.7x. A fully fixed-rate debt book and healthy liquidity provide flexibility to support development activity, sustain dividends and manage refinancing needs in a changing interest-rate environment.

UTG Daily Chart & Valuation

Source: Trading View, Analysis: Kalkine Group, as of December 09, 2025

For conducting the valuation, the following peers have been considered: Workspace Group PLC (LSE: WKP), Social Housing REIT plc (LSE: SOHO), etc.

As per the above-mentioned price action and technical indicators analysis, a ‘Buy’ rating has been given on Unite Group PLC (LSE: UTG) at the Current Market Price of GBX 512.00, as of December 09, 2025, at 8:10 AM GMT.

Markets are trading in a highly volatile zone currently due to certain Macro & Micro-economic data and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 09 December 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided have been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.