Home for
Success
THE UNITE GROUP PLC
Annual Report and Accounts 2024
Financial highlights
Adjusted earnings per share
46.6p
(2023: 44.3p)
IFRS diluted earnings per share
96.1p
(2023: 24.6p)
IFRS NAV per share
982p
(2023: 931p)
EPRA NTA per share
972p
(2023: 920p)
Total accounting return
9.6%
(2023: 2.9%)
Dividend per share
37.3p
(2023: 35.4p)
Operational highlights
Opened our lowest
embodied carbon new build
Record Higher Education
trust score of +37
Record customer
satisfaction score of +50
Awarded Investors
in People gold
Launch of a new student
app and website
Invested £32m refurbishing
11 properties
Our reporting suite
Sustainability Report
https://www.unitegroup.com/sustainability
Investor site
https://www.unitegroup.com/investors
THE UNITE GROUP PLC
Annual Report and Accounts 2024
01
STRATEGIC REPORT
04
Who we are
06
Market overview
10
Business model
14
Investment case
16
Key performance indicators
18
Chief Executive’s review
24
Performance review
52
Risk management
CORPORATE GOVERNANCE
74
Chair’s introduction to governance
76
Board of Directors
80
Board statements
83
Board leadership and purpose
88
Division of responsibilities
90
Section 172
93
Board activities
98
Nomination Committee
101
Audit & Risk Committee
106
Sustainability Committee
108
Health & Safety Committee
112
Remuneration Committee
138
Directors’ Report
141
Statement of Directors’ responsiblities
FINANCIAL STATEMENTS
144
Independent auditor’s report
153
Consolidated income statement
153
Consolidated statement of
comprehensive income
154
Consolidated balance sheet
155
Company balance sheet
156
Consolidated statement of changes
in shareholders’ equity
157
Company statement of changes in
shareholders’ equity
157
Consolidated statement of cash flows
158
Notes to the financial statements
213
Financial record
OTHER INFORMATION
216
Glossary
Cover Company information
STRATEGIC REPORT
Building a
brighter future
We create communities where
young people thrive.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
02
Strategic
report
STRATEGIC REPORT
THE UNITE GROUP PLC
Annual Report and Accounts 2024
03
STRATEGIC REPORT
04
Who we are
06
Market overview
10
Business model
14
Investment case
16
Key performance indicators
18
Chief Executive’s review
24
Performance review
52
Risk management
THE UNITE GROUP PLC
Annual Report and Accounts 2024
04
WHO WE ARE
Our purpose:
68,000
Total number of beds in properties
across the UK
153
Number of properties across
23 cities
60+
University partners
No.1
The largest provider of student
accommodation across the UK
Home for
Success
2024 Ranking by number of beds
TO FIND OUT MORE ABOUT OUR STRATEGY READ
THE Q&A WITH DIRECTOR OF STRATEGY,
TOM ELLIS ON PAGE 39.
STRATEGIC REPORT
We believe in helping young people get the best out of life. The
place where they study and live together should be a home
where they can grow, belong and be themselves.
As a trusted member of the Higher Education (HE) community,
we support the universities we partner with to build a brighter
future for students everywhere. We offer original insights,
champion student wellbeing and raise standards together.
We’re passionate about making a positive and lasting impact on
our neighbourhoods, society and the planet. Always working for
the long term, we’re proud to contribute to local housing needs.
London
1
Birmingham
5
Liverpool
4
Leeds
3
Manchester
2
Bristol
6
Newcastle
7
Cardiff
8
Portsmouth
9
Sheffield
10
Leicester
Oxford
Coventry
Medway
Bath
Loughborough
Nottingham
Glasgow
Edinburgh
Durham
Aberdeen
Southampton
Bournemouth
THE UNITE GROUP PLC
Annual Report and Accounts 2024
05
Challenge the
Ordinary
Lead with
Heart
Unite
as One
Stay
on Point
Strategic objectives: focusing on customers, our people and shareholders.
Great Place
to Invest
Returns
The strength and
consistency of our financial
performance is a key
driver of returns for our
investors, helping to
sustainabily grow value.
University alignment
A portfolio aligned to the
strongest universities
with the best prospects
for student recruitment
and the ability to support
sustainable rental growth.
Capital discipline
Focus on maintaining
a strong balance sheet
through disciplined
capital allocation.
Guided by our values
Great Place
to Work
Belonging
Building togetherness
around our culture
boosts engagement
and performance of
our teams, as well as
higher customer care.
Growth
With everyone clear on
their performance and
aligned to clear goals and
with the right support,
we can grow together.
Impact
Focusing on making a
difference by staying
curious, flexible and
true to our values, we
can make a positive
mark on the future.
Great Place
to Live
Net Promoter Score
Consistent performance
will come from high levels
of student and university
satisfaction and advocacy.
High occupancy
Activity driving preference
for our brand and
buildings across all years
of study will help us to
consistently outperform
the competition.
Partnership
Positive customer
sentiment builds university
partner trust, laying the
foundations for the joint
ventures that support
our long-term growth.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
06
MARKET OVERVIEW
STRATEGIC REPORT
Market
trends
A record number of UK
18-year-olds started university
in September 2024, reflecting
the continued value young
adults place on a higher level of
education and the life experience
and opportunities it offers.
Growing demand for Higher Education
The number of 18-year-olds will increase
through demographic growth and this
supports continued growth in demand
for university places to 2030.
The outlook for international recruitment
is improving following a c.15% reduction
in visas issued to international students
in 2024. The new government is more
supportive of both the Higher Education
sector and international recruitment,
supporting future growth in student
numbers. Other leading HE destinations,
including Canada and Australia, are
introducing caps to reduce the number
of international students, which we
expect to increase the attractiveness of
UK universities.
WHAT IT MEANS FOR
UNITE STUDENTS
• Increased demand for PBSA from
students and university partners.
• Opportunities for new
development in cities benefiting
from the strongest growth
in student numbers.
1
Cyclical factors also have an impact on the
economic conditions we face, the cost and
availability of funding for the business and the
level of investment in student accommodation.
Together these factors influence our strategy and
the long-term growth prospects of the Group.
STRUCTURAL TRENDS
Demand for purpose-built student
accommodation (PBSA) is underpinned by a
range of structural drivers, which support growth
in student numbers for UK Higher Education,
explored in more detail in the following tables.
The outlook for our business
is influenced by structural
trends in Higher Education
and student accommodation,
which determine the
size of our market.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
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UK Higher Education policy
recognises the global standing
of the UK’s universities who
attract students from all
over the world, conduct vital
research, and contribute £42
billion to the UK economy
and benefits our society.
Government more supportive of Higher Education
2
WHAT IT MEANS FOR
UNITE STUDENTS
• Potential for stronger growth
in student numbers for those
universities and cities delivering
high-quality teaching, strong
employment prospects for
graduates and internationally
recognised research.
• We will continue to grow our
alignment to high- and mid-
ranked universities which have
the strongest outlook for student
recruitment and demand for
accommodation.
• Opportunities for strategic
university partnerships for on-
and off-campus development,
as well as the transfer of existing
accommodation stock, requiring
investment and repositioning.
The Government has announced a 3%
increase to tuition fees for the 2025/26
academic year, the first increase
since 2017/18. This increase will help
universities balance budgets in the face
of rising national insurance contributions
for staff and other costs. With universities
increasingly focused on efficiency and
academic delivery, this creates increased
demand for third-party accommodation
through nomination agreements and
strategic partnerships.
The Migration Advisory Committee
review of the Graduate Route
recommended no further changes to
student visas, which the Government
has accepted, and we do not expect any
further tightening of rules. We expect a
new International Education Strategy to
be introduced in 2025.
Focus on quality, sustainable housing
The Renters’ Rights Bill will increase
tenants’ rights and aims to improve the
standard of privately rented housing. The
draft Bill excludes PBSA from almost all
of the new protections.
The Building Safety Act (BSA), which
addresses the safety of new residential
accommodation, came into effect in
2024, adding three approval gateways to
the design, construction and occupation
of new high-rise residential buildings.
This will add around six months to
delivery timelines.
The UK’s commitment to achieve net zero
carbon by 2050 will require significant
reductions in energy use from domestic
properties. This includes potentially
increasing Minimum Energy Efficiency
Standards (MEES), requiring rental
properties to achieve EPC ratings of at
least B by 2030.
3
The Government has a target to
deliver 1.5 million new homes
during this Parliament, built
to the highest sustainability
standards, and PBSA can make
a contribution to this target.
They will also strengthen
renters’ rights and reform and
streamline planning regulation,
with increased funding for local
authorities, which could reduce
the time to deliver new housing,
including PBSA.
WHAT IT MEANS FOR
UNITE STUDENTS
• Growing regulation and taxation
of the houses of multiple
occupation (HMO) sector may
result in more private landlords
seeking to exit, creating the
opportunity for the PBSA
sector to capture a growing
share of students requiring
accommodation.
• Increasing likelihood of a green
premium or brown discount for
PBSA assets as sustainability
considerations grow in
importance for stakeholders.
• The growing number of long-
term renters in the UK supports
the growth of the build-to-rent
(BTR) sector. We believe there is
opportunity to grow our platform
by catering to the growing
number of young professionals
living in major UK cities.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
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MARKET OVERVIEW
continued
STRATEGIC REPORT
Universities have responded
to lower international demand
during 2024 by increasing
recruitment of UK students.
University recruitment
This is most stark at higher tariff
universities where UCAS acceptances
increased by 8% for the 2024/25
academic year, compared to reductions
of 1% and 4% for medium and low
tariff providers. This change in student
recruitment translated to a normalisation
in demand for our accommodation
with occupancy of 97.5% representing a
return to pre-pandemic levels.
WHAT IT MEANS FOR
UNITE STUDENTS
• We align our portfolio to the
strongest universities with the
best prospects for student
recruitment and demand for
accommodation.
• Shifting demand underlines
the value of nomination
agreements and relationships
with universities.
• Universities needing new
accommodation to grow are
seeking to partner with the
private sector through nomination
agreements and joint ventures.
5
CURRENT TRENDS
Economic and financial conditions have remained
challenging over the past year. Demand for
Higher Education and student accommodation
has historically proven to be non-current and
the business able to mitigate the impact of
rising costs through rental growth and its risk
management approach.
Inflation has returned to close to
target levels and interest rates
have begun to gradually reduce.
Economic outlook
WHAT IT MEANS FOR
UNITE STUDENTS
• Lower funding costs increase
the attractveness of real estate
investment and may result in
increased PBSA transaction
volumes and valuations.
• Slowing inflation will be
reflected in lower annual
uplifts in multi-year nomination
agreements and a moderating
rate of overall rent and cost
growth.
• We will monitor the affordability
of accommodation to ensure
we continue to offer value-for-
money.
• We expect increases in operating
costs and overheads to moderate
in 2025, supporting a c.50bps
increase in EBIT margin.
4
The outlook is encouraging with
inflation trending towards central
bank targets, interest rates reducing
and growth generally proving resilient.
Unemployment increased modestly
late in 2024, with weaker employment
opportunities potentially encouraging
more people to study at university.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
09
There has been a steady slowdown
in new supply of PBSA from a peak
of 30,000 to 35,000 beds p.a. in
2017–2019 to around 11,000 beds
delivered in 2024. This reflects
delays to development deliveries
resulting from planning backlogs
as well as more restrictive funding
conditions for developers.
Competing supply
6
WHAT IT MEANS FOR
UNITE STUDENTS
• Tight supply conditions and
healthy student demand are
supportive of 97-98% occupancy
for the 2025/26 academic year.
• Universities are increasingly
looking to partners, including
Unite Students, to meet their
accommodation needs.
• Lower supply of HMO
properties and increasing
costs for tenants in the HMO
sector create an opportunity
to retain more non-first year
customers who might otherwise
move into the HMO sector.
Development viability
We are seeing a moderation in price rises
as supply chains stabilise coupled with
a broader slowdown in construction.
The rise in development costs has
created viability challenges for new
PBSA development in a number of our
markets, where the minimum rents
required to justify new development
(c.£200 per week) are unaffordable
relative to alternative options in the
local market. The Building Safety Act
has introduced gateways prior to the
start of construction and occupation of
high-risk buildings; these gateways are
expected to add around six months to
development programmes. These factors
are contributing to lower volumes of new
supply and a reduction in land values.
7
Construction costs have risen
significantly over the last five
years due to higher material
costs, rising energy costs and
availability of skilled labour.
WHAT IT MEANS FOR
UNITE STUDENTS
• We are developing in the strongest
markets with the greatest supply/
demand imbalance.
• We are mitigating cost pressures
to protect development returns
through reduction in land values,
build costs efficiencies and
potentially increased rents.
• We are managing the impact of
the Building Safety Act on our
pipeline by building more time into
our development programmes.
Universities are focusing on their
academic estates and deferring
investment in the face of tighter funding.
To meet their accommodation guarantees
to UK first year and international
students, universities need new
accommodation to replace obsolete
stock and grow their student numbers.
They increasingly see availability of
accommodation as a barrier to growth.
The stock of student housing in the HMO
sector is also expected to reduce as a
result of increasing regulation for private
landlords. This includes increasing MEES,
which will potentially require rental
properties to achieve EPC ratings of at
least C by 2030, and proposed changes
in regulation through the Renters’ Rights
Bill. Rising mortgage interest costs,
which are no longer fully deductible tax
expenses, together with rising stamp duty
land tax and capital gains taxes, will also
reduce financial returns for landlords.
This will result in additional costs for HMO
landlords and may see many choose to
exit the market, which we expect to be
reflected in higher rents in HMOs.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
10
STRATEGIC REPORT
How we do it
We provide a Home for Success for the students who live with
us, where they can study, live together, grow, belong and be
themselves. Our best-in-class welfare support and colleagues
working in our properties are dedicated to delivering on
this promise.
Serve
We drive superior rental growth and improve the environmental
performance of our buildings through targeted refurbishments,
which enhance the customer experience and support our
value-for-money proposition. We have a range of refurbishment
options available, which are tailored for each property according
to the needs of the relevant customer segment and demand
levels within each city.
Improve
Partner
We partner with leading UK universities through nomination
agreements. Partnerships enable us to support universities
in delivering their accommodation guarantee to first year and
international students and provide a significant level of income
visibility each year. We are seeing increasing demand from
universities for beds under nomination agreements and we are
also progressing strategic partnership opportunities for
on-campus development or stock transfer.
We manage co-investment vehicles, including USAF and LSAV,
which provide recurring fee income and access to additional
capital. We adopt a consistent sales and operating model adopted
across our entire portfolio, regardless of fund ownership.
Manage
Our best-in-class operating platform
Continual portfolio enhancement
We appraise and selectively acquire
single assets and portfolios which
enhance portfolio quality, where
there is clear alignment to the
strongest universities. Assets with
refurbishment potential offer the
opportunity to enhance returns through
our asset management initiatives.
Acquire
We aim to dispose of £150-200m p.a. of
weaker assets to improve the quality of
our portfolio, increase alignment to the
strongest universities and strengthen
the future rental growth outlook. This
provides funding to invest in new
development opportunities and make
improvements to our existing portfolio,
while maintaining the strength of our
balance sheet.
Recycle
We develop high-quality PBSA in the
strongest university markets where
the supply/demand imbalance is most
acute. We are focused on delivering
our secured pipeline and adding new
schemes in the 8-10 strongest markets.
We aim to invest where our expertise
and university relationships give us a
significant edge in delivering schemes.
Develop
BUSINESS MODEL
THE UNITE GROUP PLC
Annual Report and Accounts 2024
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How we engage
Our frontline property teams engage with students on a day-to-
day basis, supplemented by peer-to-peer engagement and social
activities provided by our resident ambassadors. We partner
with Endsleigh Insurance to provide 24/7 access to counsellors
and other support services. We also engage with students using
our upgraded MyUnite app and social media channels, including
pre-arrival support and networking opportunities. Throughout
their stay we promote campaigns, such as Personal Safety Week
and Winter Wellbeing, and we signpost to our Support for You
web page. This is complemented by our customer research
programme which includes surveys on specific issues.
Value created in 2024
• Provided access to a 24/7 student wellbeing helpline and digital
therapy services.
• Upgraded 11 buildings, including new bedrooms, kitchens and
amenity spaces.
• Supported the award of accommodation scholarships to
95 students through the Unite Foundation.
• Launched our new student app and website to further enhance
customer service.
• Research with the Social Market Foundation on care leavers.
Priorities for 2025
Upgrades to bedrooms, kitchens and amenity spaces in
our new developments and refurbishment projects.
Improved capture of additional needs prior to arrival to
respond to the differing needs of under-represented
students, and those with additional challenges relating
to the transition into student accommodation.
Investment in our technology platform to deliver an improved
end-to-end experience for students from booking, through
their time with us and ultimately when they leave.
Students
Key issues
• Value-for-money
• Customer service
• Safety and welfare support
How we engage
We hosted quarterly Culture Matters forums and Unite Live
sessions with the Chief Executive and Executive team, fostering
open communication and transparency. We conducted the Have
Your Say survey with 84% participation, gathering insights to
drive continuous improvement. We co-created new values and
behaviours with our people, to better reflect who we are and the
culture we’re striving to create. We hosted our senior leaders
at two conferences, bringing them together to share our
vision for the business and to better connect as leaders.
Value created in 2024
• Delivered an average pay increase of 8.8%, including a 10% uplift
for over 70% of employees.
• Employee attrition decreased to 25%, a 4-point improvement
on 2023.
• Launched My Impact, a new performance enablement framework.
• Achieved our highest engagement score in two years of 74, up by 4
points on 2023.
• Delivered our first-ever culture audit, identifying areas to keep,
change, and add.
• Advanced diversity, equity, and inclusion through impactful
networks and policies supporting menopause, disability
and neurodiversity.
• The Academy provided tailored learning experiences, including an
18-month programme for general managers.
Priorities for 2025
We will launch an integrated online platform to support
performance, learning, and goal setting through My Impact. We will
roll out refreshed values and behaviours across the business.
Our people
Key issues
• Learning and development
• Diversity, equity and inclusion
• Health, safety and wellbeing
• Fair pay and reward
Creating value for our stakeholders
THE UNITE GROUP PLC
Annual Report and Accounts 2024
12
STRATEGIC REPORT
BUSINESS MODEL
continued
Stakeholder value
How we engage
Through our Higher Education Engagement team, we meet regularly
with leaders across the UK university sector. We engage at various
levels in institutions ranging from discussions on strategic planning
to day-to-day operational requirements.
In addition, we engage actively in the wider Higher Education
sector, presenting at conferences and contributing to Higher
Education research.
We continue to support the Living Black at University Commission,
to help black students more easily acclimatise to life at university.
Value created in 2024
• Provided 38,000 beds to universities for the 2024/25
academic year.
• Agreed a new joint venture with Newcastle University
to redevelop their Castle Leazes site.
• Our Support to Stay framework aims to join up wellbeing services
with university partners.
Priorities for 2025
We will continue to support the growth ambitions of our university
partners through nomination agreements and opportunities to
deepen strategic partnerships. We expect to secure our second
university joint venture in the next three months; continuing our
research programme in partnership with universities to better
understand each cohort of students.
Universities
Key issues
• Student experience and welfare
• Operational performance
• Health and safety
How we engage
The availability of housing is a key issue for our local communities.
We are focused on supporting the growth of our university partners
through the delivery of new, high-quality and affordable student
homes, which increase housing supply and help free up more
traditional housing for families and young professionals. We also
engage actively with local stakeholders for our development projects
to ensure the design of our buildings, public spaces and community
facilities meet their needs.
Our Positive Impact programme encourages employee participation
in local community projects, which can earn awards based on
delivering measurable impact.
Value created in 2024
• Delivered our most sustainable development to date.
• Employment for over 1,500 people in our local communities.
• Invested £10.2million in initiatives to reduce our
environmental impact.
• 3,842 hours of employee volunteering in the year, an increase
of 9% compared to 2023.
• 47 Silver and Gold Positive Impact awards for community projects.
Priorities for 2025
We aim to increase community engagement through our
Positive Impact programme, via initiatives delivered by local teams in
our properties and our head office colleagues.
In addition, we will continue to engage with local authorities and
local communities around new development activity, to explain how
the community benefits from creating new, high-quality
student accommodation.
Communities
Key issues
• Trust and transparency
• Housing availability
• Local investment and job creation
THE UNITE GROUP PLC
Annual Report and Accounts 2024
13
How we engage
We expanded coverage of our standardised procurement
approach in both new and existing parts of our supply chain,
focused on facilities management, estate management,
technology and professional services. This approach ensures
our buildings meet existing and emerging safety regulations,
deliver our sustainability goals, and meet customers’ needs.
As a key stakeholder group in the successful delivery of our strategic
objectives, communicating with and listening to our key suppliers
and partners is invaluable. We have continuously sought feedback
as part of continuous improvement based on a combination of
1-1 meetings, our annual supplier conference, and supply chain
focus groups.
Value created in 2024
• Spent c.£260 million with suppliers through our
procurement function.
• Delivered higher quality service from suppliers, with a specific focus
on specification and services during the summer maintenance
period, supporting improved NPS scores from customers.
• Reduced risk through an enhanced supplier vetting process and
increased attention to managing supplier quality and performance.
Priorities for 2025
We will further expand our procurement processes into capital
planning and asset management, alongside other property
maintenance activities. We remain focused on ethical and
sustainable procurement throughout our supply chain, not just
those we work with directly.
Suppliers
Key issues
• Quality and sustainable solutions
• Performance and efficiency
• Risk management
How we engage
We engaged regularly with investors around our financial results as
well as through ad hoc events, such as property tours, conferences
and meetings. Key themes for engagement during the year were,
changing university recruitment and international student numbers,
policy changes under the new government and the supply of new
student accommodation. These discussions informed our decision
to raise capital to invest in new accommodation and acquire existing
assets, with value-add potential, from USAF.
We engaged with selected investors immediately prior to
announcing the capital raise in July to discuss the proposed use of
proceeds and gauge the level of shareholder support for the raise.
In November, the Executive team and other senior leaders hosted
a property tour in London, providing updates on student demand,
customer trends and the outlook for new supply.
Value created in 2024
• Delivered 97.5% occupancy and rental growth of 8.2%.
• 5% growth in adjusted EPS.
• Total accounting return of 9.6%.
• Full year dividend per share of 37.3p.
Priorities for 2025
Delivering growth in EPS, through rental growth and improvement
in operating margins, while ensuring a robust capital structure.
We aim to achieve this through a strong sales performance for
2025/26, successful delivery of two new developments and ongoing
cost discipline and management of interest rate risk.
Investors
Key issues
• Financial performance
• Strategic direction
• Sustainability and risk management
THE UNITE GROUP PLC
Annual Report and Accounts 2024
14
INVESTMENT CASE
STRATEGIC REPORT
We are the UK’s largest owner,
manager and developer
of purpose-built student
accommodation.
Sustainable
Growth
18-year-old
participation rate
in 2024/25
36.2%
Structurally growing sector
High-quality portfolio
Aligned to the
strongest universities
Our portfolio is increasingly
focused on the UK’s leading
universities, where we see the
strongest prospects for student
number growth, through our
new investment activity and
disciplined capital recycling.
Value-for-money
We offer students a high-quality
and value-for-money living
experience, with support on
hand if it is needed. Our pricing is
inclusive of utilities, Wi-Fi, contents
insurance and maintenance.
Investing to enhance our
operational estate
There is a multi-year opportunity
to enhance rents and reduce
operational costs through
refurbishment projects and energy
efficiency measures which improve
the student experience and reduce
resource use in our buildings.
Share of the rental
portfolio by
value in Russell
Group cities
93%
Demographic growth
The UK’s 18-year-old
population is set to grow
by 11% by 2030, supporting
demand for an additional
c.100k undergraduate places
at current participation rates.
Rising Higher
Education participation
2024/25 saw a record number of
UK 18-year-olds starting university,
demonstrating young people’s
recognition of the opportunities
and life experience that university
provides. Graduates earn
£100,000 more over their lifetime
than non-graduates, underlining
the continued value of
university education.
Growing attractiveness of
UK Higher Education
The new government is more
supportive of international
students and recognises the value
they bring, both to the Higher
Education sector and society more
broadly. This more welcoming tone
contrasts with the introduction
of caps on student numbers in
Australia and Canada, two of
the UK’s leading competitors
for international students.
1
2
THE UNITE GROUP PLC
Annual Report and Accounts 2024
15
High visibility over returns
Sustainable
rental growth
A track record of
real terms rental
growth driven by
student demand and
contracted increases
under our multi-year
university nomination
agreements, supported
by ongoing investment
in our estate.
Growing dividends
As a real estate
investment trust (REIT),
we target sustainable
growth in dividends
for our investors. We
distribute 80% of our
adjusted earnings each
year as dividends.
Attractive total
returns of c.10% p.a.
before yield movement
Achieved through
recurring earnings,
rental growth and
development profits.
Resilient and flexible
balance sheet
We maintain a strong
balance sheet with
robust credit metrics.
We nurture strong
relationships with
our shareholders,
co-investment partners
and debt providers
to ensure continued
access to capital.
EPS growth over
the past 10 years
10.5%
p.a.
Best-in-class operating platform
Substantial growth opportunities
Market share gains
from the HMO sector
One million students
live in houses of
multiple occupancy,
providing a significant
opportunity to retain
and attract more
non-first year students
as the availability of
HMOs reduces.
Development of
£200–300m p.a.
Proven ability to
drive earnings and
development profits
through our in-house
development team.
Investment is focused
on the strongest eight to
ten markets in the UK.
New university
partnerships
Building on our
partnership with
Newcastle University
to deliver 2,000 new
beds, we see further
opportunities for new
developments on- and
off-campus and joint
ventures for the transfer
of universities’ existing
accommodation stock.
Full-time
students living in
university-owned
accommodation
or HMOs
1.3m
Emerging young
professional market
Significant potential to
expand our platform to
cater for the growing
number of professional
renters living in major
student cities.
Leadership in sustainability
Net zero carbon
Becoming a net zero
carbon business for
both our operations
and developments
by 2030, based on
SBTi-validated targets,
as well as reducing
our development
emissions by 48%.
Energy-efficient homes
91.7% of our portfolio is
EPC rated A or B with an
ambition to reach 100%.
We invest in our buildings
to reduce utilities usage
and carbon impact which
also deliver cost savings.
1% of adjusted earnings
We have donated 1.2%
of adjusted earnings
to social initiatives,
which aligns with our
purpose, Home for
Success, and our efforts
to widen participation
in Higher Education.
Target reduction
in Scope 1 & 2
carbon emissions
by 2030
56%
Unite Foundation
The Unite Foundation
provides scholarships
for estranged and
care-experienced
students throughout
the course of their
studies by addressing
housing fragility.
Over 60 university partnerships
We are the partner of choice
for a large number of the UK’s
leading universities, reflecting our
track record, focus on student
support and our high-quality,
affordable products and services.
Passionate frontline teams
Service excellence is delivered
by 1,500 passionate colleagues
working in our properties. This
brings together our experience of
over 30 years of operating in the
student accommodation sector.
Sector-leading operating margins
We drive cost efficiencies
through our scale using our
technology platform. Management
fees from joint ventures and
funds also cover two-thirds
of our annual overheads.
Customer NPS
+50
3
4
5
6
THE UNITE GROUP PLC
Annual Report and Accounts 2024
16
10
20
30
40
50
Link to remuneration
Bonus and LTIP.
Measure
Total accounting return
measures the NTA in EPRA
NTA per share plus dividends
paid as a percentage of
opening EPRA NTA per share.
Performance in 2024
Dividends paid of 36.0p
together with growth
in NTA which drove our
TAR performance.
Priorities going forward
Deliver attractive total
accounting returns over
the medium term through
dividends and NTA growth
prior to any yield movement.
2024
2023
2022
2021
2020
KEY PERFORMANCE INDICATORS
STRATEGIC REPORT
Financial KPIs
46.6
44.3
40.9
27.6
24.0
(p)
(p)
(p)
(%)
96.1
24.6
87.6
86.0
32.0
9.6
2.9
8.1
10.2
3.4
37.3
35.4
32.7
22.1
12.75
Adjusted earnings
per share1 (p)
46.6p
IFRS diluted earnings
per share
96.1p
Total accounting
return1
9.6%
Dividend per share
37.3p
Link to remuneration
Bonus and long-term
incentive plan (LTIP).
Measure
Adjusted earnings per
share measures the
recurring profit delivered
by operating activities
on a per share basis.
Performance in 2024
The business delivered a
strong performance in 2024,
with adjusted earnings
of 46.6p, up 5% year-on-
year. This reflects strong
rental growth of 8.2% for
the 2024/25 academic year
and the resilience of our
platform as international
student recruitment was
disrupted by policy changes.
Priorities going forward
Deliver sustainable growth
in adjusted EPS through
97-98% occupancy and
rental growth for the
2025/26 academic year and
continued cost discipline.
Link to remuneration
Bonus and LTIP
(indirectly).
Measure
IFRS diluted earnings
per share measures IFRS
earnings on a per share
basis taking account of
dilutive potential ordinary
shares – share options.
Performance in 2024
The increase in EPS reflects
an increase in the value
of the Unite Group’s
property portfolio, profits
from our development
pipeline and earnings from
the operational portfolio,
partially offset by additional
provisions for cladding
remediation projects.
Priorities going forward
Grow EPS through rental
growth, asset management
and development profits,
while continuing to maintain
the portfolio and remedy
fire safety defects.
Link to remuneration
Bonus and LTIP.
Measure
The amount of annual
earnings distributed
to shareholders.
Performance in 2024
The total final dividend for
2024 is proposed to be
37.3p representing 80%
of final adjusted EPS. The
dividend also meets our PID
requirement to distribute
80% of relevant earnings.
Priorities going forward
Continue to meet our
PID requirement of
distributing 80% of relevant
earnings as dividends.
1. The financial statements are prepared in accordance with International Financial
Reporting Standards (IFRS). The Unite Group uses Alternative Performance
Measures (APMs) which are not defined or specified under IFRS. These APMs,
which are not considered to be a substitute for IFRS measures, provide additional
helpful information and are based on European Public Real Estate Association
(EPRA) best practice recommendations. The metrics are also used internally
to measure and manage the business and to align to the performance-related
conditions for Directors’ remuneration. See the glossary for definitions and note 8
for calculations and reconciliations.
2024
2023
2022
2021
2020
2024
2023
2022
2021
2020
2024
2023
2022
2021
2020
THE UNITE GROUP PLC
Annual Report and Accounts 2024
17
74
70
65
75
74
Link to remuneration
Bonus.
Measure
Independent, anonymous
surveys are undertaken
by an external provider
amongst our employees to
gain regular and insightful
feedback on how they feel
and how we can improve.
Performance in 2024
Employee engagement
for 2024 was 74, a 4-point
improvement on 2023,
and sees a return to pre-
pandemic levels. The score
reflects the support we
have given through the
cost-of-living pressures.
Priorities going forward
Embedding our new
people-focused strategic
objective – Great Place to
Work – building togetherness
around our culture.
Operational KPIs
5
1
7
7
12
37
32
7
20
N/A
Safety
(number of accidents)
5
Link to remuneration
Taken into consideration.
Measure
The number of RIDDOR
reportable accidents in
operations each year, acting
as an indicator of health
and safety management.
Performance in 2024
There were 5 opearational
RIDDORs with an accident
frequency of 0.13. No
significant trends in terms of
causation were identified.
Priorities going forward
With an increase in RIDDORs
compared with 2023,
attention will focus on
the root cause analysis of
accidents and improving
our safety culture. A refresh
of our safety management
system will ensure
colleagues have the tools to
work effectively and safely.
Employee
engagement
74
Higher
Education trust
+37
Link to remuneration
Bonus.
Measure
The Higher Education (HE)
NPS provides a measure of
how we have met the needs
of our HE partners and their
perception of Unite Students.
Performance in 2024
The 5-point increase this
year is another great build
on our 2023 performance
and is a record score for
us. Our local teams have
continued to work hard with
universities, with proactive
and collaborative partnering.
Priorities going forward
Continue to build our
reputation within the HE
community with research
and thought leadership,
with an emphasis on our
social impact on students
and universities.
50
42
38
35
33
Link to remuneration
Bonus.
Measure
Customer Net Promotor
Score (NPS) provides a
commercial, customer
experience measure,
based on an annual
external check-in survey.
Performance in 2024
Highest score ever for
the 2024 student arrival
check-in at 50; 8 points
higher than 2023. This
demonstrates the success of
our CARE customer service
model launched in 2023.
Priorities going forward
Continue with student
support and maintenance
activities to achieve at
least this score next year;
we will also be focusing
our attention on other
surveys throughout
the academic year.
Customer
satisfaction
+50
2024
2023
2022
2021
2020
2024
2023
2022
2021
2020
2024
2023
2022
2021
2020
2024
2023
2022
2021
2020
THE UNITE GROUP PLC
Annual Report and Accounts 2024
18
CHIEF EXECUTIVE’S REVIEW
Continuing
to grow
The business has performed
strongly in 2024, delivering
continued growth in
earnings and dividends.
Adjusted earnings
£213.8m
(2023: £184.3m)
Dividend per share
37.3p
(2023: 35.4p)
Adjusted earnings per share
46.6p
(2023: 44.3p)
STRATEGIC REPORT
This reflects the strength of our best-in-class
operating platform, the commitment of our teams
and the ongoing appeal of our value-for-money
proposition. Our affordable pricing, UK customer
focus and strength of relationships with universities
are key differentiators, enabling us to significantly
outperform the sector in more competitive
environment. We operate in a structurally growing
sector, bolstered by demographic growth and the
attractiveness of the UK’s Higher Education sector to
domestic and international students. The shortage
of accommodation to meet this demand supports
sustainable long-term rental growth and our track
record and reputation in the sector create compelling
investment opportunities for the business.
GROWING EARNINGS AND DIVIDEND
A strong lettings performance for the 2023/24
and 2024/25 academic years supported growth in
adjusted earnings to £213.8 million and adjusted
EPS of 46.6p, up 16% and 5% respectively year-on-
year. The growth in adjusted EPS also reflects the
increased share count following our capital raise in
July 2024. IFRS profit attributable to owners of the
Company of £441.9 million and diluted EPS of 96.1p
(2023: £102.5 million and 24.6p) also reflects the
valuation increase of our property portfolio, driven
primarily by rental growth. We have proposed a final
dividend of 24.9p which, if approved, totals 37.3p
for the full year, representing a payout ratio of 80%
of adjusted EPS and a year-on-year increase of 5%.
Total accounting returns for the year were 9.6%,
reflecting dividends paid in the year and 6% growth
in EPRA NTA per share to 972p, our capital raise
in the year, our net debt:EBITDA and LTV ratios
reduced to 5.5x and 24% respectively, providing
the funding capacity to invest for future growth.
“The business performed
strongly in 2024 and
demonstrated resilience in
a challenging market. We
continue to deliver growth in
our earnings over the year
and our record development
pipeline supports this into the
medium term.”
JOE LISTER
CHIEF EXECUTIVE OFFICER
THE UNITE GROUP PLC
Annual Report and Accounts 2024
19
THE UNITE GROUP PLC
Annual Report and Accounts 2024
20
Our key financial performance indicators are set out below:
Financial highlights1
2024
2023
2022
Adjusted earnings
£213.8m
£184.3m
£163.4m
Adjusted EPS
46.6p
44.3p
40.9p
IFRS profit
£441.9m
£102.5m
£350.5m
IFRS diluted EPS
96.1p
24.6p
87.6p
Dividend per share
37.3p
35.4p
32.7p
Total accounting return
9.6%
2.9%
8.1%
EPRA NTA per share
972p
920p
927p
IFRS net assets per share
982p
931p
944p
Loan to value
24%
28%
31%
1. See glossary for definitions and note 7 for alternative performance measure
calculations and reconciliations. A reconciliation of profit before tax to EPRA
earnings and adjusted earnings is set out in note 7 of the financial statements.
ENCOURAGING OUTLOOK FOR 2025/26
We continue to see strong demand from students
and universities for our well located, value-for-money
student accommodation. We observed a normalisation
in leasing trends over the course of 2024, which
we expect to continue for the 2025/26 sales cycle
with more bookings made later in the cycle.
We have seen strong demand from universities for the
coming year, as they look to secure accommodation
to meet student demand, resulting in nomination
agreements 57% of beds for 2025/26. These agreements
deepen our relationships with universities and underpin
occupancy each year, providing income security at
rental levels comparable with direct-let sales.
International student demand is improving for 2025
after the disruption created by changes to visa policy in
early 2024. Visas granted to students were down 14% in
2024, as a result of this policy change and uncertainty
created by the review of post-study visa policy ahead of
the UK general election. The new government has been
vocal in its support of international students coming to
the UK, recognising the value they bring to the UK and
its universities and we are not expecting any further visa
changes in the near term. Recruitment data is encouraging
with indications of a 14% increase in the intake for January
2025 and a 3% increase in international applicants for the
2025/26 academic year, with 9% growth from China.
Across the Group’s entire property portfolio, 70% of rooms
are now sold for the 2025/26 academic year (2024/25:
79%,in-line with our expectations for a later sales cycle.
We remain on track to deliver 97-98% occupancy and
rental growth of 4-5% for the 2025/26 academic year.
CONSTRAINED SUPPLY OF STUDENT HOUSING
Many university cities are facing housing shortages, and our
investment activity is focused on those markets with the
most acute need. Over half of students who need term-time
accommodation live in HMOs where many private landlords
are choosing to leave the sector due to rising mortgage
costs and increasing regulation. In some markets, delivery of
build-to-rent accommodation is partially mitigating reduced
availability of HMO stock, albeit at higher price points.
New supply of PBSA is also down 60% on pre-pandemic
levels, reflecting viability challenges created by higher costs
of construction and funding as well as planning backlogs
and time required to secure Building Safety Act approvals.
Weekly rents now need to be at least £200 for new PBSA
development outside of London to be viable, meaning
there is little prospect of new supply in many markets.
We expect obsolescence of older university accommodation
to further impact supply, with 5,000-10,000 beds being
removed from the market each year due to building age
and the need to operate buildings more sustainably.
The combination of these factors has significantly increased
demand for our accommodation in many cities. Our strong,
established relationships with universities position us as
a long-term partner to help solve their housing needs.
The Government has also set ambitious targets for new
housing, and we will play our part in delivering new student
accommodation which frees up local housing for families.
DELIVERING OUR STRATEGY
Our purpose is to deliver a Home for Success,
creating communities where young people thrive.
Our strategy is focused on three key objectives
to deliver for our key stakeholders:
• Great Place to Live - Creating places to live, places that
our customers can call home while they stay with us
• Great Place to Work - Creating the platform for our people
to do their best work, experience the career journey of
a lifetime and achieve extraordinary things together
• Great Place to Invest - Delivering long-term growth for
our investors as a sustainable and resilient business.
STRATEGIC REPORT
CHIEF EXECUTIVE’S REVIEW
continued
Q: WHAT HAVE BEEN THE
BIGGEST HIGHLIGHTS FOR
THE COMMERCIAL TEAM OVER
THE PAST 12 MONTHS?
A: Our team successfully launched a new resident
app and website, showcasing life as a Unite Students
resident. This boosted student engagement and
strengthened our digital presence for future growth.
Our partnership with Parklife Festival raised brand
awareness, while our award-winning resident
retention campaign kicked off the annual sales cycle.
Q: HOW PLEASED ARE YOU WITH
UNITE STUDENTS’ PERFORMANCE
AND WHAT HAVE BEEN THE
MAJOR EXTERNAL FACTORS?
A: I am thrilled with our ongoing commercial
success. For the third consecutive year, the team
has delivered market-leading results, driven by both
strong occupancy and rental growth. Our strategic
locations and strong university partnerships play
a key role in driving demand. We’ve focused on
attracting second- and third-year UK students while
remaining mindful of cost-of-living challenges. To
address this, we offer a range of pricing options and
products tailored to meet the needs of our residents.
Q: HOW IS THIS YEAR’S
PERFORMANCE SETTING THE
COMPANY UP FOR THE FUTURE?
A: The performance over the past two years, along
with this year’s achievements, have been crucial in
positioning the Company for future success. Our
focus has been on establishing the right foundations,
platforms, and processes to meet our objectives.
We’ve delivered strong, sustainable rental income,
backed by a growing sector and partnerships with
leading universities. Our ongoing investment in the
operating platform will further enable us to ensure
we remain customer focused.
Q: CAN YOU DETAIL SOME
OF THE KEY COMMERCIAL
INITIATIVES FROM 2024?
A: We are advancing the next phases of our
technology investment, which includes further
app and website releases, enhancing our digital
marketing, customer relationship management
capabilities, and optimising inventory and pricing
flows through our platforms. Our approach to
pricing and performance measurement is grounded
in comprehensive data, consumer behaviour,
competitor analysis, and market supply and demand.
We continue to build brand awareness, ensuring
our product range is effectively promoted to future
customers across the channels they engage with
most frequently.
Great Place
to Invest
Q&A
with Shauna Campbell,
Group Commercial Director
“For the third consecutive
year, the team has
delivered market-leading
results, driven by both
strong occupancy and
rental growth.”
THE UNITE GROUP PLC
Annual Report and Accounts 2024
21
Case study
Record student satisfaction
Throughout 2024, we invested into our buildings and our
people to deliver a Home for Success for our residents.
We were delighted to record our highest-ever customer
satisfaction (NPS) score of +50 in our autumn check-in
survey, marking a 9-point increase from 2023.
96% of our residents said they felt welcome, while 91%
agreed that our buildings met their expectations. Our
teams’ hard work meant that 85% of our city clusters
improved their score year-on-year, with London Central
recording the highest satisfaction score of +79.
University partners were also satisfied. Our 2024 Higher
Education satisfaction score was the highest on record
(+37, a 5-point increase from 2023), while we also
improved our trust score, based on five trust metrics
such as providing an excellent service to students and
providing a high standard of accommodation.
STRATEGIC REPORT
CHIEF EXECUTIVE’S REVIEW
continued
Great Place to Live
We delivered significant enhancements to our buildings and
service offering in 2024, delivering value-for-money for our
customers. During the year we refurbished 11 buildings,
upgrading the living experience for 5,200 students, driving
significant improvements in Net Promoter Scores. Our
accommodation is comparable in cost to HMOs once bills
are included. This is before allowing for the price certainty
we provide on utilities and the additional product and service
features we offer, such as on-hand maintenance teams and
24/7 security, high-speed Wi-Fi and contents insurance.
We have a best-in-class 24/7/365 operating platform in the
student accommodation sector, underpinned by our PRISM
technology platform, passionate customer-facing teams and
sector-leading student support in partnership with universities.
We are in the process of upgrading our PRISM platform
to enhance customer experience and deliver operational
efficiencies and during 2024 we delivered new payment options,
as well as a new customer website and app. We continue to
support student welfare through our Support to Stay programme
and are also building on the research of the Living Black
Commission in partnership with the HE sector to improve the
university accommodation experience for black students.
The impact of our customer initiatives is reflected in a further
increase in our Net Promoter Scores to +50 for students at check-
in and +37 with university partners (2023: +42 and +32). We have
also seen an increase in the proportion of beds under nomination
agreements to 57% (2023/24: 53%), reflecting our status as the
partner of choice for universities as they increasingly look to
trusted partners to meet their accommodation needs.
Great Place to Work
Delivering for our customers and investors requires us to
attract and retain the best people and enable them to deliver
their best work.
We have maintained our commitment to the Real Living
Wage for 2025, with 5% pay awards for our city teams.
During the year we introduced a new performance
management framework to support our people in having
more meaningful performance conversations, helping to
align individual goals with the Company’s objectives. We
also maintained our focus on Diversity, Equity, Inclusion
and Belonging, by introducing guidance on neurodiversity
and the menopause. Our teams delivered a record number
of Positive Impact projects in their local communities in
2024, delivering lasting benefits in many of our cities. Our
employee engagement score rose to 74, the highest in two
years, and we achieved the Investors in People Gold Award,
reflecting the ponique sitive impact of these initiatives.
Great Place to Invest
We delivered 5% growth in adjusted EPS and
dividends in the year as strong rental growth offset
cost increases in our operations. Rental growth also
supported increases in our property valuations, which
resulted in a total accounting returns of 9.6%.
The quality and scale of our portfolio is key to delivering
attractive, sustainable returns for our shareholders. We
secured planning on three projects in our development
pipeline and successfully delivered £48 million of building
upgrade projects in the year at a blended yield on cost of
THE UNITE GROUP PLC
Annual Report and Accounts 2024
22
THE UNITE GROUP PLC
Annual Report and Accounts 2024
23
10%. We continue to recycle capital with a focus on increasing
alignment to the strongest universities and disposed of £304
million of properties in the year (Unite share: £161 million).
In July 2024, we raised £450 million in equity to accelerate our
investment activity into development and acquire value-add
investment assets. We have deployed around 50% of the proceeds
and expect the transaction to enhance earnings and total returns
as projects are delivered.
MORE SUPPORTIVE GOVERNMENT POLICY
Higher Education contributes over £250 billion to the UK
economy, creates new opportunities and life experiences
for young people, and provides global influence through
the soft power of education. The HE sector also plays a key
part in increasing skill levels in support of the Government’s
mission to kickstart economic growth. Recognising this
value, the new UK Government is supportive of both
the university sector and international students.
Tuition fees for English students increased for the first time since
2017 for the 2025/26 academic year, rising by 3.1% to £9,535
p.a. While this was welcomed by universities, they continue to
face cost pressures due to the significant real-term decline in
fees over recent years. In 2025, the Government will publish a
comprehensive spending review including funding for Higher
Education, laying out budgets and capital investment until 2029.
The Government is expected to announce a new Higher
Education Policy and International Education Strategy in
the spring, which we expect to focus on attracting growing
numbers of international students to study in the UK. The
Government is actively encouraging international student
recruitment and the introduction of student number
restrictions by Canada and Australia is expected to increase
the relative attractiveness of the UK as a study destination.
Universities are well established, long-term institutions
with strong balance sheets and little debt. In recent years
universities have responded to rising costs by growing student
numbers, increasing international recruitment and delivering
efficiencies within their cost bases. We have deliberately
aligned ourselves to the strongest universities which, though
not immune, are best positioned to respond to rising costs.
A small number of universities face greater challenges
where broader cost reduction programmes may be required
but our exposure to this part of the market is minimal.
We are confident that our alignment to the strongest universities
best positions us to navigate future changes in student
demand and government policy. Our standing in the sector
provides us with unique insight and unlocks opportunities to
deepen partnerships. Together with our high-quality portfolio
and responsible approach to rent setting, this positions us
to deliver sustainable rental growth in the years ahead.
SIGNIFICANT GROWTH OPPORTUNITIES
Universities increasingly see the lack of high-quality and
value-for-money accommodation as a barrier to their
growth. The challenge of obsolescence in legacy estates and
limited funding creates significant opportunities for Unite
Students to support universities to deliver new, improved and
sustainable accommodation. During the year, we announced
our first university joint venture with Newcastle University
to develop 2,000 new beds on university land. We expect to
announce our second agreement in the next three months.
In addition, we have a substantial committed pipeline of
£1.2 billion of traditional development close to campuses,
which is 100% aligned to Russell Group universities. The
equity raised over the past two years means our pipeline is
fully funded for committed schemes being delivered in the
period to 2028. These projects are underpinned by demand
from universities for 63% of beds, which supports significant
growth in our earnings and NTA over the next four years.
The Building Safety Act introduced three gateways for
construction of new high-rise buildings and has added around
six months to development programmes. Delays in reviewing
applications as the new regulatory process is implemented
have unfortunately resulted in the delivery of our Freestone
Island development in Bristol being delayed until 2027.
We have increased our target returns for new investment
to reflect higher capital costs and increased delivery
risks in the current environment. We remain focused
on the delivery of our committed pipeline which will
add £71 million to net operating income (Unite share)
over the medium term as projects are delivered.
Acquisitions providing immediate income, have become more
attractive and we expect to see an increased availability of
investment opportunities over the next two years. In 2024, we
acquired eight properties, all in strong markets with value-add
potential, which we expect to deliver attractive risk adjusted
returns. We will remain disciplined in our investment activity,
ensuring that new commitments enhance the growth and quality
of our portfolio, while maintaining a strong balance sheet.
POSITIVE OUTLOOK
The outlook for the business is strong. Student accommodation
is structurally supported by growing demand for UK
Higher Education and constrained supply, which supports
sustainable growth in our rents and earnings over the long-
term. An environment of higher funding costs will impact
our earnings growth but we also expect this to create
significant opportunities for our well-capitalised business
to invest and grow in the UK’s strongest university cities.
An encouraging outlook for student demand supports rental
growth of 4-5% for the 2025/26 academic year and 2-4% growth
in adjusted EPS in 2025. We see mid-single digit earnings growth
over the medium term, driven by our operating performance and
accelerating development completions, which supports attractive
total accounting returns of c.10% before yield movements.
We are investing significantly to deliver the new student homes
to support the growth of the UK’s strongest universities and help
free up much-needed family housing in our local communities.
The strength of our university relationships, best-in-class
operating platform and development expertise has unlocked the
opportunity for strategic partnerships and we expect to announce
our second university joint venture in the coming months.
PERFORMANCE REVIEW
Operations review
Strong
demand
Annual rents increased by 8.2% on a like-for-like basis
for 2024/25 academic year (2023/24: 7.4%), which was
above our initial expectations. We saw strong growth
across both our direct-let and nominated beds. This
reflected our success in agreeing increased rental
levels on renewals of single year and new multi-
year nomination agreements where our university
partners recognise the value our accommodation
provides at a time of increasing costs. Continued
enhancements to our service and product offering
drove strong demand and supported the increase
in our check-in NPS score to +50 (2023: +42).
We achieved occupancy of 97.5% across our total
portfolio for the 2024/25 academic year (2023/24:
99.8%) as the market returned to more normal
levels of occupancy after two years of exceptional
demand resulting from the surge in student
numbers during and immediately following the
pandemic. The strength of our relationships with
universities, the quality and location of our portfolio
and focus on UK customers at affordable price-
points saw lettings outperform the wider PBSA
sector where occupancy averaged around 94%.
Occupancy
97.5%
Rental growth
8.2%
(2023: 7.4%)
Portfolio aligned to Russell Group
93%
(2023: 93%)
STRATEGIC REPORT
THE UNITE GROUP PLC
Annual Report and Accounts 2024
24
KARAN KHANNA
CHIEF OPERATING OFFICER
GROWING DEMAND FOR STUDENT
ACCOMMODATION
The UK’s universities attract young people from
around the world for the quality of learning and life
experience they offer. This demand for university
education and our accommodation is structurally
supported with the UK population of 18-year-olds
forecast to grow 11% (99,000) by 2030 (Source:
ONS). We are also seeing a return to growth in
international demand for UK Higher Education
following disruption in 2024 caused by visa changes.
The latest UCAS data shows 2% growth in applications
for the 2025/26 academic year from UK 18-year-olds,
our core customer demographic, which is supported
by population growth and strong application rates.
Resilient student demand
Overall, the undergraduate intake for 2024/25
increased by 2% to 565,000 (2023/24: 554,000) with a
record number of UK 18-year-olds starting courses.
We have been deliberate in aligning our portfolio to
high- and medium-tariff universities, where the number
of accepted applicants grew by 4% for the 2024/25
academic year. In contrast, lower tariff universities saw
a 1% reduction in acceptances, continuing the trend
of the past decade where higher tariff universities
have captured a growing share of student demand.
Our portfolio is 93% aligned to Russell Group markets,
where the number of accepted students rose by 8% YoY
and is now 16% above pre-pandemic levels.
Recruitment of international students was disrupted
for 2024/25 by the removal of visas for family members
of postgraduate taught students which became
effective in January 2024, and uncertainty created by
the Government’s review of the Graduate Route in
May 2024. This led to a 14% reduction in visas issued
to international students in 2024, ranging from
a 5% reduction for Russell Group universities to
c.25% fewer for other universities. Encouragingly,
more recent data indicates a return to growth in
international student numbers with January 2025
intake starts up 14% year-over-year and 3% growth
in international applications through UCAS for the
2025/26 academic year.
Strong demand from universities
We have maintained a high proportion of income
let to universities, with 38,326 beds (57% of total)
provided under nomination agreements for 2024/25
(2023/24: 37,143 and 53%). The increase in the
percentage of beds under nomination agreements
reflects universities’ growing reliance on private
providers to meet their accommodation needs
and our position as the partner of choice. We saw
further improvement in our university NPS score
to +37 (2023: +32), recognising the strength of our
partnerships, sector-leading student welfare offer,
and thought leadership in the sector.
The unexpired term of our nomination agreements
is 5.8 years, unchanged on 2023/24. A balance of
nomination agreements and direct-let beds provides
the benefit of having income secured by universities,
as well as the ability to offer rooms to re-bookers
and postgraduates and determine market pricing on
an annual basis. We expect to maintain nomination
agreements between 50-60% of beds going forward
providing sigificant income visibility.
67% of our nomination agreements, by income,
are multi-year and therefore benefit from annual
fixed or inflation-linked uplifts based on RPI or CPI.
The remaining agreements are single year, and we
achieved a renewal rate of 81% with universities for
2024/25 where we offered to renew (2023/24: 89%).
As inflation moderates, we expect annual rental
uplifts will return closer to historical levels of 0.5-
1.0% above CPI inflation.
Agreement length
Beds
2024/25
% Income
2024/25
Single year
12,812
33%
2-5 years
8,586
23%
6-10 years
4,308
11%
11-20 years
6,398
17%
20+ years
6,222
16%
Total
38,326
100%
THE UNITE GROUP PLC
Annual Report and Accounts 2024
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THE UNITE GROUP PLC
Annual Report and Accounts 2024
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STRATEGIC REPORT
PERFORMANCE REVIEW
Operations review continued
UK students account for 72% of our customers for 2024/25
(2023/24: 72%), making up a large proportion of the beds under
nomination agreements with universities. This represents a
significant increase in our weighting to UK students over recent
years, compared to 60% immediately prior to the pandemic, and
reflects our success in retaining second and third year students
who might have historically moved into the HMO sector. The
proportion of our customers from outside the UK is unchanged
at 28% (2023/24: 28), highlighting the resilience of our strategy
in a year when international demand was disrupted.
Postgraduates make up 17% of our customer base and non-
first year undergraduates accounted for a further 28% of our
bookings for the 2024/25 academic year (2023/24: 17% and
27%), reflecting the success of proactive marketing to these
groups. The growing appeal of our offering to postgraduate
and non-first year undergraduate students, who typically seek
greater independence, supports our strategy of increasing the
segmentation of our customer offer to capture market share
from the traditional HMO sector.
Occupancy by type and domicile by academic year
Direct-let
Nominations
UK
China
EU
Non-EU
Total
2021/22
51%
21%
13%
3%
6%
94%
2022/23
52%
24%
14%
2%
7%
99%
2023/24
53%
24%
13%
2%
8%
100%
2024/25
57%
22%
13%
1%
5%
98%
LEASING TRENDS NORMALISING FOR 2025/26
Applications data for the 2025/26 academic year is encouraging,
with applications up 2% on 2024/25 from UK 18-year-olds who
are our core customer group. We continue to see strongest
demand for the high-tariff universities to which we have aligned
our portfolio where applications increased by 4%. Applications
from international students are 3% higher for 2025/26, with
particularly strong growth from China.
Across the Group’s entire property portfolio, 70% of rooms are
now reserved for the 2025/26 academic year, which is in-line
with our long-term leasing pace. We have seen strong early
demand from universities who see quality accommodation as
a key part of their offer to prospective students, including new
and extended multi-year nomination agreements for 7,000 beds.
We expect the normalisation of booking trends seen over the
course of 2024 to continue for the 2025/26 sales cycle with
more bookings made later in the cycle. Recent data releases
on international student demand are encouraging and we
anticipate an acceleration in reservations over the coming
months. Our nominations and direct-let sales performance to
date is supportive of our guidance for 97-98% occupancy and
rental growth of 4-5% for the 2025/26 academic year.
COST PRESSURES ARE EASING
Cost growth slowed in 2024 as utility costs stabilised in the
second half and inflation moderated. Property operating costs
increased by 8% in 2024 (2023: 14%), principally driven by staff
costs due to wage increases linked to the Real Living Wage and
utility costs as a result of higher commodity prices following the
expiry of cheaper historical hedges.
Summer cleaning costs decreased by £0.4 million through
in-sourcing activity, which supported the improvement in our
NPS score. Marketing costs reduced by £0.3 million, reflecting
fewer direct-let beds for sale and more targeted investment in
our commercial proposition. Central and other costs together
increased by £1.7 million driven by maintenance activity, growth
in central teams and council tax/HMO licences.
We expect further normalisation of cost growth in 2025 as
utility growth slows further and inflationary pressures subside.
Increased National Insurance contributions from April 2025 will
cost the business around £2 million p.a. and we have adopted
the 5% increase in the Real Living Wage for relevant roles. Our
utility costs are fully hedged through 2025 and 35% for 2026,
and we expect a low single-digit percentage increase in the cost
of utilities in 2025.
The combination of slowing cost growth and strong rental
growth secured for the 2024/25 academic year supports an
improvement in our EBIT margin of around 50bps in 2025.
Property operating
expenses breakdown
2024
£m
2023
£m
Change
Staff costs
(34.0)
(29.7)
14%
Utilities
(30.5)
(26.9)
13%
Summer cleaning
(5.3)
(5.7)
(7%)
Marketing
(7.0)
(7.3)
(4%)
Central costs
(18.0)
(16.8)
7%
Other
(27.1)
(26.6)
(2%)
Property operating
expenses
(121.9)
(113.0)
8%
Q: WHY DOES ‘GREAT PLACE TO
WORK’ MATTER TO US?
A: A Great Place to Work is the foundation of our success
as a Great Place to Live and Invest. Our People Promise – to
create the platform for our people to do their best work,
experience the career journey of a lifetime, and achieve
extraordinary things together – drives everything we do.
Motivated, engaged teams deliver exceptional service, which
fuels both resident satisfaction and shareholder value. By
embedding our refreshed values – Lead with Heart, Stay on
Point, Challenge the Ordinary, Unite as One – we’re building
a culture of high trust, care, and challenge, where everyone
can contribute meaningfully to our shared goals.
Q: HOW HAS UNITE STUDENTS
BECOME A BETTER PLACE TO WORK
IN 2024?
A: This year marked significant progress in making Unite
Students a better place to work. Achieving the Investors
in People Gold Award highlighted our dedication to
empowering our people and improving their experience.
We conducted our first culture audit, gathering insights
that informed the creation of our new values and
behaviours. The launch of My Impact provided a platform
for more meaningful performance conversations, helping
individuals align their goals with the Company’s priorities.
Meanwhile, advances in Diversity, Equity, Inclusion, and
Belonging (DEIB) – including guidance on neurodiversity and
menopause – helped foster a more inclusive environment.
Our engagement score rose to 74, the highest in two years,
reflecting the positive impact of these initiatives.
Q: WHAT ASPECTS OF UNITE
STUDENTS’ WORKPLACE CULTURE
ARE WE MOST PROUD OF?
A: We’re proud of our vibrant, collaborative
culture. Our teams demonstrate care, ambition,
and innovation, tackling challenges with a forward-
thinking mindset while staying true to our values.
The progress we’ve made in DEIB is a testament
to our commitment to creating an environment
where everyone feels valued and included.
Leadership and development opportunities,
such as the General Manager programme,
have strengthened our talent pipeline and
empowered colleagues to grow in their roles.
Q: HOW IS OUR PEOPLE
FUNCTION WORKING WITH
OTHER TEAMS TO FOSTER
COMPANY-WIDE SUCCESS?
A: The People Function plays a key role in aligning
our people strategy with business goals. Through
the People Come First (PCF) framework, we focus on
unlocking potential, curating culture, and building
for the future. This year, My Impact facilitated better
alignment of individual performance with business
priorities, while preparations for our 2025 Talent
Experience Platform are set to enhance learning,
development and goal setting. The Culture Matters
forum has been a vital channel for employee
feedback, shaping priorities and fostering inclusivity.
By embedding our values into key processes such
as recruitment and leadership development, we are
enabling collaboration.
Great Place to Work
Q&A
with Amy Round,
Group People Director
“Happy, motivated teams
are essential for delivering
outstanding service to
residents and driving
strong performance for
our shareholders.”
THE UNITE GROUP PLC
Annual Report and Accounts 2024
27
Case study
Improving student
wellbeing
Our residents can need support at any time of
day or night. If they need us, we’re there: we
have a 24/7 staff presence, with all employees
being trained to carry out wellbeing checks,
and an emergency contact centre.
However, sometimes a little more support
is needed – so, to complement our existing
provision, we introduced a student assistance
programme during the 2023/24 academic year.
Delivered by Health Assured, the assistance
programme includes a helpline and webchat that
are staffed by clinical professionals all year round, so
that our residents can benefit from their expertise.
Our proactive support work is also important. As
of 2024, we have more Resident Ambassadors –
students paid at the National Living Wage to create
a community and run events in their building
– than ever before, providing our residents with
valuable peer support and upskilling the Resident
Ambassadors through training and experience.
STRATEGIC REPORT
TECHNOLOGY ENHANCING CUSTOMER
EXPERIENCE AND MARGINS
Our technology upgrade programme to enhance customer
experience and drive efficiencies delivered significant
milestones in 2024 as we launched a new student app and
website, opened up new payment methods and launched
a new reward and benefit platform for our people. We will
deliver new booking, customer service, maintenance and
finance platforms over the next two years, which will support
our strategic objectives of delivering a Great Place to Live and
Work. We expect to incur a further £15 million of costs in 2025
as the programme continues to deliver change. We expect
to achieve a payback on our investment through enhanced
utilisation of our portfolio and cost efficiencies, which will
increase our EBIT margin by around 1% over the medium term.
PERFORMANCE REVIEW
Operations review continued
THE UNITE GROUP PLC
Annual Report and Accounts 2024
28
THE UNITE GROUP PLC
Annual Report and Accounts 2024
29
TOM BREWERTON
GROUP DEVELOPMENT DIRECTOR
The see-through net initial yield of the portfolio
was 5.1% at 31 December 2024 (December 2023:
5.0%), which reflects like-for-like yield expansion
of 10 basis points in the year. We are encouraged
by the stabilisation of property yields in the year
and an increase in transaction volumes for PBSA.
Rental growth was particularly strong in our
wholly-owned portfolio following accretive asset
management projects and recognition of rental upside
in two buildings approaching the end of long-term
nomination agreements. This was partially offset
by an increase in property yields for larger assets
in prime regional markets. The stronger valuation
performance for LSAV reflects its higher London
weighting, where the loss of MDR was less impactful.
Our property portfolio saw a 4.9%
increase in valuations on a like-for-
like basis during the year (Unite
share: 4.8%), as strong rental
growth more than offset the loss
of Multiple Dwellings Relief (MDR)
and increases in property yields.
Total Pipeline
7,676 beds
Total pipeline development cost
£1.5 billion
(2023: £1.3bn)
Beds nominated by university partners
57%
(2023: 53%)
PERFORMANCE REVIEW
Property review
Quality
Developments
THE UNITE GROUP PLC
Annual Report and Accounts 2024
30
The proportion of the property portfolio that is income
generating is 93% by value (31 December 2023: 97%)
with properties under development increasing to 7% of
the property portfolio by value (31 December 2023: 3%)
due to the acquisition of several development sites and
capital expenditure for on-site projects during the year. We
expect the proportion of properties under development to
grow in 2025 as we build out the committed pipeline.
The PBSA investment portfolio is 38% weighted to London by
value on a Unite share basis, which is expected to rise above
40% on a built-out basis following completion of our secured
development pipeline.
Limited new supply
There is widespread acknowledgement from universities and
local authorities of the need for new student accommodation
to support the growth of universities and relieve pressure
on housing supply in local communities. However, supply
conditions remain tight due to depressed levels of new
development and a declining supply of private housing (HMOs).
New supply of PBSA is down 60% on pre-pandemic levels,
with around 11,000 beds delivered in 2024 (Source: StuRents),
reflecting viability challenges created by higher build, regulation
and funding costs. Weekly rents of around £200 are now required
to make development viable outside London, significantly above
market rents in many cities and 80% of our regional portfolio.
In response to increasing costs, new supply is increasingly
focused on higher value studio accommodation and is targeting
a different market segment to our 85% cluster-flat portfolio.
Positively, we saw build cost inflation moderate during the
year, although the availability of skilled labour remains tight,
and costs remain around 50% higher than five years ago.
Planning timescales remain protracted due to limited
planning resource for local authorities, resulting in longer
delivery programmes which challenge viability. We
expect the combination of complex planning, increasing
regulation, and higher build and funding costs to restrict
the delivery of new supply for several years.
DELIVERING NEW, HIGH-QUALITY STUDENT HOMES
Developing new high-quality accommodation in the most supply
constrained markets increases our alignment to the strongest
universities and is a significant driver of both earnings growth
and total returns.
Our development pipeline includes 7,676 beds with a total
development cost of £1.5 billion, of which 100% is located in
Russell Group cities and 60% by cost will be delivered in London
and 63% of beds are underpinned by a university agreement.
The Building Safety Act addresses the safety of new residential
accommodation, by adding three gateways to the design,
build and occupation of new buildings. We expect these
gateways will add around six months to PBSA development
STRATEGIC REPORT
PERFORMANCE REVIEW
Property review continued
LIKE-FOR-LIKE CAPITAL GROWTH 1,2,3
£m
Valuation
31 Dec 2024
Rental
growth
Yield
movement
MDR/
Other2
Capital
expenditure3
Total
Wholly-owned
4,149
362
(107)
(38)
(52)
165
USAF
2,881
202
(10)
(49)
(25)
118
LSAV
2,058
150
(9)
(5)
(21)
115
Total (Gross)
9,088
714
(126)
(92)
(98)
398
Total (Unite share)
6,018
498
(114)
(55)
(70)
257
% capital growth
Wholly-owned
10.1%
(3.0%)
(1.1%)
(1.4%)
4.6%
USAF
7.7%
(0.4%)
(1.9%)
(0.9%)
4.5%
LSAV
7.8%
(0.4%)
(0.3%)
(1.1%)
6.0%
Total (Gross)
8.8%
(1.5%)
(1.1%)
(1.2%)
4.9%
Total (Unite share)
9.3%
(2.1%)
(1.1%)
(1.3%)
4.8%
1. Excludes leased properties and gains on disposals.
2. Excludes NTA neutral re-allocation of fire safety provision to Investment Property from Other assets (liabilities) on balance sheet.
3. Other includes changes to operating cost assumptions and income adjustments on reversionary assets.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
31
programmes once embedded, putting pressure on returns
and further slowing new supply. Our appraisals and
delivery targets reflect the expected impact of the Act.
We have increased our return requirements for new investment
to reflect higher funding costs and increased delivery risks in the
current environment. We now are seeking development yields
on new direct-let schemes at around 8% in regional markets and
6.75-7.0% in London, approximately 25-50 basis points higher than
previous targets. We have lower hurdle rates for developments
that are supported by universities or where another developer is
undertaking the higher-risk activities of planning and construction.
Our focus is now on successfully delivering our secured
pipeline and seeking opportunities for further university
joint ventures, including on-campus projects and stock
transfer, building on our successes over the past year. Land
prices will have to adjust further for traditional development
projects to meet our increased return requirements.
Completed schemes
During the year, we completed our 271-bed Bromley Place
scheme in Nottingham at a cost of £36 million. The programme
was accelerated to achieve delivery for the 2024/25 academic
year and occupancy is expected to stabilise in 2025/26 with
the benefit of a full leasing cycle. The project is tailored to
postgraduate students, with smaller cluster sizes, a higher
share of studios and an enhanced room specification. Through
reusing the pre-existing façade, the project’s embodied
carbon of c.670kg/m2 is 45% below the RIBA baseline of
1,200kg/m2, making it our lowest carbon building to date.
Committed schemes – off campus
We are committed to seven off-campus development
schemes and our Newcastle joint venture, totalling 6,570
beds and £1,048 million in total development costs (Unite
share). Once complete, the projects will add a combined
£71 million to net operating income (Unite share).
We are on track to deliver two schemes for the 2025/26
academic year. At Burnet Point in Edinburgh, we will deliver 298
beds in cluster-flats as well as 103 beds in two- and three-bed
clusters in a separate block. These smaller flats will be available
for postgraduate students, university staff and other young
professionals and form part of our BTR pilot. At Avon Point in
Bristol, 50% of the 623 bed scheme will be nominated by the
University of Bristol on a long-term nominations agreement.The
site is adjacent to the University of Bristol’s new Temple Quarter
campus and will grow our portfolio in Bristol to 4,700 beds.
In Stratford, work is also underway at our Hawthorne House and
Meridian Square projects which will be delivered for the 2026/27
and 2028/29 academic years respectively. The developments will
be delivered as university partnerships, with over half of the beds
let under nomination agreements to our university partners.
Early works are underway at our Central Quay project in Glasgow
and we expect to commit to the full build contract in the coming
weeks, which supports delivery in time for the 2027/28 academic
year. During the year, we acquired the 444-bed Kings Place project
in London with the benefit of a full planning consent. Demolition
is now underway and we expect to deliver the scheme for the
2027/28 academic year.
University joint ventures
Co-investment in accommodation alongside a university
has been an objective for the business for several years. In
February 2024, we announced an agreement with Newcastle
University to enter into a joint venture to develop c.2,000
beds at the University’s Castle Leazes site. The joint venture
deepens our 20-year relationship with Newcastle University
through a long-term strategic partnership. The existing halls
are being demolished in anticipation of the new development.
We are providing 1,600 beds being provided to house first-
year students during the redevelopment. We submitted a
joint planning application with Newcastle University for the
new scheme in the autumn and, following delays in reaching
agreement with a third party, now expect to open the first
phase of Castle Leazes for the 2028/29 academic year.
We are in the advanced stages of agreeing our second university
joint venture with Manchester Metropolitan University, which
we expect to finalise in the second quarter of 2025. The
partnership will redevelop the University’s existing 770-bed
Cambridge Halls accommodation adjacent to its campus in
Manchester city centre which is now thirty years old, and no
longer meets student needs. Subject to finalising the agreement
and securing planning approval, around 2,300 beds will be
built on the site for delivery in 2029 and 2030. The proposed
scheme offers a range of room types and price points for
students, including a new more affordable design concept.
We are in active discussions with a range of high-
quality universities for further partnerships, which we
are looking to progress over the next 12-18 months.
These include discussions around stock transfer and
refurbishment of existing university accommodation as
well as new development both on- and off-campus.
Future pipeline
Our secured pipeline includes an additional 1,106 beds for as
yet uncommitted schemes with total development costs of
£305 million. We have optionality over these schemes and will
make decisions on whether to proceed based on their risk-
adjusted returns relative to other investment opportunities.
In January, planning was rejected for our TP Paddington
development in London despite being recommended
for approval by planning officers, again highlighting the
challenges of delivering new supply in our strongest markets.
We are reviewing our options to secure planning and
deliver a scheme in-line with our return requirements.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
32
STRATEGIC REPORT
PERFORMANCE REVIEW
Property review continued
SECURED DEVELOPMENT AND PARTNERSHIPS PIPELINE
Type1
Target
delivery
Secured
beds/units
No.
Total
completed
value £m
Total
devel. costs
£m
Capex in
period
£m
Capex
remaining
£m
Forecast NTA
remaining
£m
Forecast
yield on
cost %
Off-campus pipeline
Avon Point, Bristol
Noms
2025
623
124
80
32
22
6
7.3%
Burnet Point, Edinburgh
DL
2025
401
76
62
16
33
5
7.1%
Hawthorne House, Stratford³
Noms
2026
716
244
194
31
71
33
6.1%
Freestone Island, Bristol
Noms
2027
500
111
76
16
58
18
7.4%
Central Quay, Glasgow
Noms/DL
2027
934
164
126
18
107
30
7.4%
Kings Place, London
DL
2027
444
238
167
68
99
46
6.6%
Meridian Square, Stratford
Noms
2028
952
299
217
60
143
49
6.4%
Total off-campus pipeline
4,570
1,253
921
241
533
186
6.7%
University JV
Castle Leazes, Newcastle2,4
JV 2028/29
2,000
291
250
10
240
16
7.3%
Total committed pipeline
6,570
1,401
1,171
251
773
202
6.8%
Future pipeline
TP Paddington, London2
Noms
2029
605
178
2
171
6.0%
Elephant & Castle, London2
Noms
2028
501
127
4
122
6.5%
Total future pipeline
1,106
305
6
293
6.2%
Total pipeline (gross)
7,676
1,475
258
1,066
6.7%
Total pipeline (Unite share)
1,353
252
949
6.7%
1. Direct-let (DL), Nominated (Noms) and Joint Venture (JV). 2. Subject to obtaining planning consent. 3. Yield on cost assumes the sale of academic space for c.£45 million.
4. Unite share 51%. Yield on cost includes management fees in NOI and deducts development management fee from costs.
INVESTMENT ACTIVITY ALIGNED TO THE
STRONGEST UNIVERSITIES
Acquisitions
Higher interest rates have increased our cost of capital. This
increases the attractiveness of income today compared to income
in the future, to which we now apply a higher discount rate. As a
result, acquisition opportunities which are immediately income-
generating have increased in attractiveness when compared
to developments, which deliver income in future years.
We expect increasing volumes of PBSA assets to come to market
in 2025 and are focused on opportunities in our strongest markets
aligned to high-quality universities, where we see the ability to
deliver attractive rental growth over the long term.
Following our capital raise in July, we acquired seven assets for
£244 million from USAF as part of a property swap. The acquired
assets are located in strong markets (Bristol, Cardiff and Liverpool)
and offer value-add opportunities through refurbishment as
existing nominations expire over the next two to three years.
During the year we also acquired the freehold interest of a 260-
bed property in London for £37 million, which the Group had
previously sold and leased back, from the freeholder. The property
was acquired at below replacement cost, off affordable rents and
we are planning a refurbishment upon expiry of a nomination
agreement in 2026.
Disposals
We continue to manage the quality of the portfolio and our balance
sheet leverage by recycling capital through disposals. During the
year we completed the sale of six properties to PGIM Real Estate for
£184 million (Unite share: £76 million). The disposals were priced at
a blended 6.2% yield and in line with book value after deductions for
fire safety works.
Following our capital raise in July, we sold two assets to USAF for
£120 million as part of a property swap. The assets, located in Bristol
and Liverpool, offer modern, high-quality accommodation with 58%
of beds let under university nomination agreements.
We will continue to recycle capital from disposals to maintain
LTV around our c.30% target and net debt: EBITDA in the
6-7x range. The level of planned disposals will adjust to
reflect capital requirements for our development and asset
management activity as well as market pricing. We will target
future disposals of around £100-150 million p.a. (Unite share).
Asset management
We see significant opportunities to create value through asset
management projects in our existing estate. Refurbishment ranges
from smaller projects focused on upgrading communal areas and
energy efficiency, through to full building refurbishment or more
significant works such as extension or redevelopment. These projects
have shorter lead times than new developments, often carried out
over the summer period, and deliver both attractive risk-adjusted
returns and significant enhancements to the student experience.
Q: HOW IS UNITE STUDENTS
INVESTING IN ITS PORTFOLIO?
A: We are using data to prioritise project
improvement activity throughout our estate. We are
investing in several areas, which link to our business
priorities, such as refurbishing our properties,
continuing our cladding replacement activity and
investing in sustainable technology and initiatives.
It’s an ambitious programme of activity which has
been forecast over several years and underpins our
continued dedication to the safety, wellbeing and
experience our teams and residents experience
within their day-to-day lives in our properties.
Q: WHY HAS THE COMPANY
INVESTED IN ITS ASSETS OVER
THE PAST 12 MONTHS?
A: To maintain our purpose of delivering a Home
for Success, we need to manage and maintain our
properties. We maintain our standing with the
Higher Education sector as a trusted and strategic
partner. We also retain the trust and support our
residents have in us and our teams, as well as
providing reassurance that safety is a priority. As we
interrogate the technical and reactive data, alongside
continual analysis of future portfolio performance
and resident feedback, we can see where investment
needs to take place within our existing assets.
Q: WHICH PROJECTS IN 2024
HAVE MADE THE BIGGEST
DIFFERENCE TO THE PORTFOLIO?
A: We have made a real step change in our designs
to enhance community-building and resident
experience. This includes changes within our
bedroom and kitchen design as well as communal
areas. I recently visited our London properties and
the delight of seeing the use of the space in real
time, as well as hearing direct student feedback
around how they have been enjoying these spaces,
not only helps inform how we continue to evolve
this work but confirms where we have got it right.
Continued investment in sustainability activity and
movement towards net zero is excellent.
Q: WHAT INVESTMENTS ARE YOU
MOST EXCITED FOR IN 2025?
A: I am excited to see the continued improvement,
growth and application of our design work.
Anything you can see, touch and feel always sparks
conversation, feedback, and differing opinions.
Activity like replacing heating systems to support
our net zero goals, revising lighting design to
enhance wellbeing, or a lift replacement, can be
complex and involve a lot of people over several
areas of expertise. Realising the level of detail
and care the teams and suppliers take to find
the answers, to then see it applied in properties,
is not only galvanising but is also a constant
reminder of how dedicated our people are.
Great Place to Live
Q&A
with Jo Blair,
Head of Specification
“As we interrogate the
technical and reactive data,
alongside resident feedback,
we can see where investment
needs to take place within
our existing assets.”
THE UNITE GROUP PLC
Annual Report and Accounts 2024
33
Our 2024
refurbishment projects
We’re committed to providing high quality,
affordable accommodation for our residents.
In 2024, we completed 11 refurbishment projects, with
5,239 students benefiting from investment into their homes.
£32 million was spent upgrading buildings from London to
Glasgow, signalling the start of an ambitious refurbishment
programme which will see Unite Students invest c.£50-75
million per year on refurbishments over the next five years.
We’re already seeing results from this project. Our £1.5 million
investment into a new reception area and renovated study and
social areas at London’s Stapleton House has increased student
satisfaction (NPS) in the building by 28 points year-on-year.
At Rushford Court in Durham, we worked in partnership with
Durham University to upgrade the 358-bed building, with the
intention of it becoming the university’s 18th college in future.
Case study
STRATEGIC REPORT
PERFORMANCE REVIEW
Property review continued
In the year, we delivered 11 refurbishment projects in strong
markets alongside other building upgrades. Investment across the
projects totalled £48 million (Unite share: £39 million) and delivered
a 10% yield on cost through rental uplifts and operating cost savings.
The projects delivered additional beds, upgraded existing rooms
and enhanced the environmental performance of the properties.
We have a significant pipeline of attractive asset management and
building improvement opportunities and will accelerate investment
to c.£65 million (Unite share: £45 million) during 2025, improving the
experience of around 3,000 students for the 2025/26 academic year.
Build-to-rent (BTR)
We believe there is an opportunity to grow our platform in
the wider living sector by catering to the growing number of
young professional renters living in major UK cities. Our pilot
BTR asset in Stratford has performed well and is integrated
into our operating platform of 1,700 PBSA beds in the area.
During the period, we committed to the planned refurbishment of
our 180 Stratford pilot asset. The project will deliver new amenity
space as well as a rolling refurbishment of the apartments over the
next 24 months as units are vacated. Total costs are expected to be
c.£15 million, delivering a yield on cost in line with PBSA returns.
We continue to review BTR opportunities though do not expect
to increase our capital commitment in the short term.
FIRE SAFETY
Fire safety is a critical part of our health and safety strategy,
and we have a track record of leading the sector on fire
safety standards through our proactive approach. During
the period we completed fire safety improvements on seven
properties across our estate and spent £76 million (Unite
share: £31 million) on fire safety capex during the year.
Our year-end balance sheet includes committed fire safety spend
of £118 million (£62 million Unite share), the costs for which will be
incurred over the next two years. Of this, £6 million (£5 million Unite
share) is included in provisions and £112 million (£57 million Unite
share) is deducted from the fair value of our investment properties.
During the year, we reached agreement with contractors for
recovery of £32 million of remediation costs (Unite share: £23
million) in relation to three properties. In total, we have now
agreed settlements totalling £72 million (Unite share: £51 million).
We expect to recover 50-75% of total cladding remediation
costs through claims from contractors, although the settlement
and recognition of these claims is likely to lag costs incurred to
remediate properties. We anticipate the remediation programme
to complete in 2028 with net spend higher in the earlier years
of the programme and reducing substantially from 2026.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
34
THE UNITE GROUP PLC
Annual Report and Accounts 2024
35
PERFORMANCE REVIEW
Financial review
The Group uses alternative performance measures
(APMs), which are not defined or specified under
IFRS. These APMs, which are not considered to be
a substitute for IFRS measures, provide additional
helpful information and include, among others,
measures based on the European Public Real Estate
Association (EPRA) best practice recommendations.
The metrics are used internally to measure and
manage the business.
EARNINGS AND ADJUSTED EARNINGS
We delivered a strong operating performance
in 2024, with adjusted earnings increasing by
16% to £213.8 million (2023: £184.3 million),
reflecting an increase in net operating income
and a reduction in finance costs, when compared
to the prior year. Adjusted EPS increased by 5%
to 46.6p (2023: 44.3p), reflecting the increased
share count following the capital raise in July.
Adjusted EPS
46.6p
(2023: 44.3p)
Total Accounting Return
9.6%
(2023: 2.9%)
Loan-to-value ratio
24%
(2023: 28%)
MIKE BURT
CHIEF FINANCIAL OFFICER
Strong,
sustainable
performance
STRATEGIC REPORT
PERFORMANCE REVIEW
Financial review continued
THE UNITE GROUP PLC
Annual Report and Accounts 2024
36
2024
£m
2023
£m
Adjusted earnings
213.8
184.3
SaaS implementation costs
(11.9)
(8.2)
EPRA earnings
201.9
176.1
Valuation (losses)/gains and profit/(loss) on disposal
239.6
(61.2)
Changes in valuation of interest rate swaps and debt break costs
(3.5)
(17.2)
Non-controlling interest and other items
6.0
4.8
IFRS profit before tax
444.0
102.5
Adjusted earnings per share
46.6p
44.3p
IFRS diluted earnings per share
96.1p
24.6p
A reconciliation of profit before tax to adjusted earnings and EPRA earnings is expanded in section 7 of the financial statements.
2024
£m
2023
£m
Rental income
398.0
369.5
Property operating expenses
(121.9)
(113.0)
Net operating income (NOI)
276.1
256.5
NOI margin
69.4%
69.4%
Management fees
17.3
16.9
Overheads
(38.4)
(33.1)
Finance costs
(44.0)
(55.1)
Development and other costs
(9.1)
(9.1)
EPRA earnings
201.9
176.1
SaaS implementation costs
11.9
8.2
Adjusted earnings
213.8
184.3
Adjusted EPS
46.6p
44.3p
EPRA EPS
44.0p
42.4p
EBIT margin
68.1%
68.0%
A reconciliation of profit after tax to EPRA earnings and adjusted earnings is set out in note 2.2b to the financial statements.
IFRS profit before attributable to owners of the Parent Company increased to £441.9 million in the year (2023: £102.5 million),
reflecting the increase in adjusted earnings of £29.5 million, a revaluation gain of £239.6 million (2023: £61.2 million loss) and a £3.5
million loss for interest rate swaps and cancellation costs (2023: £17.2 million loss).
RENTAL GROWTH AND PROFITABILITY
Rental income increased by £28.5 million to £398.0 million,
up 8% compared to 2023. Like-for-like rental income,
excluding the impact of major refurbishments, acquisitions,
disposals and development completions, increased by 8%
during the year reflecting strong rental growth but modestly
lower occupancy for the 2024/25 academic year. Non-like-
for-like income grew by £4.3 million with additional rentol
income from acquisitions and development completions
exceeding the impact of income forgone through disposals.
Operating expenses increased by 6% for like-for-
like properties, primarily driven by increased utility
and staff costs due to the expiry of cheaper utility
hedges and increases in the Real Living Wage.
This resulted in an 8% increase in net operating income to £276.1
million (2023: £256.5 million) or 8% on a like-for-like basis.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
37
FY 2024
FY 2023
YoY change
£m
Wholly-
owned
Share of
Fund/JV
Total
Wholly-
owned
Share of
Fund/JV
Total
£m
%
Rental income
Like-for-like properties
254.5
91.2
345.7
237.8
83.7
321.5
24.2
8%
Non-like-for-like properties
27.5
24.8
52.3
21.4
26.6
48.0
4.3
Total rental income
282.0
116.0
398.0
259.2
110.3
369.5
28.5
8%
Property operating expenses
Like-for-like properties
(78.0)
(28.4)
106.4)
(74.5)
(25.5)
(100.0)
(6.5)
6%
Non-like-for-like properties
(9.2)
(6.3)
(15.5)
(5.3)
(7.7)
(13.0)
(2.5)
Total property operating expenses
(87.2)
(34.7)
(121.9)
(79.8)
(33.2)
(113.0)
8.9
8%
Net operating income
Like-for-like properties
176.5
62.8
239.3
163.3
58.2
221.5
17.8
8%
Non-like-for-like properties
18.3
18.5
36.8
16.1
18.9
35.0
1.8
Total net operating income
194.8
81.3
276.1
179.4
77.1
256.5
19.6
8%
Overheads increased by £5.3 million, primarily reflecting
investment into our technology platform. Excluding the impact
of Software as a Service implementation costs, as underlying
overheads decreased by £0.3 million. During the year SaaS
implementation costs relating to our technology upgrade
programme of £15.9 million were incurred and a deferred tax
credit of £4.0 million (2023: £11.0 million and £2.8 million).
Recurring management fee income from joint ventures
increased to £17.3 million (2023: £16.9 million), driven by
increased property valuations and NOI in USAF and LSAV.
Our EBIT margin increased slightly to 68.1% (2023: 68.0%),
reflecting the offsetting impact of increases in rental income and
operating costs. We are targeting up to a 50bps improvement in
our EBIT margin in 2025, driven by rental growth, completions
of development and asset management projects and
efficiencies delivered through procurement and the enhanced
use of technology. We expect these factors to more than offset
the impact of increases in staff costs linked to higher National
Insurance contributions and increases in the Real Living Wage.
£m
Diluted
pence per
share
EPRA NTA as at 31 December 2023
4,015
920
Investment portfolio
416
85
Yield movement
(114)
(23)
Multiple Dwellings Relief
(55)
(11)
Development portfolio
20
4
Fire safety capex net of claims
(17)
(3)
Capital raise
442
(9)
Other
51
9
EPRA NTA as at 31 December 2024
4,758
972
Finance costs reduced to £44.0 million in 2024 (2023: £55.1
million), with the impact of lower borrowings following our
capital raise more than offsetting the impact of an increase in
our average cost of debt to 3.6% (2023: 3.3%) due to refinancing
activity and higher rates on new debt. Capitalised interest linked
to our development pipeline increased to £15.5 million (2023:
£8.4 million) due to increasing levels of development activity.
EPRA NTA GROWTH
EPRA net tangible assets (NTA) per share, our key measure
of NAV, increased by 6% to 972p at 31 December 2024
(31 December 2023: 920p). EPRA net tangible assets
were £4,758 million at 31 December 2024, a £743 million
increase from £4,015 million in the prior year.
The main drivers of the £743 million increase in EPRA
NTA and 52p increase in EPRA NTA per share were our
capital raise, and retained profits and valuation gains on
our investment and development portfolio, which were
partially offset by further deductions for fire safety capex.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
38
STRATEGIC REPORT
PERFORMANCE REVIEW
Financial review continued
IFRS net assets increased by 18% in the year to £4,812 million (31 December 2023: £4,067 million), principally driven by net
proceeds from the capital raise, valuation gains and retained profits. On a per share basis, IFRS NAV increased by 5% to 982p.
PROPERTY PORTFOLIO
The valuation of our property portfolio at 31 December 2024, including our share of property assets held in USAF and LSAV, was
£6,375 million (31 December 2023: £5,770 million). The £605 million increase in portfolio value reflects the valuation movements
outlined above, capital expenditure and interest capitalised on developments.
SUMMARY BALANCE SHEET
31 December 2024
31 December 2023
£m
Wholly-
owned
£m
Share of
Fund/JV
£m
Total
£m
Wholly-
owned
£m
Share of
fund/JV
£m
Total
£m
Rental properties1
4,025
1,827
5,852
3,728
1,782
5,510
Rental properties (leased)
72
-
72
85
-
85
Properties under development
451
-
451
175
-
175
Total property
4,588
1,827
6,375
3,988
1,782
5,770
Net debt
(989)
(521)
1,510
(1,030)
(541)
(1,571)
Lease liability
(73)
-
(73)
(84)
-
(84)
Other assets/(liabilities)
1
(35)
(34)
(49)
(51)
(100)
EPRA net tangible assets
3,487
1,271
4,758
2,825
1,190
4,015
IFRS NAV
3,547
1,265
4,812
2,848
1,219
4,067
LTV
24%
28%
1. Rental properties (owned) includes assets classified as held for sale in the IFRS balance sheet.
RETURN ON EQUITY (TOTAL ACCOUNTING RETURN)
Dividends paid of 36.0p (2023: 33.5p), together with growth
in EPRA NTA, resulted in a total accounting return of 9.6%
in the year (2023: 2.9%). Our adjusted EPS yield (measured
against opening EPRA NTA) increased to 5.1% in the year
(2023: 4.8%), reflecting the growth in our recurring earnings.
We expect to deliver a total accounting return of 8-10% in
2025 before the impact of any property yield movements. This
reflects our expectation of growing recurring earnings, rental
growth for the 2025/26 academic year and valuation uplifts
from our development and asset management pipeline.
CASH FLOW AND NET DEBT
The business generated £61 million of net cash in
2024 (2023: £176 million) and net debt reduced
to £1,510 million (2023: £1,571 million). The key
components of the movement in net debt were:
• Capital raise gross proceeds of £450 million
• Operational cash flow of £216 million
on a see-through basis
• Acquisitions net of disposals of
£63 million on a see-through basis
• Total capital expenditure of £360
million on a see-through basis
• Dividends paid of £137 million
• A £46 million net outflow for other items.
In 2025, we expect see-through net debt to increase as
planned capital expenditure on investment and development
activity will exceed anticipated property disposals.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
39
Q: CAN YOU SUMMARISE HOW UNITE
STUDENTS’ STRATEGY HAS BEEN
IMPLEMENTED IN 2024?
A: We have refreshed our strategy, based around our
purpose – Home for Success – creating communities where
young people thrive. Our strategic vision is to be the leading
living platform for young people. Building from a position
of strength, we will become the partner of choice for the
strongest UK universities, the preferred home for university
students of all years, and for young renters. Our strategy is
to accelerate our core growth while building for the future.
This is built around revenue growth, university partnerships,
our development pipeline and asset initiatives.
Q: WHAT ARE THE MAIN TECHNOLOGY
INITIATIVES THE COMPANY HAS
INVESTED IN DURING 2024 AND HOW
ARE THEY MAKING A DIFFERENCE?
A: We are upgrading the digital experience for our
customers and employees and 2024 reflects the first
of three years of strong delivery. We upgraded the
customer website to improve the initial experience
from awareness through to booking, as well as our
customer app, to improve the living experience. Our
new brand and digital asset portals professionalise our
customer messaging and our Stripe payment portals
improve the management of customer payments.
Our colleagues enjoy a new rewards and benefits
platform, plus a more tailored wellbeing platform.
Q: HOW WILL THE INVESTMENTS
MADE OVER THE PAST 12
MONTHS IMPACT ON THE
BUSINESS GOING FORWARD?
A: Over the next couple of years, the business
will upgrade our finance systems and processes,
improving efficiency through automation. We
will also launch our primary service management
platform to support student case management
and maintenance. Our new booking and inventory
management system will be upgraded to manage
the end-to-end sales booking journey and coordinate
all operational activities.
Q: WHAT’S BEEN THE BIGGEST
POSITIVE SO FAR AND WHAT
DOES UNITE STUDENTS’
SUCCESSFUL GROWTH IN 2025
LOOK LIKE TO YOU?
A: It is fantastic to have refreshed our strategy,
based around our purpose, to provide clarity in our
ambition. We’re starting to deploy digital value to our
customers improving the customer experience, both
before and during their time living with us, through
a more self-service approach and by improving the
way our employees interact and spend their time.
Successful growth is implementing the first year
of our five-year strategy, focusing on our priorities
and continuing our finance transformation. This
also involves focusing on residents’ experience
and property management milestones.
Building for growth
Q&A
with Tom Ellis,
Group Strategy & Technology Director
“Building from a position of
strength, we will become
the partner of choice for the
strongest UK universities.”
THE UNITE GROUP PLC
Annual Report and Accounts 2024
40
STRATEGIC REPORT
PERFORMANCE REVIEW
Financial review continued
DEBT FINANCING AND LIQUIDITY
During the year, borrowing rates for new debt remained
high, as markets adjusted to a ‘higher for longer’ interest rate
environment. We are well protected from significant increases
in borrowing costs for our existing debt through our well-
laddered debt maturity profile and forward hedging of interest
rates. However, we still expect to see our borrowing costs
increase over time as we refinance in-place debt and draw new
borrowings at higher prevailing rates.
We are focused on maintaining a strong and flexible balance
sheet and will continue to use leverage to support our growth
and enhance risk-adjusted returns. In response to the higher
interest rate environment, we reduced our medium-term target
LTV to c.30% on a built-out basis (previously 30-35%). LTV
reduced to 24% at 31 December 2024 (31 December 2023:28%),
Key debt statistics (Unite share basis)
31 December
2024
31 December
2023
See-through net debt
£1,510m
£1,571m
LTV
24%
28%
Net debt: EBITDA ratio
5.5x
6.1x
Interest cover ratio
6.2x
4.6x
Average debt maturity
3.8 years
3.8 years
Average cost of debt
3.6%
3.3%
Proportion of investment debt at fixed rate
100%
100%
Funding activity
As at 31 December 2024, the wholly-owned Group
had £1,024 million of cash and debt headroom (31
December 2023: £579 million), comprising £274 million
of drawn cash balances and £750 million of undrawn
debt (2023: £29 million and £550 million respectively).
In February 2024 we increased our revolving debt
capacity by £150 million to £750 million and added a
further £150 million term loan. Both new facilities are
on similar terms to our existing RCF and mature in 2027.
The new loans increase investment capacity and provide
flexibility to capitalise on growth opportunities.
The Group established a £2 billion Euro Medium Term
Note (EMTN) Programme during the year. Following
establishment of the programme, the Group issued a £400
million eight-year bond in June bearing a 5.625% coupon.
In November, the proceeds of the bond were partially used
to repay the maturing £300 million Liberty Living bond
with the balance held for general corporate purposes.
During the year, USAF completed a new £150 million
secured loan, refinancing its maturing £150 million RCF.
The five-year loan has a fixed rate of 5.6%. We have
agreed terms with a lender for the refinancing of the
USAF £395 million bond due to mature in June 2025,
which we expect to complete in the coming months.
Interest rate hedging arrangements and cost of debt
Our average cost of debt increased to 3.6% in the year (2023:
3.3%) as new debt was issued at higher prevailing rates.
reflecting lower net debt and increases in our property
valuations. We also continue to monitor our interest cover and
net debt to EBITDA ratios. In 2024, interest cover improved to
6.2x (2023: 4,6x) and net debt to EBITDA reduced to 5.5x (2023:
6.1x), reflecting both the improved operational performance
of the business and the impact of lower leverage. We aim to
maintain an ICR ratio of 3.5-4.0x and a net debt to EBITDA ratio
of 6-7x. We remain committed to active portfolio management
through capital recycling and will continue to target disposals of
around £100-150 million p.a. (Unite share).
Following our capital raise, The Unite Group credit rating was
upgraded to BBB+ by Standard & Poor’s, reflecting our lower
leverage targets, robust capital position, growing cash flow
and track record.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
41
At the year-end, 100% of the Group’s debt was subject to
fixed or capped interest rates (31 December 2023: 100%),
providing protection against future changes in interest
rates. Based on our hedging position, forecast drawings,
planned refinancing and market interest rates, we expect
an average cost of debt of 4.1% for 2025 and 4.5% for 2026.
Reflecting an increased level of development activity, we
expect a corresponding increase in capitalised interest in
2025 to around £25-30 million (2024: £15.5 million).
Our average debt maturity is unchanged at 3.8 years (31
December 2023: 3.8 years) and we continue to proactively
manage our debt maturity profile and diversify our
lending base.
DIVIDEND
We are proposing a final dividend payment of 24.9p per
share (2023: 23.6p), totalling 37.3p for the full year (2023:
35.4p) and representing a 5% increase compared to 2023.
This represents a payout ratio of 80% of adjusted EPS.
The final dividend will be fully paid as a Property Income
Distribution (PID) of 24.9p, which we expect to fully satisfy
our PID requirement for the 2024 financial year.
Subject to approval at Unite’s Annual General Meeting
on 15 May 2025, the dividend will be paid in either cash
or new ordinary shares (a ‘scrip dividend alternative’)
on 30 May 2025 to shareholders on the register at
close of business on 22 April 2025. The last date for
receipt of scrip elections will be 8 May 2025.
During 2024, scrip elections were received for 26% and
1% of shares in issue for the 2023 final dividend and
2024 interim dividend respectively. Further details of the
scrip scheme, the terms and conditions and the process
for election are available on the Company’s website.
We plan to distribute 80% of adjusted EPS as
dividends for the 2025 financial year.
Tax and REIT status
The Group holds REIT status and is exempt from tax on
its property business. During the year, we recognised
a corporation tax charge of £5.0 million (2023: £1.2
million charge), with the increase primarily due to
higher taxable profits from interest income.
FUNDS AND JOINT VENTURES
The table below summarises the key financials at 31 December 2024 for our co-investment vehicles USAF and LSAV.
Property
assets
£m
Net debt
£m
Other
liabilities
£m
Net assets
£m
Unite share
of NTA
£m
Total
return
Maturity
Unite
share
USAF
2,848
(696)
(78)
2,074
604
8.5%
Infinite
29%
LSAV
1,994
(636)
(25)
1,333
666
10.3%
2032
50%
Property valuations increased by 4.5% for USAF and 6.0% in
LSAV over the year, on a like-for-like basis, with rental growth
more than offsetting the loss of Multiple Dwellings Relief.
Property yields remained broadly stable across both portfolios.
USAF is a high-quality, large-scale portfolio of 24,326
beds in leading university cities. The fund has positive
future prospects through rental growth and investment
opportunities in asset management initiatives in its existing
portfolio. USAF, in-line with other non-listed property funds,
has received redemption requests which are expected
to be fulfilled by mid-2025 from the proceeds of the
recently completed asset swap and planned disposals.
FEES
During the year, the Group recognised net fees of £17.3 million from its fund and asset management activities (2023: £16.9 million).
The increase in fee income is due to growing income and property valuations, partially offset by lower third-party assets under
management following redemptions in USAF during the year.
2024
£m
2023
£m
USAF asset management fee
12.4
12.1
LSAV asset and property management fee
4.9
4.8
Total fees
17.3
16.9
THE UNITE GROUP PLC
Annual Report and Accounts 2024
42
Case study
Our Newcastle
University joint venture
We entered our first joint venture (JV) framework
agreement in 2024, agreeing to work with Newcastle
University on the development of 2,000 new
student beds at Castle Leazes (subject to planning
permission). This long-term strategic partnership
builds on an existing 20-year partnership with the
university, which is a part of the Russell Group.
We’re jointly planning to invest £250 million into
redeveloping the Castle Leazes site, creating more
sustainable, high-quality accommodation for
students. Unite Students will build and manage the
property, in addition to providing 1,600 beds at our
other sites for Newcastle University students during
the development phase.
With the original building demolished in the summer
of 2024, construction is due to start in 2025 and
complete in time for the 2027/28 academic year.
STRATEGIC REPORT
RESPONSIBILITY STATEMENT OF THE DIRECTORS IN
RESPECT OF THE ANNUAL FINANCIAL REPORT
We confirm that to the best of our knowledge:
• The financial statements, prepared in accordance with the
relevant financial reporting framework, give a true and fair
view of the assets, liabilities, financial position and profit or
loss of the company and the undertakings included in the
consolidation taken as a whole
• The strategic report includes a fair review of the development
and performance of the business and the position of the
company and the undertakings included in the consolidation
taken as a whole, together with a description of the principal
risks and uncertainties that they face
• The Annual Report and financial statements, taken as a
whole, are fair, balanced and understandable and provide the
information necessary for shareholders to assess the Group’s
position and performance, business model and strategy.
Joe Lister
Michael Burt
Chief Executive
Chief Financial Officer
25 February 2025
FORWARD-LOOKING STATEMENTS
The preceding preliminary statement has been prepared for
the shareholders of the Company, as a body, and for no other
persons. Its purpose is to assist shareholders of the Company to
assess the strategies adopted by the Company and the potential
for those strategies to succeed and for no other purpose. The
preliminary statement contains forward-looking statements
that are subject to risk factors associated with, among other
things, the economic, regulatory and business circumstances
occurring from time to time in the sectors and markets in
which the Group operates. It is believed that the expectations
reflected in these statements are reasonable, but they may be
affected by a wide range of variables that could cause actual
results to differ materially from those currently anticipated. No
assurances can be given that the forward-looking statements
will be realised. The forward-looking statements reflect the
knowledge and information available at the date of preparation.
Nothing in the preliminary statement should be considered
or construed as a profit forecast for the Group. Except as
required by law, the Group has no obligation to update forward-
looking statements or to correct any inaccuracies therein.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
43
Fulfilling our Home for Success purpose and
achieving our strategic business objectives
can only be achieved if we continue to put
sustainability at the heart of what we do.
Great Place to Live: Our residents expect us to
play our part tackling the social and environmental
issues they care about, such as providing energy,
carbon and water efficient homes and championing
inclusion and success in HE and early careers.
Great Place to Work: Our ambition is for our
teams to be engaged and empowered to deliver
high standards of service and performance.
This means creating a diverse and inclusive
organisation where our people can thrive.
Great Place to Invest: Access to investment
and finance is critical to our long-term business
ambition, and is increasingly dependent on
our ESG performance. We must transition
to net zero carbon, maintain the highest
standards of safety and compliance, and
provide transparent reporting and disclosure on
environmental, social and governance issues.
Our sustainability framework helps us achieve
these outcomes. It focuses on making a positive
impact accross four key areas identified
during our standard materialty assessment
conducted in 2021 and revalidated each
year via direct stakeholder engagement. See
our Sustainability Report for details.
Together, we’re investing in
brighter futures, stronger
communities and a smaller
environmental footprint.
Net zero carbon by 2030
On track
Adjusted earnings invested in social initiatives
1.2%
Target: 1% in year
Employee volunteering
31%
Target: 20% of employees volunteer for
an hour or more in year
Sustainability Report: https://www.
unitegroup.com/sustainability
PERFORMANCE REVIEW
Sustainability
JAMES TIERNAN
HEAD OF SUSTAINABILITY
Making
a positive
impact
THE UNITE GROUP PLC
Annual Report and Accounts 2024
44
Making a positive impact: our ambitions
Championing inclusion, wellbeing and
success for young people in HE.
• Supporting care-experienced students.
• Leading on inclusion and achievement for young
people in HE.
Creating a diverse and inclusive
workplace where our people can thrive.
• Real Living Wage employer.
• 40% females in senior leadership.
• 65% of senior leadership hired internally.
• 10% ethnic minority representation in senior
leadership by 2025.
Making a real contribution to the
communities we operate in.
• Investing 1% of adjusted earnings in social initiatives.
• Impactful local community projects delivered by
every property and team.
• 20% employee volunteering participation rate.
• Making spaces available in our properties for local
community use.
Tackling climate change and reducing
our environmental impacts.
• 56% reduction in absolute operational Scope 1 & 2
market-based carbon emissions by 2030, compared to
2019 levels.
• 28% cut in operational energy levels by 2030.
• 100% of electricity from renewable sources by 2030.
STRATEGIC REPORT
PERFORMANCE REVIEW
Sustainability continued
Young people
Our people
Communities
Environment
THE UNITE GROUP PLC
Annual Report and Accounts 2024
45
Our ambition
Making a positive impact
for young people
Making a positive impact
for communities
Making a positive impact
for our people
Making a positive impact
for the environment
Our targets
• Maintain support to
the Unite Foundation.
• 100% of properties
to have Resident
Ambassadors.
• Sign up to the Care
Leaver Covenant.
• 1% of adjusted earnings
on social investment.
• All teams achieve
Bronze award or
higher in our Positive
Impact sustainability
engagement
programme
(bonus metric for
all employees).
• 20% of all employees
participate in
volunteering in 2024.
• 40% women in
senior leadership
by end of 2025.
• 65% of leadership
and management
population hired
internally.
• Zero reportable
accidents and incidents.
• Maintain Real Living
Wage accreditation.
• 10% ethnic minority
representation in
management and
senior leadership
by end of 2025.
• Net zero carbon by 2030.
See our net zero carbon
pathway for details
https://www.unitegroup.
com/sustainability/our-
net-zero-pathway.
• 56% cut in Scope 1 & 2
market-based emissions
by 2030 vs. 2019.
• 28% reduction in energy
intensity by 2030 vs. 2019.
• 100% renewable
electricity by 2030.
• 35kWh/m² operational
energy for new
developments by 2030.
• 625kgCO2e/m² of
embodied carbon for new
developments by 2030.
• EPC A and BREEAM Excellent
for all new builds.
Key progress
in 2024
• Five internships
linked to the Interns
Foundation, and eight
industrial placements.
• 95 new Unite Foundation
scholars at the start of the
2024/25 academic year.
• New six-week welcome
programme, with Resident
Ambassadors and interns
shaping and delivering a
programme of meaningful
and inclusive events.
• Over 90% of student-
facing employees
completed new student
support training
under our Support to
Stay programme.
• 6% increase in number of
propoerties with Resident
Ambassadors, up to
91% from 85% in 2023.
• Report to Government
on Care Leavers in HE.
• £2.6 million (1.2% of
adjusted earnings)
invested in social
initiatives in 2024,
a £160k increase
from 2023.
• 36% increase in
the number of
teams achiving a
Positive Impact
Gold award for local
communtiy projects,
compared to 2023.
• Passed a cumulative
total of £2 million of
donations from our
properties to British
Heart Foundation
over seven years.
• 9% increase in
volunteering
particpation rate, up
from 22% in 2023
to 31% in 2024.
• Continued to pay the
Real Living Wage.
• Achieved Gold Investors
in People accreditation.
• Ranked 7th in the Best
50 Small-Medium
Sized Placement
Schemes for our Early
Careers programme.
• Launched My Impact
framework to help
drive performance.
• Made progress towards
our 40% target of
women in senior
leadership roles with
37% representation
achieved.
• £10.2 million invested in
energy, water and carbon
reduction in 2024.
• 56.7% reduction in Scope
1 & 2 emissions vs. 2019.
• 99.9% of electricity backed by
renewable energy certificates.
• Lowest ever new build
embodied carbon
(694kgCO2e/m2) and design
operational energy (69kWh/
m2) at Bromley Place.
• 0.7% reduction in water
consumption vs. 2023.
• 91.7% A-B rated EPC
by floor area.
SUSTAINABILITY TARGETS AND KEY PROGRESS IN 2024
THE UNITE GROUP PLC
Annual Report and Accounts 2024
46
STRATEGIC REPORT
PERFORMANCE REVIEW
Sustainability continued
Description of the
business model
Details of who we are, how we operate and the value we create can be found on page 4 onwards.
Employee
Our Diversity, Equity, Inclusion, Belonging and Wellbeing strategy is focused on providing opportunities for
all, see pages 90 and 99 and at https://www.unitegroup.com/sustainability/diversity-and-inclusion.
The Academy provides learning opportunities to enhance knowledge, skills and development, see
https://www.unitegroup.com/sustainability.
Our employee engagement forum, Culture Matters, puts the employee voice front
and centre, so employees have a direct channel to senior management, allowing
them to help shape business strategy and policy, see pages 84 and 99.
Our Whistleblowing Policy enables employees to raise a concern in confidence, see page
84 or https://www.unitegroup.com/sustainability/policies-documentation.
Gender diversity and pay gaps across Unite Group. Our full Gender Pay Gap Report for can be found on our
website https://www.unitegroup.com/wp-content/uploads/2021/03/Unite-Group-Gender-Pay-Gap-
Report-2023_Web-Ready-PDF.pdf. Further details on gender split during 2024 are also available on page 47.
Our Board Diversity Policy seeks to enhance the overall diversity of the Board and ensures
an appropriate and diverse mix of skills, experience and knowledge, see page 99.
Anti-corruption
and bribery
Our Anti-Bribery Policy has a zero-tolerance approach to bribery and corruption and outlines employee
responsibilities. Our Gifts and Hospitality Policy sets out the rules for accepting gifts and hospitality.
Our Code of Ethics ensures employees adhere to the highest business and personal ethics. You can
read our policies here: https://www.unitegroup.com/sustainability/policies-documentation.
Modern slavery
and human rights
A zero-tolerance approach to slavery to prevent it anywhere within our business and supply chain.
Due diligence on all third parties we work with. See our Modern Slavery Statement and Code
of Ethics at https://www.unitegroup.com/wp-content/uploads/2022/07/Unite-Group-plc-
Modern-Slavery-Statement-FY-ending-2022.pdf, and Supplier Code of Conduct https://www.
unitegroup.com/our-suppliers sets out the highest standards of business and personal ethics.
Policy, due diligence
and outcomes
We carry out regular reviews of our policies to ensure we continue to identify key risks and management
and carry out appropriate due diligence. The policies included in this non-financial information statement
contain further details (as cross-referenced herein) of the policy and policy outcomes, including the following:
Risk management detailing our risk management framework and risk review process from page 52.
Principal risks and uncertainties considering both internal and external risks, the
potential impact and details of risk mitigation in place, on page 52.
Viability statement considering the viability of Unite Group for the next three-year period on page 62.
Audit & Risk Committee Report on page 101.
Sustainability Committee Report on page 106.
Unite Group Health & Safety Committee Report page 108 and Health and Safety Policy (and https://
www.unitegroup.com/sustainability/policies-documentation) which details Unite Group’s
commitment to the health and safety of our employees, students and visitors to our sites.
Non-financial KPIs relevant to the Company’s business on page 17 and https://www.unitegroup.com/sustainability.
NON-FINANCIAL AND SUSTAINABILITY INFORMATION STATEMENT
The table below summarises how we comply with non-financial and sustainability performance reporting requirements in line with
The Companies Act 2006, and Climate-related Financial Disclosure Regulations 2022. Relevant policies and statements are available
online at www.unitegroup.com.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
47
Male
Male %
Female
Female %
Total
Board
6
60%
4
40%
10
Management
37
62.7%
22
37.3%
59
All other employees
1,032
53.4%
899
46.6%
1,938*
Total
1,069 53.7% 921 46.3% 1,997*
*Total figure includes 7 gender undisclosed colleagues.
GENDER SPLIT
For more information on gender split, see our separate Sustainability Report – https://www.unitegroup.com/sustainability
SUSTAINABILITY REPORTING
Our Sustainability Report includes detailed data in line with
the European Public Real Estate Association Sustainability
Best Practice Reporting Guidelines (EPRA sBPR) and in 2024
we retained Silver EPRA sBPR for FY23 reporting. Climate-
related risks are disclosed in line with TCFD and CFD on page
63. We disclose sustainability data to the Global Real Estate
Sustainability Benchmark (GRESB), and retained our 4-star
GRESB rating in 2024. Our GRESB scorecard is avaialble at
https://www.unitegroup.com/sustainability. We achieved
various ESG ratings including ISS ESG, MSCI ESG and EPRA sBPR
awards as detailed in our standalone Sustainability Report. We
are outside of scope of EU CSRD reporting and not planning
early adoption of IFRS S1 and S2.
Social matters
Our Resident Ambassador programme provides peer-to-peer support for students,
see https://www.unitegroup.com/sustainability.
Our Positive Impact programme encourages our people and teams to work with local stakeholders
on community impact initiatives, see https://www.unitegroup.com/sustainability.
Market overview focusing on demographic trends, see from page 6.
The Unite Group is the principal supporter of the Unite Foundation, the only charity that
provides a home at university for estranged and care-experienced students – see https://
thisisusatuni.org/ and https://www.unitegroup.com/sustainability.
Support to Stay, our innovative student support framework designed to align with universities’ processes
for supporting student mental health and wider wellbeing, see https://www.unitegroup.com/sustainability.
NON-FINANCIAL AND SUSTAINABILITY INFORMATION STATEMENT CONTINUED
Environmental matters
Our Sustainability framework sets out clear objectives and our progress in respect of environmental,
social and governance matters, see page 43 https://www.unitegroup.com/sustainability.
TCFD and CFD page 63.
Our Net Zero Carbon Pathway sets out our pledge to be net zero carbon by 2030, see
https://www.unitegroup.com/sustainability/our-net-zero-pathway.
Energy and carbon. Full details in line with the Streamlined Energy
& Carbon Reporting requirements, see page 48.
Wider environmental impact details of other environmental performance metrics,
targets and activity, see https://www.unitegroup.com/sustainability.
Our Sustainable Construction Framework sets out our approach to the sustainable design and
construction of new purpose-built student accommodation, refurbishment and retrofits. It will
also inform how we procure new net zero developments, see https://www.unitegroup.com/
wp-content/uploads/2023/12/Unite-Students-Sustainable-Construction-Framework.pdf.
EPRA sBPR
Further environmental, social and governance performance is also reported in line with the EPRA sBPR
guidelines in our standalone Sustainability Report, see https://www.unitegroup.com/sustainability.
Health & Safety
Our Health and Safety strategy keeping people safe and secure across our
operational buildings and new development sites, see page 108.
STREAMLINED ENERGY AND CARBON REPORTING
The following tables summarise energy consumption and
greenhouse gas (GHG) emissions in line with the Companies
Act 2006 (Strategic Report and Directors’ Reports) Regulations
2013 and the Companies (Directors’ Report) and Limited Liability
Partnerships (Energy and Carbon Report) Regulations 2018,
and in accordance with the Streamlined Energy and Carbon
Reporting (SECR). Reporting periods are January to December.
More comprehensive data is in our Sustainability Report, and
Net Zero Carbon Pathway which sets out our 2030 net zero
carbon ambition and targets.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
48
STRATEGIC REPORT
PERFORMANCE REVIEW
Sustainability continued
Energy consumption
The table below summarises energy consumption.
Energy consumption
Units
2019
base year
2022
2023
2024
Change from
2023–2024
Electricity absolute consumption
kWh
167,593,224
150,944,907
149,704,305
144,685,326
-3.35%
Natural gas absolute consumption
kWh
57,414,070
58,816,746
56,121,430
58,836,198
4.8%
District heat absolute consumption
kWh
11,775,682
11,672,055
12,090,049
10,261,075
-15.1%
Total energy absolute consumption
kWh
236,782,976
221,433,708
217,915,784
213,782,599
-1.9%
Total energy intensity
kWh/bed
3,233.0
3,059.0
3,100.8
3,085
-0.5%
kWh/m2
122.6
115.6
111.9
111.5
-0.4%
Electricity from renewable sources
%
61.1
99.9
99.9
99.9
0.0%
Energy data reported is predominantly half-hourly meter data (98.7% and 95.1% respectively for electricity and gas), with the remainder
being billing data (1.3% and 4.9%) with less than 0.1% of data estimated where neither meter or billing data is yet available, in which
case the previous year’s data for that site and month is used. District heating data is 100%, billing with 0% estimates.
Greenhouse gas emissions
The table below summarise absolute GHG emissions or the last three years.
Absolute GHG emissions
Units
2019
base year
2022
2023
2024
Change from
2023–2024
Scope 1
Tonnes CO2e
10,669
10,905
10,410
10,914
4.8%
Scope 2
Location-based
Tonnes CO2e
44,910
31,204
33,172
31,800
-4.1%
Market-based
Tonnes CO2e
18,833
2,052
2,218
1,867
-15.8%
Scope 1 & 2
Location-based
Tonnes CO2e
55,579
42,110
43,582
42,715
-2.0%
Market-based
Tonnes CO2e
29,502
12,958
12,628
12,781
1.2%
Scope 3
Tonnes CO2e
148,279
98,475
84,876
74,166
-12.6%
Bed numbers
(pro rata for sites only open part of year)
73,240
72,387
70,277
69,292
-1.4%
Floor area
(pro rata for sites only open part of year)
m2
1,931,148
1,915,339
1,947,292
1,918,164
-1.5%
The table below summarises building-related GHG emissions intensity per m2 (gross internal floor area) and per lettable-bed
regardless of occupancy.
GHG emissions intensity
Units
2019
base year
2022
2023
2024
Change from
2023–2024
Scope 1 & 2
by floor area
Location-based
kgCO2e/m2
28.8
22.0
22.4
22.3
-0.5%
Market-based
kgCO2e/m2
15.3
6.8
6.5
6.7
2.7%
Scope 1 & 2
by bed numbers
Location-based
kgCO2e/bed
758.9
581.7
620.1
616.4
-0.6%
Market-based
kgCO2e/bed
402.8
179.0
179.7
184.4
2.6%
THE UNITE GROUP PLC
Annual Report and Accounts 2024
49
Total like-for-like energy consumption decreased by 3.5%
in 2024 driven by reductions in both like-for-like electricity
consumption and district heating consumption, which fell
by 5.5% and 15.1% respectively, despite like-for-like gas
consumption increasing by 3.9%. This electrictiy reduction was
largely driven by a £10.2m investment during 2024 on energy
efficiency measures, and measures deployed in 2023, including
the latest generation LED lighting, solar PV panels and improved
heating controls. District heating accounts for <5% of our overall
energy consumption and the reduction seen (reflected reduced
heating demand and operational changes on site) made a
limited contribution to the the overall change.
Overall, these changes to like-for-like energy consumption,
combined with a small drop in total bed numbers from 2023,
saw overall absolute energy consumption fall by 1.9% compared
with 2023. This is despite absolute gas consumption increasing
largely due to the addition of 180 Stratford (our first BTR
property). This property includes a central plant room with gas
boilers that serve the 178 flats and common area and also two
adjacent buildings not owned or operated by Unite Students.
While tenants in these buildings pay for heat, the associated
Scope 1 emissions are attributable solely to our building.
This increased gas drove up Scope 1 emissions by 4.8% vs.
2023. However both market-based and location-based Scope 2
emissions fell primarily due to reduced electricity consumption,
driving down overall Scope 1 & 2 emissions. Absolute Scope 3
emissions fell by 14.8% reflecting the reduced embodied carbon
achived at our one new build that completed in 2024.
PERFORMANCE AGAINST TARGETS
Our 2030 net zero carbon target requires us to achieve a 25.5% reduction in market-based Scope 1 & 2 absolute emissions in 2024
vs. 2019 base year. Our 2024 market-based Scope 1 & 2 emissions of 12,781 tonnes CO2e (a 56.7% reduction vs. 2019) puts us ahead
of the target. This is driven by a combination of reduced energy consumption, reduced gas consumption and electricity supply
decarbonisation since 2019.
Our 2030 energy reduction target requires us to achieve a 28% reduction in energy intensity by 2030 vs. 2019 base year (a target energy
intensity of 80.9kWh/m2), with an interim target of 98.2kWh/m2 in 2024. 2024 performance is slightly behind this at 111.4kWh/m2, partly
due the new BTR property acquisition described above, and partially an increased heating demand in 2024. The chart below shows
energy intensity compared to our current CRREM-based target and the recently updated new CRREM v2 pathway. Additional capital
spend is planned for 2025 and beyond to get back on track with CRREM-based energy targets.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
50
STRATEGIC REPORT
PERFORMANCE REVIEW
Sustainability continued
Our 2030 renewable energy target is to purchase 100% renewable electricity in line with RE100 requirements. 2024 performance is
on target at 99.9%, with 30% of electricity purchased via a corporate PPA and the remainder matched to unbundled renewable enegy
attribute certificates.
Our actual new build embodied carbon continues to be ahead of the RIBA Climate Challenge targets which is a 48% reduction in
embodied carbon by 2030 equating to 625kgCO2/m2. We are focusing on site selection, building design optimisation, materials selection
and cutting construction site impacts to enable this our new build to achieve this target.
CALCULATION METHODOLOGY
GHG emissions are calculated in accordance with the UK
Government’s Environmental Reporting Guidelines: including
streamlined energy and carbon reporting March 2019 and
the GHG Protocol’s A Corporate Accounting and Reporting
Standard including recent updates on Scope 2 reporting. The
UK Government emission conversion factors for greenhouse
gas company reporting (2024 data set) have been used
to convert data from sources including utilities meters,
business travel mileage, and water consumption into CO2e.
Location-based Scope 2 emissions are calculated using the
UK national average grid emissions factor. Market-based
Scope 2 emissions are calculated on an emissions factor
of zero for all electricity purchased under our Unite Group
supply contract which is 100% certified renewable with 44MW
also purchased via a corporate PPA. Further details of which
reporting are in our standalone Sustainability Report.
REPORTING BOUNDARIES
We report 100% of energy use and GHG emissions for
properties under our operational control, including
properties owned by Unite Group plc and subsidiaries,
and by JVs regardless of equity share. All assets are in the
UK and constitute 100% of our global energy use and GHG
emissions. Data has not been normalised or adjusted for
any factors such as occupancy or weather. Student residents
pay a single all-inclusive bill, and are not charged for any
energy, heat or hot water they consume; hence all energy
used in our buildings contributes directly towards Scope 1 &
2 GHG emissions, rather than falling into Scope 3 emissions.
Consequently, our most significant source of Scope 3
emissions is embodied carbon in new developments.
INDEPENDENT VERIFICATION
Energy consumption and Scope 1 & 2 greenhouse gas emissions
have been externally verified by SGS to a reasonable level
in line with ISO 14064-3:2019. Environmental KPIs, have
been verified to a limited level of assurance in line with ISAE
3000 (Revised). SGS’s opinion statements can be viewed on
our website. Due to data availability, a portion of Scope 3
emissions have been verified to a limited level assurance.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
51
Case study
Our approach to
thought leadership
Students’ needs are always evolving. To understand
those changes over time, we launched the Unite
Students Applicant Index in 2022.
The only annual research to track university applicants’
attitudes and confidence levels year-on-year, the Index
tells us how each year’s new students feel before they
arrive at university. This helps us to provide them with
a Great Place to Live, and gives our 60+ university
partners and the wider UK Higher Education sector
valuable insights about their students.
This year, we found that more applicants were
motivated by moving away from home than five
years ago, as well as major differences in confidence
between socioeconomic groups.
In December, we partnered with the Unite Foundation
to commission a report from the Social Market
Foundation. Care and Learning in Higher Education
looked at the barriers estranged and care-experienced
young people face in going to university, and how they
can be supported.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
52
RISK MANAGEMENT
Proactive
and resilient
GOVERNANCE
The Board maintains oversight of risk. It maintains
a robust risk management framework and internal
control system. The Audit & Risk Committee
supports the Board by receiving assurance reporting,
reviewing the effectiveness of risk management and
internal control processes. Our risk management
framework enables the Board to clearly identify risks,
assess our risk profile and set risk appetite, ensuring
risks are managed and mitigated transparently and
effectively. This includes being agile and resilient to
macroeconomic and geopolitical challenges.
RISK MANAGEMENT
Our risk management approach combines a top-
down strategic analysis with a bottom-up operational
view. The output is a number of strategic risks under
seven principal categories. The Board conducts a
twice-yearly dedicated risk review. As part of this, it
undertakes an assessment of the principal Group
risks, including those emerging risks that would
threaten our business model, future performance,
solvency or liquidity as well as the Group’s strategic
objectives. The Board considers both internal and
external factors when assessing our risks. During
2024, we also considered our long-term strategic
aims and assessed both the opportunities and risks.
Alongside this, the Board also considered emerging
risks and their potential impact upon the business.
A challenging macroeconomic
environment and geopolitical
instability requires an agile
approach to risk management.
This also provides us with
flexibility to make the
most of opportunities.
STRATEGIC REPORT
Reflecting on 2024
Considered our long-term growth until 2030
Laid the foundations for our new core technology and
financial systems
Successfully navigated the impacts of macroeconomic
factors on our strategy
Shaped our future resilience through development
of our people and teams
Enhanced our IT infrastructure and security
Our priorities for 2025
Increase efficiency with new technologies
Consider risks and mitigations for our strategic objectives
Continue to assess the impacts of macroeconomic
factors on our financial and operational performance
THE UNITE GROUP PLC
Annual Report and Accounts 2024
53
MIKE BURT
CHIEF FINANCIAL OFFICER
as wider macro risk developments impacting the
PBSA sector, Higher Education, property market and
economy. We provide flexibility in our risk appetite
across individual objectives. As a Group, we maintain
a cautious risk appetite, broadly unchanged from the
previous financial year.
While the impact of inflationary pressures is
reducing, other macroeconomic factors and political
stability are extant, and the Board continues to take
a prudent approach to both risk and opportunity.
STRESS TESTING/SCENARIO
PLANNING AND OUR STRATEGIC PLAN
Each year, the Board develops and refreshes the
Group’s Strategic Plan. This is based on detailed
three-year strategic/financial projections (with
related scenario planning) and rolls forward for a
further two years using more generic assumptions.
The Board maps our strategic objectives against our
risk profile, identifying risk events that could prevent
or delay us meeting our strategic objectives. Then,
always conscious that risk events do not necessarily
happen in isolation, the Board stress tests these
projections against combinations of the identified
risk events. Through this process, a base case and
stress-tested Strategic Plan are developed. During
2024, this scenario planning continued to closely
monitor external factors, and the Board developed
a wide range of scenarios and stress tests to assess
our preparedness and ability to withstand adverse
market conditions.
Looking ahead to 2025, we have considered
macroeconomic and political factors when
assessing our principal risks:
• Geopolitical instability, including the war in
Ukraine, the conflict in Gaza, increasing tensions in
the Middle East and potential political uncertainty
during the next US presidential term
• Levels of inflation remain above the Bank of
England’s target, delaying reductions in interest
rates in the short to medium term
• The UK Government’s upcoming reviews of
international students and Higher Education
funding during 2025
• An uncertain labour market with a relatively low
unemployment rate of 4% but decreasing numbers
of job vacancies.
These external factors impact our risk profile to
varying degrees and we have seen an impact in
certain areas (such as the cost of funding and
recruitment), while others are still emerging.
Our year-end assessment of risk considered how
these external factors have impacted us and the
action we are taking to mitigate them.
OUR RISK APPETITE
The Group’s risk appetite is considered a
fundamental part of the Board’s strategy setting and
annual budget. This is underpinned by our aim to be
a responsible and resilient business while delivering
for our customers, employees and universities
with attractive returns for our shareholders. Twice
yearly, the Board reviews and assesses our risk
appetite with a primary focus on the resilience of
the business and its agility. This considered both
threats to, and opportunities in, our business as well
“Viewing our operational
and strategic objectives
through the optic of both
risk and opportunity ensures
we can take informed and
effective decisions, to protect
and build value for all
our stakeholders.”
THE UNITE GROUP PLC
Annual Report and Accounts 2024
54
STRATEGIC REPORT
STRATEGIC REPORT
RISK MANAGEMENT
continued
Integrated risk management approach
STRATEGIC
OPERATIONAL
Internal audit
Assure risk management effectiveness and internal control testing
Executive Committee,
Customer and Property
Leadership teams
Identify principal risks,
including emerging risks
Deliver actions in line
with risk appetite
Monitor risk indicators
Consider completeness
and adequacy of risk
identification and mitigation
actions, and risk exposure
aggregation
Business
units
Execute actions
Report on risk
indicators
Report current and
emerging risks
Identify, evaluate and
mitigate operational risks
Board, Audit & Risk,
Sustainability and Health
& Safety Committees
Review external environment
Assess risks (including
emerging risks)
Set risk appetite and
determine actions
Assess risk management and
internal control systems
Report on risks and
uncertainties
FRAUD RISK
We consider the risk to asset misappropriation,
fraudulent statements and corruption, alongside
the Failure to Prevent Fraud Act (effective 1
September 2025). The Group’s internal controls
and risk management processes work in tandem to
minimise the likelihood of fraud within the business.
The controls in place are designed to minimise the
opportunity, motivation and rationalisation for
individuals to find opportunities to commit fraud.
Our IT and financial systems are designed with
segregation of duties to ensure individuals cannot
override management controls of end-to-end
processes.
Internal audit undertakes independent audits
across both operational and financial aspects of the
business to independently verify that controls are
operational and would report any instances of fraud.
A CORPORATE CULTURE
FOR RISK MANAGEMENT
The Group’s risk management framework identifies
principal and emerging risks, ensures that they are
appropriately monitored, controls are in place and
required actions have clear ownership. Identified
emerging risks are monitored by the velocity of
change in risk score. The organisation has an open
and accountable culture, with an experienced
leadership team. This culture accepts that risk is
inherent in business and encourages an open and
proactive approach to risk management. By viewing
our risks through the lens of our strategic objectives,
the Group ensures a proactive and preemptive
approach, rather than tick box one.
RISK MANAGEMENT FRAMEWORK
The Board has the overall responsibility for the
governance of risks and ensures there are adequate
and effective systems in place.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
55
Our risk management framework
The Board has the overall responsibility for the governance of risks and ensures
there are adequate and effective systems in place. It does this in various ways:
THE BOARD
Risks and opportunities assessed as part of strategy setting;
annual budget and risk oversight is owned by the Board and its Committees.
Twice-yearly formal risk review and ongoing monitoring
of exisiting and emerging risk integral to Board meetings.
PEOPLE AND CULTURE
Embedded risk management culture.
Openness, transparency and clear ownership of risk management
cascades through the organisation.
Supported by risk registers and workshops to identify existing and emerging risks.
RISK MANAGEMENT
Risk management and assurance
framework overseen by the Audit &
Risk Committee. Detailed risk registers
are developed and regularly updated
by our four Performance Teams.
The Executive Committee reviews and
challenges these risk registers and related
risk and opportunity; it considers emerging
risks that the Group is facing or should
consider and then brings these to the Board
for its detailed assessment of these risks.
POLICIES AND CONTROLS
Policies and controls underpin our
risk management framework (such as
Capital Operating Guidelines, Treasury
Policy, Investment Committee and the
internal control frameworks).
Risk assurance is provided through
external and internal auditors,
as well as specialist third-party
assurance, where appropriate.
Our key risk indicators for our strategic objectives
GREAT PLACE
TO LIVE
Safety
Customer Satisfaction
HE Trust
GREAT PLACE
TO WORK
Employee engagement
Staff retention levels
GREAT PLACE
TO INVEST
Gross asset value
Asset age
Occupancy
Rental growth
% nominations
STRATEGIC REPORT
RISK MANAGEMENT
continued
PRINCIPAL RISKS SUMMARY HEATMAP
High
Medium
Low
Very Low
Critical
INHERENT RISK LEVEL
High
Medium
Low
Very Low
Critical
RESIDUAL RISK LEVEL
RISK APPETITE
Flexible
Cautious
Minimal
Averse
Open
A reduction in demand driven by geopolitical factors
A reduction in demand driven by macroeconomic
conditions, customer value-for-money considerations
and affordability
Increase in supply; as a maturing sector, new entrants
to the market will increase competition and could
lead to a loss of market share
Major health and safety (H&S) incident in a property
or a development site
Inability to secure the best development sites on the right
terms, at a suitable level of return on investment
Schemes are delivered late and/or over budget
impacting our financial returns and damaging our
reputation with students
Loss of talent and capability, lack of strategic leadership
capability and meeting changing DEIBW requirements
Significant loss of personal or confidential data, disruption
to corporate systems either through cyber-attack or
internal theft/error
Borrowing costs rise rapidly or inability to obtain funding
at cost within risk appetite
Internal controls are exploited to allow individuals
to gain from asset misappropriation, fraudulent
statements and corruption
Failure to meet external, public commitments, regulatory
and reporting requirements made in respect of
sustainability
Failure to mitigate or prepare for the impact of
climate change
1
2
3
4
5
6
7
8
9
10
11
12
THE UNITE GROUP PLC
Annual Report and Accounts 2024
56
THE UNITE GROUP PLC
Annual Report and Accounts 2024
57
SUMMARY OF PRINCIPAL RISKS AND UNCERTAINTIES
The table that follows describes the Group’s principal risks and uncertainties, and explains how these are managed or mitigated.
PRINCIPAL RISK
Market risk
Events that may trigger the risk
• Immigration policy changes
affecting international students.
• Travel restrictions placed on international
students by their own government.
Potential impact
• Loss of income.
• Reduction in demand affecting
yield and asset values.
How we monitor and mitigate
• Government dialogue.
• Ongoing monitoring of Government HE and
immigration policy.
• Develop markets with students in
new countries to diversify risks.
• Strong domestic customer base and
nomination relationships with universities.
1
Objective: Maintain a diverse customer base to reduce exposure in key demographic sectors
Risk: A reduction in demand driven by geopolitical factors
2
Objective: Maintain our property portfolio to a high standard to ensure enduring relationships
with the high- and mid-ranked universities, and consistently drive sales performance
Risk: A reduction in demand driven by macroeconomic conditions, customer value-for-
money considerations and affordability
Events that may trigger the risk
• Lack of investment in the quality
of our product offering.
• Increases in commuter students;
more students living at home.
• Increased regulation over rents.
• London weighting on loans
and grants removed.
Potential impact
• Loss of income.
• More competition and reduced demand
for year-round student accommodation
in the longer term resulting in lower
profitability and asset values.
How we monitor and mitigate
• Asset management of our
properties, to identify and improve
the experience for students.
• Estates five-year strategy being developed
to protect and enhance our portfolio.
3
Objective: Build and maintain a sector-leading offer for our customers
Risk: Increase in supply; as a maturing sector, new entrants to the market
will increase competition and could lead to a loss of market share
Events that may trigger the risk
• Well-funded competitors improving
their offer and service.
• Unite Students fails to invest in its brand.
• Unite Students does not keep pace
with customer expectations.
Potential impact
• More competition for the best sites.
• Potential impact on rental
growth and occupancy.
• Reduced revenue and increased costs
associated with part filled accommodation.
How we monitor and mitigate
• Disciplined investment approach to
markets with demand/supply imbalance.
• Exposure to the best universities with
our new developments secured with
nomination agreements.
• Geographically diverse portfolio.
• Broad range of product and price offerings.
• Long-term partnership arrangements
with universities.
• Actively driving differentiation through
our brand investment and promises.
Increased
Decreased
Risk key
No change
Reason for the change in risk profile: Our development pipeline is the strongest
it’s been for several years. This rate of growth will strengthen our offering, ensuring
customers have an increased choice of quality buildings in suitable locations.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
58
STRATEGIC REPORT
STRATEGIC REPORT
RISK MANAGEMENT
continued
PRINCIPAL RISK
Operational risk
4
Objective: Minimise the risk of an incident that could impact the safety of our customers,
contractors and employees
Risk: Major health and safety (H&S) incident in a property or a development site
Events that may trigger the risk
• Catastrophic fire, flood or other
incident at a property.
• Incident at construction site
involving Unite Students’ employees
or third-party contractors.
Potential impact
• Fatality or serious injury.
• Reputational damage and loss of trust
in Unite Students as a reliable partner.
• Disruption to occupation of buildings.
How we monitor and mitigate
• Business continuity plans.
• Board-supervised Health &
Safety Committee in place.
• Highly skilled and experienced
H&S team in place.
• Operational Performance
Team focus on H&S.
• Expert external assurance on
development safety risk.
• Visible leadership for Safety & Wellbeing
driven by our senior leaders.
• Use of audits and external consultants.
• Cladding programme to
remediate facades, where appropriate.
Events that may trigger the risk
• Challenging planning environment,
including increased regulation
in construction design.
• Land scarcity and increased
competition for the best sites.
• Further increases in borrowing costs.
Potential impact
• Abortive costs where schemes
are not delivered.
• Inability to deliver targeted earnings
growth and total accounting return.
How we monitor and mitigate
• Defined limits for abortive costs on
each project and contracts structured
as subject to planning or options
to ensure downside protection.
• Consult and lobby at a national and
local level to promote the benefits
of student accommodation.
• Comprehensive due diligence is completed
on sites prior to purchase, including
seeking a pre-application assessment
from the relevant local authority.
• Clear planning and stakeholder
consultation programme.
• Using mixed use sites strategically
to gain positive outcomes.
PRINCIPAL RISK
Property risk
5
Objective: Deliver a suitable development pipeline
Risk: Inability to secure the best sites on the right terms, at a suitable level of return on investment
Increased
Decreased
Risk key
No change
Reason for the change in risk profile: When benchmarking RIDDOR incidents there
is a very low rate of occurrence. The Health and Safety team has been strengthened,
increasing the performance within the second line of defence. Our main contractors
understand our ways of working and safety focus.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
59
Events that may trigger the risk
• Delays or failure to achieve
planning consent or approval from
the Build Safety Regulator.
• Construction risk – build cost inflation
due to increasing construction demand.
• Construction execution risk – delivery
delays impacting labour/materials
coming from outside the UK or failure of
a contractor or major subcontractor.
• Climate risk – physical, regulatory and
transactional risks associated with
climate change and the environmental
impact of our development activity.
Potential impact
• NTA and EPS affected by deferred schemes
and/or reduced financial returns.
• Reputational impact of delivering
a scheme late, leaving students
without accommodation.
• Increases in construction costs
as we seek to reduce the carbon
intensity of our developments and
comply with building regulations.
How we monitor and mitigate
• Experienced development team with
strong track record of delivery.
• Strong relationships with
construction partners.
• Group Board approval for commitments
above a certain threshold.
• Financial investment in schemes carefully
managed prior to grant of planning.
• Detailed due diligence before
site acquisition.
• Build cost inflation regularly appraised
and refreshed.
• Engagement with our supply chain
regarding future reductions in embodied
carbon through our development activity.
PRINCIPAL RISK
Property risk
6
Objective: Deliver schemes on time and to budget
Risk: Schemes are delivered late and/or over budget
Events that may trigger the risk
• Lack of leadership development.
• Lack of managed succession planning
and opportunity for career advancement.
• Ad hoc/uncoordinated training plans.
• Lack of or poor performance management.
• An insufficient pool of diverse and
capable people.
• Cost-of-living crisis driving wage inflation,
inhibiting recruitment and staff
wellbeing impacts.
• Changes to legislation surrounding DEIBW.
Potential impact
• Inability to deliver business strategy
in next five years.
• High attrition rates, increasing costs.
• Reputational impact of not meeting
diversity and inclusion targets.
• Loss of capability and knowledge from
the business impacting on service levels.
• Increased recruitment and wage costs.
• Decreased employee engagement and
subsequent increases in attrition rates.
How we monitor and mitigate
• Highly skilled and experienced people in
leadership team.
• Academy team providing training
coordination and centralised tracking to
ensure consistency.
• Performance framework refreshed
and relaunched.
• Culture Matters engagement forum
providing direct feedback from employees.
• Talent review process for succession
planning for key roles.
• Bi-annual employee engagement survey
and action plans.
PRINCIPAL RISK
People risk
7
Objective: Retain a high performing workforce with suitable succession plans and a focus on Diversity,
Equality, Inclusivity, Belonging and Wellbeing (DEIBW) goals
Risk: Loss of talent and capability, lack of strategic leadership capability
and meeting changing DEIBW requirements
Reason for the change in risk profile: The Building Safety Act has introduced gateways
prior to the start of construction and occupation of high-risk buildings; these gateways
are expected to add around six months to development programmes. Additional time
has been built into development programmes to mitigate this effect.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
60
STRATEGIC REPORT
RISK MANAGEMENT
continued
PRINCIPAL RISK
Sustainability risk
9
Objective: Mitigate or prepare for the impact of climate-related physical and transition risks
Risk: Failure to mitigate or prepare for the impact of climate change
Events that may trigger the risk
• Extreme weather events which
we are not ready to mitigate.
• Increasing legislative burden.
• Volatile and unpredictable energy,
carbon and water costs.
• Increasing stakeholder expectation.
• Insufficient prioritisation of investment.
• Supply chain risks.
Potential impact
• Damage to property.
• Injury to people.
• Disruption to supply chain.
• Increased insurance costs.
• Increased capital costs.
• Compensation payments.
• Regulatory action/fines/penalties.
• Brand damage/revenue loss.
• Loss of investor confidence.
• Asset stranding/value write-downs;
inability to dispose of assets that do not
meet regulatory compliance standards.
How we monitor and mitigate
• Procurement decisions consider
environmental and climate
change performance.
• Asset transition plans and capital
initiatives to address stranding risk.
• Utilities purchasing strategy:
100% energy attribute certificate-
backed renewable electricity.
• Incident management plan to react
to extreme weather incidents.
• Proactive horizon scanning for
legislative updates/changes.
• Governance structure in place
with clear Board oversight.
• Monitor performance against key ESG
frameworks (GRESB, CDP, FTSE4Good, MSCI).
PRINCIPAL RISK
Sustainability risk
8
Objective: To meet external public commitments and regulatory requirements made regarding ESG
Risk: Failure to meet external public commitments, regulatory and reporting requirements made in
respect of sustainability
Events that may trigger the risk
• Lack of understanding of commitments.
• Lack of understanding of
regulatory requirements.
• No clear plan to deliver.
• Lack of stakeholder engagement.
• Increased reporting burden.
Potential impact
• Fines/penalties for non-compliance.
• Brand damage/loss of revenue.
• Loss of investor confidence.
• Increased costs.
• Credit ratings downgraded.
• Increased costs through
sustainability-linked debt.
How we monitor and mitigate
• Formal business policies regularly updated.
• Effective communication and reporting
internally and externally.
• Ongoing stakeholder consultation
on strategy.
• Governance structure in place with clear
Board oversight.
• Monitor performance against key
ESG frameworks (GRESB, CDP,
FTSE4Good, MSCI).
Increased
Decreased
Risk key
No change
THE UNITE GROUP PLC
Annual Report and Accounts 2024
61
PRINCIPAL RISK
Technology risk
10
Objective: Maintain and enhance a secure IT environment that discourages attacks, and informs us
when issues have been detected and provides us with greater operational capacity
Risk: Significant loss of personal or confidential data, disruption to corporate systems either through
cyber-attack or internal theft/error
Events that may trigger the risk
• Threat actors attempting to compromise
systems through social engineering,
prolonged remote attacks or physical access.
• Changes to operational design, bringing
requirements for improvements to
digital infrastructure.
Potential impact
• Significant loss of personal or confidential data
or disruption to the corporate systems.
• Reputational and/or financial damage with
increased scrutiny including sanctions and fines.
• Reduced benefits from operational efficiencies.
How we monitor and mitigate
• Defined governance structure for
information security.
• Technical security controls aligned to
SANS CIS Critical Security Controls.
• Security operations centre and security
incident & event management.
• Full suite of awareness activities.
• Agreed Information Security strategy
& technical security roadmap.
• Information security and data protection
policies in place.
• Scheduled internal phishing campaigns.
Events that may trigger the risk
• Deficiencies in control design.
• Inadequate segregation of duties.
• Employee disengagement or external
motivation to act contrary to our values.
Potential impact
• Loss of assets or funds.
• Significant loss of personal or confidential
data or disruption to the corporate systems.
How we monitor and mitigate
• Independent verification of year-end account
by our external auditors.
• Internal audit programme to review internal
control of high risk areas to the business.
• Documented segregation of duties within
IT and financial system.
• Improved financial system in testing phase.
12
Objective: Maintain adequate controls to minimise the likelihood of fraudulent activity
Risk: Internal controls are exploited to allow individuals to gain from asset misappropriation,
fraudulent statements and corruption
Reason for the change in risk profile: Movement away from legacy systems has
removed a number of manual processes and introduced automation which decreases
the likelihood of fraudulent activity.
Events that may trigger the risk
• Geopolitical factors influencing
market sentiment.
• External factors reduce access
to capital markets.
• Significant reduction in revenue,
or other adverse business event,
affecting market perception.
• Significant reduction in property
valuations or increase in debt.
Potential impact
• Increased financing costs leading to
reduced profitability and property
values (through resulting expansion of
valuation yields and lower valuations).
• Forced sales below valuation.
• Slowdown in development.
• Breach of covenant leading to default
followed by repayment demand.
How we monitor and mitigate
• Movements in interest rates and the impact
of different outcomes are considered at
the Funding Committee.
• Funding strategy is approved by the
Board annually.
• Minimum hedge ratio of 75% is defined in the
capital operating guidelines (COGs); most debt
is fixed rate or hedged with swaps or caps.
• Revolving credit facility to provide
liquidity headroom.
• Maintaining a good relationships with lenders.
• Management of balance sheet ratios in
compliance with COGs.
• Monitoring of covenants across a range
of income scenarios and risks.
• Regular monitoring of ICR covenants by the
Funding Committee (six-monthly monitoring).
PRINCIPAL RISK
Financial risk
11
Objective: Manage our balance sheet liquidity within tolerable levels and maintain compliance
with our debt covenants
Risks: Borrowing costs rise rapidly or inability to obtain funding at cost within risk appetite
Reason for the change in risk profile: Inflation has peaked, falling back through 2024.
Although indications are that funding costs will remain high, due to interest rates not
falling back as quickly as expected, we have limited exposure with suitable hedging
in place.
THE UNITE GROUP PLC
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62
STRATEGIC REPORT
VIABILITY STATEMENT
The Directors have assessed the viability of the Group over
a three-year period to December 2027, taking account of the
Group’s current position and the potential impact of its principal
risks. The Directors consider the three-year lookout period to
be the most appropriate, as this aligns with the Group’s own
strategic planning period combined with the levels of planning
certainty that can be derived from the development pipeline.
The Directors believe that UK universities will continue to
experience strong demand from UK students as a result
of strong demographic growth in the period to 2030 and
the UK’s leading HE sector continues to attract students
from around the world. The Group has an annual business
planning process, which comprises a Strategic Plan, a financial
forecast for the current year and a financial projection for
the forthcoming three years (which includes stress testing
and scenario planning and also rolls forwards for another
two years). This plan is reviewed each year by the Board as
part of its strategy setting process. Once approved by the
Board, the plan is cascaded across the Group and provides
a basis for setting all detailed financial budgets and strategic
actions that are subsequently used by the Board to monitor
performance. The forecast performance outlook is also used
by the Remuneration Committee to establish the targets
for the annual and longer-term incentive schemes.
To stress test the viability of the business, a viability scenario
was prepared using the Group’s Strategic Plan as a base. The
key viability assumptions were:
• Rental growth reduced to 1% p.a., reflecting principal risks 1–3
• Cost growth of 5% p.a., allowing for further sustained
increases in utility and other costs
• A 50bps increase in property valuation yields, translating to
approximately a 10% decline in asset values
• Interest costs of 7% on all new debt and refinancing activity,
reflecting principal risk 11
• No further development commitments, disposals or
acquisitions, reflecting principal risks 5 and 6.
The result of this scenario showed a significant deterioration
in forecast performance, with earnings and NTA significantly
reduced (to 45.5p and 943p respectively) in 2027 while LTV
increased substantially to 35.8%. Despite the significant
contraction in the size of the business over the forecast period,
the business would remain viable under such a scenario.
We also considered whether the Group’s climate change
principal risk would impact our assessment of the Group’s
viability but concurred that as we have an ongoing programme
of capital investment to achieve our science-based net zero
target by 2030, this mitigated the risk sufficiently for this
viability assessment.
Following visa policy changes in 2024, aimed at reducing
net migration, the UK is less attractive for international
postgraduate taught students who can no longer bring
dependent family members to the UK. However, we have
experienced limited impact from the changes as our rooms are
single occupancy. The Group achieved 97.5% occupancy for
the 2024/25 academic year and has an encouraging outlook
for 2025/26. International student demand is not expected to
impact the longer-term viability of the Group.
The financing risks of the Group are considered to have the
greatest immediate potential impact on the Group’s financial
viability. The three principal financing risks for the Group are:
• short-term debt covenant compliance
• the Group’s ability to arrange new debt/
replace expiring debt facilities
• any adverse interest rate movements.
To hedge against the potential of adverse interest rate
movements, the Group manages its exposure with a
combination of fixed rate facilities and using interest rate
swaps for its floating rate debt. During the year, the Group
has complied with all covenant requirements attached to its
financing facilities and expects to continue to do so.
The outlook and future prospects beyond the viability period
for the business remain strong, reflecting the underlying
strength of student demand, our alignment to the strongest
universities and the capabilities of our best-in-class operating
platform. There are significant growth opportunities for the
business created by the ongoing shortage of high quality and
affordable purpose-built student accommodation; universities
need to deliver an exceptional student experience through their
accommodation and the growing awareness of the benefits
of PBSA among non-first-year students. Emerging risks to the
outlook and prospects are identified and assessed through our
broader risk management process.
Based on their assessment and the mitigating actions available,
the Directors have a reasonable expectation that the Group will
be able to continue in operation and meet its liabilities as they
fall due over the period to December 2027.
RISK MANAGEMENT
continued
THE UNITE GROUP PLC
Annual Report and Accounts 2024
63
GOVERNANCE
Our Chief Executive has overall responsibility for climate-related
risks and opportunities, with the Sustainability Committee,
a sub-committee of the Board, overseeing climate-related
issues. The Committee meets quarterly, reviewing progress
towards our 2030 net zero carbon target, climate risk, and
performance. See the Sustainability Committee Report on
page 106. The Board conducts a formal risk review twice
a year (see page 55), which includes climate-related risks.
These risks and opportunities are integrated into business
planning and investment cases to the Investment Committee,
Executive Committee, and Sustainability Committee. This
ensures management and the Board are aware of risks and
can incorporate them into their planning. Full responsibilities
for managing climate-related risks are outlined on page 64.
The annual budget for sustainability investments is reported
separately, with monthly performance reviews. Several climate
and sustainability metrics contribute to overall remuneration.
The Remuneration Committee has set sustainability-related
performance objectives that form part of both the employee-
wide bonus scheme, and the Executive Director’s long-term
incentive plan (LTIP) as detailed in the Remuneration Committee
report on page 113, which covers performance against 2024
bonus targets. The Sustainability Committee receives updates
on best practice, market expectations and climate-related
developments from internal and external experts, including
advisors, investors, and supply chain partners. Board members
also enhance their understanding of climate-related risks
through involvement with other businesses.
STRATEGY
Climate change is a principal risk for Unite Group that could
impact our business in the short, medium, and long term. Our
ambition and plans to transition to net zero carbon by 2030
are set out in our Net Zero Carbon Pathway, https://www.
unitegroup.com/wp-content/uploads/2021/12/38271_
UniteStudents_NetZero.pdf.
We face acute and chronic physical risks from climate change,
such as extreme weather and flooding. Transitioning to a low-
carbon economy presents risks, including shifts in consumer
preferences, impacts on property valuations based on climate
resilience and energy performance, and evolving regulations.
These challenges also present opportunities, as our sector
leadership may enhance financial performance and lead to
benefits such as reduced winter heating due to climate change
effects. All our assets are in the UK, so only UK-specific physical
risks are considered. The risk mangement process is detailed in
the Risk Management section on page 54.
CLIMATE-RELATED
FINANCIAL DISCLOSURES
The Board recognises the urgent need to take climate change
action given the scale of the challenge and potential impact.
With domestic properties responsible for c.25% of carbon
emissions in the UK, we recognise our responsibility to minimise
our footprint and encourage our customers to do the same.
Sustainability presents risks and opportunities which are
managed in accordance with our overall risk management
framework (see page 55) with climate risk specifically identified
as a discrete standalone risk. A comprehensive disclosure on
climate-related risk is included below, aligned to the Task Force
on Climate-related Financial Disclosure (TCFD) and UK Climate-
related Financial Disclosure (CFD) Regulations requirements.
CFD AND TCFD COMPLIANCE STATEMENT
This section aligns with the mandatory CFD framework in
The Companies (Strategic Report) (Climate-related Financial
Disclosure) Regulations 2022. Disclosures are consistent
with Department for Energy Security & Net Zero’s mandatory
guidance and HM Treasury’s TCFD-aligned guidance. We comply
with all CFD and TCFD recommendations, including governance,
strategy, risk management, targets, and metrics. We plan to
improve our climate-related risk management and disclosures
using up-to-date scientific data. The disclosure is consistent with
the requirements of the Financial Conduct Authority’s UK Listing
Rule 9.8.6(R)8(TCFD).
CFD AND TCFD DISCLOSURE
The Board has approved a pathway to achieve net zero carbon
by 2030 underpinned by science-based carbon targets which
have been validated by the SBTi as being aligned with a 1.5°C
limit to warming. We aim to increase building energy efficiency
and support sustainable living habits. This commitment is
shared by investors, customers, suppliers and employees. Our
sustainability strategy includes SBTi carbon reduction targets, an
energy efficiency target in line with the CRREM 1.5°C trajectory,
and a commitment to source 100% renewable electricity by
2030 under the RE100 initiative. In 2024, we refreshed our
climate scenario analysis to prepare for and mitigate climate
impacts while identifying opportunities. Our Net Zero Carbon
Pathway, part of the TCFD Strategy (b) disclosures, is on our
website. Since 2020, we have engaged with stakeholders to
focus on climate-related critical issues and report accordingly.
In 2024, we updated investors on our climate performance and
priorities, incorporating their feedback into our sustainability
strategy. The Board also considers feedback from students,
universities, employees, and local communities to ensure focus
on material issues.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
64
STRATEGIC REPORT
PORTFOLIO
PERFORMANCE TEAM
INVESTMENT
PERFORMANCE TEAM
OPERATIONS
PERFORMANCE TEAM
• Chaired by the Group Asset Management
Director until September then the Chief
Operating Officer on an interim basis.
• Manages climate risk and opportunities
in investment decisions, such as
improving EPC ratings and energy
performance of existing properties.
• Manages sustainability investment
performance against budgets for the
Unite Group, including consideration
of climate-related risks and issues
in investment opportunities.
• Chaired by the Group
Development Director,
responsible new property-
related investment.
• Manages climate risk and
opportunities with regards to
potential development sites.
• Tasked with reducing
embodied carbon and
improving operational energy
performance of developments,
in line with our 2030 net
zero carbon target.
• Chaired by the Group Operations Director,
responsible for operating the investment
property portfolio.
• Address climate risks and opportunities
through improved operational management
of buildings and education of student
customers.
• Ensures plant is properly maintained to
operate at designed energy efficiency.
• Identifies opportunities to secure low-carbon
energy through Power Purchase Agreements.
• Reviews, monthly, detailed financial
performance relating to energy use,
taking actions to mitigate variance from
approved budget.
CHIEF EXECUTIVE AND EXECUTIVE COMMITTEE
The Chief Executive is ultimately responsible for managing climate risk, realising climate opportunities and implementing the
Sustainability Strategy with support from the Executive Committee. The Executive Committee reviews the annual business plan, and
long-term Strategic Plan for Unite Group, which covers all aspects of performance including climate risks and opportunities, ahead
of recommending it to the Board. On a monthly basis, the Executive Committee reviews actual and forecast performance, including
climate-related performance as appropriate, taking action to improve wherever necessary, and reports this progress to the Board.
UNITE GROUP PLC BOARD
• Ultimate responsibility for setting Unite Group strategy, prioritisation of activities and capital allocation.
• Provides challenge to management on target setting and performance.
• Ensures Unite Group maintains an effective risk management framework, including climate-related risks and opportunities.
The Board delegates specific climate matters to its Committees:
SUSTAINABILITY COMMITTEE
REMUNERATION COMMITTEE
AUDIT AND RISK COMMITTEE
• Four meetings in 2024.
• Oversees development and
implementation of our Sustainability
Framework and recommends any
changes to the Board.
• Reports progress to the Board quarterly
with input from across the Group.
• Chaired by Dame Shirley Pearce with two
Non-Executive Director members.
• Attended by Group Chair, CEO, CFO, Head
of Sustainability and Group People Director.
• Three meetings in 2024.
• Chaired by Nicky Dulieu with three
Non-Executive Director members.
• Engages with shareholders to inform
target setting, including climate-
related objectives.
• Supports the Sustainability Framework
by aligning remuneration and
incentive targets to the strategy.
• Five meetings in 2024.
• Chaired by Ross Paterson with three
Non-Executive Director members.
• Ensures climate-related risks
and opportunities are identified,
assessed, then effectively mitigated
and managed as part of overall
risk management framework.
• Oversees preparation of Unite Group’s
financial disclosures, including TCFD,
and the Annual Report.
SUSTAINABILITY TEAM
• Led by the Head of Sustainability, a dedicated team
with operational responsibility for coordinating the
implementation of the Sustainability Framework.
• Head of Sustainability regularly reports progress to the
Portfolio and Operations Performance Teams, Executive
Committee and attends Sustainability Committee meetings.
• Responsible for developing asset transition plans, implementing
energy and carbon reduction capital projects, ensuring EPC
and wider energy and climate-related compliance.
• Produces reporting on climate-related and sustainability performance.
I
R
I
R
I
R
I
R
ORGANISATIONAL STRUCTURE AND RESPONSIBILITIES FOR MANAGING CLIMATE-RELATED RISKS
RISK MANAGEMENT
continued
I
R
THE UNITE GROUP PLC
Annual Report and Accounts 2024
65
Risk &
opportunities
Acute physical
Heat Stress (risk)
Flooding (risk)
Heat Reduction (opportunity)
Description
Under all scenarios, we may experience
an increase in the frequency and severity
of overheating. This could necessitate
temporary measures such as additional
ventilation or cooling, providing
alternative accommodation for the most
affected customers, or even closing some
rooms for periods without significant
adaptations including reducing solar
gain, modifying the building fabric
or altering building services. Further
research is required to understand
specific risks and necessary adaptations
for each asset. This will help inform long-
term asset management plans, budgets,
and strategic investment decisions.
Flooding can affect our properties,
leading to temporary operational
disruptions, damage to the assets
and, in extreme cases, temporary
closure and the relocation of
occupants. Also, operations could
be impacted by flooding in other
areas, which might disrupt supply
chains or communications. Under
all scenarios (1.5°C, 2°C and +4.°C),
there is an increase in the likelihood
and severity of flooding. Further
analysis is needed to understand how
this risk may be mitigated through
local flood defence measures.
As winter temperatures rise due to
climate change, buildings are likely
to use less energy for space heating
across all future climate scenarios.
Warmer winters will reduce the need
for heating to maintain comfortable
indoor temperatures. This decrease
in heating demand will be more
pronounced in regions that currently
experience colder climates such
as the northern parts of the UK.
S Short term: 0–3 years – Our
highest confidence forecasts
including the detailed annual
budget and subsequent two years
where we have significant visibility
in our Business Plan.
M Medium term: 3–10 years – Covers
the period to our 2030 net zero
carbon target, asset transition plans
and other regulatory deadlines
such as EPC B in 2030 and the
useful life of building fit out.
L Long term: 10–30 years – The
period beyond our forecasting
and planning horizon and the age
where PBSA can begin to face
obsolescence without investment.
Time periods
CLIMATE-RELATED RISKS AND OPPORTUNITIES TABLES
Climate change is one of the principal risks facing Unite Group and risks and opportunities are identified, assessed and managed at
a Group level covering all assets and operations. Climate risk modelling is undertaken every three years, last completed in 2024.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
66
CHIEF EXECUTIVE’S REVIEW
continued
STRATEGIC REPORT
Risk &
opportunities
Acute physical
Heat Stress (risk)
Flooding (risk)
Heat Reduction (opportunity)
Impacts
Under all future climate scenarios,
the number of properties at risk of
overheating increases in response
to the local temperature increase.
Regional variances across all scenarios
means that individual asset risk varies.
Further work is needed to understand
asset-specific risks and adaptations,
which will inform long-term asset
management plans, budgets, and
strategic investment decisions.
Flood risk can cause physical damage
to buildings, harm to occupants,
and loss of income from closed
properties. The capital costs of
repairing the damage and rehousing
occupants can be significant. Also,
floods can lead to wider operational
disruptions, affecting business
continuity and operations. These
may influence how and where assets
are developed and maintained.
We understand the properties with
a potential for lower heating costs
and this will be factored into future
projections for energy performance.
Time period
S M L
S M L
S M L
Financial
risks and
opportunities
At present, the financial implications
of the overheating risks cannot be
accurately estimated. In 2025, we
intend to identify the appropriate
responses and analyse in more detail
the building types at risk of overheating
to determine a clearer picture of
the financial risks to the business.
However, we can estimate that
around £15 million of summer
short-term lettings income could be
at risk from buildings not being able
to be let during summer months.
Our assessment of the number of
properties at high risk of flooding,
now and in future, across the different
scenarios, shows indicative costs of
flooding of between £3.3m – £37.8m
covering the years up to and including
2050. The risk from flooding is non-
linear with temperature increases
for each individual asset but across
the portfolio as a whole, there is a
correlation with temperature increase.
Local flood defence and other
mitigation efforts are not included
in this assessment at present.
The savings from the reduced
heat demand due to warmer
winters have been estimated at
between c.£0.8m and £1.7m per
year across the portfolio based
on current use and prices.
Scenario
methodology
We compared current summer
temperatures to areas currently
identified as at risk of overheating from
part O of the building regulations to
establish a baseline for overheating risk.
We then forecast summer temperatures
under 1.5°C, 2°C and +4°C 2050
scenarios to project which areas would
be subject to similar temperatures and
so at risk of overheating. More detailed
asset-specific analysis is planned for
2025 to assess factors including fabric,
ventilation, solar gain and internal heat
gains, to identify potential adaptations.
Current flood risk assessment for all
assets was undertaken and this was
then compared to the Environment
Agency long-term flood risk maps
and forecast winter rainfall under
1.5°C, 2°C and +4°C scenarios using
RCP8.5 projections versus the
1981–2010 baseline (UKCP18 data
from the Met Office Hadley Cell GCMs
HadREM3-GA705). We assessed the
increased risk of flooding and the
related damage to our buildings
based on the impact of previous
flooding events in our buildings.
We compared current energy
use across the portfolio for space
heating with the likely reduction in
Heating Degree Days under 1.5°C,
2°C and +4.°C scenario for each
asset. This enabled the identification
of reduced energy consumption
patterns and heating costs under
each scenario across regions and
asset-specific potential reductions.
Mitigation
and
adaptation
activities
A more detailed analysis of overheating
risk is scheduled for 2025. This analysis
will guide future capital and asset
management plans to ensure the
risk is fully quantified and effectively
mitigated. New development projects
and larger asset management
programmes are designed to maintain
appropriate temperatures.
We have flood response plans in
place for properties at higher risk. In
addition, our properties are insured
against losses from flooding.
We understand the properties with
a potential for lower heating costs
and this will be factored into future
projections for energy performance.
RISK MANAGEMENT
continued
CLIMATE-RELATED RISKS AND OPPORTUNITIES TABLES CONTINUED
THE UNITE GROUP PLC
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67
Risk
Transition
Technology
Reputation
Policy and legal
Market risk, commodity
and resource efficiency
Description
Risk that an individual
asset's performance may
not improve sufficiently or
quickly enough to meet the
demands of transitioning
to a low-carbon economy.
Failing to support
stakeholders, or meet
expectations, the low carbon
transition could see adverse
reputational impacts and
challenge our ability to
form lasting partnerships
with university partners,
students and investors.
Regulations and government
policies will continue to
evolve, raising minimum
standards for building
performance and
other requirements to
accelerate the transition
to net zero carbon.
We are exposed to
market risk from energy
pricing and rising costs
if we do not mitigate
our energy use through
efficiency investments.
Impacts
Rental income, operating
costs, asset value, and
liquidity of individual assets
may be negatively affected
if they fail to meet evolving
regulatory standards, such
as future Minimum Energy
Efficiency Standards (MEES)
for Energy Performance
Certificates (EPCs), or
market and shareholder
expectations, including
decarbonisation in line
with the CRREM pathways.
Our leadership in
sustainability may be
acknowledged by our
customers and partners,
leading to additional
business opportunities or
income benefits. However,
failing to meet stakeholder
expectations could harm
our business performance
in various ways, including
our ability to secure
nomination agreements
with universities and facing
increased financing costs.
Regulations may necessitate
an increase in the scale or
pace of our decarbonisation
investments. The
introduction of mandatory
carbon pricing could
affect the viability of our
development pipeline and
raise the ongoing operating
costs of our existing
portfolio. Additionally, failing
to meet minimum standards
could have significant
reputational impacts, as
outlined in principal risks
8 and 9 on page 60.
Energy price volatility
complicates forecasting,
and recent high prices
have significantly increased
operating costs. Failure to
manage energy purchasing
could exacerbate this
impact. Property valuers are
beginning to factor utility
costs into asset valuations,
and we anticipate further
downward pressure
on valuations if energy
efficiency is not improved
to counteract this.
Time period
S M L
S M L
M L
S M L
Financial
risks and
opportunities
Our 2020 Net Zero
Carbon Pathway identified
the need to invest
approximately £10–12
million p.a. to achieve
our 2030 ambition. This
year, over £10 million
was spent on assets with
a pay back in c.10 years
on an undiscounted basis
through utility savings.
We anticipate asset values
to experience a brown
discount in the next 3–5
years, if assets risk failing
EPC MEES investors’
expectations of energy
and carbon efficiency.
Not usefully quantifiable
with existing data.
The UK Government’s legally
binding 2050 net zero
target currently requires
no mandatory action for
business. However, we
expect to spend c.£10–12
million p.a. on energy
efficiency investment,
supporting our transition
to net zero carbon and
ensuring that the portfolio
complies with EPC standards.
Failing to achieve this could
potentially lead to loss of
earnings and enforcement
fines. However, following
recent investments, 91.7%
of floor area is now EPC
A or B rated so we have
low exposure to this risk.
We spend approximately £40
million annually on utilities,
making it our second-
largest operating expense
after staff costs. Ongoing
market volatility complicates
forecasting. We aim for a 10-
year payback on our energy
efficiency investments,
targeting around £10
million in annual savings.
If utility prices remain
high, the potential savings
from these investments
will also increase.
CLIMATE-RELATED RISKS AND OPPORTUNITIES TABLES CONTINUED
THE UNITE GROUP PLC
Annual Report and Accounts 2024
68
CHIEF EXECUTIVE’S REVIEW
continued
STRATEGIC REPORT
Risk
Transition
Technology
Reputation
Policy and legal
Market risk, commodity
and resource efficiency
Scenario
methodology
We assess individual assets
against the CRREM 1.5°C
pathways for UK multi-
family residential energy
consumption and carbon
emissions (on a market-
based Scope 2 basis), and
have reviewed all EPCs
against relevant UK EPC
MEES targets. We expect
all assets to meet MEES
because of planned capital
investments as part of our
transition to net zero.
The nature of this risk
means it cannot easily be
modelled under specific and
defined climate scenarios.
While reputation is a critical
enabler for the fulfilment of
our business objectives, it
cannot easily be quantified
or assessed, although it
is regularly tracked and
measured via our Higher
Education Engagement
Net Promoter Score.
We have assessed the levels
of investment that may be
required to improve EPC
ratings in line with different
potential targets, using our
experience and insight from
previous capital projects
and improvements.
Utility costs are complex,
influenced by consumption,
commodity prices, and
non-commodity prices. We
have modelled the potential
impact on overall utility
costs and the corresponding
business consequences,
such as reduced NOI or
increased rental growth
to mitigate, based on low,
medium and high energy
price inflation scenarios.
Mitigation and
adaptation
activities
Planned capital
investments aim to reduce
energy and carbon in
line with our SBTi and
CRREM-based targets and
so avoid asset stranding.
We will continue to review
the level of ambition
and targets and monitor
progress against these
plans to inform the
ongoing development
of our strategy and take
corrective action where
required. This includes
the evolution of externally
derived targets.
We actively engage with
our customers, university
partners, suppliers and
investors to explain and
seek feedback on our
sustainability performance
and goals in addition
to understanding
their requirements
and expectations.
Our sustainability and
legal teams, with support
from our expert advisers,
routinely monitor upcoming
and proposed regulation
to ensure we can adapt
ahead of introduction to
remain compliant. Our
planned capital investment
will ensure all our
buildings meet minimum
efficiency standards.
We forward purchase our
utilities so that we have
price certainty when putting
rooms on sale, allowing us
to confidently set prices
at an appropriate level
to reflect the costs which
we face. Around 30% of
our electricity is secured
through a corporate Power
Purchase Agreement
(PPA), giving us certainty of
supply over multiple years.
We are actively exploring
opportunities to secure
additional PPAs given the
compelling environmental
and financial impacts.
We have a significant opportunity to benefit from addressing
climate-related risks. Reducing energy consumption will lead
to cost savings, growing net operating income, and higher
asset values. Enhancing climate resilience, such as mitigating
overheating risks, will improve customer experience and
provide a competitive edge. Our Net Zero Carbon Pathway
aligns with key stakeholder expectations and supports
new development and growth opportunities. Meeting
market expectations for sustainability could also make
equity and debt capital more accessible and affordable.
In 2024, we monitored climate risks and opportunities in
financial planning, especially utility costs. Usage levels could
impact performance due to commodity price volatility from
geopolitical issues and climate change. Our 2025 budget
includes further assessments of utility cost exposure and
strategies to mitigate increases through energy investments.
Climate risks, especially energy usage, flooding, and
the low-carbon transition, are factored into our capital
allocation decisions. We assess acquisitions and disposals
to identify costs related to net zero commitments,
EPC requirements and utility expenses, which are
reflected in financial modelling and due diligence.
New developments are expected to achieve EPC A and BREEAM
Excellent ratings, using resource-efficient technologies like
rainwater harvesting, low water usage showerheads and solar
power. These developments will mitigate overheating risks
as required by Part O of Building Regulations and include
design features as necessary to maintain thermal comfort.
Flooding is a significant risk for certain sites, requiring
appropriate design and construction to meet regulatory and
local authority planning requirements. The cost of mitigation
measures is considered in our investment appraisals, with
higher returns sought where the risk remains substantial.
RISK MANAGEMENT
continued
CLIMATE-RELATED RISKS AND OPPORTUNITIES TABLES CONTINUED
THE UNITE GROUP PLC
Annual Report and Accounts 2024
69
In 2024, we evaluated our portfolio’s exposure to flooding,
overheating, and heating reduction using Intergovernmental
Panel on Climate Change (IPCC) RCP scenarios for
temperature increases of 1.5°C, 2.0°C, and +4°C by 2100,
chosen as the most relevant and likely scenarios to our
operations. The analysis showed that under a +4°C scenario,
the number of assets at high risk of flooding more than
tripled (from 23 to 82), those at risk of overheating nearly
tripled (from 44 to 128) and approximately a quarter of
assets would see significant reductions in winter heating
energy use. Impacts would be lower under 1.5°C and
2.0°C scenarios but still increase with temperature.
Our analysis reassures us that our strategy, including
actions in our Net Zero Carbon Pathway, is resilient
under a 2.0°C or lower scenario, though we will continue
to reassess and adjust our strategy as needed.
Under a +4°C scenario, we will need to adjust our strategy
and financial planning to address worsening flooding and
overheating. This may involve divesting less resilient assets,
increasing investment in resilience, and modifying operations.
We may also see changes in customer behaviour and supply
chain disruptions. Enhanced due diligence in supply chain
selection, especially for materials from climate-impacted
areas, will be crucial. Our transition risk analysis considers
rising commodity costs due to climate policy, influencing
our sustainable procurement approach. A more detailed
overheating risk analysis is planned for 2025 to refine strategic
adjustments for all warming scenarios. Overheating risk
persists, but we anticipate time to adapt our strategy.
RISK MANAGEMENT
Climate change is a significant risk influencing our long-
term decisions, including investment and divestment, and is
integrated into our strategy and risk management framework.
Our three main objectives are to be a Great Place to Live, Work
and Invest, with our commitment to achieving net zero carbon
by 2030 and reducing resource intensity supporting these goals.
We collaborate with teams across the organisation,
senior management, external advisers, and stakeholders
to identify risks. These are documented in our Risk
Register, reviewed by the Executive Committee, and
principal risks are assessed by the Board twice a year.
Climate change risk is managed through our risk framework,
where each risk is assigned an owner, evaluated for impact,
and associated controls are identified. Residual risk is assessed
against our risk appetite. As part of our overall risk management
process, we conducted a climate-related risk scoping workshop
assessment and identified the most material risks, evaluating
the methodology for assessing future climate scenarios.
Each risk is assigned considering their likelihood, business
consequences, possible management and mitigation strategies,
Scenario modelling, including climate scenario analysis in this
CFD and TCFD disclosure, helps us understand risks under
different stress levels and test mitigation plans. We conducted
a climate-related risk assessment workshop to identify key risks
00
Case study
New Bromley Place
development
We welcomed students in October to our newest
development, Bromley Place, which provides 271
students with a home in Nottingham city centre.
Located next to the city’s Victoria Centre shopping
complex, the £36 million development was
completed in 12 months.
The building has been designed to meet the needs
of second- and third-year students as well as
postgraduate students, with amenities including
larger study areas and a state-of-the-art gym.
Bromley Place incorporates an existing three-storey
building into its design and has the lowest embodied
carbon of any current Unite Students development.
To further reduce impact on the environment, the
building is fitted with low-energy LED lighting and
high efficiency heating and cooling systems.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
70
STRATEGIC REPORT
and updated scenarios using the latest data from the Met Office,
ensuring the analysis reflects current scientific understanding.
The process for assessing climate risks follows the
same approach as for all principal risks, with the Board
responsible. These are detailed in the Summary of
principal risks and uncertainties tables on page 60.
The Energy and Environment Team integrates sustainability
into the business, tracking climate, legal, and policy
developments to manage associated risks. This includes
adhering to MEES regulations for EPC standards and
developing transition plans for assets to meet future
standards. We monitor regulatory requirements, including
climate change, to ensure compliance with new regulations.
Climate-related risks and opportunities are assessed through
due diligence for investments and risk assessments for
existing assets. These include energy efficiency ratings and
physical climate risks, detailed in Asset Transition Plans:
• Existing assets – Risks are identified by analysing property
data, such as flood risk, transition risk using CRREM tool
outputs, and energy performance, typically reviewed annually
to inform asset management and disposal strategies.
• Investment and divestment – The Investment Committee
reviews sustainability risks, considering geographical
location for physical risks like flooding and overheating.
• Transition risks are assessed based on energy efficiency
ratings, plant and machinery, construction type, and
investment needed to meet net zero targets.
When risks are identified, we develop mitigation strategies for
new developments or adjust acquisition pricing if risk can
be managed.
METRICS AND TARGETS
Our 2030 net zero carbon commitment, outlined in our
2021 Net Zero Pathway, aligns with the Paris Agreement and
UK Government goals. This is supported by SBTi-approved
science-based targets and our RE100 pledge to purchase 100%
renewable electricity by 2030. Senior leadership’s long-term
incentive plan is linked to energy intensity, and Executive
bonuses are tied to GRESB, which includes net zero transition
and sustainability performance.
Focusing on net zero helps reduce physical risks from
overheating and flooding, maintains reputational integrity,
and ensures the use of best available technology to
achieve credible and achievable transition plans.
As we offer all-inclusive rent, including the cost of utilities,
our customers’ energy use is included in our Scope
1 & 2 emissions, providing an opportunity to reduce
both our and their environmental impact. This is unlike
most real estate businesses where tenant energy use
contributes to Scope 3 emissions. Our Net Zero Carbon
Pathway includes ambitious climate-related targets:
• Reduce absolute carbon emissions (Scope 1 and market-based
Scope 2) by 56% by 2030 from a 2019 baseline (SBTi validated)
• Achieve 625kgCO2e/m2 of embodied carbon
or new developments by 2030, in line with
the RIBA 2030 climate challenge
• Reduce energy intensity by 28% by 2030 compared to 2019
• Source 100% of energy from renewable
sources by 2030, in line with RE100.
We are undertaking a number of actions in 2025 to ensure that
we continue to progress towards our net zero goal and mitigate
climate risks:
• c.£12 million of capital investment in energy efficiency
planned for 2025, including LED lighting, air source
heat pumps and improved heating controls
• Exploring options to expand our electricity Power Purchase
Agreements to meaningfully decarbonise our energy supply
• Climate-related metrics are included in Company bonus
and incentive schemes as set out in the Governance section
of this disclosure
• We continue to explore internal carbon pricing
options and expect them to form part of our
updated Net Zero Carbon Pathway.
Energy consumption and Scope 1 & 2 greenhouse gas
emissions, calculated in line with the Greenhouse Gas Protocol,
have been externally verified by SGS to a reasonable level of
assurance in line with the requirements of ISO 14064-3:2019.
Environmental performance data has undergone external
assurance by SGS to a limited level of assurance in line with
requirements of ISAE 3000 (Revised): Assurance Engagements
Other than Audits or Reviews of Historical Financial Information.
RISK MANAGEMENT
continued
The table below sets out some key performance indicators that are linked to our 2024 sustainability targets on page 45, and the
climate related risks and opportunities set out in this chapter. More details of performance against targets are set out in our separate
Sustainability Report and trend analysis against our KPIs is included in the Sustainability section of this report.
KPI
2019 base year
2022
2023
2024
23-24 change
Investment in energy efficiency (£m)
£2.2 million
£13 million
£8.2 million
£10.2 million
24.4%
Scope 1+2 (market-based) absolute
emissions (tonnes CO2e/yr)
29,502
12,957.7
12,628.0
12,781
1.2%
Average energy intensity (kWh/m2/year)
122.6
115.6
111.9
111.5
-0.4%
GRESB rating
72 (three star)
84 (four star)
86 (four star)
85 (four star)
-1.0%
Water consumption per m2 floor area
(m3/ bed)
41.5
45.5
39.1
39.4
0.8%
% of electricity from renewable sources
61.1%
99.9%
99.9%
99.9%
0.0%
Total social investment
c.£1 million to
Unite Foundation
£2.0 million
£2.4 million
£2.6 million
8.3%
EPC ratings by floor area
2019
2022
2023
2024
23-24 Change
A-B
41.2%
61.2%
92.3%
91.7%
-0.6%
C
19.7%
19.3%
7.4%
7.98%
0.6%
D-G
39.1%
19.5%
0.3%
0.34%
0.0%
Total A-C
60.9%
80.5%
99.7%
99.7%
0.0%
Investment into sustainability measures is made with reference to these metrics and our individual asset transition plans have been
developed to support our Net Zero Carbon Pathway. Should performance diverge from the required trajectory to 2030, we will
assess and potentially accelerate interventions.
The strategic report on pages 1- 71 was approved on 25 February 2025 by the Board and is signed on its behalf by:
Joe Lister
Chief Executive Officer
THE UNITE GROUP PLC
Annual Report and Accounts 2024
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THE UNITE GROUP PLC
Annual Report and Accounts 2024
72
GOVERNANCE
Governance
THE UNITE GROUP PLC
Annual Report and Accounts 2024
73
CORPORATE GOVERNANCE
74
Chair’s introduction to governance
76
Board of Directors
80
Board statements
83
Board leadership and purpose
88
Division of responsibilities
90
Section 172
93
Board activities
98
Nomination Committee
101 Audit & Risk Committee
106 Sustainability Committee
108 Health & Safety Committee
112 Remuneration Committee
138 Directors’ Report
141 Statement of Directors’ responsiblities
THE UNITE GROUP PLC
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Our governance and risk management framework is
built around our strategic objectives, focusing on our
customers, our people and our investors.
The Board oversees how we deliver a Great Place to
Live, with the safety and wellbeing of our customers
paramount. The Health & Safety Committee has
continued its oversight of our fire safety and cladding
remediation programme, security at our properties
and our sector-leading Support to Stay framework
helping respond to the increasing wellbeing and
mental health concerns of our customers. The
Board has also continued to oversee the ongoing
investment in our best-in-class operating platform,
with the roll out in 2024 of our new customer app
and website. We continue to look to drive efficiencies
through our scale and technology platform, with a
Board focus on ensuring we deliver high quality and
affordable homes for our customers.
CHAIR’S INTRODUCTION
TO GOVERNANCE
Overseeing
our strategy
and growth
Our governance and risk
management framework is
built around our strategic
objectives to provide a Great
Place to Live, Work and Invest.
GOVERNANCE
Board focus areas in 2024
Great Place to Live
Fire safety and cladding remediation;
student security and wellbeing
Great Place to Work
Learning and development; performance
management and reward; diversity and inclusivity
Great Place to Invest
Development pipeline in strongest markets; Newcastle
and other prospective university joint ventures;
disposals; responsible and sustainable landlord
THE UNITE GROUP PLC
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75
RICHARD HUNTINGFORD
CHAIR
Delivering these homes requires the ongoing
dedication and kindness of our frontline teams
working closely with our university partners. The
Board monitors how we make Unite Students a
Great Place to Work, ensuring investment in life-long
learning, recognising and incentivising performance,
all through a more diverse workforce and one that
is increasingly representative and understanding
of our customers. During 2024, Ilaria del Beato, our
Designated Non-Executive Director for Workforce
Engagement, attended meetings of our employee
forum, Culture Matters, and was able to hear directly
from workforce representatives.
By delivering a Great Place to Live and Work, the
Board believes we can deliver a Great Place to
Invest providing attractive and sustainable returns
for our shareholders. These returns depend on the
quality, location and scale of our portfolio, with the
Board overseeing the delivery of our development
pipeline in the strongest university markets with an
acute supply demand imbalance as well as our first
university joint venture, working with Newcastle
University to develop 2,000 new student beds at
Castle Leazes. The Board carefully balances this new
development with disposals, ensuring we improve
our portfolio and alignment with the strongest
universities. The Board also oversees the investment
in our existing portfolio, with targeted refurbishments
enhancing customer experience and our value-for-
money proposition.
We can only achieve our purpose, a Home for Success
in communities where young people can thrive, if we
are a responsible and sustainable business.
Through the ongoing detailed work of the
Sustainability Committee, the Board is monitoring
progress in relation to our transition to a net zero
carbon business by 2030 as well as reviewing our
reporting and disclosure on environmental, social
and governance (ESG) issues.
With a record number of UK 18-year-olds starting at
university in September 2024, the Board continues to
see increasing demand for student accommodation
coupled with supply constrained due to slowing and
more costly PBSA development and a shrinking HMO
sector. Affordability, especially with increasing cost-
of-living pressures, continues to be key for students,
parents and universities and the Board oversees how
we deliver safe, high-quality, value-for-money homes
for our customers, many of whom are living away
from home for the first time.
The following pages explain how our governance has
supported the delivery of our strategy through 2024
and how it will continue to support our growth and
sustainability in the longer term.
Richard Huntingford
Chair
25 February 2025
“With a record number of
UK 18-year-olds starting
at university in September
2024, the Board continues
to see increasing demand
for student accommodation
coupled with supply
constrained due to
slowing and more costly
PBSA development and a
shrinking HMO sector.”
BOARD OF DIRECTORS
GOVERNANCE
Richard joined the Board on 1 December
2020 and became Chair in April
2021 and Chair of the Nomination
Committee on the same date.
Relevant skills, experience
and contribution
A chartered accountant with over 30 years
of plc board experience including as Chief
Executive of Chrysalis Group plc between
2000 and 2007 and as a Non-Executive
Director of Virgin Mobile Holdings (UK)
plc. Chair roles have included Wireless
Group plc (formerly UTV Media plc),
Creston plc and Crown Place VCT plc.
His FTSE Chair experience and wider
Non-Executive and Executive experience
helps ensure best practice in Board
effectiveness and corporate governance.
Experience in public company governance
and leadership, corporate finance,
investment, business development,
investor relations and media helps us drive
our strategy development and effective
engagement with our wider stakeholders.
External appointments
• Future plc (Chair)
RICHARD HUNTINGFORD
CHAIR
JOE LISTER
CHIEF EXECUTIVE OFFICER
MIKE BURT
CHIEF FINANCIAL OFFICER
Joe became Chief Executive Officer on 1
January 2024. He joined Unite Students
in 2002 and held a variety of roles before
becoming Chief Financial Officer in 2008.
Relevant skills, experience
and contribution
Played an integral role in the design and
delivery of the Group’s strategy, sustainable
growth and financial performance with
deep experience of our business and sector.
Now leading the development,
implementation and communication
of the Group’s strategy and ongoing
performance with our investors.
External appointments
None
Mike became Chief Financial Officer on 1
January 2024. He was previously Investment
Director and joined the business in 2019.
Relevant skills, experience
and contribution
A wealth of financial experience in
corporate finance across a range of
sectors. Prior to joining Unite Students,
he spent ten years as a research analyst
covering real estate companies, most
recently at Exane BNP Paribas.
A strong track record of leading our investor
relations, sustainability commitments, and
as a member of the Executive team. Prior to
his appointment as Chief Financial Officer,
Mike was responsible for our investment
strategy and asset management.
External appointments
None
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THE UNITE GROUP PLC
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ROSS PATERSON
NON-EXECUTIVE DIRECTOR
Ross joined the Board in September
2017 and became the Audit
Committee Chair in January 2018.
Relevant skills, experience
and contribution
A former Chief Financial Officer of
Stagecoach Group and Non-Executive
Director of Virgin Rail Group Holdings
Limited. Experience in finance, business
development and legal, gained from his
finance role at Stagecoach Group.
Contributes many years’ experience of
managing finance in a complex operational
business and valued insight to innovation,
as we continue to enhance our service
offer for customers. His financial and
broader business experience is particularly
valuable as Chair of the Audit & Risk
Committee, where he helps oversee the
Group’s financial rigour and delivery.
External appointments
• Bytes Technology Group plc
(Non-Executive Director)
• Tracsis plc (Non-Executive Director)
• Institute of Chartered
Accountants of Scotland
(Business Policy Panel member)
Composition of the Board
Chair
1
Executive Directors
2
Non-Executive Directors
7
Gender diversity
Female
4
Male
6
Non-Executive Director
Independence
Non-independent
1
Independent
Non-Executive Director
6
Nicky joined the Board on 1 September
2022 and was appointed Senior
Independent Director and Chair of the
Remuneration Committee in March 2023.
Relevant skills, experience
and contribution
A chartered accountant and a proven
business leader with an established plc
track record and extensive experience in
consumer facing markets, including as
CEO of Hobbs between 2008 and 2014.
Also, the Finance Director of Marks &
Spencer’s Food Division in a career at
the retailer spanning 1982–2005.
Non-Executive Director experience
includes chairing Remuneration and Audit
Committees and as a Senior Independent
Director. In this role, she supports the Chair
in the effective running of the Board.
External appointments
• WH Smith Plc (Non-Executive Director)
• Barratt Redrow Plc
(Non-Executive Director)
NICKY DULIEU
SENIOR INDEPENDENT DIRECTOR
Committee key
Nomination Committee member
Audit & Risk Committee member
Remuneration Committee member
N
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Health & Safety Committee member
Sustainability Committee member
Committee chair
S
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THE UNITE GROUP PLC
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BOARD OF DIRECTORS
continued
GOVERNANCE
Ilaria joined the Board in December 2018.
Relevant skills, experience
and contribution
CEO of Frasers Property UK, part of Frasers
Property, a global real estate group. She
was formerly CEO of GE Capital UK, a
regulated Bank and corporate lender and
led GE Capital Real Estate UK, a commercial
real estate investor, developer and lender.
Over 30 years of experience in real estate,
including asset management, investment
and lending. This experience is vital to
the Group as we navigate the ongoing
and upcoming market uncertainties and
increasing professionalisation of the sector.
External appointments
• Frasers Property UK (CEO)
ILARIA DEL BEATO
NON-EXECUTIVE DIRECTOR
Dame Shirley joined the Board in
November 2019 and chairs our
Sustainability Committee.
Relevant skills, experience
and contribution
A wealth of experience in Higher Education,
health and policing, including as Vice
Chancellor of Loughborough University
from 2006–2012, as a board member at
the Higher Education Funding Council for
England, the Universities and Colleges
Employers Association, and the Healthcare
Commission. Non-Executive Director roles
included at Health Education England and
the Norfolk, Suffolk and Cambridgeshire
Strategic Health Authority. She was
appointed CBE in 2005 for services to
education in the NHS and in 2014 appointed
DBE for services to Higher Education.
External appointments
• Higher Education Quality Assurance Panel
for the Ministry of Education in Singapore
• Royal Anniversary Trust (Trustee)
• HCA (Advisory Board member)
• London Academy of Music and
Dramatic Art (Trustee)
DAME SHIRLEY PEARCE
NON-EXECUTIVE DIRECTOR
Thomas joined the Board in November
2019 following the Group’s acquisition
of Liberty Living from Canada Pension
Plan Investment Board (CPPIB).
Relevant skills, experience
and contribution
Managing Director and Head of Real Estate
Europe at CPP Investments. Responsible
for leading the real estate investment
team based in London. Played a key role
in building CPP Investment’s European,
UK, and India real estate portfolios. Also,
a member of CPP Investment’s global
real estate investment committee.
Previously a Vice President in the real estate
investment banking team at Macquarie
Bank focused on M&A transactions
across Europe and the UK, within the
private and listed real estate sectors.
His international experience is invaluable,
providing a wide perspective on real estate.
External appointments
• Canada Pension Plan Investment Board
(Managing Director,
Head of Real Estate Europe)
THOMAS JACKSON
NON-EXECUTIVE DIRECTOR
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Professor Sir Steve joined the Board in
April 2020 and has chaired our Health
& Safety Committee since July 2020.
Relevant skills, experience
and contribution
A wealth of experience in the Higher Education
sector, including as Vice-Chancellor and Chief
Executive of the University of Exeter from
2002 to August 2020. President of Universities
UK (UUK) (2009–2011), Chair of UCAS (2012–
2019), served on the boards of UUK and the
Russell Group, and was Chair of the UUK
International Policy Network (2014–2020).
Between 2007 and 2010, led for Higher
Education on the Prime Minister’s National
Council of Excellence in Education, providing
advice to Government. Sir Steve was knighted
in 2011 for services to Higher Education.
His Higher Education sector experience
helps the Board navigate a changing Higher
Education sector, particularly through the
development of strong university partnerships.
External appointments
• Trustee for Fulbright Programme
• UK Government International
Education Champion
• UK Government Special Representative
to Saudi Arabia for Education
• Member of the Board of the Lee
Kuan Yew School of Public Policy,
National University of Singapore
PROFESSOR SIR STEVE SMITH
NON-EXECUTIVE DIRECTOR
Chris became Company Secretary
and Group Legal Director in 2013.
Relevant skills, experience
and contribution
Prior to Unite Students, held General
Counsel roles at GE, MTV Networks and
other multinationals. He was previously an
M&A/corporate and commercial lawyer at
Clifford Chance and Baker McKenzie. Chris
uses his general counsel and corporate/
commercial legal experience to ensure
our corporate and risk governance is
aligned with our business activity.
External appointments
• The West of England Friends
Housing Society (Board Trustee)
CHRIS SZPOJNAROWICZ
COMPANY SECRETARY
ANGELA JAIN
NON-EXECUTIVE DIRECTOR
Angela joined the Board in August
2023 and became our Designated
Non-Executive Director for Workforce
Engagement in January 2025.
Relevant skills, experience
and contribution
Works in the commercial television industry
and for the past 12 years has held senior
executive roles at ITV where she is currently
Director of Unscripted UK television.
Strong insights into the broader
business community, government and
key stakeholders through positions on
the boards of BusinessLDN and ITN.
Her experience with younger audiences,
particularly relating to wellbeing and
safeguarding, contributes to the Board’s
better understanding of the needs, wants
and behaviours of our customers.
External appointments
• ITV (Director of Unscripted, UK)
Committee key
Nomination Committee member
Audit & Risk Committee member
Remuneration Committee member
N
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Health & Safety Committee member
Sustainability Committee member
Committee Chair
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THE UNITE GROUP PLC
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GOVERNANCE
BOARD STATEMENTS
GOVERNANCE
Board
statements
Under the UK Corporate Governance
Code, the Board is required to make
a number of statements. These
statements are set out below:
Requirement
The Unite Group PLC is listed on the
London Stock Exchange and is subject to
the requirements of the UK Corporate
Governance Code (the Code).
The Board is required to apply the
principles of the Code and to either
comply with the provisions of the
Code or, where it does not, explain
the reasons for non-compliance.
The Code is available at www.frc.org.uk.
Board statement
The Board considers that the Company has,
throughout the year ended 31 December
2024, applied the principles and complied
with the provisions set out in the Code.
The Board acknowledges a new edition of
the Code (2024 edition) applies for financial
years commencing from 1 January 2025
(and for Provision 29 from 1 January 2026).
During 2024, the Board has reviewed how
the Company will comply with this new
edition of the Code.
More information
Details on how the Company has applied
the principles and complied with the
provisions of the Code can be found
throughout this Corporate Governance
section of the Annual Report.
The table below on page 82 details where
disclosure against the principles of the
Code can be found in this Corporate
Governance Report.
Compliance with the Code
Requirement
In accordance with the requirements of UK
Listing Rule 6.6.6R(9), the Board is required
to provide a statement as to whether it has
met certain targets related to gender and
ethnic diversity at Board level.
Board statement
The Board confirms that as at 31 December
2024, all three diversity targets were met:
1. 40% of the Board were women
2. One of the Senior Board positions
(the Senior Independent Director)
was held by a woman
3. One Director was from an ethnic
minority background.
More information
More details on the Company’s compliance
with the UK Listing Rules relating to Board
diversity amongst the Board and Executive
management can be found on page 100.
UK Listing rule – Board diversity
THE UNITE GROUP PLC
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Requirement
In accordance with Provision 30 of
the Code, the Board is required to
confirm that the Group has adequate
resources to continue in operation
for the foreseeable future.
Board statement
After making enquiries and having
considered forecasts and appropriate
sensitivities, the Directors have formed
a judgement, at the time of approving
the financial statements, that there is a
reasonable expectation that the Group
has adequate resources to continue in
operational existence for the foreseeable
future, being at least 12 months from the
date of these financial statements.
More information
More details on the going concern
statement, in accordance with the
requirements of UK Listing Rule 6.6.6R(3),
can be found on pages 158 and 159.
Going concern
Requirement
In accordance with Provision 31 of the
Code the Board is required to assess
the viability of the Company taking into
account the current position and the
potential impact of the principal risks
and uncertainties set out on pages 52-71.
Board statement
Taking account of the Company’s current
position and principal risks and having
assessed the prospects of the Company,
the Directors have a reasonable expectation
that the Group will be able to continue in
operation and meet its liabilities as they fall
due over the three years to December 2027.
More information
More details can be found in the viability
statement in accordance with the
requirements of UK Listing Rule 6.6.6R(3)
found on page 62.
Viability statement
Requirement
In accordance with Provision 28 of the
Code the Board is required to confirm that
it has carried out a robust assessment of
the principal and emerging risks facing
the Group and include a description of
these principal risks, what procedures are
in place to identify emerging risks, and
an explanation of how these are being
managed or mitigated.
Board statement
A robust assessment of the principal and
emerging risks facing the Company was
undertaken during the year, including those
arising from climate change and those that
would threaten its business model, future
performance, solvency or liquidity, together
with an assessment of the procedures to
identify emerging risks.
More information
Information around key risks and risk
management processes and how they are
being managed or mitigated can be found
on pages 52-71 and page 104 of the Audit
& Risk Committee Report.
Principal and emerging risks facing the Group
Requirement
In accordance with Provision 29 of the
Code the Board is required to monitor
the Company’s risk management
and internal control systems and,
at least annually, carry out a review
of their effectiveness and report on
that review in the Annual Report.
Board statement
The Board conducted a review of the
effectiveness of the internal controls,
supported by the work of the operational
compliance and internal audit teams and
their reports to the Audit & Risk Committee.
This is reported in the Annual Report. No
significant weaknesses were identified
through the course of the reviews.
More information
Details on the systems of risk management
and internal control and the review of
their effectiveness can be found on
pages 104.
Risk management and internal control
Requirement
In accordance with Provision 27 of the Code
the Board should confirm that it considers
the Annual Report, taken as a whole, is fair,
balanced and understandable and provides
the information necessary for shareholders
to assess the Company’s position and
performance, business model and strategy.
Board statement
The Directors consider that the Annual
Report, taken as a whole, is fair, balanced
and understandable and provides the
information necessary for shareholders
to assess the Company’s position and
performance, business model and strategy.
More information
See the Audit & Risk Committee Report
on pages 101-105.
Fair, balanced and understandable
THE UNITE GROUP PLC
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82
BOARD STATEMENTS
continued
Compliance with the Code
The Company’s disclosures on its application of the principles
of the Code can be found in the table below:
Board leadership and Company purpose
A. Long-term sustainable success and contribution
B. Purpose, values and culture
C. Resources and control framework
D. Engagement with shareholders and stakeholders
E. Workforce policies and practices
Page
Pages 10-15 and 90-92
Pages 83-84
Pages 52-71 and 84
Pages 11-13, 86 and 90
Pages 11 and 86
Division of responsibilities
F. Board leadership
G. Board composition and responsibilities
H. Role and commitment of Non-Executive Directors
I. Board effectiveness
Page
Pages 83-87
Pages 88-89
Pages 88-89
Page 97
Composition, succession and evaluation
J. Board appointments, succession plans and diversity
K. Board experience, skills and knowledge
L. Board evaluation
Page
Pages 98-100
Pages 76-79, 88,98-100
Page 97
Audit, risk and internal control
M. Internal and external audit – independence and effectiveness
N. Fair, balanced and understandable
O. Risk management and internal controls
Page
Pages 104-105
Page 103
Pages 57-71 and 104
Remuneration
P. Remuneration policies and practices – long-term strategy and success
Q. Development of policy on remuneration
R. Judgement and discretion
Page
Pages 112-137
Pages 112-115,119-126
Pages 112, 118-134
GOVERNANCE
THE UNITE GROUP PLC
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83
BOARD LEADERSHIP AND PURPOSE
The Board is responsible for establishing the Company’s
purpose, strategy and values, promoting its culture,
overseeing its conduct and affairs, for promoting the
long-term sustainable success and generating value
for shareholders and contributing to wider society.
OUR PURPOSE – HOME FOR SUCCESS
The Board has defined our common purpose. Our
purpose also describes our shared commitment and
motivation and contribution to the delivery of our strategic
objectives, informing the development of our business
model and strategy, operating practices, approach to
risk and how we engage with our stakeholders.
The Board oversees our service proposition and how we
provide a Great Place to Live, where students belong and
have access to support. Our operating model provides
24/7 round-the-clock support, 365 days a year across all
our properties. Our student assistance programme offers
24/7 access to our Student Wellbeing Helpline, a counsellor-
led triage service providing in-the-moment support.
Our purpose informed the Board’s commitment for the
Group to remain a Real Living Wage employer during
2024, having been the first in our sector. The Board also
supported the decision to commission the Social Market
Foundation to deliver a report into the barriers facing
care-experienced and estranged students with entry into
and success in Higher Education. This further emphasises
our commitment to our values and undertaking to make
a positive impact for students and young people.
Home for Success is also about ensuring we are the right
partner for our university partners. As a trusted member of
the Higher Education community, we support our university
partners to build a brighter future for students everywhere. Our
nomination agreements with universities cover over half of our
beds for the 2024/25 academic year and it is through our long-
standing relationships that we have been able to secure multi-
year agreements and support additional demand. We regularly
engage with our university partners to understand their long-
term aspirations, accommodation requirements and evolving
expectations around student welfare. This means our offer is
built around the priorities of students and universities alike.
By placing people at the heart of our business, the Board’s
focus on Home for Success is also about ensuring a Great
Place to Work. This means an environment where our
employees can grow, develop, succeed and belong. The
Board is driven by our commitment to develop diverse and
inclusive teams, filled with support, positive energy and
new ideas. Our dynamic culture offers variety, growth and
a range of career pathways and opportunities available to
all. We remain focused on being an employer of choice.
The Board has ultimate responsibility to shareholders for
all the Group’s activities as well as a broader responsibility
to consider the views of other key stakeholders
including our customers, universities, employees and
the communities we operate in, as well as considering
environmental and social issues when making decisions.
OUR VALUES, PEOPLE AND CULTURE
During 2024, the Board had oversight of the development
of our refreshed values: Challenge the Ordinary, Lead
with Heart, Unite as One and Stay on Point. These values
guide us in delivering our Home for Success purpose.
Our values continue to shape our culture, our ambitions, the
things we believe in and how we act. They connect us and
drive our behaviours to create a positive impact and move
with clear intent. This goes beyond regulatory compliance and
relates to all aspects of the business including the impact on
our people and communities. Through our Culture Matters
employee forum, our employees’ voice remains front and
centre ensuring dialogue between the Board and the wider
business. The relationships built within the forum have allowed
for meaningful and open conversations as well as direct
actions taken to contribute to our Home for Success purpose.
Ilaria del Beato served as our Designated Non-Executive
Director for Workforce Engagement during 2024 with Angela
Jain taking over with effect from 1 January 2025. During 2024,
Ilaria attended forum meetings where she demonstrated the
commitment of the Board through supportive and informative
dialogue. In addition, the Culture Matters forum welcomed
attendance from Nicky Dulieu, Chair of the Remuneration
Committee who delivered a session on Executive remuneration.
Dame Shirley Pearce, Chair of the Sustainability Committee
also attended, highlighting the importance of sustainabilty
to the Board. Feedback provided to the Board helps to
inform its decision-making such as how we develop greater
gender and ethnic diversity in our senior leadership and
create a more diverse workforce (more details on Ilaria’s
role and activities during 2024 can be found on page 86).
HOW THE BOARD MONITORS OUR CULTURE
Our culture defines what makes Unite Students a Great
Place to Work and a great company to do business with
and this forms the fundamental basis for our governance.
During the year, the Board received regular updates on
our first culture audit. Over 100 employees from across
THE UNITE GROUP PLC
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84
GOVERNANCE
BOARD LEADERSHIP AND PURPOSE
continued
GOVERNANCE
the business participated in focus groups to gather insights
to help inform areas to strenghen our culture. Following
the audit we have made significant progress in employee
engagement and talent management initiatives such as My
Impact which will continue into 2025. The Board will continue
to oversee Diversity, Equity, Inclusion and Belonging across
the business and evolve our approach to talent and reward.
The Board monitors corporate culture through interaction
and dialogue with our people though our Designated Non-
Executive Director for Workforce Engagement and through
regular employee engagement surveys and site visits. The Board
also meets the wider business when visiting properties and
seeing our operations, helping ensure our values and culture
are well understood and giving our people the opportunity for
frank and open feedback and the sharing of different views.
During 2024, this included the Board visiting properties in
Newcastle and London and meeting with the local teams.
Our employee surveys help measure engagement through
their participation rates as well as the feedback received across
the broad range of topics surveyed. Our DEIB and Wellbeing
survey helped the Board to identify areas for improvement and
feedback on the environment which our employees want to
create for themselves and our customers. Feedback resulted
in the launch of new Instinctive Inclusion training, supporting
conscious inclusion. Over 1,200 employees have already
completed this training with positve feedback highlighting
the accessible and interactive nature of the training.
Our Higher Education trust score monitors how
universities view us and provides insight on our
culture from our external stakeholders.
BOARD OVERSIGHT
The Board discharges some of its responsibilities directly
and others through Committees and senior management.
Terms of reference for the Committees are available in our
Governance Framework, published on www.unitegroup.
com/about-us/corporate-governance. To discharge their
broader responsibility effectively, the Group operates in an
open and transparent manner, ensuring open communication
between the Board and the business and its stakeholders.
During 2024, the Board listened and heard directly from the
leadership team, wider senior leaders and our stakeholders.
The Board engaged with our employees and stakeholders
on the impact of employee and student wellbeing and
support, as well as our environmental and social impact.
The Board receives updates on business performance from our
leadership team, including the Chief Operating Officer, Group
Strategy & Technology Director, Group Development Director,
Group People Director, Group Safety Director, Finance Risk &
Assurance Director, Head of Sustainability, Higher Education
Engagement Director and Group Legal Director & Company
Secretary (among others). The Board is also responsible for:
• Assessing, monitoring and promoting the Company’s culture,
and ensuring that this closely aligns with its purpose, values
and strategy
• Ensuring the necessary resources are in place for the business
to meet its strategic objectives
• Establishing workplace policies and business practices that
align with the Company’s culture and values and support its
strategy (see page 86)
• Overseeing the implementation of a robust controls
framework to allow effective management of risk, with this
oversight delegated to the Audit & Risk Committee
(see pages 101-105)
• Effective succession planning for key senior personnel, much
of which is delegated to the Nomination Committee
(see pages 98-100).
The Board has ultimate responsibility to Unite Group’s
shareholders for all the Group’s activities, as well as a
broader responsibility to consider the views of other key
stakeholders. These include our customers, universities,
employees, suppliers and the communities we operate in,
as well as considering environmental and social issues when
making decisions. All of the Board’s significant decisions are
considered having regard to Section 172 of the Companies Act
2006 and specifically the likely consequences of these decisions
in the long term and their impact on our stakeholders.
Pages 90-92 highlight how the Board has sought
to effectively consider and engage with our
shareholders and wider stakeholders.
While the above summarises the key areas of Board
responsibility, it is not intended to be exhaustive.
Whistleblowing programme
Our whistleblowing programme and the nature of concerns
raised are reviewed annually. Our Whistleblowing Policy, and
a clear explanation of how employees can raise a concern
in confidence, is readily available and published on our
intranet. This includes raising a concern via an independent
third-party if someone feels this is necessary. Concerns
raised are investigated and escalated as appropriate.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
85
Board Committees
The Board has delegated certain responsibilities to
its Committees and the current membership of each
Committee is set out below.
The terms of reference for each Committee are
reviewed annually.
The Audit & Risk Committee oversees the
financial reporting, risk management and
internal control procedures.
Audit & Risk Committee
A
Ross Paterson
Ilaria del Beato
Nicky Dulieu
Professor Sir Steve Smith
SEE COMMITTEE REPORT
P101
The Health & Safety Committee oversees the
performance of the Unite Student’s health and
safety and helps drive our Trusted Landlord
promise.
Professor Sir Steve Smith
Joe Lister
Dame Shirley Pearce
Angela Jain
Health & Safety Committee
H
SEE COMMITTEE REPORT
P108
The Remuneration Committee determines
the Remuneration Policy in consultation with
shareholders for the remuneration of the
Board and the implementation of this policy.
Nicky Dulieu
Ross Paterson
Professor Sir Steve Smith
Ilaria del Beato
Remuneration Committee
R
SEE COMMITTEE REPORT
P112
The Sustainability Committee oversees the
implementation of the Sustainability Strategy and
helps ensure Unite Students is a responsible,
resilient and sustainable business.
Dame Shirley Pearce
Joe Lister
Ilaria del Beato
Ross Paterson
Sustainability Committee
S
SEE COMMITTEE REPORT
P106
The Nomination Committee reviews the structure,
size, composition, skills and experience of the
Board and focuses on succession planning with
due regard to diversity.
Richard Huntingford
Ilaria del Beato
Nicky Dulieu
Ross Paterson
Dame Shirley Pearce
Professor Sir Steve Smith
Thomas Jackson
Angela Jain
Nomination Committee
N
SEE COMMITTEE REPORT
P98
THE UNITE GROUP PLC
Annual Report and Accounts 2024
86
GOVERNANCE
BOARD LEADERSHIP AND PURPOSE
continued
GOVERNANCE
HOW THE BOARD OPERATES AND
STAKEHOLDER ENGAGEMENT
The Board meets eight times per year with an agenda of
items for the forthcoming year built around our strategic
objectives. The Board’s meetings are split between strategy
(considered in light of principal and emerging risks, opportunities
and the approval of specific investments and disposals
above certain thresholds, as well as ESG and longer-term
sustainability) and routine operational, property and financial
updates (providing context for the strategic discussions
as well as governance oversight of in-year activity).
Meetings usually take place throughout the UK or in our
operating cities and enable the Board to meet our people and
learn about their experiences and culture at Unite Students.
Meetings were held in person this year with the flexibility of
hybrid meetings to allow for increased participation from
across the business, including senior leaders who are regularly
invited to attend meetings and present to the Board. These
meetings provide the Board, and in particular the Non-Executive
Directors, with direct and open access to leaders throughout
the Group and helps build a culture of openness and directness.
In addition, subject matter experts are also invited to present
to the Board to give the Directors a broader and independent
perspective and to increase knowledge and development.
WORKFORCE ENGAGEMENT AND THE ROLE OF OUR
DESIGNATED NON-EXECUTIVE DIRECTOR
The Board has designated one of its Non-Executive Directors to
help ensure the views and concerns of the workforce are brought
to the Board and taken into account following the framework of
listen, reflect and represent. Ilaria del Beato held this role during
2024 with Angela Jain taking over from 1 January 2025. The Board
considered that allowing another Non-Executive Director with
a different perspective to lead employee engagement efforts
going forward would be informative and enhance capabilities
and experiences amongst the Board as a whole. As Director of
Unscripted, UK at ITV, Angela is in-touch with the needs, wants and
behaviours of young people. Angela is well placed to understand
current challenges faced by employees. Her role includes:
• attending the Culture Matters forum to understand
concerns and share these with the Board, so
appropriate steps are taken to evaluate the impact
on the workforce of proposals and developments
• monitoring employee engagement surveys and actions
• soliciting employee views on remuneration
structures and processes
• collaborating with our Group People Director, the Head of
People Development & Experience, the Belonging, Equity and
Engagement team and the wider People team.
We continue to consider this engagement mechanism to be the
most appropriate and effective for our Group as it facilitates an
insightful two-way dialogue between employees and the Board.
Workforce engagement continues to shape the Board’s decision-
making which was primarily focused on safety, our people and
supporting belonging, equity and engagement during 2024. Our
engagement resulted in the following:
• Launch of My Impact, our new performance enablement
framework. This framework was developed after listening to
employees and provides opportunities to grow and devleop
• The creation and launch of new guidance including; Supporting
our People (reasonable adjustments and accessibility at work)
• Launch of Executive sponsorship and mentoring for our five
Employee Networks: Unite Women; People of Colour Unite;
Disability and Neurodiversity; Keeping uS Well and
Unite LGBTQ+.
The Board, through the detailed work of the Remuneration
Committee, also monitors pay and practices across the wider
workforce with the Group People Director attending these
meetings to update on workforce initiatives and offer an
employee perspective. See more on page 112.
Investment in workforce
The Company invests in our people, conscious that we can only
deliver our Home for Success purpose through our people. Our
people are a key stakeholder and how we engage with them and
measure this is set out on pages 11 and 90.
The Company is a fully accredited Real Living Wage employer
and provides recognition through pay awards, annual bonuses,
Round of Applause awards and our annual Stars Awards. All
employees are eligible to participate in the Company’s SAYE
scheme and senior leaders are eligible to participate in the long-
term incentive plan.
My Impact provides the opportunity for meaningful employee
performance conversations, helping to align goals with the
company’s priorities. Employees also have access to our learning
catalogue through The Academy which provides employees with
a tailored learning experience.
The Board also considers diversity, equity, inclusion, belonging
and wellbeing across the workforce, by considering our gender
and ethnic diversity throughout the Group as well as our gender
pay gap.
How we engage with our investors
The Board values effective communication with shareholders and
other providers of capital to the business and welcomes their
views on the Group’s approach to corporate governance. The
Board creates sustainable value for our three types of investors:
institutional, retail and debt.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
87
ENGAGEMENT WITH OUR INVESTORS
EQUITY INVESTORS
Institutional investors
Investors attend our year-end and half-year results presentations. After the announcement of our results in February and July
2024, our Executive Directors held meetings with investors to ensure their views were taken into consideration as we continue
to develop our strategy; to help them understand the ongoing performance of the business and our approach to dividends.
We held an investor day in November showcasing our Stapleton House property in London. The event included meeting with
our largest investors, updating on progress of the Newcastle University joint venture and sharing views on the outlook for UK
Higher Education.
We also engage with investors throughout the year on various aspects of environmental, social and governance matters.
The Board is made aware of the views of major shareholders concerning the Company through, among other means, regular
analyst and broker briefings and shareholder feedback. These will continue throughout 2025. The Chair, Richard Huntingford,
also reaches out to the top 20 shareholders each year.
Retail investors
Our 2024 Annual General Meeting was held in person and allowed shareholders the opportunity to attend and to raise
questions of the Board. In addition, shareholders were invited to ask questions via email in advance of the meeting.
All resolutions put to the 2024 AGM received overwhelming support from our shareholders. The results of voting are available
at: www.unitegroup.com/investors/agm. There were no resolutions with less than 80% voting in favour and therefore Code
Provision 4 did not apply.
Our July 2024 capital raise included a retail offer to ensure ongoing participation by our retail investors.
Scrip scheme
The Company continues to offer a scrip dividend alternative to shareholders, which enables them to opt for shares rather
than cash with no dealing costs or stamp duty. The scheme, with modified terms and conditions to offer an enhanced scrip
dividend alternative, was approved and renewed for a further three years at the 2024 Annual General Meeting.
DEBT INVESTORS
Bond holders
Bond holders are periodically invited to meet with senior management and the Treasury team to update them on
performance and business strategy. Other discussions are held with bond holders on specific topics as required, such as ESG
and our sustainability framework.
Lenders
Regular dialogue is maintained with our key relationship lenders, through meetings or conference calls with our CFO and
Treasury team. Our Treasury team also actively engages with new and potential lenders. During 2024, engagement with our
lenders focused on increasing the size and flexibility of our financing commitments.
Credit Rating Agencies
During the year, business and financial updates were provided by our Treasury team to Standard & Poor’s and Moody’s. S&P
upgraded our investment grade corporate rating to BBB+ with a stable outlook and Moody’s investment grade corporate
rating remains at Baa1, with a stable outlook.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
88
GOVERNANCE
DIVISION OF RESPONSIBILITIES
GOVERNANCE
COMPOSITION OF THE BOARD
The composition of the Board is set out in the table on page 77.
The Board currently consists of the Chair, two Executive
Directors and seven Non-Executive Directors.
All of the Directors offer themselves for re-election at the
Annual General Meeting, to be convened this year on 15 May
2025, in accordance with the requirements of the Code. Brief
biographies of all the Directors and their skills, experience
and contribution to the long-term sustainable success of the
Company, are set out on pages 77-79. Following the individual
performance evaluations of each of the Directors seeking
re-election, it is confirmed that the performance of each of
these Directors continues to be effective and that they each
demonstrate commitment to the role and add value and
relevant experience to the Board.
INDEPENDENCE
The Board considers six of its seven Non-Executive Directors
to be independent. Thomas Jackson is not considered to be
independent, having been nominated as a Director of the
Company by its largest shareholder Canada Pension Plan
Investment Board (CPPIB) pursuant to a Relationship Agreement
signed as part of the Liberty Living acquisition. Accordingly, the
Company meets the requirement of the Code that at least half
of the Board (excluding the Chair) is made up of independent
Non-Executive Directors. In addition, Richard Huntingford (Chair
of the Board) was considered independent on his appointment
to the role.
ROLES
The Chair and the Non-Executive Directors constructively
challenge and help develop proposals on strategy, and bring
strong, independent judgement, knowledge and experience
to the Board’s deliberations. The roles of the Chair and CEO
are clearly separated. Summaries of the responsibilities of the
Chair, CEO and Senior Independent Director are set out in the
tables to the right.
The terms and conditions of appointment of the Non-Executive
Directors are available for inspection at the Company’s
registered office and at the Annual General Meeting.
TIME COMMITMENT
During the year, the Board approved Ross’ appointment as
a Non-Executive Director to the Boards of Bytes Technology
Group and Tracsis plc. Nicky Dulieu was also appointed to the
Board of Barratt Redrow plc. The Board considered that these
appointments would provide them with valuable insights and
enhance their contributions to the Board, and noted that roles
ROLE: CHIEF EXECUTIVE
ROLE: SENIOR INDEPENDENT DIRECTOR
ROLE: CHAIR
Joe Lister has responsibility:
• to establish, in conjunction with the Chair, the strategic
objectives of the Group, for approval by the Board
• to implement the Group’s business plan and annual budget
• to oversee the operational and financial performance of
the Group.
As Senior Independent Director, Nicky Dulieu’s principal
responsibilities are:
• to act as Chair of the Board if the Chair is conflicted
• to act as a conduit to the Board for the communication of
shareholder concerns if other channels of communication
are inappropriate
• to ensure that the Chair is provided with effective feedback
on his performance.
Richard Huntingford’s principal responsibilities are:
• to establish, in conjunction with the Chief Executive, the
strategic objectives of the Group for approval by the Board
• to organise the business of the Board
• to enhance the standing of the Company by communicating
with shareholders, the financial community and the Group’s
stakeholders generally.
were not expected to impact their ability to dedicate sufficient time
to their role on the Board and its various committees.
Non-Executive Directors are expected to commit approximately 20
days per annum to the business of the Group. We have reviewed
the responsibilities of all Directors and are satisfied that they can
fully fulfil this commitment.
It is the Board’s Policy to allow Executive Directors to accept
directorships of other unconnected companies so long as the
time commitments do not have any detrimental impact on the
ability of the Director to fulfil his or her duties. It is considered this
will broaden and enrich the business skills of Directors. Any such
directorships must be undertaken with prior approval of the Board.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
89
BOARD TENURE
Each of the Executive Directors has a rolling
contract of employment with a 12-month
notice period, while Non-Executive Directors
are, subject to re-election by shareholders,
appointed to the Board for a term of
approximately three years. The adjacent
chart shows the current tenure of the
Non-Executive Directors (rounded
up to the nearest year).
1
0
3
5
7
9
2
4
6
8
NED Tenure
PROFESSIONAL ADVICE AND TRAINING
Directors are given access to independent professional
advice at the Company’s expense when the Directors
deem it necessary in order for them to carry out their
responsibilities. The Directors also have regular dialogue
with, and direct access to, the advice and services of the
Company Secretary, who ensures that Board processes
and good corporate governance practices are followed.
The Board considers it important that the Committee Chairs
continue to receive sector and relevant functional training
(such as on accounting, sustainability, corporate governance
and Executive remuneration reporting developments) and
accordingly the Committee Chairs attend relevant external
seminars. The Board as a whole receives ongoing training on
corporate governance and other relevant developments.
BOARD INDUCTION
On appointment to the Board, each Director takes
part in a comprehensive and personalised induction
programme. This induction is also supplemented with
ongoing training throughout the year to ensure the Board
is kept up-to-date with key legal, regulatory and industry
updates. Any Director on appointment undertakes an
induction programme following this framework:
• The business and operations of the Group
and the Higher Education sector
• The role of the Board and matters reserved for its decisions
• The terms of reference and membership of Board Committees
• Powers delegated to those Committees
• The Group’s corporate governance practices and procedures
and the latest financial information about the Group
• The legal and regulatory responsibilities as a Director and,
specifically, as a Director and Chair of a listed company.
As part of the induction programme, they meet with key
senior leaders, so from the outset they have access to people
throughout the organisation to help them form their own
independent views on the Group, its performance and the
sector we operate in. In addition, they meet with representatives
of the Company’s key advisers. Arrangements are made for each
Director to visit key locations to see our business operations
and properties first-hand and the Higher Education institutions
with which we partner.
Richard Huntingford
Ilaria del Beato
Nicky Dulieu
Ross Paterson
Dame Shirley Pearce
Tom Jackson
Professor Sir Steve Smith
Angela Jain
THE UNITE GROUP PLC
Annual Report and Accounts 2024
90
GOVERNANCE
GOVERNANCE
The Board of Directors makes this statement in accordance
with Section 172(1)(a) to (f) of the Companies Act 2006. This
statement sets out how the Board of Directors has acted to
promote the success of the Company for the benefit of the
members, having regard to the interest of stakeholders in their
decision-making, as further detailed below for the year ended
31 December 2024.
THE LIKELY CONSEQUENCES OF ANY DECISION
IN THE LONG TERM AND DESIRABILITY
TO MAINTAIN A REPUTATION FOR HIGH
STANDARDS OF BUSINESS CONDUCT
Acting in the long-term interests of the business and for all our
stakeholders is central to the Board’s decision-making process
and shapes the Group’s strategy. To help the Board understand
our wider stakeholder relationships and inform the Board’s
decision-making, the Board receives regular updates from the
Executive team, as well as the wider senior leadership team. In
all decision-making, the potential impact on our stakeholders
is taken into account, together with the likely consequences
of these decisions in the long term and also the desirability of
the Company maintaining a reputation for high standards of
business conduct.
The Board maintains oversight of the Company’s performance
and reserves specific matters for approval, including significant
new strategic initiatives and major decisions relating to capital
raising and allocation. Through measurement against long-term
objectives, the Board monitors how management is acting in
accordance with the Board’s agreed strategy and the long-term
interests of our key stakeholders.
THE INTERESTS OF OUR EMPLOYEES
As a service business providing homes for 68,000 young people,
who are often living away from home for the first time, the
Board recognises the importance of our people and the role
they play in delivering our Home for Success purpose. The
Board receives regular feedback through Unite Live sessions
held with our Chief Executive and other members of the senior
leadership team. These sessions enable employees to ask
questions directly and for the Board to understand the issues
that matter most to our teams and take that into account in
Board-level decision-making. Our commitment to employee
engagement can be seen by our regular employee engagement
surveys where we take the feedback received and turn it into
meaningful action. During 2024 this included the launch of
My Impact, our performance enablement framework which
supports learning and goal setting.
Through our employee engagement forum, Culture Matters,
the Board received regular feedback from our Non-Executive
Director for Workforce Engagement for the year, Ilaria del
Beato. During 2024, Ilaria attended the Culture Matters
meetings and heard first-hand the context and debate while
demonstrating the commitment of the Board. Through our
annual Diversity, Equity, Inclusion and Belonging (DEIB)
survey completed by employees, the Board was able to better
understand employee needs and assess our progress. You can
read more about Culture Matters on pages 83 and 86.
THE NEED TO ACT FAIRLY BETWEEN MEMBERS
OF THE COMPANY
The Board recognises that acting fairly in the interests of all
shareholders increases investor confidence, reduces our cost
of capital and ensures good governance. This also supports
the ability of the business to invest and grow through access to
capital when it is required. We provide all investors with equal
access to information through our public reporting of financial
results and trading statements, as well as additional disclosures
in areas such as sustainability through our corporate website.
Our Annual General Meeting also provides an opportunity
for all shareholders to have their say. We engage regularly
with investors throughout the year and the Chair of the Board
engages with shareholders on governance matters.
OUR SECTION 172 STATEMENT
Meeting the needs and expectations
of our stakeholders is fundamental
to delivery of our purpose, creating
a Home for Success.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
91
During 2024, the Board supported the ‘Enhanced Scrip Dividend
alternative’, approved by sharehlders at the 2024 Annual
General Meeting. The enhanced scrip dividend was offered to all
shareholders and encouraged greater participation in the scrip
scheme, while retaining additinal capital in the business.
THE NEED TO FOSTER BUSINESS RELATIONSHIPS
WITH OUR KEY STAKEHOLDERS INCLUDING OUR
CUSTOMERS, UNIVERSITY PARTNERS AND SUPPLIERS
Our customers
Our regular customer surveys provide opportunities for
students to provide direct and independent feedback so that we
can understand what is important to them and also on wider
topics. The Board reviews the Net Promoter Score from our
student surveys which help the Board decide where to invest in
our customer offer to ensure we deliver value-for-money and a
Great Place to Live.
The Board supported the launch of the new MyUnite app and
website during 2024, a customer-focused initiative designed to
foster good relationships with incoming students and further
enhance customer service. The Board also received regular
updates and feedback following the roll-out.
University partners
University partners are key strategic stakeholders, directly
accounting for around half of our reservations each year under
nomination agreements and the other half indirectly through
their students who book directly with us. The reputation, health
and future growth of our university partners remains central to
our business prospects.
The Group supports the growth ambitions of its university
partners through a range of different approaches from single-
year accommodation arrangements to more strategic on-
campus relationships.
Our Higher Education Engagement team and Student Support
team meet regularly with university leaders and teams at
various levels, enabling us to discuss this strategic planning
as well as day-to-day operational requirements. This feedback
is shared with our Board who in turn consider our strategies
for delivering value to universities. Through collaborative
relationships with Higher Education providers, our student
support team provides the Board with insight into trends and
specific themes relating to student wellbeing across the Higher
Education sector.
Our annual Higher Education engagement survey provides the
Board with key insight into our reputation and performance
with our university partners as further detailed as part of our
Higher Education trust operational KPI on page 17. This helps
inform the way we improve our product and service. The Board
is also regularly updated on trends in the Higher Education
sector in the UK and globally, which inform the Group’s strategy
around the universities with which it seeks to partner over the
long term.
Suppliers
We work with a wide range of suppliers across our operations
and development activities to deliver a high-quality, affordable
customer offer. Our teams maintain strong relationships with
suppliers and ensure that the contractors we use have the
right skill set and accreditations to undertake the work in our
buildings. The Board recognises the importance of supplier
relationships and is provided with regular updates throughout
the year.
During 2024, the Board had oversight of the continued
implementation and progress of our Sustainable Procurement
framework. This framework includes our sustainable
procurement policy, setting standards for suppliers to
have policies in place regarding the minimum legal age of
employment and compliance with local laws regarding working
hours and overtime. During 2024, the Board were supportive
of our approach to introduce a mandatory requirement for
all suppliers to adhere to our Supplier Code of Conduct and
enhance our modern slavery requirements, including enhanced
vetting for higher risk categories of supply. You can read more
about our sustainable procurement framework on page 92.
Our impact on the community and the environment
We are passionate about making a positive and lasting impact
on our neighbours, society and the planet. To maximise the
value we create for communities and ensure our ability to
continue to operate and grow within them, we seek to play
an active role in local communities and build trusted, long-
term relationships with community partners. We are always
working for the long term and we are proud to contribute to
local housing needs. This can be seen in the Board’s continued
support for our development activity where we actively engage
with local communities to ensure the design of our buildings,
public spaces and community facilities also meets their needs.
During 2024 the Board and Sustainability Committee
received regular updates on our Positive Impact programme
which encourages our people and teams to work with local
stakeholders on community impact initiatives. Through
engagement with local communities, the programme has
helped our people better understand sustainability and social
responsibility. As a Great Place to Live, Work and Invest, we
THE UNITE GROUP PLC
Annual Report and Accounts 2024
92
CUSTOMERS:
Student wellbeing
INVESTORS:
£450m capital raise
ENVIRONMENT:
Sustainable procurement
The Board oversees the continued
development and improvement of
our Support to Stay framework, built
into our operating platform. This
framework provides a holistic approach
to wellbeing and support services.
You can read more about our Support
to Stay framework on pages 12 and 45.
Following consultation with a significant
number of our shareholders, the Board
approved a capital raise of approximately
£450 million in July 2024. Through the
raise the Board acted to promote the
long-term sustainable success of the
Company. This capital raise will be
used to support continued investment
into our market-leading platform, and
the acquisition of new assets from
Unite Student Accommodation Fund.
It will also help support our Newcastle
University joint venture, enhancing
future returns for shareholders
through delivery of new housing, which
supports the growth of our university
partners while contributing to wider
society. The successful completion
of the capital raise is evidence of
the strong investor support for the
Board’s decision-making in this area.
The Board recognises the challenges
associated with addressing our
operational Scope 3 emissions (outside
construction) and is aware that 99%
of our third-party carbon footprint is
attributable to our Tier 1 suppliers.
With this in mind, the Board endorsed a
renewed emphasis by our procurement
and sustainability teams on gathering
data and setting baselines during the
year, as well as enhancing our approach
to ethical procurement. The Board also
supported our first sustainability day,
which was focused on sharing best
practices among our highest impact
suppliers. Looking ahead to 2025, the
Board will continue to monitor progress
in this area.
proactively manage environmental, social and governance risks.
We understand the significant contribution that property makes
to global carbon emissions and how essential it is that we play
our part in the fight against climate change.
Through the Sustainability Committee, the Board has oversight
of our environmental impact through continued review of our
sustainability framework. This strategy specifies clear targets to
reduce our environmental impact over time. In addition, our Net
Zero Carbon Pathway, published in December 2021, details our
approach to reach net zero carbon across our operations and
developments in support of our 2030 targets.
Engagement around environmental impact comes indirectly
through feedback from investors, students, universities and
local communities, all of which is considered by the Board
in its decision-making.
Further information on our sustainability framework can be
found on page 43.
We have highlighted some key decisions demonstrating
how the Board has taken Section 172 matters into account
in decision-making:
OUR SECTION 172 STATEMENT
continued
GOVERNANCE
THE UNITE GROUP PLC
Annual Report and Accounts 2024
93
BOARD ACTIVITIES
1. Ilaria del Beato stepped down from the Health & Safety Committee on 31 December 2024. Ilaria joined the Remuneration Committee on 1 January 2025.
2. Dame Shirley Pearce stepped down from the Remuneration Committee on 31 December 2024.
3. Professor Sir Steve Smith was unable to attend the June 2024 Health & Safety Committee due to exceptional circumstances.
See Committee
report page 101
Richard Huntingford
2020
8
2
Joe Lister
2008
8
4
4
Michael Burt
2024
8
Ross Paterson
2017
8
5
3
2
4
Ilaria del Beato1
2018
8
5
2
4
4
Dame Shirley Pearce2
2019
8
3
2
4
4
Professor Sir Steve Smith3
2020
8
5
3
2
3
Nicky Dulieu
2022
8
5
3
2
Angela Jain
2023
8
2
4
Thomas Jackson
2019
8
2
Board
Number of
meetings
8
Audit & Risk
Committee
Number of
meetings
5
Remuneration
Committee
Number of
meetings
3
Nomination
Committee
Number of
meetings
2
Health & Safety
Committee
Number of
meetings
4
Sustainability
Committee
Number of
meetings
4
See Committee
report page 112
See Committee
report page 98
See Committee
report page 108
See Committee
report page 106
Member
since
Board
Director
Board activities 2024
JANUARY
Setting 2024
forward agenda
FEBRUARY
Approval of
Annual Report
MAY
Annual General Meeting
Regulation review
JULY
Approval of £450m
capital raise
NOVEMBER
Sustainability and social
impact update
Board & Committee
Performance feedback
DECEMBER
Whistleblowing review
Committee terms of
reference review
JANUARY
Strategy review
FEBRUARY
Property valuer
market update
Disposals update
MARCH
Strategy update
Data and technology
update
MAY
Public affairs strategy
JULY
Data and technology
update
SEPTEMBER
Strategy-focused day
DECEMBER
Group strategy review
Annual tax strategy
review
Data and technology
review
JANUARY
Preliminary results
Key themes
FEBRUARY
Preliminary results
Final dividend
MARCH
IR review and feedback
MAY
Defence planning
JULY
Interim results
Interim dividend
Principal and
emerging risks
SEPTEMBER
Interims feedback
NOVEMBER
Budget 2025 themes
DECEMBER
Principal and emerging
risks review
Budget 2025 approval
JANUARY
Employee
engagement update
Remuneration review
MAY
Health & Safety update
JULY
People and Culture review
SEPTEMBER
Student support
update
NOVEMBER
Succession planning
DECEMBER
Pay award and
bonus scheme
JANUARY
Higher Education update
University
partnership update
FEBRUARY
Market review
MARCH
Newcastle
property visit
Property and
investment update
JULY
Commercial review
SEPTEMBER
Market review
Higher Education
engagement review
NOVEMBER
Development and asset
management review
Governance
Strategy
Financial & risk
management
People
Operational
& commercial
Directors’ attendance at meetings
THE UNITE GROUP PLC
Annual Report and Accounts 2024
94
STRATEGIC OBJECTIVE
Great Place to Live
Board’s governance role
Link to principal risk
What the Board did in 2024 and its decision-making
Safety, health and wellbeing:
Governance to ensure the health,
safety, wellbeing and security of
our customers is paramount
Throughout 2024, fire safety and
security remained priorities.
Operational risk
Major health and safety incident in
a property or a development site
Read more
p58
The Board reviews the safety measures in place for our
students, visitors and employees, as well as contractors
at our development sites, at each Board meeting.
Fire safety: the Board and the Health & Safety Committee review
and challenge our fire safety programme, a critical part of our
health and safety strategy. The Board is committed to the business
being a leader in fire safety standards through a proactive, risk-
based approach embedded across the business and ensuring that
students and our employees are kept safe. The Board also oversees
our cladding remediation programme and related spending.
The Board and Health & Safety Committee review and monitor
our implementation of The Building Safety Act 2022, which has
been fully embedded into day-to-day working of the business.
Security: the safety of our students and employees is paramount and
through oversight of the Board and the Health & Safety Committee,
we continued to progress with the full review of security across the
entire estate and implement additional security measures where
needed. Planned improvements to security will continue into 2025.
Read more in the Health & Safety Committee Report
p108
Ensuring our product is affordable
and provides good value-for-
money for our customers.
Market risks
Demand reduction: driven by
value-for-money/affordability
Read more
p57
Board analysis of the Higher Education accommodation sector,
and ensuring we continue to offer an affordable
and value-for-money product.
Board analysis of our customer offer and how we service
undergraduate first-year students through lettings to universities
under nomination agreements. Also, considering the opportunities to
tailor our customer proposition to better meet the needs of returning
students seeking greater independence and postgraduate and
international students who may be willing to pay a premium for
a higher level of service.
Board oversight of the refurbishment of our pilot purpose-built
build-to-rent property in Stratford, East London. This pilot will
test our operational capability to extend our accommodation
offer to young professionals and retain them as customers
as they move on to the next stage in their lives.
Read more about Operations review
p24
Governance to ensure our
best-in-class operating platform
delivers for our customers
and university partners.
Market risks
Supply and demand
Read more
p57
Through our direct engagement with Vice Chancellors and
other levels of Management within universities, the Board
is able to take into account the views of these stakeholders,
as well as monitoring and measuring our performance.
During 2024, Board oversight of the launch of the new customer
app and website, which includes features such as flat chat,
property updates, access to 24/7 wellbeing and service
support. The Board also had oversight of the performance
of our operating platform and continued improvements.
Read more about Operations review
p24
Read more about Stakeholder engagement
p90
Ensuring our safe and secure
promise extends to keeping
our customers’ and employees’
personal data safe and secure.
Technology risk
Information Security
and Cyber threat
Read more
p61
Board review of our technology and information security and its
governance. IT security, in particular cyber risks, were considered
during 2024 in both Board and Audit & Risk Committee reviews.
BOARD ACTIVITIES
continued
GOVERNANCE
THE UNITE GROUP PLC
Annual Report and Accounts 2024
95
STRATEGIC OBJECTIVE
Great Place to Work
Board’s governance role
Link to principal risk
What the Board did in 2024 and its decision-making
Employee wellbeing governance to
ensure the health, safety, wellbeing
and security of our 2029 employees
is paramount.
Diversity, equity and inclusion
The Board monitors progress
against our values.
Operational risk
Major health and safety incident in
a property or a development site
Read more
p58
The Board has designated one of its Non-Executive Directors
to help ensure the views and concerns of the workforce
are brought to the Board and taken into account.
Through our Culture Matters forum, the Board monitors employee
engagement and issues which are important to our employees.
The Board also has oversight of our Diversity,
Equity, Inclusion, Belonging (DEIB) and Wellbeing
strategy and progress against objectives.
Read more about employee wellbeing and DEIB
initiatives under Workforce engagement
p86
Leadership development
and succession planning/
talent pipeline.
Market risk
Supply and demand
Read more
p59
The Nomination Committee focuses on Board succession, as well
as our broader talent pipeline and leadership development.
During 2024, the Nomination Committee focused on ensuring
the successful implementation of the change in our CEO, CFO
and Executive team and Angela Jain taking over from Ilaria del
Beato as our Workforce Engagement Non-Executive Director.
Read more about succession planning/talent pipeline
p98
STRATEGIC OBJECTIVE
Great Place to Invest
Board’s governance role
Link to principal risk
What the Board did in 2024 and its decision-making
Property/development pipeline:
Board scrutiny of city and site
selection for new developments
against a backdrop of increasing
competition for the best sites.
Governance of developments/
acquisitions to ensure they
run to budget and schedule
and are earnings accretive.
Property/development risk
Read more
p58
Board oversight of:
1. Our proposed joint venture with Newcastle University. This joint
venture will provide 2,000 beds at the university’s Castle Leazes
site in Newcastle, due for completion in 2028 and 2029
2. Delivery of our new 2024 property: the 271-bed Bromley Place
in Nottingham, with a total development cost of £34 million
3. Oversight of progress of two new developments, Merdian Square
in Stratford, London and Freestone Island in Bristol and progress
with the construction of a new 719-bed property in Stratford,
London, for delivery in time for the 2026/27 academic year.
Read more in the Development and partnership activity
p30
Disposals: Board governance of
our portfolio recycling as we
increase our exposure to the
UK’s best universities, while
generating capital to invest in
further investment activity.
Property/development risk
Read more
p58
Board oversight of the sale of six properties with sales proceeds
of £184 million which will be reinvested into the improvement
of our estate and to meet redemption requests in USAF.
Read more in the Disposals
p32
Dividend Policy: Board
governance
of our Dividend Policy.
Financing risk
Read more
p61
Board focus on dividend payments with a payout ratio of 80% of
adjusted EPS. The Board also considered and recommended the
adoption of an enhanced scrip dividend for the 2023 final dividend.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
96
BOARD ACTIVITIES
continued
GOVERNANCE
STRATEGIC OBJECTIVE
Great Place to Invest (continued)
Board’s governance role
Link to principal risk
What the Board did in 2024 and its decision-making
Sustainability and ESG: as a
listed plc and responsible and
trusted business, our wider
stakeholders demand we
proactively manage environmental,
social and governance risks.
The Board oversees the setting
and implementation of our
sustainability framework, which has
the overarching ambition for Unite
Students to clearly lead the living
sector on sustainability issues and
be in the leading pack of real estate
companies in the wider sector.
Sustainability risk
Read more
p60
The Board continued its oversight of our sustainability framework and
Net Zero Carbon Pathway, built on science-based targets validated by
the SBTi, to achieve our objective of becoming net zero carbon across
both the Company’s operations and development activities by 2030.
The Board also interrogated our ongoing ESG regulatory and reporting
compliance.The Board considered the specific climate change risks,
identifying them across: Regulatory risk; Physical risk; Transition risk;
and Stakeholder risk. The Board considered the impact of these risks
and oversees the assurance of the corresponding risk management.
The Board were supportive of £10.2 million capital investment into energy
efficiency projects delivering energy savings.
Board oversight of the Group’s first sustainable construction framework
published in 2023. This framework had a successful first year of
implementation and progress against carbon targets.
Read more about sustainability p43
Fire safety: proactive Board
oversight of improvements in
fire safety and demonstrating
leadership on cladding remediation.
Operational risk
Major health and safety incident in
a property or a development site
Read more
p58
The Board continued to oversee the cladding remediation
programme and ongoing investment plan.
Higher Education
Government Policy:
Continued focus on potential
Higher Education Government
Policy changes.
Market risk
Supply and demand
Read more
p57
Ongoing Board monitoring of Higher Education Government
Policy and its impact for PBSA and universities more widely.
Covenants’ compliance:
Group Board oversight of our
covenants’ compliance.
Financing risk
Read more
p61
The Board monitors covenants’ compliance across a range of income/
stress scenarios to ensure that if any risks emerge, the Board is ready
to identify further action and work with lenders well in advance.
Covenant compliance is also overseen by the Audit & Risk
Committee and by the external audit review of our covenant
compliance through the going concern process.
Read more in the Financial review
p35
Capital structure: Group Board
focus on a strong and flexible
capital structure, which can adapt
to market conditions, and reducing
and diversifying the cost of funding.
Financing risk
Read more
p61
The Board approved the £450 million capital raise in July 2024
which received strong investor support. The proceeds will be
used to support our joint venture with Newcastle University,
acquisition of new assets in USAF and our committed pipeline
and increased investment into our existing estate through
asset management projects to enhance future returns.
During the year, the Board supported the establishment of
a £2 billion Euro Medium Term Note (EMTN) debt issuance
programme in addition to a new eight year £400 million bond
issue under the new EMTN programme. We also harmonised
the existing 2029 Liberty Living Finance plc bonds with the
EMTN programme and substituted Unite Group plc as the
issuer of this bond, in place of Liberty Living Finance plc.
Read more in the Financial review
p35
THE UNITE GROUP PLC
Annual Report and Accounts 2024
97
2024 PERFORMANCE REVIEW
Each year, we conduct a performance review of the Board and
its Committees. This review considers the balance of skills,
experience, independence and knowledge, diversity, how the
Board works together as a unit and other factors relevant to
performance. An externally facilitated performance review takes
place every third year. During 2024, the review was conducted
internally with the next external review expected during 2026.
PERFORMANCE REVIEW PROCESS
The 2024 review was conducted using anonymous online
questionnaires provided by Thinking Board Evaluator, created
by Independent Audit Limited. Save in relation to its provision
of prior board performance review services, Independent
Audit Limited has no other connection to the Company or any
of its Directors. This enabled comments on a range of issues,
including Board and Committee performance, culture, the
content and scope of topics covered at Board and Committee
meetings, the nature and dynamics of Director contributions
at meetings and that of Board and Committee Chairs. The
questions were consistent with previous years to provide
comparative results.
CONCLUSION FROM THIS YEAR’S BOARD AND
COMMITTEE PERFORMANCE REVIEW
The Board and its Committees continue to operate effectively,
fulfilling their oversight and governance responsibilities to
a high standard. Areas of strength included the skills and
experience of the Non-Executive Directors, with robust
challenge and helpful support for the Executive team.
The review concluded that the Board is effective in how it
develops, and oversees the implentation of, the Group’s
strategy, while ensuring the views of stakeholders and wider
issues around sustainability are taken into account. The Board’s
decision-making continues to be led by our purpose and aligned
with our values. The key areas where there are opportunities for
further development include:
• technology and cyber risks – understanding how technology
and innovation enables our strategy and delivers for
customers, along with the challenges posed by IT and cyber
risks in this dynamic area
• monitoring operational performance – ensuring our
operational policies and procedures are consistently
implemented across the business
• overseeing culture – ensuring our people performance
management and leadership development drives operational
consistency and develops the workplace culture we want
• succession planning – following the successful implementation
of the change in our Chief Executive and CFO through 2024,
the Board can now focus more on our wider senior leader
strength and talent pipeline.
The Board and each of the Committees reviewed the outcomes
and have developed an implementation plan. No changes to the
Board are anticipated following this performance review.
2023 Board performance recommendations
Progress against these recommendations
PROGRESS AGAINST THE 2023 BOARD
PERFORMANCE RECOMMENDATIONS
1. A better understanding of how technology
is enabling our strategy
Technology and strategy have been a Board focus in 2024 and this
will continue in 2025 given the dynamic nature of this topic.
2. A better understanding of the IT security
challenge, particularly cyber risks and mitigations
IT security, in particular cyber risks, were reviewed by both Board
and Audit & Risk Committee.
3. Improve Board awareness of culture
Our people strategy was regularly discussed in Board and
Committee meetings. A culture audit was also undertaken across
the business during 2024. Consistent people performance
management and leadership development is an area of focus
through 2025.
4. More time to discuss and contribute to our strategy
The Board were better able to contribute to the development of our
strategy following the introduction of strategy workshops during
the year with a separate day focused solely on strategy.
NOMINATION COMMITTEE
GOVERNANCE
Committee membership
People
Governance
NOMINATION COMMITTEE CHAIR’S OVERVIEW
The Committee is focused on succession planning,
as well as growing the diversity of the Board and our
senior leadership with ongoing monitoring of our
talent pipeline and bench strength.
COMPOSITION
The Committee consists of all the Non-Executive
Directors. At the invitation of the Committee, other
people may be invited to attend meetings of the
Committee if considered desirable in assisting the
Committee in fulfilling its role.
ROLE OF THE NOMINATION COMMITTEE
The role of the Committee is to:
• Ensure that appropriate procedures are adopted
and followed in the nomination, selection, training,
evaluation and re-election of Directors and for
succession planning, with due regard in all cases to
the benefits of diversity on the Board
• Regularly review the structure, size, composition,
skills and experience of the Board and to make
recommendations with regard to any adjustments
considered necessary
• When it is agreed that an appointment to the Board
should be made, lead a selection process that is
formal, rigorous and transparent
• Be responsible for identifying, reviewing and
recommending candidates for appointment to
the Board.
REVIEW OF SUCCESSION PLANNING
During the year, the Committee’s focus was ensuring
the successful transition of our Chief Executive Officer
and Chief Financial Officer, and changes in the wider
Executive team, introduced at the start of 2024.
Richard Huntingford
Chair of the Nomination Committee
Nicky Dulieu
Senior Independent Director
Ross Paterson
Non-Executive Director
Ilaria del Beato
Non-Executive Director
Dame Shirley Pearce
Non-Executive Director
Thomas Jackson
Non-Executive Director
Professor Sir Steve Smith
Non-Executive Director
Angela Jain
Non-Executive Director
THE UNITE GROUP PLC
Annual Report and Accounts 2024
98
Succession planning and
talent pipeline remains the
Committee’s primary focus.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
99
RICHARD HUNTINGFORD
CHAIR OF THE NOMINATION COMMITTEE
The Committee also reviewed the composition of the
Board and its Committees, as well as the change in
our Designated Non-Executive Director for Workforce
Engagement, with Angela Jain taking over this role at the
start of 2025 from Ilaria del Beato who had performed this
role for four years. See page 86 for more information.
The Committee believes the Board currently has the correct
balance of skills, experience, independence and knowledge.
During 2025, the Committee will focus on our wider senior
leadership talent mapping and bench strength, ensuring
we are growing and nurturing our talent and developing
the potential of our high performers. Our diversity and
inclusivity initiatives (outlined below) are aligned with this
talent mapping. Although no new appointments were made
during the year, the Committee confirms that all appointments
are subject to a formal, rigorous and transparent
procedure based on merit and objective criteria. The Board
seeks to promote diversity of gender, social and ethnic
backgrounds, as well as cognitive and personal strengths.
DIVERSITY AND INCLUSION
The Board recognises that diversity and inclusion is
fundamental to the culture of the Group, our purpose of Home
for Success and ultimately our long-term sustainability. With
employees a key stakeholder and at the heart of our business,
the Board’s focus is on creating a workplace where people feel
they belong and can bring their whole and true selves into the
workplace. Our values recognise this, especially Unite as One.
The Board continues to oversee the development and growth
of our employee forum, Culture Matters, to ensure the
employee voice is front and centre in shaping our people
strategy. Through listening and feedback from across the
business, we launched our first Diversity, Equity, Inclusion,
Belonging and Wellbeing strategy, We are US. This strategy
continues to be authentic to the business and recognises our
responsibility to create healthier and happier workplaces,
striving for more equitable and sustainable futures.
BOARD DIVERSITY POLICY
The Board and Nomination Committee drives the
agenda for diversity across the business. We are making
progress, but recognise we still need to do more.
The objectives of the Board’s Diversity Policy
are to ensure that Board and Committees
of the Board appointments:
(a) are made on merit and relevant experience,
while taking into account the broadest definition
of diversity (which includes factors such as
ethnicity, sexual orientation, disability and
socioeconomic background, as well as age, gender,
education and professional background)
(b) ensure Unite Students has, on an ongoing basis, the
most effective Board and leadership team to operate
the business for the benefit of all its stakeholders.
The Committee ensures that when recommending
appointments to the Board, the retained search firm
places an emphasis on putting forward candidates
who would enhance the overall diversity of the Board
and seeks to appoint search firms that are signatories
to the Enhanced Voluntary Code of Conduct for
Executive Search Firms where practicable. On an
ongoing basis, the Committee keeps under review
the tenure and experience of the Executive and
Non-Executive Directors to ensure the Board, and
the respective Committees, has an appropriate and
diverse mix of skills, experience, knowledge and
diversity. Details of the implementation of the Board’s
Diversity Policy, and results during 2024, are set out
in our detailed diversity-related reporting below.
BOARD AND SENIOR LEADERSHIP DIVERSITY
The Company reports our Board and Executive
management diversity data, as at 31 December
2024, in accordance with the UK Listing Rules
targets and associated disclosure requirements.
As of 31 December 2024, the Board comprised
40% women, one of the four senior positions on
the Board was held by a woman and there was one
Director from an ethnic minority background.
The Board’s ambition is to ensure diversity at all levels
of the Company and as at 31 December 2024, has
complied with the Parker Review’s recommendation
that each FTSE 100 Board should have at least one
director of colour by 2024. The Board continues to
review its composition on an ongoing basis and,
THE UNITE GROUP PLC
Annual Report and Accounts 2024
100
in line with the Parker Review, the Company has set a target of 10% ethnic minority representation in senior leadership by 2025,
ahead of the 2027 target. As of 31 December 2024, representation stands at 7%. While progress has been made, there is more
to do. Focus remains on strengthening the talent pipeline, refining hiring and leadership development, and driving long-term,
sustainable progress at senior levels.
GENDER IDENTITY AS AT 31 DECEMBER 2024
Number
of Board
members
Percentage
of the
Board
Number of
senior positions
on the Board
(CEO, CFO, SID
and Chair)
Number in
Executive
management
Percentage
of Executive
management
Men
6
60%
3
4
67%
Women
4
40%
1
2
33%
Not specified/prefer not to say
0
0%
0
0
0%
ETHNICITY AS AT 31 DECEMBER 2024
White British or other White (including minority-white groups)
9
90%
4
5
83%
Mixed/Multiple Ethnic Groups
0
0%
0
0
0%
Asian/Asian British
1
10%
0
1
17%
Black/African/Caribbean/Black British
0
0%
0
0
0%
Other ethnic group
0
0%
0
0
0%
Not specified/prefer not to say
0
0%
0
0
0%
APPROACH TO DATA COLLECTION
Gender and ethnicity data for the Board and Executive management is collected on an annual basis through a standardised process
managed by the Company Secretary.
Each Director and member of the Executive management team is asked to complete a standard form questionnaire on a
confidential and voluntary basis, through which the individual self-reports on their ethnicity and gender identity (or can specify that
they do not wish to provide such data). The criteria of the questionnaire are aligned to the definitions specified in the UK Listing
Rules and set out in the tables above:
• Self-reported gender identity – selection from (a) male, (b) female or (c) not specified/prefer not to say
• Self-reported ethnicity – selection from (a) White British or other White (including minority-white groups), (b) mixed/multiple ethnic
groups, (c) Asian/Asian British, (d) Black/African/Caribbean/Black British, (e) other ethnic group or (f) not specified/prefer not to say.
The Company’s approach to data collection is consistent for the purposes of all diversity-related reporting requirements under the
UK Listing Rules and across all individuals in relation to whom data is being reported.
Gender diversity for the purposes of the UK Corporate Governance Code
GENDER DIVERSITY
As of 31 December 2024, the number of women in the Executive Committee and their direct reports (including the Company
Secretary as required by the UK Corporate Governance Code) was nine (out of a total of 28) representing 32% of this group.
Male
Female
Total
Executive Committee (including Company Secretary)
5
2
7
Direct Reports
14
7
21
Total
19
9
28
Total
68%
32%
100%
Richard Huntingford
Chair – Nomination Committee
25 February 2025
NOMINATION COMMITTEE
continued
GOVERNANCE
THE UNITE GROUP PLC
Annual Report and Accounts 2024
101
AUDIT & RISK
COMMITTEE
Financial
Governance
The Audit & Risk Committee provides Board oversight
of the Group’s financial reporting process, the audit
process, the system of internal controls, and the
identification and management of significant risks.
CHAIR’S OVERVIEW
During the year, the Committee provided Board
oversight to reassure stakeholders and shareholders
that their interests are properly protected through
the Group’s financial management and reporting.
It worked to a structured programme of activities;
agenda items coincided with the financial reporting
cycle and the Board was regularly updated.
The Committee has continued to monitor the
integrity of the financial statements and supported
the Board with its ongoing monitoring of the
risk management and internal control systems.
It determined internal audit activity, reviewed
findings and considered progress by management
in implementing recommendations. It challenged
the approach to assess the Group’s ability to
continue as a going concern and its loan covenant
compliance, by reviewing various scenarios for
future performance.
Committee composition
Ross Paterson
Chair of the Audit & Risk Committee
Ilaria del Beato
Non-Executive Director
Nicky Dulieu
Non-Executive Director
Professor Sir Steve Smith
Non-Executive Director
ROSS PATERSON
CHAIR OF THE AUDIT & RISK COMMITTEE
THE UNITE GROUP PLC
Annual Report and Accounts 2024
102
During September, we reviewed the Committee’s performance
and shared the results in the December committee meeting,
which determined it was working effectively meeting the
Audit Committees and the External Audit: Minimum Standard.
Areas of performance identified for strengthening have been
captured in the Committee’s priorities for 2025.
This year, we undertook a full evaluation of the Deloitte audit
approach to ascertain the effectiveness of the external audit
function. We are satisfied with both the auditor’s independence
and audit approach and have recommended to the Board that
Deloitte be reappointed as auditor in 2025.
While oversight of internal audit and risk management is
insourced, we consider the team independent of management,
with a direct line of communication to the Chair of the Audit
& Risk Committee. As is usual with an internal team, there
are areas where it is appropriate to engage third parties to
undertake specific pieces of work.
The Board delegates certain duties, responsibilities and powers
to the Audit & Risk Committee, so that these can receive
focused attention. The Committee acts on behalf of the full
Board, and the matters reviewed and managed remain the
responsibility of the Directors as a whole.
ROLE OF THE COMMITTEE
The Audit & Risk Committee has delegated authority as set
out in its written terms of reference. These take account of the
recommendations of the Code and are available for inspection
at the registered office, the AGM and on the Group website at
www.unitegroup.com/about-us/corporate-governance. The
Committees’ key objectives are:
• To provide effective governance and control over the integrity
of the Group’s financial reporting and review significant
financial reporting judgements
• To support the Board with its ongoing monitoring of the
effectiveness of the Group’s system of internal controls and
risk management systems
• To monitor the effectiveness of the Group’s internal audit
function and review its material findings
• To oversee the relationship with the external auditor,
including making recommendations to the Board on
appointment and monitoring objectivity and independence.
COMMITTEE COMPOSITION
Committee members are all independent Non-Executive
Directors appointed by the Board. The Chair is a chartered
accountant with substantial experience in senior finance roles,
including as Chief Financial Officer of a UK-listed company
and as Audit Committee chairs of other listed and non-
listed companies in the UK. The Committee as a whole has
competance relevant to the sector in which the Group operates.
Notably, Ilaria del Beato has extensive experience of the real
estate sector and Professor Sir Steve Smith has extensive
experience of Higher Education.
MEETINGS
The full Audit & Risk Committee meets five times a year and
attendance is shown on page 93. Meetings are scheduled to
coincide with key dates in the financial reporting cycle and
agendas are agreed by the Committee and reviewed on an
ongoing basis.
During 2024, the Chair of the Board, the Chief Financial Officer,
the Chief Executive Officer, Chief Operating Officer, Director of
Health and Safety, the Head of Portfolio Management, Head of
Risk, and the Group Finance, Risk & Assurance Director attended
by invitation.
The external auditor, Deloitte, attended most meetings. The
Committee regularly meets separately with Deloitte without
others present. Deloitte meets the Finance, Risk & Assurance
Director to receive an update on any audit findings and how
risks are being managed; Deloitte considers the impact of these.
MAIN ACTIVITIES
Meetings generally take place just prior to a Group Board
meeting so that matters can be reported. The Committee
reviewed the half-year and annual financial statements and
the significant financial reporting judgements. As part of this
review, the Audit & Risk Committee supported the Board by
reviewing the financial viability and the basis for preparing the
accounts on a going concern basis. This included challenging
forecast cash headroom and reviewing scenarios, which were
determined by management, to stress test the impact of a range
of performance outcomes upon the viability of the business, in
particular with regard to loan covenants.
The Audit & Risk Committee also reviewed and challenged the
external auditor’s report on these financial statements.
The effectiveness of the external audit function was considered
including the independence and objectivity of the external
auditor; the appropriateness of any non-audit services provided
by the external auditor to the Group; the make-up and quality of
the audit team; the proposed audit approach and the scope of
the audit; the execution of the audit and the quality of the audit
report to the shareholders and the fee structure.
Reports from Group Risk & Assurance and its audit and
assessment of the control environment were discussed. The
Committee reviewed and proposed areas of focus for the
internal audit programme to review, including how internal
audit activity will continue to align to principal Group risks.
AUDIT & RISK COMMITTEE
continued
GOVERNANCE
THE UNITE GROUP PLC
Annual Report and Accounts 2024
103
have been taken into consideration when preparing this Annual
Report. The Committee notes the FRC’s review does not provide
assurance that the Annual Report is correct in all material respects
as the FRC’s role is not to verify the information provided, but to
consider compliance with reporting requirements.
SIGNIFICANT ISSUES CONSIDERED
After discussion with both management and the external
auditor, the Committee determined that the key risk of
misstatement of the Group’s 2024 financial statements related
to property valuations.
PROPERTY VALUATIONS
The Group’s principal assets are investment properties and
investment properties under development that are either owned
on balance sheet or in USAF or LSAV. The investment properties
are carried at fair value based on an appraisal by the Group’s
external valuers, who carry out the valuations in accordance
with the RICS Red Book valuation guide, taking into account
transactional evidence during the year. The valuation of property
assets involves significant judgement and changes in the core
assumptions could have a significant impact on the carrying value
of these assets.
Management discusses the underlying performance of each asset
with the external valuers and provides detailed performance data
including rents, university lease agreements, occupancy, property
costs and costs to complete (for development properties).
Management receives detailed reports from the valuers and
performs a detailed review of the valuations to ensure that
management considers the valuations to be appropriate.
The valuation report is reviewed by the Chief Financial Officer
prior to sign-off.
The Committee considered the extent property valuations
reflected anticipated future spend on properties, including to
remediate cladding.
Updates to the UK Corporate Governance Code, in particular
the recent changes to provision 29, were monitored, including
consideration of the impact beyond January 2026. While the
provision applies to financial years beginning on or after 1 January
2026, the Audit & Risk Committee has considered the impact of
this. The Audit & Risk Committee has considered the frameworks
that form our material controls and how we are assured they are
operating effectively. The Audit & Risk Committee will continue to
review the potential impact on the Group with management to
ensure that suitable reporting is delivered.
FINANCIAL REPORTING
The primary focus of the Committee, to financial reporting for
the year ended 31 December 2024, was to review with both
management and the external auditor the appropriateness of the
half-year and annual financial statements, concentrating on:
• The quality and acceptability of accounting policies
and practices
• The clarity of the disclosures and compliance with financial
reporting standards and relevant financial and governance
reporting requirements
• Material areas in which significant judgements have
been applied or where there has been discussion with the
external auditor
• Whether the Annual Report and Accounts, taken as a whole,
is fair, balanced and understandable and provides the
information necessary for shareholders to assess the Group’s
position and performance, business model and strategy.
The Committee’s assessment of the Annual Report to ensure that
it is fair, balanced and understandable and took into account the
following considerations:
• The high level of input from the Chief Executive Officer and Chief
Financial Officer with early opportunities for the Board to review
and comment on the Annual Report
• Ensuring consistency in the reporting of the Group’s performance
and management information (as described on pages 16-17),
risk reviews (as described on pages 52-71), business model and
strategy (as described on pages 10-13 and 4-5)
• A cross-check between Board Minutes and the Annual Report is
undertaken to ensure that reporting is balanced
• Whether information is presented in a clear and concise way,
illustrated by appropriate KPIs to facilitate shareholders’ access to
relevant information.
To aid our review, the Committee considers reports from the
Group Finance Team and reports from the external auditor on the
outcomes of their half-year review and annual audit. We support
Deloitte in displaying the professional scepticism its role requires.
INTERACTIONS WITH THE FINANCIAL
REPORTING COUNCIL (FRC)
In December, the FRC’s Corporate Reporting Review (CRR) team
notified us that the Group’s FY2023 Annual Report and Accounts
had been selected for review and confirmed there were no queries
to raise following this review. There were some matters which the
FRC believed could be improved for the benefit of users, and these
“During 2024, the
Committee continued to
focus on the quality and
integrity of the financial
statements alongside
its oversight of risk and
internal controls.”
ROSS PATERSON
CHAIR OF THE AUDIT & RISK COMMITTEE
THE UNITE GROUP PLC
Annual Report and Accounts 2024
104
The Committee was satisfied that the Group’s valuers
were appropriately qualified and provided an independent
assessment of the Group’s property valuations. We were also
satisfied that an appropriate valuation process had taken place,
the core assumptions used were reasonable and so the carrying
value of investment and development properties in the financial
statements was appropriate.
The external auditor explained the audit procedures to test the
valuation of investment and development properties and the
associated disclosures. Based on the audit work, the external
auditor reported no inconsistencies or misstatements that were
material in the financial statements as a whole. Further analysis
and details on asset valuations is set out on pages 30-32.
OTHER ISSUES CONSIDERED - ACCOUNTING FOR THE
COST OF CLADDING REMEDIATION
The Group has provided the estimated cost of remediating
cladding on properties where there is either a legal/regulatory
requirement to do so or where the Group has a constructive
obligation. The Committee reviewed, challenged and agreed
the basis on which costs associated with the remediation of
cladding have been included in the financial statements. The
Committee considered the appropriateness of where the
estimated cost of remediating cladding was provided for, versus
where property valuations were adjusted to take account of
anticipated future spend on properties, including to remediate
cladding. The Committee also reviewed, challenged and agreed
the extent to which the Group had any legal or constructive
obligations in respect of cladding remediation. The Committee
was comfortable with the process and controls adopted by
management around the disclosures, and estimation of costs
and provisions associated with cladding remediation.
RISK MANAGEMENT
The Group’s risk assessment process and the way in which
significant business risks are managed is a key area of focus for
the Committee.
Our work was driven primarily by performing an assessment of
the approach to risk taken by the Group’s Executive Committee
and senior leadership team. The Executive Committee is
responsible for the delivery of the Group’s risk management
framework. The Executive Committee and senior leadership
team set the objectives for the Group and then assess what
risks could prevent the Group from meeting these objectives.
This assessment resulted in a number of principal and emerging
risks being brought to the Board for a detailed assessment.
The Committee considered and approved both the Group’s Risk
Management Framework and the Group’s assessment of its
principal risks and uncertainties, as set out on pages 52-71.
Through these reviews, the Committee considered the risk
management procedures within the business and was satisfied
that the key Group risks were being appropriately managed.
The risk assessment flags the importance of the internal control
framework to manage risk and this forms a separate area of
review for the Committee.
The Board formally reviewed the Group’s principal risks at two
meetings during the year.
INTERNAL CONTROLS
Led by the Group’s risk assessment process, we reviewed the
process by which the Group evaluated its control environment.
The Board has delegated responsibility to management for
establishing effective risk management and maintaining
adequate internal controls, although the Board retains
oversight responsibility. Internal controls are designed to
provide reasonable assurance regarding (among other things)
the reliability of financial reporting and the preparation of
the financial statements for external reporting purposes. A
comprehensive strategic planning, budgeting and forecasting
process is in place. Periodic financial information and
performance insight is reported to the Board.
INTERNAL AUDIT
The Group used the internal Group Risk & Assurance team for
internal audit services throughout the year. The team continued
to undertake independent audits in our operations, utilising a
framework of Operational Compliance Audits for our properties.
The property audits focus on safety and, where there are
gaps identified, action plans. The results are shared with our
Operations Performance Team, so best practice is shared to
drive improvements. Also, the team completed four other
pieces of internal audit work. They reviewed compliance with
Senior Accounting Officer requirements; followed up on the
progress of previously agreed management actions; reviewed
our procure-to-pay framework and business continuity in
properties; and the team also reviewed the requirements of
the updated UK Corporate Governance Code and assurance
mapping for our principal risks.
Overall, the conclusion of all audits was that there were no
significant issues and controls were well designed, but we noted
there were some areas of improvement to be made to maximise
controls and operational efficiency, which management is in the
process of implementing.
EXTERNAL AUDIT
The effectiveness of the external audit process is facilitated
by appropriate audit risk identification at the start of the audit
cycle which we receive from Deloitte in a detailed audit plan,
identifying its assessment of these key risks.
AUDIT & RISK COMMITTEE
continued
GOVERNANCE
THE UNITE GROUP PLC
Annual Report and Accounts 2024
105
For the 2024 financial year, the significant risks identified were
valuation of properties and management override. These focus
areas were discussed at the Committee and it was agreed that
they should be the principal areas of focus as they represent
the areas with the greatest level of judgement and materially
impact the overall performance of the Group. These risks are
tracked throughout the year and we challenged the work done
by the auditor to test management’s assumptions and estimates
around these areas.
We assessed the effectiveness of the audit process in
addressing these matters through the reporting we receive from
Deloitte at both the half-year and year-end and reports from
management on how these risks are being addressed.
The Committee was satisfied that there had been appropriate
focus and challenge on the primary areas of audit risk and
assessed the quality of the audit process to be good. During
private meetings with the external auditor we discussed:
• The auditor’s assessment of business and financial statement
risks and management activity
• The transparency and openness of interactions with
management, confirmation that there has been no
restriction in scope placed on them by management and the
independence of its audit
• How it has exercised professional scepticism.
I also meet with the external lead audit partner outside the
formal process.
EXTERNAL AUDITOR
Each year, the Committee considers the reappointment of the
external auditor (including the rotation of the audit partner
which is required every five years). We assess independence
on an ongoing basis. Deloitte was appointed as the Group’s
external auditor in 2015, following a tender process and this is
the tenth year Deloitte has performed this role. We undertook
an external audit tender in late 2023 with consideration
of a change of auditor for the year ending 31 December
2025. Following the tender, the Committee, and the Board
recommended Deloitte’s reappointment as auditor.
Stephen Craig was the Deloitte audit partner for the 2024 audit,
his fifth year of fulfilling that role. Under partner rotation rules,
a different partner has been identified and has met with the
Committee on several occasions, the new audit partner will be
responsible for the 2025 audit.
The Committee reviewed Deloitte’s audit work and determined
that appropriate plans were in place to carry out an effective
and high-quality audit. Deloitte confirmed to the Committee
that it maintained appropriate internal safeguards to ensure
its independence and objectivity. As part of the Committee’s
assessment of the ongoing independence of the auditor, we
receive details of any relationships between the Group and
Deloitte that may have a bearing on their independence and
confirmation that they are independent of the Group.
The Committee also regularly considers when it next intends
to complete a competitive tender process for the Company’s
external audit. The Committee does not currently anticipate
there will be a change of auditor before the 2026 audit cycle.
The Committee confirms compliance with the provisions of
the Statutory Audit Services for Large Companies Market
Investigation (Mandatory Use of Competitive Tender Processes
and Audit & Risk Committee Responsibilities) Order 2014.
NON-AUDIT SERVICES
To further safeguard the objectivity and independence of the
external auditor from becoming compromised, the Committee
has a formal policy governing the engagement of the external
auditor to provide non-audit services. No material changes have
been made to this policy during the year. This precludes Deloitte
from providing certain services, such as valuation work or the
provision of accounting services.
For certain specific permitted services (such as reporting
accountant activities and compliance work), the Audit & Risk
Committee has pre-approved that Deloitte can be engaged by
management, subject to the policies set out above, and subject
to specified fee limits for individual engagements and fee limits
for each type of specific service. For all other services, or those
permitted services that exceed the specified fee limits, I as Chair,
or in my absence, another member of the Committee, can pre-
approve permitted services.
During the year, Deloitte was appointed to undertake non-audit
services. Fees for non-audit work performed by Deloitte for the
year ended 31 December 2024 were £0.2 million (2023: £0.1
million). The non-audit fees related to the work undertaken
by Deloitte LLP in its role as external auditor to the Group for
the review of the half-year report and in establishing an Euro
Medium Term Note programme. Further disclosure of the
non-audit fees incurred during the year ended 31 December
2024 can be found in note 2.6 to the consolidated financial
statements on page 171. The Committee was satisfied that both
the work performed by Deloitte LLP, and the level of non-audit
fees paid to it, were appropriate and did not raise any concerns
in terms of Deloitte LLP’s independence as auditor to the Group.
The Committee approved the fees for audit services for 2024
after a review of the level and nature of work to be performed.
This included additional audit procedures required as a result of
changes in the regulatory environment, and after being satisfied
by Deloitte that the fees were appropriate for the scope of the
work required.
AUDIT & RISK COMMITTEE EVALUATION
The Audit & Risk Committee’s activities formed part of the
evaluation of Board effectiveness performed in the year. Details
of this process can be found under Performance evaluation.
Ross Paterson
Chair – Audit & Risk Committee
25 February 2025
SUSTAINABILITY COMMITTEE
GOVERNANCE
Our sustainability framework is centred on creating a
positive impact across four key areas: young people,
communities, our people, and the environment.
During the year, the Sustainability Committee
regularly reviewed the Group’s performance
against its targets and ambitions, to ensure Unite
Students is a responsible and resilient business. With
oversight from the Sustainability Committee, the
Group focused on driving lasting improvements in
sustainability performance supported by increased
sustainability awareness and engagement across the
business and with wider stakeholders.
SUSTAINABILITY COMMITTEE ACTIVITIES
DURING THE YEAR
YOUNG PEOPLE
The Sustainability Committee oversaw a business-
wide focus on embedding our sustainability
framework, including new student engagement
kitchen talks, delivered by Resident Ambassadors
to students at the start of each academic year. Our
Student Sustainability Week also provided a strong
focus on key sustainability themes including water
and energy consumption.
Through the Committee’s oversight, Unite
Students commissioned The Social Market
Foundation to deliver a report into the barriers
facing care experienced and estranged students
with entry and success in Higher Education, and
have committed to the Care Leavers Covenant.
The Care Leavers Covenant is a commitment
from private, public and voluntary sectors to
help support care leavers between the age of
16–25 as they move towards independence.
Committee membership
Dame Shirley Pearce
Chair of the Sustainability Committee
Joe Lister
Chief Executive Officer
Ilaria del Beato
Non-Executive Director
Ross Paterson
Non-Executive Director
Sustainability
Governance
During the year, the Sustainability
Committee continued its oversight
of our sustainability framework,
which is a key component of
our business strategy and
is central to delivering our
Home for Success purpose.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
106
THE UNITE GROUP PLC
Annual Report and Accounts 2024
107
DAME SHIRLEY PEARCE
CHAIR OF THE SUSTAINABILITY COMMITTEE
LOCAL COMMUNITIES
Our Positive Impact employee sustainability engagement
programme (aligned with the National Union of Students
Green Impact programme) saw an increase in employee
volunteering and community projects, which has
continued to help drive employee engagement.
OUR PEOPLE
The Committee was supportive of increased efforts to
embed sustainability across the business, including a
review of learning and training frameworks to support
wider awareness and knowledge of sustainability.
During 2024, members of the Committee joined senior
leaders from across the business for an interactive
session on sustainability, focusing on climate change
and risk, which also highlighted the Committee’s
commitment to sustainability.
The Committee received regular employee engagement
updates from the senior leadership team and Ilaria
del Beato, the Designated Non-Executive Director
for Workforce Engagement during 2024. Our Culture
Matters forum continued to evolve and welcomed
additional Non-Executive Director attendance during
the year. The Committee also heard directly from a
Culture Matters representative, providing feedback
to assist the Sustainability Committee in its continued
monitoring of Culture Matters and the Group’s DEIB
strategy, We are US.
The Committee oversaw the roll out of the Executive
Sponsorship programme in late 2024, providing support
and mentoring to our five employee Network Groups.
THE ENVIRONMENT
The Sustainability Committee continues to provide
oversight of our Net Zero Carbon Pathway and track
progress using reporting metrics covering the key
activities for delivery of our framework.
With input from the Sustainability Committee, the
business continues to build on work done as an early
adopter of the Taskforce on Climate-related Financial
Disclosures (TCFD) recommendations to improve our
management of climate-related risk. We maintained
a four-star Global ESG Benchmark for Real Assets
(GRESB) rating and while the GRESB rating was just
below the Threshold target set for the financial year,
positive progress was made in a number of areas.
Throughout 2024, the Committee monitored
progress of the Sustainable Construction Framework
following implementation in 2023. This framework
has been key to the good progress made to embed
our sustainable aspirations across our construction
and the resulting reductions in new-build embodied
carbon achieved. Progress was also made in respect
of embodied carbon targets and operational energy
performance. The Sustainability Committee also
received regular updates following the launch of our
sustainable procurement framework in 2023. The
Committee continues to oversee the impact of our
supply chain on sustainability objectives.
During 2024, the Committee also had oversight
of investment into energy efficiency projects and
continues to review the investment required to meet
our energy intensity targets.
PRIORITIES FOR 2025
The Sustainability Committee will continue to
oversee focused engagement with employees and
customers to empower and encourage each to play
their part in adopting sustainable behaviours.
The Committee will also continue to oversee
investment into energy efficiency projects during
2025 and continue to monitor the decarbonisation
and climate resilience of our business to ensure
our plans remain credible and meet stakeholder
expectations, while protecting the business from
material financial risks. Developments relating to
net zero carbon and climate-related risks will be
monitored to ensure the Group’s net zero carbon
ambition evolves to remains in line with emerging
expectations, guidance and regulation in this area.
The Committee will maintain oversight of our
ongoing commitment to invest 1% of annual
adjusted earnings into social initiatives.
Dame Shirley Pearce
Chair – Sustainability Committee
25 February 2025
HEALTH & SAFETY COMMITTEE
Health
and Safety
Governance
Health and safety is at the core of everything
we do. Throughout 2024, the Health &
Safety Committee continued to oversee the
governance and performance of health and
safety practices across the business.
GOVERNANCE
HEALTH AND SAFETY FOCUS
During 2024, the Health & Safety Committee continued
to oversee health and safety performance across the
business. This oversight is aligned with our objectives
to make Unite Students a Great Place to Live, Work
and Invest and during the year focused on fire safety,
our cladding remediation programme and the ongoing
safety and security at our properties.
The Committee also continued its support for our
student wellbeing framework, Suport to Stay. This
provides support to help students fulfil their potential,
regardless of any medical, physical or mental health
difficulties. Alongside this, the Committee continued
to monitor our ongoing relationships with university
partners to ensure student welfare is priortised.
Committee membership
Professor Sir Steve Smith
Chair of the Health & Safety Committee
Joe Lister
Chief Executive Officer
Dame Shirley Pearce
Non-Executive Director
Angela Jain
Non-Executive Director
Ilaria del Beato
Non-Executive Director (until 31 December 2024)
THE UNITE GROUP PLC
Annual Report and Accounts 2024
108
THE UNITE GROUP PLC
Annual Report and Accounts 2024
109
FIRE SAFETY
The Committee reviewed the business’s approach to
fire safety, always keeping in mind the paramount
importance of our responsibility to keep our
customers safe and that we operate our properties
in accordance with best practice aligned with the Fire
Safety Act 2022 and Fire Safety Regulations 2022.
All our properties continue to be confirmed as
safe to operate by third-party accredited fire risk
assessors pursuant to the comprehensive annual
fire risk assessments completed at each property.
This reflects our robust approach to fire safety
across our portfolio, and our continued commitment
to improving fire safety performance through
proactive surveying and appropriate remediation
of façades and investment in smoke control
systems, passive fire protection and fire doors.
We have a dedicated Fire Safety team with valuable
hands-on knowledge and experience from working
in fire authorities. Our Fire Safety team also work
closely with fire and rescue services, local authorities,
the Ministry of Housing, Communities and Local
Government, as well as fire safety experts, to provide
advice and guidance through the lifecycle of our
buildings, from development design, occupation and
through to disposal.
CLADDING REMEDIATION PROGRAMME
Through 2024, the Committee continued its oversight
of the business’s comprehensive cladding remediation
programme, which provides significant capital
expenditure to secure the safety of our customers and
people. The programme is divided into phases based
on the risk associated with each building, following
detailed surveys of our properties to understand
property specific issues. The business remediated
seven buildings during 2024, bringing this to a total
of 43 properties since we launched our cladding
programme in 2019. The business employs a dedicated
team focused solely on cladding remediation, using
an established contractor base with expertise in
remediating buildings to a high quality and at pace.
The Committee has monitored progress through the
year and ensured the operating properties remain safe
to operate, with customer safety always our priority.
BUILDING SAFETY ACT
Following the implementation of the Building Safety
Act, the Health & Safety Committee continues to
oversee the businesses’s compliance with the Act.
During 2024, the Committee supported the decision to
move our Primary Fire Authority to the Greater
Manchester Fire and Rescue Services, conscious of their
expertise with high-rise buildings.
SAFETY AND WELLBEING OF CUSTOMERS
AND OUR PEOPLE
Aligned with our strategic objectives of providing
a Great Place to Live and Work, the Committee
has continued to oversee our focus on wider
safety issues for our customers and people. The
Committee has monitored safety performance
through the year, comparing the levels and types
of incidents with prior years. The Committee noted
an increase in the number of safety incidents
reported and is confident this reflects a healthy
reporting culture, rather than a decrease in safety
performance. Five RIDDOR operational incidents
were reported in the year (2023:1). This compares
favourably to the industry benchmark and highlights
the positive safety culture across the business.
The Committee also received regular updates from
the Risk & Assurance team as they continued to
undertake operational compliance audits throughout
our buildings to ensure compliance. These audits are
focused upon legislative, regulatory and Company
policy compliance, incorporating fire safety, health and
safety at work and security.
PROPERTY SECURITY
The Health & Safety Committee continued its
review of the physical security of our properties
to better understand the risks and create more
tailored mitigation plans. Moving into 2025, the
Committee will oversee the implementation of these
security improvements and monitor the type and
level of security incidents to understand if these
security improvements are proving successful.
PROFESSOR SIR STEVE SMITH
CHAIR OF THE HEALTH & SAFETY COMMITTEE
THE UNITE GROUP PLC
Annual Report and Accounts 2024
110
HEALTH & SAFETY COMMITTEE
continued
GOVERNANCE
OUR FOCUS FOR 2025
• Oversee the governance and consistency
of health and safety performance across
the business while prioritising the safety of
our customers, people, properties and our
workplace, as we strive to deliver our values.
• Support our continued close relationships with our
university partners to ensure student welfare is
prioritised to help students deal with the financial
and wellbeing pressures of university living.
• Monitor the health and safety training of
our frontline and operational teams so our people
can assist to deliver our Trusted Landlord promise.
DEVELOPMENT SAFETY
The Commitee was supportive of the comprehensive approach
to safety across our development activity, which resulted in
two RIDDOR reportable injuries and 21 minor incidents in
2024. This represents good safety performance against the
industry norm and is within our Unite Students benchmark.
During 2024, the Committee received regular updates on
development safety activity and auditing of contractor
performance. Work continued with contractors to ensure
sites were safe to operate with a robust site safety inspection
regime in place. Alongside this, our assurance site safety
inspector conducted random quarterly site safety inspections.
This independent inspection has provided assurance to the
Committee and enabled us to verify that our framework inspector
scoring is accurate and that our sites are achieving industry-
leading standards, which far exceed statutory compliance.
During 2024, the Committee continued to oversee the three-year
charity commitment to Mates in Mind which provides mental
health support and guidance at all our development sites.
The Committee monitored safety observations and near-
miss reporting in our development and refurbishment sites
to help build a clearer picture of our day-to-day risk profile
and to promote a transparent safety culture. During 2024
there was an increase in near-miss reporting, which the
Committee is confident supports a positive reporting culture.
Professor Sir Steve Smith
Chair – Health & Safety Committee
25 February 2025
Hours worked
Reportable
incidents
Reportable
incidents
industry
benchmark
Reportable
incident KPI
Non-reportable
incidents
Non-reportable
incidents
industry
benchmark
Non-reportable
incident KPI
2020
718,467
3
0.30
0.42
15
5.00
2.09
2021
806,774
0
0.30
0
16
5.00
1.98
2022
1,860,904
0
0.30
0
26
5.00
1.4
2023
843,553
0
0.30
0
17
5.00
2.02
2024
1,316,909
2
0.30
0.15
21
5.00
1.59
KPI calculated as: number of incidents x 100,000 hours/hours worked.
Safety performance in our development and refurbishment sites
THE UNITE GROUP PLC
Annual Report and Accounts 2024
111
REMUNERATION COMMITTEE
Remuneration
Governance
The Remuneration Committee
provides oversight for the
Board in respect of the
Group’s remuneration process.
GOVERNANCE
Committee membership
Nicky Dulieu
Chair of the Remuneration Committee
Ross Paterson
Non-Executive Director
Dame Shirley Pearce (until 31 December 2024)
Non-Executive Director
Professor Sir Steve Smith
Non-Executive Director
Ilaria del Beato (from 1 January 2025)
Non-Executive Director
DEAR SHAREHOLDER
The Directors’ Remuneration Report for the year
ended 31 December 2024 is split into three sections:
this Annual Statement, the Policy Report and the
Annual Report on Remuneration.
This year, we are asking shareholders to approve
a new Remuneration Policy at the Annual General
Meeting. The background and the reasons for this
are included in this Annual Statement.
2024 PERFORMANCE AND REWARD
Unite Group’s performance in 2024 was strong,
reflecting the continued effort and commitment of
our people and the strength of our proposition for
students and Higher Education providers alike. Our
strategy continues to focus on being a Great Place
to Live, Work and Invest, with progress made against
each of these objectives during the year.
Unite Group’s value-for-money offering, best-in-
class operating platform and unrivalled student
experience and support teams is evidenced by our
strong occupancy performance and improvements
THE UNITE GROUP PLC
Annual Report and Accounts 2024
112
THE UNITE GROUP PLC
Annual Report and Accounts 2024
113
NICKY DULIEU
CHAIR OF THE REMUNERATION COMMITTEE
in Net Promoter Scores during the year. Our employee
engagement score also saw a further improvement,
recognising a new performance management
framework and further efforts to empower colleagues
at all levels of the organisation.
On the final objective – being a Great Place to Invest
– this year’s financial highlights included a 16.1%
increase in adjusted earnings (5.2% on a per share
basis), and a total accounting return of 9.6% driven by
5.7% growth in EPRA NTA and record dividends paid. A
successful £450m capital raise in the summer further
strengthened our balance sheet and provides the
Group with an opportunity to accelerate its investments
into development and value-add assets which will
deliver on our longer-term growth ambitions.
SALARIES
Joe Lister’s starting salary as CEO – £606,900 – was
aligned with that of his predecessor, taking into
account the 2024 senior management pay increase
of 5%. Mike Burt’s starting salary as CFO was set at
£393,750. The average salary increase across the Group
was 8.8%, with a tiered approach focusing on lower-
paid colleagues.
ANNUAL BONUS
The annual bonus scheme was operated in line with
the policy for Executive Directors in 2024. Following
a review of performance against targets set at the
start of the year, the Committee confirmed that
Executive Directors will each receive bonuses of 67.0%
of maximum (equating to 93.8% out of a maximum
of 140% of salary). The Committee has reviewed this
payout in the context of overall Group performance
and believes that the outcome is both fair and
appropriate. Further details, including bonus targets
and outcomes, are included on page 129.
LONG-TERM INCENTIVES
Following the publication of TAR results by comparators
with March 2024 year-ends, the Committee confirmed
the final vesting of the 2021 LTIP awards as 76.0%,
consistent with the estimated outcome presented in
last year’s report.
LTIP awards made in April 2022 reached the end of
their performance period as at 31 December 2024.
These awards were based on a combination of absolute
EPS, relative TSR, relative TAR and two ESG metrics –
operational energy intensity and EPC ratings. Based
on performance recorded over the period, overall
estimated vesting of the 2022 LTIP is 64.0%. Vesting
of the relative TAR element will be finalised following
the publication of comparator results over the coming
months. Further details are included on page 130.
In April 2024, Executive Directors were each granted
an award under the LTIP which will vest based on
performance over the three financial years to 31
December 2026. Stretching targets for the relative
TAR, relative TSR, operational energy intensity and EPC
ratings elements were disclosed prospectively in last
year’s report, while setting of the absolute EPS targets
was delayed and disclosed in the 10 April 2024 market
announcement. Any award vesting will be required
to be held for an additional two-year period. Further
details on this award are included on page 131.
KEY RESPONSIBILITIES
• Review, recommend and monitor the level
and structure of remuneration for Executive
Directors and other senior executives.
• Approve the remuneration packages for the
Executive Directors and other senior executives,
reflecting the performance of the Company.
• Determine the balance between base pay and
performance-related elements, to align with
shareholder and stakeholder interests.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
114
REMUNERATION COMMITTEE
continued
GOVERNANCE
This change reflects the Committee’s view that bonus deferral
is a means of aligning the interests of shareholders and
Executives over the medium term, by facilitating the building
up of a shareholding over time. However, where an Executive
has acquired (through self-purchases) or earned (through
share-based incentives) a significant total holding of shares
– as defined by the in-post shareholding guidelines – the
Committee considers it appropriate to relax the mandatory
deferral requirement and allow any bonus subsequently
earned to be paid entirely in cash. This represents a more
competitive, and fairer approach, without diluting our clear
emphasis on the importance of the alignment of Executive and
shareholder interests through meaningful share ownership.
The existing requirement to defer up to 50% of any amount
earned for two years remains in place as an Executive
Director is building towards their in-post shareholding
guideline, and we have maintained rigorous and enforceable
malus and clawback provisions for all variable pay.
The majority of responses received on this change were
supportive. One shareholder responded that the change
did not align with its voting policy, while another asked the
Committee to consider reducing, rather than removing, the
mandatory deferral requirement (but with an exception made
for the current CEO noting his already significant shareholding).
The Committee re-evaluated its original proposal based on
the comments received, before concluding to submit this for
approval without further revision noting: (a) the balance of
shareholder feedback received was supportive, and (b) other
aspects of the Policy and its implementation continue to
underpin strong alignment of Executive interests with those
of shareholders. However, recognising that circumstances
can change, and acknowledging that this is an evolving area
of market practice, the Committee will keep under review
the deferral mechanism at the next Policy review, to ensure
it continues to remain appropriate for Unite Group.
As part of the consultation, one shareholder requested further
information on how the proposed changes would position the
CEO relative to sector peers, which is summarised below as
further context for all shareholders. This analysis illustrates
that, while Unite Group is currently ranked third out of 17
companies in the sector in market cap terms, the CEO’s salary
is tenth highest and total remuneration is 12th highest. The
cash elements of the CEO’s remuneration (i.e. salary, pension
and cash bonus) currently make up 52% of the total fair value
of his package, ranking tenth of sector comparators (and 12th
in monetary terms). With the CEO significantly exceeding his
shareholding guidelines, the proposed changes to the bonus
deferral mechanism would mean that the cash elements of
remuneration would rise to 65% of his total pay from 2025.
OVERALL PAY OUTCOMES FOR 2024
Taken as a whole, the Committee is satisfied that overall
pay outcomes in respect of the year ended 31 December
2024 are appropriate and accordingly we have not applied
any discretion to this year’s incentive outcomes.
REVIEW OF THE DIRECTORS’ REMUNERATION POLICY
The 2025 AGM marks the third anniversary of the
adoption of the Directors’ Remuneration Policy and
in line with UK reporting regulations, a new Policy is
being submitted to shareholders for approval.
In reviewing the Policy, the Committee took into
account Unite Group’s historical performance and
strategy, and market practice across the UK real estate
sector and broader FTSE market since the Policy was
approved. The Committee also considered the views
of Unite Group’s broad range of stakeholders.
Overall, the Committee is satisfied that the existing
remuneration structure – consisting of salaries, pension
contributions and performance-linked short- and long-
term incentives – remains appropriate. We proposed two
main changes to the Policy and wrote to shareholders
representing c.67% of the issued share capital, as well
as to key proxy advisers, for comments and feedback
at the end of 2024. In total, we received replies from
shareholders representing c.45% of the issued share capital,
with this feedback having been fully considered by the
Committee in agreeing the final proposals, as follows:
(1) Increase the annual bonus opportunity
from 140% to 150% of salary.
This change seeks to ensure that the Policy remains aligned
to market practice for a company of Unite Group’s size
operating in the UK real estate sector, and provides the
Committee with additional flexibility to incentivise the senior
leadership team to deliver exceptional performance over the
next three years. Unite Group’s annual bonus opportunity has
been changed only twice over the last 20 years: an increase
from 100% to 144% of salary in 2008, and a subsequent
reduction from 144% to 140% of salary in 2019 (as part of
a simplification of the scheme). A maximum opportunity
of 150% of salary would be aligned with 12 out of 16 other
FTSE 350 Real Estate sector peers and would continue to be
weighted at least 70% on financial performance. Shareholder
feedback on this change was generally very supportive and
accordingly no changes were made to the original proposal.
(2) Disapply the bonus deferral requirement
in cases where an Executive Director meets or
exceeds their in-post shareholding guideline.
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Annual Report and Accounts 2024
115
This would be the third highest in the sector in percentage terms
eighth highest in monetary terms). In summary, the Committee
considers that the proposals ensure that our pay structure
remains appropriately positioned in the sector context.
Other minor wording changes have also been reflected in
the Policy, including a clearer articulation of our longstanding
philosophy that Executive Director and senior executives
should be paid fairly and competitively, but not excessively –
reinforcing Unite Group’s commitment to value for money.
Finally, as our long-term incentive plan rules approach their
tenth anniversary of adoption, we have taken the opportunity to
ensure that the current drafting reflects best practice. Resolutions
to approve the new, and largely unchanged, scheme rules for
the PSP and ESOS will also be submitted at the 2025 AGM.
IMPLEMENTATION OF THE POLICY IN 2025
SALARIES
The CEO’s salary has been increased by 2.5% with effect from 1
January 2025. The CFO’s salary has been increased by 7.9% to
reflect the strong start he has made in his first year in the role,
and consistent with the Committee’s previously-communicated
intention of bringing him closer to market levels over the short
to medium term. The average salary increase across the Group
will be 3.9%. Unite Group maintains its commitment to being
an accredited Real Living Wage employer and, for relevant
individuals, has implemented the rates set by the Living Wage
Foundation (5.3% in London and 5.0% across the rest of the UK).
PENSION
Total employer pension contributions for the CEO and
CFO will continue to be in line with that available to
the wider employee population at 11% of salary.
ANNUAL BONUS
Joe Lister and Mike Burt will each participate in the 2025
annual bonus, with maximum opportunities of 150% of
salary. Up to 50% of any bonus earned will be deferred in
shares for two years, unless a Director has met their in-post
shareholding guideline, in which case the full bonus earned
will be paid in cash. The Committee remains satisfied that
the overall blend of financial and non-financial measures
continues to support the Group’s strategy and reinforce
its values. One minor change – reducing the weighting on
net debt to EBITDA from 20% to 15% and increasing the
weighting on adjusted EPS from 25% to 30% – will be made
to reflect an increased focus on profitability in the current
business context. For all financial and non-financial elements,
challenging targets have been set. Details are on page 135.
LONG-TERM INCENTIVES
Joe Lister and Mike Burt will receive an award of up to 200%
of salary delivered through a combination of the PSP and
ESOS. The performance metrics used for the 2025 LTIP will be
substantially unchanged, save that the EPC ratings measure
will be dropped and its weighting reassigned equally across
the other measures. This change reflects the Group’s strong
performance in achieving A-C EPC ratings across its portfolio
and the stretch targets of last year’s award having been set
at 100% achievement by 2026. Further details, including
targets for each measure, are set out on page 135.
Ranking across FTSE 350 Real Estate CEOs
Unite Group’s current market positioning.
Unite Group’s market positioning under the proposed Policy and
implementation for 2025.
Each bar represents a sector peer, including Unite Group.
Market Cap
(£)
Highest
Lowest
50%
75%
25%
Salary
(£)
Total Rem.
(fair value £)
Cash elements
(% of Total Rem.)
Cash elements
(£)
NON-EXECUTIVE DIRECTOR FEES
The Committee resolved to delay the second stage review
of the fee payable to the Chair of the Board and agreed
instead a modest increase of 2.5% with effect from 1
January 2025. Following a review by the Chair of the Board
and the Executive Directors, the fees payable to other
Non-Executive Directors have increased by 2.5%.
WORKFORCE REMUNERATION CONSIDERATIONS
The Committee continues to monitor pay and practices for other
senior executives and more broadly across the wider workforce
when considering the remuneration of Executive Directors. The
Group People Director is invited to attend Committee meetings to
provide updates on workforce initiatives and to offer an employee
perspective. In August 2024, I was invited to meet members of
our Culture Matters employee forum, and shared information on
the role of the Committee and Executive Director remuneration.
The Committee has continued to review the statutory CEO pay
ratios and additional ratios looking at both fixed pay and pay
excluding long-term incentives – see page 133. The Committee
remains satisfied that the year-on-year fluctuations in these ratios
mainly reflects differences in the structure of pay at different
levels of seniority.
Details of our gender diversity and pay gaps are provided
on page 47.
LOOKING AHEAD
The Committee will continue to monitor market developments
and will consider the appropriateness of any emerging trends for
Unite Students. I hope that you find this report a clear account
of the Committee’s decisions for the year and would be happy to
answer any questions you may have at the upcoming AGM.
Nicky Dulieu
Chair of the Remuneration Committee
25 February 2025
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Annual Report and Accounts 2024
116
GOVERNANCE
REMUNERATION AT A GLANCE –
2024 OUTCOMES
KEY ELEMENTS OF EXECUTIVE DIRECTOR REMUNERATION
Total remuneration
Salary
Pension
Other benefits
Fixed remuneration
Annual bonus
LTIP
Variable remuneration
WHAT EXECUTIVE DIRECTORS WERE PAID IN 2024
Element
£
% of total
Salary
£606,900
35.6%
Pension
£59,460
3.5%
Other benefits
£17,120
1.0%
Annual bonus
£569,272
33.4%
LTIP
£453,103
26.6%
Other
£0
0.0%
Total remuneration
£1,705,856
JOE LISTER - CEO
Element
£
% of total
Salary
£393,750
44.0%
Pension
£36,186
4.0%
Other benefits
£15,049
1.7%
Annual bonus
£369,338
41.3%
LTIP
£80,943
9.0%
Other
£0
0.0%
Total remuneration
£895,265
MIKE BURT - CFO
HOW VARIABLE REMUNERATION WAS DETERMINED IN 2024
2024 ANNUAL BONUS
CEO ANNUAL BONUS OUTCOME
OVER THE LAST 10 YEARS (% OF MAXIMUM)
Measure
Outcome
Maximum
Adjusted EPS
15.4%
25.0%
TAR
16.9%
25.0%
Net debt to EBITDA
20.0%
20.0%
Higher Education trust
3.8%
7.5%
Customer NPS
7.5%
7.5%
Employee engagement
3.5%
7.5%
GRESB Score
0.0%
7.5%
Total
67.0%
100.0%
CEO
CFO
Salary
£606,900
£393,750
Opportunity (% salary)
140.0%
140.0%
Outcome (% maximum)
67.0%
67.0%
Total
£569,272
£369,338
2022-24 LTIP
LTIP VESTING OUTCOME
OVER THE LAST 10 YEARS (% OF MAXIMUM)
Measure
Outcome
Maximum
Adjusted EPS
0.0%
28.0%
Relative TSR
28.0%
28.0%
Relative TAR (est.)
28.0%
28.0%
OEI
0.0%
8.0%
EPC ratings
8.0%
8.0%
Total
64.0%
100.0%
CEO
CFO
Shares held
73,823
13,093
Outcome (%)
64.0%
64.0%
Share price
869.9p
869.9p
+ Dividends
£45,075
£8,052
Total
£453,103
£80,943
100%
50%
0%
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
100%
50%
0%
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
THE UNITE GROUP PLC
Annual Report and Accounts 2024
117
REMUNERATION AT A GLANCE –
2025 IMPLEMENTATION
HOW EXECUTIVE DIRECTOR REMUNERATION WILL BE STRUCTURED IN 2025
Element
Salary
£622,073 (+2.5%)
Pension
Up to 11% of salary
Other benefits
No change
Annual bonus
Up to 150% of salary
LTIP
Grant of 200% salary
JOE LISTER - CEO
Element
Salary
£425,000 (+7.9%)
Pension
Up to 11% of salary
Other benefits
No change
Annual bonus
Up to 150% of salary
LTIP
Grant of 200% salary
MIKE BURT - CFO
VARIABLE INCENTIVE MEASURES AND WEIGHTINGS FOR 2025
2025 ANNUAL BONUS
2025-27 LTIP
Measure
Strategic link
Weighting
Adjusted EPS
C
25.0%
TAR
C
25.0%
Net debt to EBITDA
C
20.0%
Customer NPS
A
7.5%
Higher Education trust
A
7.5%
Employee engagement
B
7.5%
GRESB Score
C
7.5%
Measure
Strategic link
Weighting
Adjusted EPS
C
30.0%
Relative TSR
C
30.0%
Relative TAR
C
30.0%
Operational energy
intensity
A
10.0%
Performance will be measured over a three-year
period. Any LTIP shares vesting for performance will
be subject to a mandatory two-year holding period.
Up to 50% of any bonus earned will be deferred in
shares for two years, unless a Director has met their
in-post shareholding guideline, in which case the full
bonus earned will be paid in cash.
KEY STRATEGIC OBJECTIVES REINFORCED THROUGH REMUNERATION
Great Place to Live
Great Place to Work
Great Place to Invest
DIRECTORS’ SHAREHOLDINGS VS. GUIDELINES
JOE LISTER - CEO
Actual
Requirement
0%
200%
800%
400%
600%
MIKE BURT - CFO
A
B
C
1000%
Actual
Requirement
0%
200%
800%
400%
600%
1000%
OVERVIEW OF REMUNERATION
ACROSS THE GROUP
GOVERNANCE
EMPLOYEE ENGAGEMENT ON
EXECUTIVE REMUNERATION
Our Designated Non-Executive Director for Workforce
Engagement and the Group People Director discuss the topic
of remuneration with the Culture Matters employee forum,
including the structure, role and remit of the Remuneration
Committee; how pay policy supports strategy and values;
and the alignment of pay practices for Executive Directors
and employees. Previous feedback from the forum has led to
HOW DIFFERENT ELEMENTS OF REMUNERATION CASCADE ACROSS THE GROUP
Eligibility
Element of pay
Details
Employees at all levels
Salary
Generally reviewed annually, taking into account Company and individual performance,
experience and responsibilities. As an accredited Living Wage employer, all of
Unite Group’s employees receive at least the voluntary Living Wage rate.
Benefits
All employees are eligible for the Company-funded Health Cash Plan and an enhanced sick pay
scheme; free 24/7 access to our employee assistance programme which provides counselling
and support to employees, including up to eight face-to-face sessions per issue per year. Life
assurance cover is provided at 4x annual salary and employees can access a range of deals
and discounts. We offer employees 25 days’ annual leave a year plus bank holidays and also
operate a holiday purchase scheme to allow employees to purchase up to an extra week of
annual leave each year. Employees can participate in our charity match, or give-as-you-earn
schemes. Financial support is available through season ticket loans, student rental discounts
and the Bike2Work Scheme, and employee service is recognised with long-service awards.
Pension
All employees can participate in the Unite Group Personal Pension scheme, with an alternative
cash pension allowance available in certain circumstances. All employees are eligible to receive
a Company contribution of up to 11% of salary, subject to their own contribution level.
SAYE
We encourage all employees to become shareholders in Unite Group by
participating in the SAYE scheme, under which participants save monthly over
three years with the option to acquire shares at a discount at the end of the savings
period. Currently c.17% of eligible employees participate in the SAYE.
Annual
bonus – cash
All employees are eligible to participate in the annual bonus scheme, with outcomes based on
Company performance. Maximum opportunities, performance measures and weightings vary by
grade; however, metrics are broadly similar across all levels to support delivery of our strategy.
Executive Directors
and other senior
leaders
Long-term
incentive
Executive Directors and other senior leaders may be invited to participate in the LTIP each
year. Performance conditions are consistent for all participants, but award sizes vary.
Heads of Department may be invited to participate in the Restricted Share Plan (RSP). This
scheme is designed to support retention and to provide a clearer reward outcome for our
senior leaders, with awards and the applicable deferral period being consistent for all.
Executive
Directors only
Annual bonus
–deferred
Currently only Executive Directors are required to defer a proportion of
their bonus into shares, which supports shareholder alignment.
Shareholding
guidelines
While all employees are strongly encouraged to become shareholders to allow
them to share in the success of the Group, currently only Executive Directors are
subject to formal shareholding guidelines (both in-post and post-exit).
THE UNITE GROUP PLC
Annual Report and Accounts 2024
118
changes in how the Committee operates, for example, how
health, safety and wellbeing are considered when confirming
bonus outcomes. Nicky Dulieu attended the employee forum in
August 2024 to present on the topic of Executive pay and share
her broader experience of serving on remuneration committees.
Feedback from the session suggested that members were
particularly appreciative of understanding the pay positioning at
Unite Group and how it aligns with our values. The Committee
was appraised of the session at its November meeting.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
119
In accordance with the Regulations, the following sections of the
Remuneration Report are subject to audit: the single total figure of
remuneration for Directors and accompanying notes (page 128);
scheme interests awarded during the financial year (page 131);
payments to past Directors (page 131); payments for loss of office
(page 126); and the statement of Directors’ shareholdings and
share interests (pages 134 to 136). The remaining sections of the
report are not subject to audit.
REMUNERATION POLICY AND PRINCIPLES
This section sets out the new Remuneration Policy which will be put
to a binding vote at the 2025 AGM and, if approved, will apply with
effect from 1 January 2025. A summary of the principal changes
compared to the previously approved Policy is provided in the
Annual Statement and highlighted in bold in the sections below.
The Group aims to balance the need to attract, retain and
motivate Executive Directors and other senior executives
of an appropriate calibre with the need to be cost-effective,
while at the same time rewarding exceptional performance.
The Committee has designed a Remuneration Policy that
balances those factors, taking account of prevailing best
practice, investor expectations and the level of remuneration
and pay awards made generally to employees of the Group.
The Remuneration Policy for the Executive Directors and other
senior executives is also based on the following principles:
• A significant proportion of remuneration should be tied to the
achievement of specific and stretching performance conditions
that align with the creation of shareholder value and the delivery
of the Group’s strategic plans, taking care to consider the needs
of all stakeholders
• There should be a focus on sustained long-term
performance, with performance measured over clearly
specified timescales, encouraging Executives to take action
in line with the Group’s Strategic Plan, using good business
management principles and taking well-considered risks
• Our commitment to providing value-for-money should be
reflected by paying senior executives fairly and competitively, but
not excessively
• Individuals should be rewarded for success, but steps
should be taken, within contractual obligations, to prevent
rewards for failure – whether financial or operational
• Above all, Executive remuneration should support the values
and culture of the Group. Pay should be simple and easy to
understand, openly communicated to stakeholders and aligned
with Group pay.
The Committee has designed a Remuneration Policy that balances
those factors, taking account of prevailing best practice, investor
expectations and the level of remuneration and pay awards made
generally to employees of the Group, as well as potential conflicts
of interest.
CONSIDERATION OF SHAREHOLDER VIEWS
In designing the new Policy, the Remuneration Committee
consulted with Unite Group’s top 20 investors and with proxy
advisors (Glass Lewis, the Investment Association and ISS) to
seek their views on the proposed changes and remuneration
at Unite Group more broadly. The Committee thanks investors
for the constructive feedback received. This feedback, along
with updates to investor body principles published around the
time of the review, were used to finalise the proposals. The
Committee will continue to monitor trends and developments
in corporate governance and market practice to ensure the
structure of Executive remuneration remains appropriate.
OTHER COMPANY CONDITIONS
When making decisions on Executive Director remuneration, the
Committee considers pay and conditions across Unite Group.
We reflect on data such as the Gender Pay Gap reporting and
the CEO pay ratio analyses. Prior to the annual salary review,
the Group People Director provides the Committee with a
summary of the proposed level of increase for overall employee
pay. The Remuneration Committee did not formally consult with
employees in designing the Remuneration Policy but instead
used the dialogue with the Culture Matters forum in August
2024 to shape the final proposals.
DIRECTORS’
REMUNERATION POLICY
This report has been prepared in accordance with the provisions of the
Companies Act 2006 and Schedule 8 of the Large and Medium-sized
Companies and Groups (Accounts and Reports) Regulations 2008 (as
amended). It meets the requirements of the UK Listing Authority’s Listing
Rules and the Disclosure and Transparency Rules.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
120
DIRECTORS’
REMUNERATION POLICY
continued
GOVERNANCE
REMUNERATION POLICY TABLE – EXECUTIVE DIRECTORS
Purpose
Operation
Opportunity
Performance metrics
To recognise an individual’s
skills and experience and
to provide a competitive
base reward.
• Base salaries regularly
reviewed with reference to
salary levels for similar roles
at comparable companies,
to individual contribution
to performance; and
to the experience of
each Executive.
• Base salary increases are
applied in line with the
outcome of the review as
part of which the Committee
also considers average
increases across the Group.
• Salary increases will
generally be in line with
those of other salaried
employees. In exceptional
circumstances (e.g. material
increase in job size or
complexity), the Committee
has discretion to make
appropriate adjustments to
salary levels to ensure they
remain market competitive.
• None
Salary
Purpose
Operation
Opportunity
Performance metrics
To provide non-cash benefits
which are competitive in
the market in which the
Executive is employed.
• Executives receive benefits
which consist primarily
of a company car or car
allowance, and private
health care insurance, or any
benefits that the Committee
deems appropriate.
• Benefits vary by role and
individual circumstances;
eligibility and costs are
reviewed periodically.
• The Committee retains
discretion to approve
a higher cost in certain
circumstances (e.g.
relocation) or where
external factors change
(e.g. insurance premiums).
• None
Benefits
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121
Purpose
Operation
Opportunity
Performance metrics
To provide an opportunity
for Executives to build up
income for retirement.
• All Executives are either
members of The Unite
Group Personal Pension
scheme or receive a cash
pension allowance.
• Salary is the only element
of remuneration that
is pensionable.
• Executive Directors receive
a Company pension
contribution – or an
equivalent cash allowance
– aligned to that offered to
a majority of employees
across the Group in
percentage of salary terms
(currently 11% of salary).
• None
Pension
Purpose
Operation
Opportunity
Performance metrics
To incentivise and reward
strong performance against
financial and non-financial
annual targets, so delivering
value to shareholders and
being consistent with the
delivery of the Strategic Plan.
• Performance measures,
targets and weightings
are set by the Committee
at the start of the year.
• At the end of the year, the
Committee determines
the extent to which targets
have been achieved.
• From 2025 onwards, up to
50% of any bonus earned
will be deferred in shares for
two years, unless a Director
has met their in-post
shareholding guideline, in
which case the full bonus
earned will be paid in cash.
• The annual bonus is
subject to malus and
clawback provisions.
• For Executive Directors, the
maximum annual bonus
opportunity is 150% of
base salary.
• Up to 30% of maximum
will be paid for Threshold
performance under
each measure.
• Up to 50% of maximum
will be paid for On-
Target performance
under each measure.
• A payment equal to the
value of dividends which
would have accrued on
vested deferred bonus
shares will be made
following the release of
awards to participants,
either in the form of cash
or as additional shares.
• Performance is assessed
annually, measured against
specific objectives set at
the start of each year.
• Financial measures will
make up at least 70% of
the total annual bonus
opportunity each year.
The remainder will be split
between non-financial
metrics and personal/
team objectives according
to business priorities, with
weighting on the latter of no
more than 20% of the total.
• The Committee has
discretion to adjust the
formulaic bonus outcomes
both upwards (within
the Policy limits) and
downwards (including to
zero) to ensure alignment of
pay with performance, e.g.
if one target is significantly
missed, or unforeseen
circumstances arise outside
management control. The
Committee also considers
measures outside the bonus
framework (e.g. Health &
Safety) to ensure there is
no reward for failure.
Annual bonus
THE UNITE GROUP PLC
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122
DIRECTORS’
REMUNERATION POLICY
continued
GOVERNANCE
REMUNERATION POLICY TABLE – EXECUTIVE DIRECTORS CONTINUED
Purpose
Operation
Opportunity
Performance metrics
To drive sustained long-
term performance that
supports the creation of
shareholder value.
• The LTIP comprises a
Performance Share Plan
(PSP) and an Approved
Employee Share Option
Scheme (ESOS), with the
latter used to deliver a
proportion of the LTIP in
a tax-efficient manner.
• Performance measures,
targets and weightings
are reviewed and set by
the Committee at the
start of each cycle.
• A proportion of any
vested awards may, at the
discretion of the Committee,
be subject to a holding
period following the end of
a three-year vesting period.
The Committee’s current
intention is that all awards
will be required to be held
for an additional two-year
period post-vesting.
• Awards under the LTIP
are subject to malus and
clawback provisions.
• The normal aggregate
grant limit under the
LTIP is 200% of salary for
Executive Directors (300% in
exceptional circumstances).
• LTIP awards may include a
grant of approved options,
valued on a fair value
exchange and subject to
HMRC-approved limits
on the aggregate value of
options outstanding under
all awards at any given
time (currently £60,000).
• Up to 25% of maximum
will be paid for Threshold
performance under each
performance measure.
• A payment equal to the
value of dividends which
would have accrued on
vested shares will be made
following the release of
awards, either in cash or
as additional shares.
• Vesting of LTIP awards
is subject to continued
employment and
performance against
relevant metrics measured
over three years.
• The Committee will approve
the performance measures,
weightings and targets ahead
of each grant to ensure that
they continue to be linked to
the delivery of Unite Group’s
longer-term strategy.
• If no entitlement has been
earned at the end of the
relevant performance
period, awards will lapse.
• The Committee has
discretion to adjust the
formulaic LTIP outcomes
to ensure alignment of pay
with performance, i.e. the
outcome is a true reflection
of Company performance.
LTIP
Purpose
Operation
Opportunity
Performance metrics
An all-employee scheme which
encourages the ownership
of Unite Group shares.
• An HMRC-approved scheme
whereby employees may
save up to the maximum
monthly savings limit
over three years.
• Options are granted at
up to a 20% discount.
• Savings are capped at
the prevailing HMRC limit
at the time employees are
invited to participate.
• None
SAYE
THE UNITE GROUP PLC
Annual Report and Accounts 2024
123
Purpose
Operation
Opportunity
Performance metrics
To attract and retain NEDs
of the highest calibre with
broad commercial and
other experience relevant
to the Company.
• Fee levels are reviewed
annually, with adjustments
typically effective 1 January
in the year following review.
• Fee levels are benchmarked
against sector comparators
and FTSE-listed companies of
similar size and complexity.
Time commitment
and responsibility are
taken into account.
• Fees payable to the Board
Chair are determined by the
Remuneration Committee.
• Fees payable to other
Non-Executive Directors are
determined by the Board
Chair and Executive Directors.
• Additional fees are payable
for additional responsibilities,
including, but not limited to,
acting as Senior Independent
Director or Chair of the
Board’s Committees.
• Expenses incurred by the
Board Chair and Non-
Executive Directors in the
performance of their duties
(including taxable travel and
accommodation benefits)
may be reimbursed or paid
for directly by the Company.
• The Board Chair and other
Non-Executive Directors are
not eligible to participate
in the annual bonus plan,
long-term incentive plans
or pension arrangements.
• Fee increases are applied
in line with the outcome
of the annual fee review.
• It is expected that
increases to Non-Executive
Director fee levels will
typically be in line with
salaried employees.
• In the event that there is
a material misalignment
with the market or a
change in the complexity,
responsibility or time
commitment required
to fulfil a Non-Executive
Director role, the Board
has discretion to make an
appropriate adjustment
to the fee level and/or to
introduce additional fees.
• None
REMUNERATION POLICY TABLE – NON-EXECUTIVE DIRECTORS
NED fees
THE UNITE GROUP PLC
Annual Report and Accounts 2024
124
NOTES TO THE POLICY TABLE
The Committee is satisfied that the Remuneration Policy is in the
best interests of shareholders and does not promote excessive
risk-taking. In approving this Remuneration Policy, authority is
given to the Company to honour any commitments entered into
with current or former Directors (such as the vesting or exercise
of past share awards).
PERFORMANCE MEASURE SELECTION AND APPROACH
TO TARGET SETTING
Measures used under the annual bonus and LTIP are selected
annually to reflect the Unite Group’s short- and long-term
objectives and reflect both financial and non-financial priorities.
The Committee considers that EPS (currently used in both the
short- and long-term incentive) is an objective and well-accepted
measure of the Company’s performance. This reinforces the
strategic objective of achieving profitable growth, while a focus
on Total Accounting Return (also currently used in both the
short- and long-term incentive) is consistent with one of our
stated objectives and a key indicator of performance in the
real estate sector. The use of relative TSR is strongly aligned
with shareholders and ensures that Executives are rewarded
only if they exceed the returns which an investor could achieve
elsewhere in our sector. We currently use sustainability metrics
across both variable incentives to support and reinforce the
Group’s strategy in this area.
Targets applying to the annual bonus and LTIP are reviewed
annually, based on a number of internal and external reference
points. Performance targets are set to be stretching but
achievable, with regard to the particular strategic priorities and
economic environment in a given year. Under the bonus, target
performance typically requires meaningful improvement on
the previous year’s outturn. For financial measures, targets are
typically set with reference to market consensus.
EMPLOYEE REMUNERATION POLICY
Unite Group’s approach to annual salary reviews is consistent
across the Group, with consideration given to the level of
experience, responsibility, individual performance and salary
levels in comparable companies. The Company is a fully
accredited Living Wage employer.
In terms of variable incentives, all employees are eligible to
participate in an annual bonus scheme with business area-
specific metrics incorporated, where appropriate. Selected
senior executives are eligible to participate in the LTIP, with
performance conditions aligned to those applying to Executive
Directors’ awards. Heads of Department may instead be invited
to participate in the Restricted Share Plan which vests based on
continued employment and supports retention. Specific cash
incentives are also in place to motivate, reward and retain staff.
All employees are eligible to participate in the Company’s SAYE
scheme on the same terms.
SHAREHOLDING GUIDELINES
The Committee recognises the importance of Executive Directors
aligning their interests with shareholders through building
up a significant shareholding in the Company. Shareholding
guidelines are in place that require Executive Directors to acquire
a holding (excluding shares that remain subject to performance
conditions) equivalent to 250% of base salary for the Chief
Executive and 200% of base salary for other Executive Directors.
Details of the Executive Directors’ current shareholdings
are provided in the Annual Report on Remuneration.
To provide further long-term alignment with shareholders and
ensure a focus on successful succession planning, Executive
Directors will normally be expected to maintain a holding of
Unite Group shares for a period after their employment as a
Director of the Group. This post-exit shareholding guideline will
be equal to the lower of a Directors’ actual shareholding at the
time of their departure and the shareholding requirement in
effect at the date of their departure, with such shares to be held
for a period of at least two years from the date of ceasing to be
a Director. The specific application of this shareholding guideline
will be at the Committee’s discretion.
To monitor and enforce the post-exit shareholding
requirement, the Committee has established an internal
policy document detailing which shares are covered, the
valuation methodology, the holding mechanism and any
discretions available. In summary, this post-exit requirement
will apply to any LTIP awards or deferred bonus share awards
granted on or after 9 May 2019, with shares deposited
into a Nominee Account until such time that the required
post-exit shareholding level has been achieved (calculated
annually). Shares held in the Nominee Account will generally
be held for not less than two years from the date an
individual ceases employment as a Director of the Group.
MALUS AND CLAWBACK
Under the annual bonus and the LTIP, the Remuneration
Committee retains discretion to apply malus and clawback in
the exceptional circumstances specified in the applicable plan
documentation. Such circumstances include:
• A material misstatement in the published results of the Group
• An error in the methodology for calculating the award level,
the performance or vesting outcome which resulted in an
overpayment to the participant
• Misconduct on the part of the Executive Director concerned
• Corporate failure.
DIRECTORS’
REMUNERATION POLICY
continued
GOVERNANCE
THE UNITE GROUP PLC
Annual Report and Accounts 2024
125
The malus and clawback provisions may be invoked for a period
of two years following payment or vesting, a timeframe which
reflects the period over which the Company’s processes and
systems are likely to uncover any of these trigger events. Where
the Remuneration Committee determines that malus and/
or clawback will apply, the Remuneration Committee has full
discretion to determine the basis of application and the means
by which the provisions will be implemented.
PAY FOR PERFORMANCE SCENARIOS
The charts below provide an illustration of the potential future
reward opportunities for the Executive Directors, and the
potential split between the different elements of remuneration
under four different performance scenarios: Minimum,
On-Target, Maximum, and Maximum including the impact of a
50% share price appreciation on LTIP awards.
Potential reward opportunities are based on the Remuneration
Policy, applied to the base salaries effective 1 January 2025.
The annual bonus and LTIP are based on the maximum
opportunities set out under the Remuneration Policy, being
150% of salary under the annual bonus and a 2025 LTIP grant
of 200% of salary. The LTIP awards granted in a year do not
normally vest until the third anniversary of the date of grant, and
the projected value is based on the face value at award rather
than vesting (i.e. the scenarios exclude the impact of any share
price movement over the period). The exception to this is the
last scenario which, in line with the requirements of reporting
regulations, illustrates the maximum outcome assuming 50%
share price appreciation for the purpose of LTIP value.
The Minimum scenario reflects base salary, pension and benefits
(i.e. fixed remuneration) which are the only elements of the
Executive’s remuneration packages not linked to performance.
The On-Target scenario reflects fixed remuneration as above,
plus bonus payout of 75% of salary and LTIP threshold
vesting at 25% of maximum award (50% of salary).
The Maximum scenario is shown on two bases: excluding
and including the impact of share price appreciation on the
value of LTIP outcomes. In both cases, the scenario includes
fixed remuneration and full payout of all incentives (150% of
salary under the annual bonus and 200% of salary under the
LTIP), with the final scenario also including the impact of a
50% increase in Unite Group’s share price on the value of the
LTIP (in effect valuing this element of pay at 300% of salary).
APPROACH TO RECRUITMENT REMUNERATION
External appointment to the Board
When appointing a new Executive Director from outside the
Company, the Committee may make use of all the existing
components of remuneration:
Fixed pay
• Base salary set with reference to relevant market data,
experience and skills, internal relativities and the individual’s
current basic salary.
• Where the starting salary is set below market, any
shortfall may be managed with phased increases over
two to three years, subject to development in the role.
• Company pension contributions, or equivalent cash
supplement, aligned to a majority of employees across the
Group at the time of appointment (currently 11% of salary).
• Eligibility to receive benefits (which include but
are not limited to) car or cash alternative, private
medical insurance, relocation expenses and
participation in all-employee share schemes.
Annual bonus
• The structure described in the Policy table will apply to
new appointees with the relevant maximum (currently
150% of salary) being pro-rated to reflect the proportion of
employment over the year.
• Depending on the timing and responsibilities of the
appointment, it may be necessary to set revised
performance measures and targets initially.
LTIP
• Awards granted under the LTIP on the same terms as other
Executives, as described in the Policy table.
• The normal aggregate limit of 200% of salary will apply, or
exceptionally up to 300% of salary.
In determining appropriate remuneration, the Remuneration
Committee will take into consideration all relevant factors
(including quantum, nature of remuneration and the jurisdiction
from which the candidate was recruited) to ensure that
arrangements are in the best interests of both Unite Group and
its shareholders.
The Committee may make an award on new appointment to
buy out incentive arrangements forfeited on leaving a previous
employer on a like-for-like basis and awarded in addition to
the remuneration structure outlined in the table above. The
Committee will consider factors including time to vesting,
any performance conditions attached and the likelihood of
conditions being met. Buy-out awards will typically be made
under the existing annual bonus and LTIP schemes, although
in exceptional circumstances the Committee may exercise the
discretion available under the Listing Rules to make awards
using a different structure. Any buy-out awards would have a fair
value no higher than the awards forfeited.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
126
Internal promotion to the Board
If a new Executive Director is promoted internally, the
Committee and Board will apply the same policy as for external
appointees. Where an individual has contractual commitments
made prior to their promotion, the Company will continue to
honour these. Pension contributions would be aligned to that
offered to a majority of employees at the time of promotion. The
Remuneration Policy for other employees is set out on page 124.
Incentive opportunities for below Board employees are typically
no higher than Executive Directors, but measures may vary.
Non-Executive Directors
In recruiting a new Non-Executive Director, the Remuneration
Committee will utilise the Policy as set out in the table on
page 123. A base fee in line with the prevailing fee schedule
would be payable for Board membership, with additional
fees for additional responsibilities such as acting as Senior
Independent Director or as Chair of the Board’s Committees.
LEAVERS AND CHANGE OF CONTROL
Executive Director service contracts, including arrangements
for early termination, are carefully considered by the
Committee. In accordance with general market practice,
each of the Executive Directors has a rolling service contract
requiring 12 months’ notice of termination on either side.
Such contracts contain no specific provision for compensation
for loss of office, other than an obligation to pay for any
notice period waived by the Company, where pay is defined
as salary, benefits and any other statutory payments only.
Where a payment is made in equal monthly instalments, the
Committee will expect the Director to mitigate their losses
by undertaking to seek and take up, as soon as reasonably
practicable, any suitable/similar opportunity to earn alternative
income over the period in which the instalments are to be
made. The instalment payments will be reduced (including to
zero) by the amount of income that the employee earns and/
or is entitled to earn. Executive Director service contracts
are available to view at the Company’s registered office.
The Committee will exercise discretion in making payments in
the context of outplacement, settling legal claims or potential
legal claims by a departing Executive Director, including any
other amounts reasonably due to the Executive Director, for
example legal fees relating to a settlement agreement.
When considering exit payments, the Committee
reviews all potential incentive outcomes to ensure they
are fair to both shareholders and participants.
The sections below summarise how the awards under
the annual bonus and LTIP are typically treated in specific
circumstances, with the final treatment remaining subject to the
Committee’s discretion.
Annual bonus
Cash element
In the event of retirement, ill health, death, disability, redundancy
or any other circumstance at the discretion of the Committee,
or a change of control, Executive Directors may receive a bonus
payment for the year in which they cease employment. This
payment will normally be pro-rated for time and will only be paid
if financial and individual objectives set at the beginning of the
plan year have been met. Otherwise, Executive Directors must be
employed at the date of payment to receive an annual bonus.
Deferred element
Deferred shares will normally be retained and released in full
following completion of the applicable deferral period.
LTIP
Leavers before the end of the performance period
In the event of retirement, ill health, death, disability,
redundancy or any other circumstance at the discretion of
the Remuneration Committee, or in the event of a change
of control, the Committee determines whether and to what
extent outstanding awards vest based on the extent to
which performance conditions have been achieved and the
proportion of the vesting period worked. This determination
will be made as soon as reasonably practical following the
end of the performance period or such earlier date as the
Committee may agree (within 12 months in the event of death).
In the event of a change of control, awards may be exchanged for
new equivalent awards in the acquirer where appropriate.
If participants leave for any other reason before the end of the
performance period, their award will normally lapse.
Leavers after the end of the performance period
Any awards in a holding period will normally vest following
completion of the holding period.
EXTERNAL APPOINTMENTS
With the approval of the Board in each case, and subject to the
overriding requirements of the Group, Executive Directors may
accept external appointments as Non-Executive Directors of
other companies and retain any fees. Joe Lister served as a Non-
Executive Director on the Board of Helical Plc until 17 July 2024,
and received a fee of c.£35k in respect of his service for 2024.
Mike Burt does not currently hold any external appointments.
DIRECTORS’
REMUNERATION POLICY
continued
GOVERNANCE
THE UNITE GROUP PLC
Annual Report and Accounts 2024
127
ANNUAL REPORT
ON REMUNERATION
COMMITTEE MEMBERSHIP IN 2024
The Committee’s terms of reference are set out on the Company’s
website. As of 31 December 2024, the Remuneration Committee
comprised four independent Non-Executive Directors.
• Nicky Dulieu (Chair)
• Ross Paterson
• Dame Shirley Pearce
• Professor Sir Steve Smith.
Certain Executives, including Joe Lister and Amy Round
(Group People Director), are invited to attend meetings of
the Committee, and the Company Secretary, Christopher
Szpojnarowicz, acts as secretary to the Committee. Richard
Huntingford and Thomas Jackson are also invited to attend
meetings. No individuals are involved in decisions relating
to their own remuneration. The Remuneration Committee
convened four times during the year and details of members’
attendance at meetings are provided on page 93.
Key activities of the Remuneration Committee in
2024 included:
• Reviewed the Executive Directors’ performance against 2021
LTIP targets and approved final vesting
• Approved the Remuneration Report for 2023
• Determined the Executive Directors’ bonus and LTIP
performance targets for 2024 in line with the strategic plan
and approved grant of awards under the LTIP in April 2024
• Continued to monitor remuneration market trends and
corporate governance developments
• Reviewed the CEO pay ratio and gender pay data
and disclosures
• Reviewed the Remuneration Policy and conducted
shareholder consultations on the proposed changes
• Considered feedback from the Culture
Matters forum
• Reviewed the fee payable to the Board Chair
• Commenced preparation of the 2024 DRR.
ADVISORS
Ellason LLP was appointed as the independent remuneration
advisor to the Committee effective 1 January 2021 and retained
during the year. The Committee undertakes due diligence
periodically to ensure that Ellason is independent and that the
advice provided is impartial and objective. During 2024, Ellason
provided independent advice including support on the review
of the Remuneration Policy and consultation, updates on the
external remuneration environment, performance testing for
long-term incentive plans and Directors’ Remuneration Report
drafting support. Ellason reports directly to the Chair of the
Remuneration Committee and does not advise the Company
on any other issues. Their total fees for the provision of
remuneration services to the Committee in 2024 were £37,538
(2023: £42,823) on the basis of time and materials.
Ellason is member and signatory of the Code of Conduct for
Remuneration Consultants, details of which can be found at
www.remunerationconsultantsgroup.com. None of the
individual Directors have a personal connection with Ellason.
SUMMARY OF SHAREHOLDER VOTING AT AGMS
The 2023 Annual Report on Remuneration was approved at
the 2024 AGM with 95.02% votes for and 4.98% against with
2,350,322 votes withheld.
The Directors’ Remuneration Policy was approved at the 2022
AGM with 97.83% votes for and 2.17% against with 1,761,682
votes withheld.
The following section provides details of how Unite
Group’s Remuneration Policy was implemented during
the financial year ended 31 December 2024 and how the
new Policy will be implemented in 2025.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
128
SINGLE TOTAL FIGURE OF REMUNERATION (AUDITED)
The tables below sets out a single figure for the total remuneration received for 2023 and 2024 by each Executive Director and
Non-Executive Director who served in the year ended 31 December 2024:
1. Joe Lister was promoted from CFO to CEO with effect from 1 January 2024.
2. Mike Burt was appointed as CFO and as a Board Director with effect from 1 January 2024.
3. Taxable benefits for 2024 consist primarily of company car or car allowance and private health care insurance. The figures above include car
benefits of £15,000 for Joe Lister and Mike Burt.
4. Pension figures include contributions to the Unite Group Personal Pension Scheme and cash allowances, where applicable.
5. Annual bonus figures reflect the full amount earned in respect of the relevant financial year, including any amounts deferred.
6. 2023 figures: Vesting of 2021 awards was confirmed as 76.0% of maximum following the publication of comparator full-year results. The LTIP
figures shown have been updated to reflect this outcome and the market price on the date of vesting (12 April 2024) of 939.0p. 2024 figures: See
following sections for further details. For both 2023 and 2024, LTIP figures include the value of dividends for vested awards which will be paid as
additional shares (estimated, where relevant). Awards in the form of HMRC-approved options are valued based on the embedded gain at vesting
(i.e. subtracting the applicable exercise price) and attract no dividends.
7. Other includes the embedded value of SAYE/Sharesave options at grant.
Executive Directors
Salary
Taxable
benefits
Pension
Annual
bonus
LTIP
Other
Single
figure
Total
fixed
Total
variable
£
Note 3
Note 4
Note 5
Note 6
Note 7
J Lister
2024
606,900
17,120
59,460
569,272
453,103
0
1,705,856
683,481
1,022,375
Note 1
2023
431,794
17,068
38,734
332,482
548,341
2,318
1,370,737
487,596
883,141
M Burt
2024
393,750
15,049
36,186
369,338
80,943
0
895,265
444,984
450,280
Note 2
2023
1. Relevant changes in Non-Executive Directors and responsibilities as follows:
1.1. Reflecting the Relationship Agreement with CPPIB Holdco, Thomas Jackson does not receive any fees in respect of his NED position
1.2. Angela Jain joined the Board as a Non-Executive Director on 1 August 2023.
2. Taxable benefits relate primarily to certain travel expenses.
Non-Executive Directors
Base fee
Committee Chair/
SID fees
Taxable benefits
Single figure
£ Note 1
Note 2
R Huntingford
2024
256,606
-
-
256,606
2023
238,703
-
95
238,798
R Paterson
2024
62,000
10,900
-
72,900
2023
52,543
10,900
-
63,353
I Beato
2024
62,000
-
-
62,000
2023
52,453
-
40
52,493
S Pearce
2024
62,000
10,900
-
72,900
2023
52,453
10,900
-
63,353
T Jackson
2024
-
-
-
-
Note 1.1
2023
-
-
-
-
S Smith
2024
62,000
10,900
-
72,900
2023
52,453
10,900
19
63,372
N Dulieu
2024
62,000
20,900
-
82,900
2023
48,920
14,229
-
63,149
A Jain
2024
62,000
-
-
62,000
Note 1.2
2023
21,855
-
-
21,855
ANNUAL REPORT
ON REMUNERATION
continued
GOVERNANCE
THE UNITE GROUP PLC
Annual Report and Accounts 2024
129
INCENTIVE OUTCOMES FOR THE YEAR ENDED 31 DECEMBER 2024 (AUDITED)
Annual bonus in respect of 2024 performance
The maximum annual bonus opportunity for each Executive Director in 2024 was 140% of base salary, with Threshold
and On-Target performance paying 30% and 50% of maximum respectively under each performance measure. The 2024
annual bonus was based on an additive combination of financial (weighted 70%) and non-financial (30%) metrics. Further
details, including the targets set and performance against each of the metrics, are provided in the tables below:
Measure
Weight
Threshold
30% max.
On-Target
50% max.
Maximum
100% max.
Actual
Outcome
% max.
Financial
70%
Adjusted EPS
25.0%
44.75p
46.25p
47.75p
46.6p
61.7%
TAR
25.0%
6.9%
8.9%
10.9%
9.6%
67.5%
Net debt to EBITDA
20.0%
7.5
7.1
6.6
5.5
100.0%
Non-financial
30%
Customer NPS
7.5%
11
13
17
23
100.0%
Higher Education trust
7.5%
79
80
81
80
50.0%
GRESB score
7.5%
86
87
88
85
0.0%
Employee engagement
7.5%
70
75
77
74
46.0%
Maximum bonus
% salary
Bonus outcome
% max.
Bonus outcome
% salary
Salary
£
Bonus outcome
£
J Lister
140.0%
x
67.1%
=
93.8%
x
£606,900
=
£569,272
M Burt
140.0%
x
67.1%
=
93.8%
x
£393,750
=
£369,338
As in previous years, prior to finalising the annual bonus
outcome, the Committee received a detailed report from
Professor Sir Steve Smith, Chair of the Health and Safety
Committee, which reviewed the Group’s operational incidents
and fire safety performance during 2024. Following a discussion
of the key themes, the Committee concluded that the executive
team had continued to promote a culture of openness and
transparency, and had worked proactively to address the
challenges faced to ensure that students and staff live and work
in safe environment, and that health and safety remains Unite
Group’s number one priority.
Having taken the above into account, as well as the Group’s
broader underlying performance, the Committee is satisfied
that the overall formulaic bonus outcome of 93.8% of salary (cf.
a maximum of 140% of salary) in respect of 2024 is appropriate.
In line with the current Remuneration Policy, 50% of the 2024
annual bonuses earned by Executive Directors will be satisfied
in Unite shares, deferred for two years.
Confirmation of 2021 LTIP vesting
Last year, the Committee provided an estimate for the vesting of the 2021 LTIP awards based on relative TAR after two years of
the performance period. Following the publication of TAR results by comparators with March 2024 year-ends, the Committee was
able to assess this element of the LTIP, with Unite Group’s TAR of +22.2% exceeding upper quartile (+14.8%) over the full three-year
performance period. The resulting vesting outcome was 100.0% of maximum for the relative TAR element which, when combined
with the outcomes for the relative TSR (100.0% of maximum) and EPS (28.0% of maximum) elements, resulted in an overall vesting
outcome for the 2021 LTIP of 76.0% of maximum – in line with the estimate set out in last year’s report. The Committee was
satisfied that this vesting result was supported by broader underlying Group performance, and accordingly applied no discretion in
respect of the outcome.
The 2023 values included in the single figure of remuneration table for Joe Lister have been updated to reflect the confirmed
number of shares vesting, as well as the actual share price on 12 April 2024 of 939.0p.
Plan
Interests held
Confirmed vesting
Interests vesting
Date vesting
J Lister
PSP
70,850
76.0%
53,846
12 April 2024
ESOS
479
364
Total
71,329
54,210
THE UNITE GROUP PLC
Annual Report and Accounts 2024
130
2022 LTIP vesting (vested on performance to 31 December 2024)
Awards in 2022 were made under the LTIP, consisting of the Unite Group Performance Share Plan (PSP) and the Unite Group
Approved Employee Share Option Scheme (ESOS). Further details, including vesting schedules and performance against each
of the metrics, are provided in the table below. Vesting of the relative TAR element will be finalised following the publication of
comparator results over the coming months, with Unite Group currently estimated to rank above upper quartile, equating to full
vesting under this element, and 64% vesting overall. No discretion has been exercised in respect of the 2022 LTIP to-date; the
Committee will confirm this position once final vesting of the relative TAR element has been approved later in 2025.
Measure
Note
Weight
Threshold
25% max.
Stretch
100% max.
Outcome
Vesting
% max.
2024 Adjusted EPS
28.0%
48.5p
53.6p
46.6p
0.0%
Relative TSR
Note 1
28.0%
Median
Upper quartile
Upper quartile
100.0%
Relative TAR
Note 1,2
28.0%
Median
Upper quartile
Upper quartile
100.0%
OEI
Note 3
8.0%
6.3%
12.6%
1.6%
0.0%
EPC ratings
Note 4
8.0%
67.0%
79.0%
100%
100.0%
Overall estimated vesting
64.0%
For all measures: no vesting below Threshold; straight-line vesting between Threshold and Stretch targets.
1. TSR and TAR are measured relative to the constituents of the FTSE 350 Real Estate Supersector Index.
2. Vesting of the relative TAR measure reflects an estimate after two years of the three-year performance period. Actual vesting will be finalised
following the publication of comparator results over the coming months and detailed in next year’s report.
3. OEI targets are based on a cumulative reduction: 2024 vs. 2019 baseline (kWh/m2).
4. EPC targets are based on the % of floorspace A-C rated in 2024.
5. Estimated value of ESOS is based on embedded gain (i.e. after subtracting 1,121.0p exercise price).
6. Estimated value of PSP includes the accumulated dividends on vested shares.
Plan
Interests
held
Estimated
vesting % max.
Estimated
interests vesting
Assumed
market price
Estimated value
Note 5,6
J Lister
PSP
73,288
64.0%
46,904
869.9p
£453,103
ESOS
535
342
£0
Total
73,823
47,246
£453,103
M Burt
PSP
13,093
64.0%
8,379
869.9p
£80,943
ESOS
0
0
£0
Total
13,093
8,379
£80,943
As the market price on the date of vesting is unknown at the time of reporting, the values shown above are estimated using
the average market value over the last quarter of 2024 of 869.9p. These values will be trued-up in the 2025 Annual Report on
Remuneration to reflect actual relative TAR vesting and the actual share price at the date of vesting for these awards. Joe Lister’s
awards are subject to a mandatory two-year holding period following vesting; Mike Burt’s awards were granted in respect of his
previous role and accordingly an additional holding period will not apply.
None of the estimated values shown is attributable to share price appreciation, with the market price used in these calculations
(869.9p) being 22.4% lower than the share price at grant (1,121.0p).
Executives also became entitled to additional shares representing the dividends payable on vested PSP shares over the three-
year performance period. The estimated additional value of these shares is included in the relevant rows above and in the single
total figures of remuneration table on page 128 and equate to £45,075 and £8,052 for Joe Lister and Mike Burt respectively. Actual
dividends payable will be determined on finalising vesting of the TAR element of awards.
ANNUAL REPORT
ON REMUNERATION
continued
GOVERNANCE
THE UNITE GROUP PLC
Annual Report and Accounts 2024
131
RELATIVE IMPORTANCE OF SPEND ON PAY
The table across shows shareholder distributions (i.e.
dividends and share buybacks) and total employee pay
expenditure for the financial years ended 31 December
2023 and 31 December 2024, along with the percentage
change in both. Total employee pay expenditure excludes
social security costs; distributions to shareholders reflects
actual payments made during the relevant financial year.
2024
2023
% change
Total employee pay
expenditure
£85.2m
£75.7m
12.5%
Distributions to
shareholders
£137.8m
£117.3m
17.5%
SCHEME INTERESTS AWARDED IN 2024 (AUDITED)
LTIP
In April 2024, Executive Directors were granted awards under the LTIP with a face value of 200% of their respective salaries.
Any awards vesting for performance will be subject to an additional two-year holding period.
Date of grant
Interests granted
Market price
at date of award
Face
value
PSP
ESOS
Total
J Lister
9 April 2024
127,737
631
128,368
949.5p
£1,218,854
M Burt
9 April 2024
82,840
631
83,471
949.5p
£792,557
Vesting of these awards is dependent on the achievement of three-year performance targets as set out below. As noted in last
year’s report, target setting for the adjusted EPS measure was delayed to give the Committee time to consider a range of relevant
internal and external reference points, with these targets subsequently set out in a market announcement on 10 April 2024.
The Committee retains overarching discretion under the Remuneration Policy to approve the final vesting of these awards, and any
payout will be scrutinised by the Committee to ensure it reflects the underlying performance of the Company and the experience of
stakeholders over the period.
Measure
Note
Weight
Threshold
25% max.
Stretch
100% max.
2026 Adjusted EPS
28.0%
50.0p
53.0p
Relative TSR
Note 1
28.0%
Median
Upper quartile
Relative TAR
Note 1
28.0%
Median
Upper quartile
OEI
Note 2
8.0%
7.9%
15.8%
EPC ratings
Note 3
8.0%
98.6%
100.0%
For all measures: no vesting below Threshold; straight-line vesting between Threshold and Stretch targets.
1. TSR and TAR are measured relative to the constituents of the FTSE 350 Real Estate Supersector Index.
2. OEI targets are based on a cumulative reduction: 2026 vs. 2023 baseline (kWh/m2).
3. EPC targets are based on the % of floorspace A-C rated in 2026.
Deferred annual bonus
During the year, 50% of the annual bonus earned by Joe Lister in respect of the 2023 financial year was satisfied in Unite Group
shares, deferred for two years. Mike Burt’s 2023 annual bonus related to his previous role and accordingly no deferral applied.
SAYE
During 2024, no Executive Directors entered into a new savings contract under the SAYE plan. Details of all outstanding awards
under this plan are included in the table on page 137.
Date of grant
Interests granted
Market price
at date of award
Date of vesting
J Lister
28 February 2024
17,499
950.0p
28 February 2026
PAYMENTS TO PAST DIRECTORS (AUDITED)
As set out in last year’s report, Richard Smith stepped down from the Board on 31 December 2023 and remained as an advisor to
the business until the 3 October 2024. All payments made to Richard in relation to the 2023 financial year were disclosed fully in
last year’s Remuneration Report. Richard received base salary £440,169, pension £40,702 and other contractual benefits £12,447
through to 3 October 2024. Richard was treated as a Good Leaver in respect of outstanding PSP awards. Vesting of previously
granted awards during the 2024 financial year were as follows: 66,173 shares (76.0% vesting) under the 2021 PSP which remain
THE UNITE GROUP PLC
Annual Report and Accounts 2024
132
ANNUAL REPORT
ON REMUNERATION
continued
subject to a mandatory two-year holding period; and 1,235 shares under the DBP (in relation to the 2022 annual bonus) which have
been added to his nominee account to satisfy his post-exit shareholding requirement.
Other than the above, there have been no payments in excess of the de minimis threshold to former Directors during the year
ended 31 December 2024 in respect of their former roles as Directors. The Company has set a de minimis threshold of £5,000
under which it would not report such payments.
EXIT PAYMENTS MADE IN THE YEAR (AUDITED)
There have been no exit payments during the year ended 31 December 2024.
PERCENTAGE CHANGE IN REMUNERATION OF DIRECTORS AND EMPLOYEES
These tables are produced in accordance with the Companies (Directors’ Remuneration Policy and Directors’ Remuneration Report)
Regulations 2019 and shows the change in remuneration of Unite Group Directors and employees over time.
Executive Director remuneration includes base salary, taxable benefits and annual bonus (where eligible). Non-Executive Director
remuneration includes base fee and any additional fees paid, and taxable benefits. Data is shown on a full-time equivalent basis
and growth rates are based on a consistent set of employees, i.e. the same individuals appear in the 2024 and 2023 populations for
the 2024 analysis and so on.
Base salary/total fee Note 1
Taxable benefits Note 2
2024
2023
2022
2021
2020
2024
2023
2022
2021
2020
J Lister
40.6%
5.0%
7.0%
11.1%
(6.9)%
0.3%
1.3%
(2.4)%
(1.3)%
3.4%
M Burt
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
R Huntingford
7.5%
3.0%
28.0%
266.3%
n/a
(100)%
n/a
(100)%
n/m
n/a
R Paterson
14.9%
3.0%
3.0%
11.1%
(7.3)%
n/m
(100)%
1,190%
(71.1)%
100%
I Beato
18.2%
3.0%
3.0%
11.1%
(7.3)%
(100)%
(11.1)%
1,400%
n/m
(100)%
S Pearce
15.1%
3.0%
6.6%
29.7%
(7.3)%
n/m
(100)%
1,400%
(71.1)%
100.%
T Jackson
n/a
n/a
n/a
n/a
n/a
n/a
n/m
(100)%
n/m
n/a
S Smith
15.1%
3.0%
3.0%
17.0%
n/a
(100)%
(62.6)%
2.0%
n/m
n/a
N Dulieu
24.3%
24.0%
n/a
n/a
n/a
n/m
n/m
n/a
n/a
n/a
A Jain
18.0%
n/a
n/a
n/a
n/a
n/m
n/a
n/a
n/a
n/a
All employees
11.4%
11.6%
3.6%
2.9%
4.4%
17.3%
6.1%
3.2%
2.3%
2.3%
Annual bonus Note 3
2024
2023
2022
2021
2020
J Lister
71.2%
60.4%
(47.5)%
n/m
(100)%
M Burt
n/a
n/a
n/a
n/a
n/a
All employees
73.3%
87.7%
(52.8)%
285.0%
(67.8)%
n/a – not applicable n/m – not meaningful
1. Changes in Directors and responsibilities during the 2023 and 2024 financial years which are relevant to the calculations above are as follows:
1.1. Joe Lister was promoted from CFO to CEO with effect from 1 January 2024
1.2. Mike Burt joined the Board with effect from 1 January 2024
1.3. Nicky Dulieu joined the Board with effect from 1 September 2022 and took on the roles of Senor Independent Director and Chair of the
Remuneration Committee with effect from 1 March 2023
1.4. Angela Jain joined the Board with effect from 1 August 2023.
2. For Executive Directors, taxable benefits consist primarily of company car or car allowance and private health care insurance. For Non-Executive
Directors, taxable benefits relate primarily to certain travel expenses and accommodation which, given the relatively small numbers involved, can
produce sizeable % changes from year to year.
3. The figures shown are reflective of any bonus earned during the respective financial year. Non-Executive Directors are not eligible to participate in
the annual bonus scheme and therefore no data is shown for them in the annual bonus table.
GOVERNANCE
THE UNITE GROUP PLC
Annual Report and Accounts 2024
133
RELATIONSHIP BETWEEN THE REMUNERATION
OF THE CEO AND ALL EMPLOYEES
There is strong alignment between the Company’s approach to
remuneration for Executive Directors and other employees (see
page 118 for details).
Given the significant undertaking required to calculate the single
figure of remuneration for all UK employees, the Committee
opted to use data already available from the gender pay reporting
as the basis for identifying employees at P25, P50 and P75 (Option
B). We believe this provides a reasonable estimate for employees’
pay at these levels within the organisation.
Accordingly, consistent with prior years, we used the most
recent gender pay gap data from 5 April 2024 to rank the hourly
rates of all UK employees for the whole of 2024 and identify
those individuals positioned at P25, P50 and P75, as well as the
immediate employees either side of P25, P50 and P75. Total FTE
remuneration for each of these individuals was then calculated to
31 December 2024 on the same basis as used in the single figure
table for our CEO. In a slight change for 2024, overtime pay has
been included in the calculations (where applicable) recognising
that this is increasingly a representative part of employee pay at
these levels.
In reviewing the employee pay data, the Committee is comfortable
that the P25, P50 and P75 individuals identified appropriately
reflect the employee pay profile at those quartiles, and that the
overall picture presented by the ratios is consistent with our pay,
reward and progression policies.
CEO pay ratio
2024
20231
2022
2021
2020
2019
Methodology used
B
B
B
B
B
B
Average number of employees
1,938
1,859
1,889
1,900
1,756
1,450
Ratio of CEO single figure total remuneration:
-To employee at the 25th percentile
64:1
70:1
48:1
58:1
44:1
113:1
-To employee at the 50th percentile
57:1
53:1
42:1
56:1
38:1
96:1
-To employee at the 75th percentile
43:1
47:1
29:1
43:1
29:1
70:1
Additional details
CEO total single figure (£000)
1,706
1,731
1,083
1,428
934
2,336
CEO base salary (£000)
607
558
523
472
425
457
Employees total pay and benefits (£000)
-at the 25th percentile
26.6
24.7
22.4
24.4
21.2
20.6
-at the 50th percentile
29.8
32.5
25.9
25.3
24.6
24.4
-at the 75th percentile
40.0
36.6
37.7
32.8
32.0
33.5
Employees base salary (£000)
- at the 25th percentile
24.0
21.9
20.0
21.1
19.6
18.1
- at the 50th percentile
26.7
28.8
23.2
21.8
22.6
21.7
- at the 75th percentile
34.2
32.3
30.4
28.5
29.4
29.6
1. Note: 2023 CEO single figure of remuneration has been trued-up from last year’s report to reflect the final vesting outcome and actual market price
on the date of vesting for 2021 LTIP awards, with ratios updated accordingly.
The Committee notes that the spread of the statutory CEO pay
ratios is broadly consistent year-on-year, with the ratio of CEO
total remuneration to the P50 employee having risen slightly from
53:1 to 57:1 but the ratios of the P25 and P75 employees having
fallen. The reported CEO single figure is broadly flat this year
and so the Committee considers that this year-on-year change
is principally driven by a change in the shape of the employee
population, and in particular an increase in the size of our
frontline teams.
Reflecting that a significant proportion of the CEO’s remuneration
is linked to Group performance and share price movements over
the longer term, and that, as a result, changes in the headline
ratios may be volatile, the Committee also reviews ratios
for salary and salary plus annual bonus. Participation in the
Group’s long-term incentives is currently limited to c.60 senior
leaders, with none of the individuals identified as P25, P50 and
P75 in this group. On the other hand, the significant majority
of our employees are eligible to participate in annual bonus
arrangements – and so the Committee considers this ratio, as well
as the ratio comparing just salaries, to provide helpful additional
context. The Committee notes that these ratios have seen similar
trends this year with, for example, that the ratio of the CEO’s
salary to that of the P50 employee increasing from 19:1 to 23:1
but with the comparative ratios for the P25 and P75 employees
being broadly flat. As above, this reflects a change in the shape
of the employee population during the year, alongside the Real
Living Wage increases awarded to relevant individuals.
Having reviewed the data points and associated context, the
Committee is satisfied that the fluctuation in the headline ratios
this year reflects appropriate differences in the structure of
remuneration at different levels of seniority.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
134
REVIEW OF PAST PERFORMANCE
This graph charts the TSR and FTSE 350 Real Estate Supersector
Index over ten years to 31 December 2024. There is no
comparator index or group of companies that truly reflect
Group activities. The FTSE 350 Real Estate Index was chosen
as it reflects trends within the UK property market generally
and tends to be the index against which analysts judge the
performance of the Company. The table below details the Chief
Executive’s single figure remuneration over the same period.
ANNUAL REPORT
ON REMUNERATION
continued
GOVERNANCE
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
M Allan
M Allan
R Smith
R Smith
R Smith
R Smith
R Smith
R Smith
R Smith
R Smith
J Lister
Note 1
Note 2
Note 3
CEO single figure £000
£223
£2,382
£1,239
£1,456
£2,131
£2,336
£934
£1,428
£1,083
£1,731
£1,706
Annual bonus (% of max.)
n/a
88.2%
43.4%
63.6%
74.3%
80.9%
n/a
73.3%
36.0%
55.0%
67.0%
LTIP outcome (% of max.)
n/a
100.0%
100.0%
96.1%
81.9%
97.1%
33.3%
36.8%
18.7%
76.0%
64.0%
1. 2020 annual bonus scheme was cancelled for Executive Directors in April 2020.
2. 2023 single figure has been trued-up from last year’s report to reflect the market price on the date of vesting for 2021 LTIP awards.
3. 2024 CEO single figure and LTIP outcome are based on an estimate of the vesting of the TAR element, see page 130 for further details.
DIRECTORS’ INTERESTS IN SHARES (AUDITED)
A table setting out the beneficial interests of the current Directors and their families in the share capital of the Company at the beginning
and end of the year is below. None of the Directors has a beneficial interest in the shares of any other Group company. Between 31
December 2024 and the sign-off date of this report, there have been no changes in the Directors’ interests in shares. The table also
shows the shareholding of each Executive Director against their respective shareholding requirement as at 31 December 2024.
Owned outright
Subject to
deferral/ holding period
Unvested and/or
subject to perf.
Holding
req.
Current
holding
31 Dec 2023
31 Dec 2024
Shares, NCOs
Approved options
Shares, NCO
Approved options
% sal
% sal/fee
Note 1
Note 2
J Lister
600,730
620,358
100,096
503
290,681
1,801
250%
895%
M Burt
n/a
33,971
0
0
121,675
1,690
200%
70%
R Huntingford
12,334
15,483
R Paterson
9,416
10,527
I Beato
2,276
3,387
S Pearce
2,983
4,107
T Jackson
0
0
S Smith
1,104
2,215
N Dulieu
3,314
3,869
A Jain
0
1,111
NCO – nil-cost option
1. Includes shares subject to a holding period under the LTIP and deferred bonus shares, where applicable. Excludes SAYE options.
2. Based on share price as at 31 December 2024 of 806.5p. Shares subject to deferral/holding periods are taken on a net of tax basis for the purposes
of the current shareholding calculation.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
135
IMPLEMENTATION OF REMUNERATION POLICY FOR 2025
Base salary
The CEO’s salary has been increased by 2.5% with effect from 1
January 2025. The CFO’s salary has been increased by 7.9% to
reflect the strong start he has made in his first year in the role,
and consistent with the Committee’s previously-communicated
intention of bringing him closer to market levels over the short
to medium term. The average salary increase across the Group
will be 3.9%. Unite Group maintains its commitment to being
an accredited Real Living Wage employer and, for relevant
individuals, has implemented the rates set by the Living Wage
Foundation (5.3% in London and 5.0% across the rest of the UK).
Salaries
From 1
Jan 2024
From 1
Jan 2025
%
change
J Lister
£606,900
£622,073
+2.5%
M Burt
£393,750
£425,000
+7.9%
Pension
Executive Directors will continue to receive a pension scheme
contribution, a cash allowance of equivalent cost to the
Company or a combination of both. Total employer pension
contributions are in line with the offering available to the wider
employee population at up to 11% of salary.
Annual bonus
For 2025, the maximum bonus opportunity for Joe Lister and
Mike Burt will be 150% of salary, with Threshold and On-Target
performance paying 30% and 50% of maximum respectively
under each performance measure. For both the financial and
non-financial elements of the annual bonus, targets have been
set to be challenging relative to the business plan. Reflecting
concerns around commercial sensitivity at this time, it is the
Committee’s intention to disclose all targets retrospectively in
next year’s Directors’ Remuneration Report. This decision takes
into account Unite Group’s status as one of only two listed PBSA
providers in the UK and the possible insight that prospective
disclosure might provide to our competitors as to our short-
term financial and operational strategy.
2025 bonus measures and weightings
Weight
Adjusted EPS
30.0%
TAR
25.0%
Net debt to EBITDA
15.0%
Customer NPS
7.5%
Higher Education trust
7.5%
Employee engagement
7.5%
GRESB score
7.5%
In line with the new Remuneration Policy, up to 50% of any
bonus earned will be deferred in shares for two years, unless a
Director has met their in-post shareholding guideline, in which
case the full bonus earned will be paid in cash.
LTIP
During 2025, Joe Lister and Mike Burt will each receive an award
of up to 200% of salary delivered through a combination of the
PSP and ESOS, with vesting dependent on the achievement of
three-year performance targets, as set out below. Any awards
vesting for performance will be subject to an additional two-year
holding period, during which time recovery provisions will also
apply. Further details of the grant date and number of interests
awarded will be disclosed in next year’s report.
2025 LTIP measure
Note
Weight
2027 Adjusted EPS
30.0%
Relative TSR
Note 1
30.0%
Relative TAR
Note 1
30.0%
OEI
Note 2
10.0%
2025 LTIP targets
Threshold
25% max.
Stretch
100% max.
2027 Adjusted EPS
51.7p
54.7p
Relative TSR
Median
UQ
Relative TAR
Median
UQ
OEI
4.5%
9.0%
For all measures: no vesting below Threshold; straight-line vesting
between Threshold and Stretch targets.
1. UQ – upper quartile; TSR and TAR are measured relative to the
constituents of the FTSE 350 Real Estate Supersector Index, excluding
Savills and Rightmove which do not report on an EPRA basis and
are not considered relevant comparators for the basis of relative
performance measurement.
2. The OEI target range for 2025-27 has been set with reference to
historical performance and both the existing CRREM residential multi-
family pathway and where we expect a new student housing pathway
to be set (due for publication in 2025.
CHAIRMAN AND NON-EXECUTIVE DIRECTOR FEES
Adjustments have been implemented for the fees payable to the
Chair of the Board and other Non-Executive Directors as follows:
Fee
From 1
Jan 2024
From 1
Jan 2025
% change
Base fees
Board Chair fee
£256,606
£263,021
+2.5%
NED base fee
£62,000
£63,550
+2.5%
Additional fees
SID
£10,000
£10,250
+2.5%
Committee Chair
£10,900
£11,173
+2.5%
SID – Senior Independent Director. Committee Chair fees are
currently paid to the Chairs of the Audit & Risk, Remuneration,
Health & Safety, and Sustainability Committees.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
136
DIRECTORS’ INTERESTS IN SHARES AND OPTIONS UNDER UNITE GROUP INCENTIVES (AUDITED)
Deferred bonus (DBP)
LTIP awards (PSP and ESOS)
Plan
Held at
1 Jan 2024
Granted
during the
year
Exercise
price
Vested
during the
year
Lapsed
during the
year
Held at
31 Dec 2024
End of deferral period
J Lister
DBP
1,005
-
n/a
1,005
-
-
24 Feb 2024
DBP
10,891
-
n/a
-
-
10,891
1 Mar 2025
DBP
-
17,499
n/a
-
-
17,499
28 Feb 2026
Plan
Held at
1 Jan 2024
Granted
during the
year
Exercise
price (£)
Vested
during the
year
Lapsed
during the
year
Held at
31 Dec 2024
Period of qualifying
conditions
Note 1
J Lister
PSP
70,850
-
53,846
17,004
-
12 Apr 2021 – 12 Apr 2024
ESOS
479
-
10.835
364
115
-
12 Apr 2021 – 12 Apr 2024
PSP
73,288
-
-
-
73,288
10 Apr 2022 – 10 Apr 2025
ESOS
535
-
11.210
-
-
535
10 Apr 2022 – 10 Apr 2025
PSP
89,656
-
-
-
89,656
6 Apr 2023 – 6 Apr 2026
ESOS
635
-
9.435
-
-
635
6 Apr 2023 – 6 Apr 2026
PSP
-
127,737
-
-
127,737
9 Apr 2024 – 9 Apr 2027
ESOS
-
631
9.495
-
-
631
9 Apr 2024 – 9 Apr 2027
M Burt
PSP
12,935
-
9,830
3,105
-
12 Apr 2021 – 12 Apr 2024
ESOS
922
-
10,835
700
222
-
12 Apr 2021 – 12 Apr 2024
PSP
13,093
-
-
-
13,093
10 Apr 2022 – 10 Apr 2025
PSP
25,742
-
-
-
25,742
6 Apr 2023 – 6 Apr 2026
ESOS
1,059
-
9.435
-
-
1,059
6 Apr 2023 – 6 Apr 2026
PSP
-
82,840
-
-
82,840
9 Apr 2024 – 9 Apr 2027
ESOS
-
631
9.495
-
-
631
9 Apr 2024 – 9 Apr 2027
Joe Lister’s awards vesting for performance during the year are subject to an additional two-year holding period. Mike Burt’s awards vesting for
performance during the year were granted in respect of his previous role and are not subject to a holding period.
Details of the qualifying performance conditions in relation to the above referred-to awards made in prior years are set out on
previous pages or in earlier reports. Awards made in prior years took the form of a combination of nil cost options under the PSP
and HMRC-approved options under the ESOS. No variations have been made to the terms or conditions of any awards.
ANNUAL REPORT
ON REMUNERATION
continued
GOVERNANCE
THE UNITE GROUP PLC
Annual Report and Accounts 2024
137
SAYE
Plan
Held at
1 Jan 2024
Granted
during the
year
Option
price
Exercised
during the
year
Held at
31 Dec 2024
Maturity
date
Note 1
J Lister
SAYE
913
-
985.2p
-
913
01.12.24
SAYE
1,251
-
741.2p
-
1,251
01.12.26
As at year-end, Joe Lister held 913 options under the 2021 scheme which had matured but not yet been exercised.
SHARE PRICE INFORMATION
As at 31 December 2024, the middle market price for ordinary shares in the Company was 806.5p per share. During the course of
the year, the market price of the Company’s shares ranged from 793.0p to 1,046.0p per share.
DIRECTORS’ SERVICE CONTRACTS AND LETTERS OF APPOINTMENT
Date of
appointment
Date of
contract/
letter of
appointment
J Lister
1 Jan 2024
1 Jan 2024
M Burt
1 Jan 2024
1 Jan 2024
R Huntingford
1 Dec 2020
26 Oct 2020
R Paterson
21 Sept 2017
21 Sept 2017
I Beato
1 Dec 2018
20 July 2018
S Pearce
1 Nov 2019
14 Oct 2019
T Jackson
29 Nov 2019
29 Nov 2019
S Smith
1 Nov 2019
14 Oct 2019
N Dulieu
1 Sept 2022
5 Aug 2022
A Jain
1 Aug 2023
15 May 2023
The Directors’ Remuneration Report has been approved by the Remuneration Committee and signed on its behalf by:
Nicky Dulieu
Chair of the Remuneration Committee
25 February 2025
THE UNITE GROUP PLC
Annual Report and Accounts 2024
138
GOVERNANCE
The rights attaching to the Company’s ordinary
shares, as well as the powers of the Company’s
Directors, are set out in the Company’s Articles
of Association.
There are no restrictions on the transfer or voting
rights of ordinary shares in the capital of the
Company (other than those which may be imposed
by law from time to time or as set out in the
Company’s Articles of Association).
In accordance with the Market Abuse Regulations,
certain employees are required to seek approval to
deal in the Company’s shares.
The Company is not aware of any agreements
between shareholders that may result in restrictions
on the transfers of securities and/or voting rights.
No person holds securities in the Company carrying
special rights with regard to control of the Company.
Unless expressly specified to the contrary, the
Company’s Articles of Association may be amended
by special resolution of the shareholders.
PURCHASE OF OWN SHARES
The Directors currently have no authority to buy
back the Company’s shares. The Directors anticipate
seeking authority from shareholders to buy back
shares in line with institutional investor guidelines at
the upcoming 2025 AGM as they consider it prudent
to obtain the flexibility that authority provides.
Details will be included in the Notice of Annual
General Meeting.
AUTHORITY TO ISSUE SHARES
The Directors may only issue shares if authorised
to do so by the Articles of Association or the
shareholders in general meeting. At the Company’s
Annual General Meeting held on 16 May 2024,
shareholders granted an authority to the Directors
As at 31 December 2024, the Company had received
notifications from the following companies and
institutions of themselves and their clients holding
3% or more of the issued share capital of the Company.
The Company has not received any further notifications
since that date through to 25 February 2025.
SHARE CAPITAL
Shareholder
Percentage
of share
capital
Canada Pension Plan Investment Board
14.85
BlackRock Inc
9.68
Norges Bank Investment Management
8.90
APG Asset Management NV
4.85
The Vanguard Group Inc
4.25
At the date of this report, there are 488,792,550
ordinary shares of 25p each in issue, all of which are
fully paid-up and quoted on the London Stock Exchange.
During the year and through to the date of this report,
the following numbers of ordinary shares of 25p each
were allotted and issued as follows:
50,000,000 – pursuant to the July 2024 capital raise and
representing 49,686,114 placing shares, 300,000 retail
offer shares, and Director subscribed shares of 13,886
at a price of 924 pence per share
2,808,461 – Unite share scrip scheme
32,086 – pursuant to the exercise of options
under Unite Group PLC Savings Related Share
Option Scheme
102,901 – pursuant to the exercise of options under
Unite Group PLC Performance Share Plan.
DIRECTORS’ REPORT
Directors’
Report
THE UNITE GROUP PLC
Annual Report and Accounts 2024
139
CHRISTOPHER SZPOJNAROWICZ
COMPANY SECRETARY
to allot ordinary shares up to an aggregate nominal
amount of £36,322,065 (which represented one-
third of the nominal value of the issued share
capital of the Company as at 26 March 2024).
In accordance with guidelines issued by the
Investment Association, this resolution also
granted the Directors authority to allot further
equity securities up to the aggregate amount of
£36,322,065 (representing one-third of the nominal
value of the issued share capital of the Company
as at 26 March 2024). This additional authority
was only permitted for fully pre-emptive rights
issues. As at 31 December 2024, the shares that
had been allotted were to satisfy awards under
the Company’s share schemes, the scrip scheme
and July 2024 capital raise. As this authority is due
to expire on 15 August 2025, shareholders will be
asked to renew and extend the authority, given to
the Directors at the last Annual General Meeting,
to allot shares in the Company, or grant rights to
subscribe for, or to convert any security into, shares
in the Company for the purposes of Section 551
of the Companies Act 2006. Further details on the
resolution will be provided in the Notice of this year’s
Annual General Meeting and its explanatory notes.
DISAPPLICATION OF PRE-EMPTION RIGHTS
If the Directors wish to allot new shares and other
equity securities, or sell treasury shares, for cash
(other than in connection with an employee share
scheme) company law requires that these shares
are offered first to shareholders in proportion to
their existing holdings. There may be occasions,
however, when the Directors need the flexibility
to finance business opportunities by the issue
of shares without a pre-emptive offer to existing
shareholders. This cannot be done under the
Companies Act 2006 unless the shareholders
have first waived their pre-emption rights. At the
forthcoming Annual General Meeting, shareholders
will be asked to pass two special resolutions to
grant the Directors powers to disapply shareholders’
pre-emption rights under certain circumstances.
Further details on the resolutions will be provided
in the Notice of this year’s Annual General Meeting.
CHANGE OF CONTROL
All of the Company’s share schemes contain
provisions relating to a change of control.
Outstanding rewards and options would normally
vest and become exercisable on a change of control,
subject to the satisfaction of any performance
conditions. Other than certain of the Group’s
banking facilities, there are no other significant
agreements to which the Company is a party
that affect, alter or terminate upon a change
of control of the Company following a takeover
bid. Nor are there any agreements between
the Company and its Directors or employees
providing for compensation for loss of office or
employment that occurs because of a takeover bid.
GOING CONCERN AND
VIABILITY STATEMENT
The going concern statement and viability statement
are set out on pages 158 and page 62 respectively
and are incorporated into this Directors’ Report
by reference.
INDEPENDENT AUDITOR AND DISCLOSURE
OF INFORMATION TO AUDITORS
The Directors who held office at the date of approval
of the Directors’ Report confirm that, so far as they
are each aware, there is no relevant audit information
of which the Company’s auditor is unaware; and
each Director has taken all the steps that he/she
ought to have taken as a Director to make himself/
herself aware of any relevant audit information
and to establish that the Company’s auditor is
aware of that information. This confirmation is
given and should be interpreted in accordance with
the provisions of section 418 of the Companies
Act 2006. A resolution to reappoint Deloitte as
auditor of the Group will be put to shareholders
at the forthcoming Annual General Meeting.
DIRECTORS’ CONFLICTS OF INTEREST
The Company has procedures in place for managing
conflicts of interest. A Director must notify the
Chair (and the Chair notifies the Chief Executive)
if he/she becomes aware that he/she, or any of
his/her connected parties, may have an interest
in an existing or proposed transaction with the
Company or the Group. Directors have a continuing
duty to update any changes to these conflicts.
POLITICAL DONATIONS
No political donations, contributions or
expenditure were made during the year ended
31 December 2024.
INDEMNITIES
There are no qualifying third-party indemnity
provisions or qualifying pension scheme indemnity
provisions for the benefit of any of the Directors.
RESEARCH AND DEVELOPMENT
The Company is not currently carrying on any
activities in the field of research and development.
BRANCHES OUTSIDE THE UK
The Company does not have any branches outside
of the UK.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
140
DIRECTORS’ REPORT
continued
GOVERNANCE
OTHER INFORMATION INCORPORATED BY REFERENCE
The following information in the strategic Report and
financial statements is incorporated into this Directors’ Report
by reference:
• Results and dividend on pages 13 and 195
• Greenhouse gas emissions and energy consumption
disclosures on pages 63
• Financial instruments and financial risk management on page
61 and Section 4 of the notes to the financial statements on
page 186
• Future developments on pages 30-32
• Employment of disabled persons/employee involvement
equal opportunities on pages 11, 84 and 99
• Workforce engagement on page 86
• Engagement with customers, partners, suppliers and others
on pages 11, 12 and 13
• The Corporate Governance Report (which includes details
of Directors who served throughout the year) on pages 74 -
97, the Statement of Directors’ responsibilities on page 141
and details of post balance sheet events on page 202 are
incorporated into this Directors’ Report by reference.
MANAGEMENT REPORT
This Directors’ Report together with the strategic report and
other sections from the Annual Report forms the Management
Report for the purposes of DTR 4.1.8 R.
ANNUAL GENERAL MEETING
The Annual General Meeting of the Company will be held at
the Company’s registered office at South Quay, Temple Back,
Bristol, BS1 6FL at 9.30am on 15 May 2025. We request that
shareholders who do wish to attend in person pre-register
their intention to attend to help us manage numbers.
Shareholders are encouraged to monitor our website at
https://www.unitegroup.com/investors/agm and
London Stock Exchange announcements for any updates
regarding the Annual General Meeting arrangements.
Formal notice of the meeting is given separately and
will be available on the Company’s website at:
www.unitegroup.com/investors
This report was approved by the Board on 25 February 2025
and signed on its behalf by:
Christopher Szpojnarowicz
Company Secretary
25 February 2025
APPOINTMENT AND REPLACEMENT OF DIRECTORS
The Company’s Articles of Association provide that Directors
may be appointed by the existing Directors or by the
shareholders in a general meeting. Any person appointed by
the Directors will hold office only until the next general meeting,
notice of which is first given after their appointment and will
then be eligible for re-election by the shareholders. A Director
may be removed by the Company as provided for by applicable
law and shall vacate office in certain circumstances as set out
in the Articles of Association. In addition the Company may, by
ordinary resolution, remove a Director before the expiration
of his/her period of office and, subject to the Articles of
Association, may by ordinary resolution appoint another person
to be a Director instead. There is no requirement for a Director
to retire on reaching any age.
DISCLOSURES REQUIRED UNDER LISTING RULE 6.6.1R
For the purposes of UKLR 6.6.4, the information required to be
disclosed by UKLR 6.6.1R can be found in the following locations
within the Annual Report:
INFORMATION REQUIRED UNDER LR 6.6.1R
REFERENCE
(1)
Amount of interest capitalised and tax relief
Note 3.1, page
172
(2)
Publication of unaudited financial information
N/A
(3)
Details of long-term incentive schemes
Pages 129 and
135
(4)
Waiver of emoluments by a Director
N/A
(5)
Waiver of future emoluments by a Director
N/A
(6)
Non-pre-emptive issues of equity for cash
Pages 87, 92 and
138
(7)
Item (6) in relation to major subsidiary undertakings
N/A
(8)
Parent participation in a placing by a listed subsidiary N/A
(9)
Contracts of significance
N/A
(10) Provision of services by a controller shareholder
N/A
(11) Shareholder waiver of dividends
N/A
(12) Shareholder waiver of future dividends
N/A
(13) Agreements with controlling shareholders
N/A
All the information referenced above is incorporated by
reference into the Directors’ Report.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
141
Under applicable law and regulations, the Directors are also
responsible for preparing a Directors’ Report, Directors’
Remuneration Report and Corporate Governance statement
that comply with that law and those regulations.
The Directors are responsible for the maintenance and
integrity of the corporate and financial information included
on the Company’s website. Legislation in the UK governing the
preparation and dissemination of financial statements may
differ from legislation in other jurisdictions.
The Directors confirm that:
• the Annual Report and Accounts taken as a whole is fair,
balanced and understandable and provides the information
necessary for shareholders to assess the Company’s position
and performance, business model and strategy
• the financial statements, prepared in accordance with the
applicable set of accounting standards, give a true and fair
view of the assets, liabilities, financial position and profit or
loss of the Company and the undertakings included in the
consolidation taken as a whole
• the Directors’ Report includes a fair review of the
development and performance of the business and the
position of the issuer and the undertakings included in the
consolidation taken as a whole, together with a description of
the principal risks and uncertainties that they face.
J J Lister
M J Burt
Director
Director
25 February 2025
Company law requires the Directors to prepare Group and
Parent Company financial statements for each financial year.
Under that law they are required to prepare the Group financial
statements in accordance with IFRS as adopted by the UK
(Adopted IFRS) and applicable law and have elected to prepare
the Parent Company financial statements in accordance with
United Kingdom Accounting Standards including FRS 101 –
Reduced Disclosure Framework (United Kingdom Generally
Accepted Practice).
Under company law, the Directors must not approve the
financial statements unless they are satisfied that they give a
true and fair view of the state of affairs of the Group and Parent
Company and of their profit or loss for that period.
In preparing each of the Group and Parent Company financial
statements, the Directors are required to:
• select suitable accounting policies and then apply
them consistently
• make judgements and estimates that are reasonable
and prudent
• state whether they have been prepared in accordance
with IFRSs as adopted by the UK (or in accordance with UK
Generally Accepted Practice)
• prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the Group and the
Parent Company will continue in business.
The Directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the Parent
Company’s transactions and disclose with reasonable accuracy
at any time the financial position of the Parent Company and
enable them to ensure that its financial statements comply with
the Companies Act 2006. They have general responsibility for
taking such steps as are reasonably open to them to safeguard
the assets of the Group and to prevent and detect fraud and
other irregularities.
STATEMENT OF DIRECTORS’
RESPONSIBILITIES
The Directors are responsible for preparing the
Annual Report and Accounts and the Group
and Parent Company financial statements in
accordance with applicable law and regulations.
FINANCIAL STATEMENTS
HEADLINE
Subheadline
Financial
statements
FINANCIAL STATEMENTS
THE UNITE GROUP PLC
Annual Report and Accounts 2024
142
FINANCIAL STATEMENTS
144 Independent auditor’s report
153 Consolidated income statement
153 Consolidated statement of comprehensive income
154 Consolidated balance sheet
155 Company balance sheet
156 Consolidated statement of changes in
shareholders’ equity
157
Company statement of changes in shareholders’ equity
157 Consolidated statement of cash flows
158 Notes to the financial statements
213 Financial record
THE UNITE GROUP PLC
Annual Report and Accounts 2024
143
THE UNITE GROUP PLC
Annual Report and Accounts 2024
144
FINANCIAL STATEMENTS
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE UNITE GROUP PLC
Report on the audit of the financial statements
1. Opinion
In our opinion:
• the financial statements of The Unite Group PLC (the ‘Parent Company’) and its subsidiaries (the ‘Group’) give a true and fair
view of the state of the Group’s and of the Parent Company’s affairs as at 31 December 2024 and of the Group’s profit for the
year then ended;
• the Group financial statements have been properly prepared in accordance with United Kingdom adopted international
accounting standards;
• the Parent Company financial statements have been properly prepared in accordance with United Kingdom Generally Accepted
Accounting Practice, including Financial Reporting Standard 101 “Reduced Disclosure Framework”; and
• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements which comprise:
• the consolidated income statement;
• the consolidated statement of comprehensive income;
• the consolidated and Parent Company balance sheets;
• the consolidated and Parent Company statements of changes in equity;
• the consolidated cash flow statement;
• the related sections 1 to 9.
The financial reporting framework that has been applied in the preparation of the Group financial statements is applicable law,
and United Kingdom adopted international accounting standards. The financial reporting framework that has been applied in the
preparation of the Parent Company financial statements is applicable law and United Kingdom Accounting Standards, including FRS
101 “Reduced Disclosure Framework (United Kingdom Generally Accepted Accounting Practice).
2. Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our
responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements
section of our report.
We are independent of the Group and the Parent Company in accordance with the ethical requirements that are relevant to our audit
of the financial statements in the UK, including the Financial Reporting Council’s (the ‘FRC’s’) Ethical Standard as applied to listed public
interest entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. The non-audit services
provided to the Group and Parent Company for the year are disclosed in section 2.6 to the financial statements. We confirm that we
have not provided any non-audit services prohibited by the FRC’s Ethical Standard to the Group or the Parent Company.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
3. Summary of our audit approach
Key audit matters
The key audit matter that we identified in the current year was:
• Investment property and Investment property under development property valuations.
Within this report, key audit matters are identified as follows:
Similar level of risk
Materiality
The materiality that we used for the Group financial statements was £59.0m which was
determined on the basis of net assets. However, we use a lower materiality threshold of
£10.0m for balances which impact EPRA earnings.
Scoping
Our Group audit scope comprised the audit of The Unite Group Plc as well as Group’s joint
ventures: The Unite UK Student Accommodation Fund (‘USAF’) and The London Student
Accommodation Vehicle (‘LSAV’). All audit work was completed by the Group audit team.
Significant changes in our approach There have been no significant changes to our approach from the prior year.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
145
4. Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the
preparation of the financial statements is appropriate.
Our evaluation of the directors’ assessment of the Group’s and Parent Company’s ability to continue to adopt the going concern basis
of accounting included:
• Obtaining an understanding of the relevant controls over the going concern process, including the process to formulate the
cashflow forecasts as well as the Board approval process;
• Assessing the financing facilities available to the Group and Parent Company, including the associated covenants;
• Performing risk assessment procedures including a detailed consideration of the entity’s business model, operations
and financing;
• Assessing the base-case and reasonable worst case as well as evaluating any plans for future mitigating actions.
• Assessing the outcome of the reverse stress testing, this includes assessing the likelihood of downside scenarios arising relative
to reverse stress tests with reference to the income and cost assumptions;
• Testing the arithmetical accuracy of the models used to prepare the Group’s forecast and related scenarios;
• Assessing the forecasts and sensitivity in the context of compliance with the covenants associated with borrowings;
• Assessing the revenue assumptions, for the outturn of the 2024/25 academic year and the assumptions for the 2025/26
academic year. For the 2025/26 academic year specifically, we assessed the Group’s current forward sales bookings and UCAS
application data to forecast occupancy assumptions for reasonableness;
• Assessing the cost assumptions within the forecasts, including consideration of previously incurred costs, the impact of
cost inflation, and assumptions made relating to expected future costs associated with climate change and fire-safety
related legislation;
• Assessing the assumptions regarding refinancing within the going concern period;
• Assessing the sufficiency of Group’s liquidity and covenant headroom positions with reference to borrowing facility agreements,
including the consideration of the availability of undrawn down facilities; and
• Assessing the appropriateness of the Group’s disclosure concerning the going concern basis of preparation.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the Group’s and Parent Company’s ability to continue as a going concern for
a period of at least twelve months from when the financial statements are authorised for issue.
In relation to the reporting on how the Group has applied the UK Corporate Governance Code, we have nothing material to add
or draw attention to in relation to the directors’ statement in the financial statements about whether the directors considered it
appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of
this report.
5. Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to
fraud) that we identified. These matters included those which had the greatest effect on: the overall audit strategy; the allocation of
resources in the audit; and directing the efforts of the engagement team.
These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon,
and we do not provide a separate opinion on these matters.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
146
FINANCIAL STATEMENTS
5.1. Investment property and investment property under development valuations
Key audit matter
description
The Group’s principal assets are investment properties (2024: £4,025.5m; 2023: £3,694.3m) and investment
properties under development (2024: £451.4m; 2023: £174.6m) which are held at fair value. The Group also holds
investments in its joint ventures, USAF and LSAV, with their principal assets also being investment properties.
The property valuations, which are performed by an external valuer, are carried out at six-monthly intervals for
the Group and quarterly for the joint ventures in accordance with the Royal Institution of Chartered Surveyors
(‘RICS’) Valuation – Professional Standards (the ‘Red Book’).
The valuations are determined using actual trading data and a number of subjective assumptions and estimates.
We consider the key assumptions to be net operating income (NOI) and property yields. Given the high level of
estimation involved, we have determined that there is potential for fraud through possible manipulation of these
key assumptions.
Valuations are also impacted by refurbishment cost assumptions, including cladding and fire-safety remediation
requirements and assumptions relating to climate change legislative requirements.
With regards to the investment properties under development, additional estimation is required to forecast
discounted cash flows with a deduction for construction costs to complete.
Refer to page 101 (Audit & Risk Committee Statement), section 3.1: Wholly owned property assets and section 3.4:
Investments in joint ventures. Critical accounting judgements and key sources of estimation uncertainty disclosures
relating to investment property and development property valuation are set out in Sections 1 and 3.1.
How the
scope of our
audit responded
to the key audit
matter
We carried out the following audit procedures in response to the identified key audit matter:
Understanding the properties and relevant controls:
• Obtained an understanding of and tested the relevant controls over the investment property and development
property valuation processes.
• Performed enquiries with key management to enhance our knowledge of the portfolio and to understand their
internal valuation process, the development appraisal process and market.
Data provided to the valuer:
• Tested the accuracy, completeness and consistency of the information provided to the external valuers.
• Tested on a sample basis the forecast cost to complete against budget and costs incurred to date.
External valuation:
• Assessed the objectivity, competence and capability of the external valuers and reviewed their terms of
engagement with the Group to determine whether there were any matters that might have affected their
objectivity or may have imposed scope limitations on their work.
• With the assistance of our internal real estate valuation specialists, benchmarked the assumptions used
against market data, including relevant transactions to identify individual properties where the key
assumptions were considered outliers to our expected range.
• Along with our internal real estate valuation specialists, met with the external valuer and made enquiries
relating to the results of their work on the sample of properties, as well as their views of the broader market.
• Made enquiries of the valuers as to whether any special assumptions had been made and how they approach
the impact of climate change, cladding and fire-safety remediation in the valuations.
• Assessed the valuation methodology used and considered compliance with the Red Book guidance.
• Tested the integrity of the model used by the external valuer through recalculation.
• Reconciled the external valuation reports to underlying financial records to test for completeness and accuracy
within the Group’s financial statements.
• Compared the property specific assumptions to assess whether there is consistency within the portfolio as well
as consistency with related assumptions used in other estimates.
Disclosures:
• Assessed the appropriateness of the Group’s valuation disclosures, including the related sensitivities included
within the financial statements.
Key observations We concluded that valuation of investment property and investment property under development is appropriate.
INDEPENDENT AUDITOR’S REPORT continued
THE UNITE GROUP PLC
Annual Report and Accounts 2024
147
6. Our application of materiality
6.1. Materiality
We define materiality as the magnitude of misstatement in the financial statements that makes it probable that the economic
decisions of a reasonably knowledgeable person would be changed or influenced. We use materiality both in planning the scope of
our audit work and in evaluating the results of our work.
Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:
Group financial statements
Parent Company financial statements
Materiality
£59.0m (2023: £51.0m)
£59.0m (2023: £50.5m)
Basis for determining
materiality
1.25% (2023: 1.25%) of net assets 1.25% (2023:1.25%) of net assets.
Rationale for the
benchmark applied
We consider net assets to be a
critical financial performance
measure for the Group on the
basis that it is a key metric used
by management, investors,
analysts and lenders.
As the parent holding company the principal activity
is to hold the investments in subsidiaries. Therefore,
the net assets balance is considered to be the key
driver of the Parent Company’s performance and
the most relevant benchmark for materiality.
In addition to net assets, we consider the EPRA earnings to be a critical financial performance measure for the Group and we applied
a lower threshold of £10.0m (2023: £8.8m) based on 5% (2023: 5%) of that measure for testing of all balances impacting this financial
performance measure.
Net assets
Group materiality
Group financial statements
Group materiality
£59.0m
Net assets
£4,811.5m
Component
performance
materiality range
£35.4m to £47.2m
Audit & Risk
Committee
reporting
threshold
£2.9m
EPRA earnings
Group materiality
EPRA earnings impacting measures
Component
performance
materiality range
£6.0m to £8.0m
Audit & Risk
Committee
reporting
threshold
£2.9m
EPRA earnings
£201.9m
Group materiality
£10.0m
THE UNITE GROUP PLC
Annual Report and Accounts 2024
148
FINANCIAL STATEMENTS
INDEPENDENT AUDITOR’S REPORT continued
6.2. Performance materiality
We set performance materiality at a level lower than materiality to reduce the probability that, in aggregate, uncorrected and
undetected misstatements exceed the materiality for the financial statements as a whole.
Group financial statements
Parent Company financial statements
Performance materiality
70% (2023: 70%) of Group materiality
70% (2023: 70%) of Parent Company materiality
Basis and rationale for
determining performance
materiality
In determining performance materiality, we considered the following factors:
a. Our risk assessment, including our assessment of the Group’s overall control environment, and
that we consider it appropriate to rely on controls over a number of business processes; and
b. Our past experience of the audit, which has indicated a low number of corrected and
uncorrected misstatements identified in prior periods.
6.3. Error reporting threshold
We agreed with the Audit & Risk Committee that we would report to the Committee all audit differences in excess of £2.9m
(2023: £2.4m), as well as differences below that threshold that, in our view, warranted reporting on qualitative grounds. We also
report to the Audit & Risk Committee on disclosure matters that we identified when assessing the overall presentation of the
financial statements.
7. An overview of the scope of our audit
7.1. Identification and scoping of components
Our Group audit was scoped by obtaining an understanding of the Group and its environment, including Group-wide controls, and
assessing the risks of material misstatement at the Group level.
The Group is audited by one audit team, led by the Senior Statutory Auditor. The Group only operates within the United Kingdom –
this includes The Unite Group plc and its related subsidiaries, as well as the two joint ventures, USAF and LSAV.
We used individual component performance materiality levels determined on the basis of their individual financial statements, which
ranged from £35.4m to £47.2m.
We audit all of the results of the Group together with USAF and LSAV, for the purposes of our Group audit. We have also tested the
consolidation process to confirm our conclusion that there were no significant risks of material misstatement of the aggregated
financial information.
7.2. Our consideration of the control environment
The Group uses the following application systems for the recording and reporting of its financial statements:
• Oracle EBS – general ledger and room booking system;
• Portal Agent Desktop (PAD) – room booking portal used by students and implemented on top of Oracle EBS and therefore where
revenue transactions are initiated; and
• HFM – used to prepare the Group consolidation at the Group’s Head Office.
We involved IT specialists to assess the relevant controls over the three systems set out above. Working with IT specialists we
identified and assessed relevant risks arising from each relevant IT system and the supporting infrastructure technologies based on
the role of application in the Group’s flow of transactions. We obtained an understanding of the IT environment as part of these risk
assessment procedures. We further performed the following procedures:
• Determined whether each general IT control, individually or in in combination with other controls, was appropriately designed to
address the risk;
• Obtained sufficient evidence to assess the operating effectiveness of the controls across the reporting period; and
• Altered the nature, timing and extent of our procedures where required if we were unable to rely on controls.
From our understanding of the Group and after assessing relevant controls, we tested and relied on controls in performing our audit
of the valuation of investment property and investment property under development. As a result of the implementation failure of
one relevant control we were unable to take a controls reliant approach in performing our audit of rental income.
Additionally, we have obtained an understanding of the relevant controls such as those relating to the financial reporting cycle and
going concern.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
149
7.3. Our consideration of climate-related risks
We have made enquiries of management to understand the processes in place to assess the potential impact of climate change on
the business and the financial statements. Management consider climate change to be a principal risk which particularly impacts the
cost of retrofitting rental accommodation to improve their sustainability credentials and comply with future regulations. These risks
are consistent with those identified through our own risk assessment process.
As part of our identification of key audit matters, we consider there to be a risk in relation to climate change as part of the valuation
of investment properties and investment properties under development. There is a risk that the valuation does not include the
relevant assumptions around climate change to the extent assumed by a third party when determining fair value.
We made enquiries of the valuer and management as to the assumptions included and considered their appropriateness with the
assistance of our internal real estate specialists. In considering the disclosures presented as part of the Strategic Report (pages 2
to 71), we engaged our climate specialists to assess compliance with the TCFD and CFD requirements and the recommendations
made by both the Task Force and FRC as set out in their thematic reviews. We have assessed whether these disclosures reflect our
understanding of the Group’s approach to climate. We have read the Annual Report narrative to consider whether the climate related
disclosures are materially consistent with the financial statements and our knowledge obtained in the audit. We have also evaluated
the appropriateness of disclosures included in the financial statements in the strategic report.
8. Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor’s
report thereon. The directors are responsible for the other information contained within the annual report.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in
our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated.
If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise
to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there
is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
9. Responsibilities of directors
As explained more fully in the directors’ responsibilities statement, the directors are responsible for the preparation of the financial
statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is
necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Group’s and the Parent Company’s ability to
continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting
unless the directors either intend to liquidate the Group or the Parent Company or to cease operations, or have no realistic alternative
but to do so.
10. Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at:
www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
THE UNITE GROUP PLC
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150
FINANCIAL STATEMENTS
INDEPENDENT AUDITOR’S REPORT continued
11. Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our
procedures are capable of detecting irregularities, including fraud is detailed below.
11.1. Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws
and regulations, we considered the following:
• the nature of the industry and sector, control environment and business performance including the design of the Group’s
remuneration policies, key drivers for directors’ remuneration, bonus levels and performance targets;
• results of our enquiries of management, internal audit, the Group’s internal legal counsel, the directors and the Audit and Risk
committee about their own identification and assessment of the risks of irregularities, including those that are specific to the
Group’s sector;
• any matters we identified having obtained and reviewed the Group’s documentation of their policies and procedures relating to:
– identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
– detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
– the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
• the matters discussed among the audit engagement team and relevant internal specialists, including tax, valuations and IT
specialists regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and
identified the greatest potential for fraud in the following area: investment property and investment property under development
valuations. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of
management override.
We also obtained an understanding of the legal and regulatory framework that the Group operates in, focusing on provisions
of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial
statements. The key laws and regulations we considered in this context included the UK Companies Act, Listing Rules and
tax legislation.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but
compliance with which may be fundamental to the Group’s ability to operate or to avoid a material penalty. These included the
Group’s compliance with health and safety matters, including fire safety and fire cladding.
11.2. Audit response to risks identified
As a result of performing the above, we identified the investment property and investment property under development valuations
as a key audit matter related to the potential risk of fraud. The key audit matters section of our report explains the matter in more
detail and also describes the specific procedures we performed in response to that key audit matter.
In addition to the above, our procedures to respond to risks identified included the following:
• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of
relevant laws and regulations described as having a direct effect on the financial statements;
• enquiring of management, the Audit & Risk Committee and internal and external legal counsel concerning actual and potential
litigation and claims;
• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material
misstatement due to fraud;
• reading minutes of meetings of those charged with governance, reviewing internal audit reports and reviewing correspondence
with HMRC; and
• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other
adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and
evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including
internal specialists, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
THE UNITE GROUP PLC
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151
Report on other legal and regulatory requirements
12. Opinions on other matters prescribed by the Companies Act 2006
In our opinion, the part of the directors’ remuneration report to be audited has been properly prepared in accordance with the
Companies Act 2006.
In our opinion, based on the work undertaken in the course of the audit:
• the information given in the strategic report and the directors’ report for the financial year for which the financial statements
are prepared is consistent with the financial statements; and
• the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the Parent Company and their environment obtained in the
course of the audit, we have not identified any material misstatements in the strategic report or the directors’ report.
13. Corporate Governance Statement
The Listing Rules require us to review the directors’ statement in relation to going concern, longer-term viability and that part of the
Corporate Governance Statement relating to the Group’s compliance with the provisions of the UK Corporate Governance Code
specified for our review.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate
Governance Statement is materially consistent with the financial statements and our knowledge obtained during the audit:
• the directors’ statement with regards to the appropriateness of adopting the going concern basis of accounting and any
material uncertainties identified set out on page 80;
• the directors’ explanation as to its assessment of the Group’s prospects, the period this assessment covers and why the period
is appropriate set out on page 62;
• the directors’ statement on fair, balanced and understandable set out on page 81;
• the board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on page 81;
• the section of the annual report that describes the review of effectiveness of risk management and internal control systems set
out on page 52; and
• the section describing the work of the Audit & Risk Committee set out on page 101.
THE UNITE GROUP PLC
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152
FINANCIAL STATEMENTS
INDEPENDENT AUDITOR’S REPORT continued
14. Matters on which we are required to report by exception
14.1. Adequacy of explanations received and accounting records
Under the Companies Act 2006 we are required to report to you if, in our opinion:
• we have not received all the information and explanations we require for our audit; or
• adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not been
received from branches not visited by us; or
• the Parent Company financial statements are not in agreement with the accounting records and returns.
We have nothing to report in respect of these matters.
14.2. Directors’ remuneration
Under the Companies Act 2006 we are also required to report if in our opinion certain disclosures of directors’ remuneration have
not been made or the part of the directors’ remuneration report to be audited is not in agreement with the accounting records
and returns.
We have nothing to report in respect of these matters.
15. Other matters which we are required to address
15.1. Auditor tenure
Following the recommendation of the Audit & Risk Committee, we were appointed by the board on 10 June 2015 to audit
the financial statements for the year ending 31 December 2015 and subsequent financial periods. The period of total uninterrupted
engagement including previous renewals and reappointments of the firm is 10 years, covering the years ending 31 December 2015
to 31 December 2024.
15.2. Consistency of the audit report with the additional report to the Audit & Risk Committee
Our audit opinion is consistent with the additional report to the Audit & Risk Committee we are required to provide in accordance
with ISAs (UK).
16. Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act
2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to
state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for
the opinions we have formed.
As required by the Financial Conduct Authority (FCA) Disclosure Guidance and Transparency Rule (DTR) 4.1.15R – DTR 4.1.18R, these
financial statements will form part of the Electronic Format Annual Financial Report filed on the National Storage Mechanism of the
FCA in accordance with DTR 4.1.15R – DTR 4.1.18R. This auditor’s report provides no assurance over whether the Electronic Format
Annual Financial Report has been prepared in compliance with DTR 4.1.15R – DTR 4.1.18R.
Stephen Craig FCA (Senior statutory auditor)
For and on behalf of Deloitte LLP
Statutory Auditor
London, United Kingdom
25 February 2025
THE UNITE GROUP PLC
Annual Report and Accounts 2024
153
2024
2023
Note
£m
£m
Rental income
2.4
282.0
259.2
Other income
2.4
17.3
16.9
Total revenue
299.3
276.1
Costs of sales
(86.4)
(76.8)
Operating expenses
(43.9)
(41.6)
Expected credit losses
(0.9)
(3.0)
Results from operating activities before (losses)/gains on property
168.1
154.7
Profit/(loss) on disposal of property
(9.8)
11.8
Net valuation gains/(losses) on property (owned and under development)
3.1
186.7
(37.2)
Net valuation losses on property (leased)
3.1
(1.9)
(10.4)
Profit before net financing (costs)/gains and share of joint venture profit
343.1
118.9
Loan interest and similar charges
4.3
(19.4)
(19.8)
Interest on lease liability
4.3
(8.8)
(7.7)
Mark to market changes in interest rate swaps
4.3
(0.4)
(17.2)
Swap cancellation and loan break costs
4.3
(3.1)
-
Finance (costs)
(31.7)
(44.7)
Finance income
4.3
16.7
1.3
Net financing (costs)/gains
(15.0)
(43.4)
Share of joint venture profit
3.4b
115.9
27.0
Profit before tax
444.0
102.5
Current tax
2.5a
(4.8)
(1.2)
Deferred tax
2.5a
2.6
2.3
Profit for the year
441.8
103.6
Profit for the year attributable to
Owners of the Parent Company
441.9
102.5
Non-controlling interest
(0.1)
1.1
441.8
103.6
Earnings per share
Basic
2.2c
96.3
24.7
Diluted
2.2c
96.1
24.6
All results are derived from continuing activities.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2024
2024
2023
Note
£m
£m
Profit for the year
441.8
103.6
Share of joint venture movements in effective hedges
3.4b
(2.3)
(2.1)
Other comprehensive income for the year
(2.3)
(2.1)
Total comprehensive income for the year
439.5
101.5
Attributable to
Owners of the Parent Company
439.6
100.4
Minority interest
(0.1)
1.1
439.5
101.5
All other comprehensive income may be classified as profit and loss in the future.
There are no tax effects on items of other comprehensive income.
CONSOLIDATED INCOME STATEMENT
For the year ended 31 December 2024
THE UNITE GROUP PLC
Annual Report and Accounts 2024
154
FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEET
At 31 December 2024
2024
2023
Note
£m
£m
Assets
Investment property (owned)
3.1
4,025.5
3,694.3
Investment property (leased)
3.1
71.8
84.7
Investment property under development
3.1
451.4
174.7
Investment in joint ventures
3.4b
1,265.0
1,219.0
Other non-current assets
3.3b
14.8
12.7
Interest rate swaps
4.2
46.0
56.0
Right-of-use assets
3.3a
4.7
1.7
Deferred tax asset
2.5d
8.2
5.6
Total non-current assets
5,887.4
5,248.7
Assets classified as held for sale
3.1
92.6
25.7
Interest rate swaps
4.2
7.4
-
Inventories
3.2
13.6
26.2
Trade and other receivables
5.2
144.6
132.8
Cash and cash equivalents
5.1
274.3
37.5
Total current assets
532.5
222.2
Total assets
6,419.9
5,470.9
Liabilities
Current borrowings
4.1
-
(299.4)
Lease liabilities
4.6a
(6.0)
(5.4)
Trade and other payables
5.4
(255.5)
(207.8)
Current tax (liability) / Asset
(1.2)
0.6
Provisions
5.5
(5.1)
(5.2)
Total current liabilities
(267.8)
(517.2)
Borrowings
4.1
(1,273.8)
(782.2)
Lease liabilities
4.6a
(66.8)
(78.4)
Total non-current liabilities
(1,340.6)
(860.6)
Total liabilities
(1,608.4)
(1,377.8)
Net assets
4,811.5
4,093.1
Equity
Issued share capital
4.8
122.2
109.4
Share premium
4.8
2,876.9
2,447.6
Merger reserve
40.2
40.2
Retained earnings
1,770.8
1,466.0
Hedging reserve
1.4
3.8
Equity attributable to owners of the parent company
4,811.5
4,067.0
Non-controlling interest
-
26.1
Total equity
4,811.5
4,093.1
The financial statements of The Unite Group PLC, registered number 03199160, were approved and authorised for issue by the Board of
Directors on 25 February 2025 and were signed on its behalf by:
Joe Lister
Mike Burt
Director
Director
THE UNITE GROUP PLC
Annual Report and Accounts 2024
155
COMPANY BALANCE SHEET
At 31 December 2024
2024
2023
Note
£m
£m
Assets
Investments in subsidiaries
3.5
2,651.3
2,450.8
Loan to Group undertaking
5.2
3,416.1
2,130.0
Interest rate swaps
4.2
46.0
56.0
Total non-current assets
6,113.4
4,636.8
Trade and other receivables
5.2
-
-
Interest rate swaps
4.2
7.4
-
Cash and cash equivalents
80.9
0.7
Total current assets
88.3
0.7
Total assets
6,201.7
4,637.5
Current liabilities
Amounts due to Group undertakings
5.6
(102.1)
(66.7)
Other payables
5.4
(24.8)
(9.1)
Total current liabilities
(126.9)
(75.8)
Borrowings
4.1
(1,263.7)
(468.6)
Total non-current liabilities
(1,263.7)
(468.6)
Total liabilities
(1,390.6)
(544.4)
Net assets
4,811.1
4,093.1
Equity
Issued share capital
4.8
122.2
109.4
Share premium
4.8
2,876.9
2,447.6
Merger reserve
40.2
40.2
Hedging reserve
0.9
1.1
Retained earnings
1,770.9
1,494.7
Total equity
4,811.1
4,093.1
Total equity is wholly attributable to equity holders of The Unite Group PLC. The profit of The Unite Group PLC in 2024 was £414.0 million
(2023: £97.2 million).
The financial statements of The Unite Group PLC, registered number 03199160, were approved and authorised for issue by the Board of
Directors on 25 February 2025 and were signed on its behalf by:
Joe Lister
Mike Burt
Director
Director
THE UNITE GROUP PLC
Annual Report and Accounts 2024
156
FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
For the year ended 31 December 2024
Issued
share
capital
Share
premium
Merger
reserve
Retained
earnings
Hedging
reserve
Attributable
to owners of
the Parent
Non-
controlling
interest
Total
Note
£m
£m
£m
£m
£m
£m
£m
£m
At 1 January 2024
109.4
2,447.6
40.2
1,466.0
3.8
4,067.0
26.1
4,093.1
Profit/(loss) for the year
-
-
-
441.9
-
441.9
(0.1)
441.8
Other comprehensive
income for the year:
Share of joint venture
movements in effective hedges
3.4b
-
-
-
-
(2.3)
(2.3)
-
(2.3)
Total comprehensive
income/(loss) for the year
-
-
-
441.9
(2.3)
439.6
(0.1)
439.5
Shares issued
4.8
12.8
429.3
-
-
-
442.1
-
442.1
Deferred tax on share-
based payments
-
-
-
0.1
-
0.1
-
0.1
Fair value of share-based payments
-
-
-
2.1
-
2.1
-
2.1
Own shares acquired
-
-
-
(1.5)
-
(1.5)
-
(1.5)
Unwind of realised swap gain
(0.1)
(0.1)
(0.1)
Dividends paid to owners
of the Parent Company
4.9
-
-
-
(137.8)
-
(137.8)
-
(137.8)
Disposals of non-
controlling interest
(26.0)
(26.0)
At 31 December 2024
122.2
2,876.9
40.2
1,770.8
1.4
4,811.5
-
4,811.5
Issued
share
capital
Share
premium
Merger
reserve
Retained
earnings
Hedging
reserve
Attributable
to owners of
the Parent
Non-
controlling
interest
Total
Note
£m
£m
£m
£m
£m
£m
£m
£m
At 1 January 2023
100.1
2,162.0
40.2
1,479.0
6.2
3,787.5
26.4
3,813.9
Profit for the year
-
-
-
102.5
-
102.5
1.1
103.6
Other comprehensive
income for the year:
Share of joint venture
movements in effective hedges
3.4b
-
-
-
-
(2.1)
(2.1)
-
(2.1)
Total comprehensive
income for the year
-
-
-
102.5
(2.1)
100.4
1.1
101.5
Shares issued
4.8
9.3
285.6
-
-
-
294.9
-
294.9
Deferred tax on share-
based payments
-
-
-
0.2
-
0.2
-
0.2
Fair value of share-
based payments
-
-
-
2.2
-
2.2
-
2.2
Own shares acquired
-
-
-
(0.6)
-
(0.6)
-
(0.6)
Unwind of realised swap gain
(0.3)
(0.3)
(0.3)
Dividends paid to owners
of the Parent Company
4.9
-
-
-
(117.3)
-
(117.3)
-
(117.3)
Dividends to non-
controlling interest
-
-
-
-
-
-
(1.4)
(1.4)
At 31 December 2023
109.4
2,447.6
40.2
1,466.0
3.8
4,067.0
26.1
4,093.1
The notes on pages 158-212 form part of the financial statements.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
157
COMPANY STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
For the year ended 31 December 2024
Issued
share
capital
Share
premium
Merger
reserve
Hedging
reserve
Retained
earnings
Total
Note
£m
£m
£m
£m
£m
£m
At 1 January 2024
109.4
2,447.7
40.2
1.1
1,494.7
4,093.1
Profit and total comprehensive income for the year
-
-
-
-
414.0
414.0
Shares issued
4.8
12.8
429.2
-
-
-
442.0
Unwind of realised swap gain
-
-
-
(0.2)
-
(0.2)
Dividends to shareholders
4.9
-
-
-
-
(137.8)
(137.8)
At 31 December 2024
122.2
2,876.9
40.2
0.9
1,770.9
4,811.1
Issued
share
capital
Share
premium
Merger
reserve
Hedging
reserve
Retained
earnings
Total
Note
£m
£m
£m
£m
£m
£m
At 1 January 2023
100.1
2,162.0
40.2
1.3
1,514.9
3,818.5
Profit and total comprehensive income for the year
-
-
-
-
97.2
97.2
Shares issued
4.8
9.3
285.6
-
-
-
294.9
Unwind of realised swap gain
-
-
-
(0.2)
-
(0.2)
Dividends to shareholders
4.9
-
-
-
-
(117.3)
(117.3)
At 31 December 2023
109.4
2,447.7
40.2
1.1
1,494.7
4,093.1
The notes on pages 158-212 form part of the financial statements.
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 December 2024
Group
Note
2024
2023
£m
£m
Net cash flows from operating activities
5.1
216.4
153.2
Investing activities
Redemption of minority interest
27.9
-
Payments for investment property
(347.8)
-
Capital expenditure on properties
(267.9)
(135.3)
Acquisition of intangible assets
(5.1)
(1.8)
Acquisition of plant and equipment
(2.5)
(0.9)
Proceeds from sale of investment property
123.1
-
Interest received
16.7
1.3
Dividends received
27.6
27.3
Net cash flows used in investing activities
(428.0)
(109.4)
Financing activities
Proceeds from the issue of share capital
442.0
294.9
Payments to acquire own shares
(1.5)
(0.6)
Interest paid in respect of financing activities
(35.6)
(31.1)
Repayment of lease liabilities
(8.8)
(7.7)
Swap cancellation and loan break costs
(3.1)
-
Proceeds from non-current borrowings
543.7
-
Repayment of borrowings
(350.5)
(182.5)
Dividends paid to the owners of the Parent Company
(124.2)
(103.4)
Withholding tax paid on distributions
(13.6)
(12.0)
Dividends paid to non-controlling interest
-
(1.9)
Net cash flows from financing activities
448.4
(44.3)
Net increase/(decrease) in cash and cash equivalents
236.8
(0.5)
Cash and cash equivalents at start of year
37.5
38.0
Cash and cash equivalents at end of year
274.3
37.5
THE UNITE GROUP PLC
Annual Report and Accounts 2024
158
FINANCIAL STATEMENTS
Section 1: Basis of preparation
This section lays out the Group’s accounting policies that relate to the financial statements as a whole.
Where an accounting policy is specific to a particular note to the financial statements, the policy is described in the note
to which it relates and has been clearly identified in a box.
Basis of consolidation
The financial statements consolidate those of Unite Group PLC (the Company) and its subsidiaries (together referred to as the Group)
and include the Group’s interests in jointly controlled entities. The Company financial statements present information about the
Company as a separate entity and not as a group.
The Company financial statements have been prepared in accordance with Financial Reporting Standard 101 – Reduced disclosure
framework (FRS 101), and the Group financial statements have been prepared in accordance with International Financial Reporting
Standards as adopted by the United Kingdom (Adopted IFRS), in conformity with the Companies Act 2006, and approved by the
Directors. On publishing the Company financial statements here together with the Group financial statements, the Company is taking
advantage of the exemption in s408 of the Companies Act 2006 not to present its individual income statement and related notes.
The Company is also taking advantage of the FRS 101 disclosure exemptions from requirements of IFRS 7, IFRS 13 and IAS 1 including
presenting a Company statement of cash flows.
The accounting policies have been applied consistently to all periods presented in these consolidated financial statements. The
Company is a public company limited by shares and is registered in England, United Kingdom, where it is also domiciled.
Subsidiaries are those entities controlled by the Company. Control exists when the Company has an existing right that gives it
the current ability to direct the relevant activities of the subsidiary, has exposure or right to variable returns from its involvement
in the subsidiary and has the ability to use its power to affect its returns. The financial statements of subsidiaries are included in
the consolidated financial statements from the date that control commences until the date that control ceases. Intra-Group balances
and transactions, and any unrealised gains and losses arising from intra-Group transactions, such as property disposals and
management fees, are eliminated in preparing the consolidated financial statements. Unrealised gains arising from transactions with
joint ventures are eliminated to the extent of the Group’s retained interest in the entity. Unrealised losses are eliminated in the same
way as unrealised gains except where the loss provides evidence of a reduction in the net realisable value of current assets or an
impairment in the value of non-current assets.
Non-controlling interests are shown as a line item within equity and comprise the non-controlling interests in subsidiaries which
are not directly or indirectly attributable to the Group. Non-controlling interests were assigned to one subsidiary as at 31 December
2023. There was no non-controlling interest as at 31 December 2024 (see note 3.4).
Measurement convention
The financial statements are prepared on the historical cost basis except for investment property (owned), investment property
(leased), investment property (under development), investments in subsidiaries and interest rate swaps all of which are stated
at their fair value.
Going concern
In determining the appropriate basis of preparation of the financial statements, the Directors are required to consider whether the
Group can continue in operational existence for at least 12 months from the date of this report.
The Directors have considered a range of scenarios for future performance through the 2024/25 and 2025/26 academic years.
This included a base case assuming cash collection and performance for the 2024/25 academic year remains in line with current
expectations and sales performance for the 2025/26 academic year consistent with published guidance; and a reasonable worst-case
scenario where income for the 2025/26 academic year is impacted by reduced sales, equivalent to occupancy of around 90%.
The impact of our ESG asset transition plans are included within the capex element of our cashflows, which have been modelled to
align with the Group’s 2030 net zero carbon targets. Under each of these scenarios, the Directors are satisfied that the Group has
sufficient liquidity and will maintain covenant compliance over the next 12 months. To further support the Directors’ going concern
assessment, a Reverse Stress Test was performed to determine the level of performance at which adopting the going concern
basis of preparation may not be appropriate. This involved assessing the minimum amount of income required to ensure financial
covenants would not be breached. Within the tightest covenant, occupancy could fall to approximately 50% in the Group and 70%
in the funds before there would be a breach. The Group has capacity for property valuations to fall by around 70% in the Group and
40% in the funds before there would be a breach of LTV and gearing covenants in facilities where such covenants exist. Were income
or asset values to fall beyond these levels, the Group has certain cure rights, such that an immediate default could be avoided.
NOTES TO THE FINANCIAL STATEMENTS
THE UNITE GROUP PLC
Annual Report and Accounts 2024
159
The Directors are satisfied that the possibility of such an outcome is sufficiently remote that adopting the going concern basis of
preparation is appropriate.
Apart from the undrawn RCF, £150m of which matures in March 2026, there is no borrowing maturity in the wholly-owned group
until 2027. Refinancing for the USAF £395m secured bond is well progressed in advance of its maturity in June 2025. The LSAV Bank
of America loan has two extension options at the borrower’s discretion. The Group are currently in the process of extending which
will take the maturity out to May 2026.
The Directors have considered the impact of climate change in the context of our strategic report and the Group’s target of net zero
carbon emissions by 2030. These considerations did not have a material impact on our financial reporting. There is limited exposure
and vulnerability of climate change on the Group’s investment property portfolio, carrying value of non-current assets, and the
estimates of future profitability used in our assessment of the recoverability of deferred tax assets.
Accordingly, after making enquiries and having considered forecasts and appropriate sensitivities, the Directors have formed
a judgement, at the time of approving the financial statements, that there is a reasonable expectation that the Group has adequate
resources to continue in operational existence for the foreseeable future, being at least 12 months from the date of these
financial statements.
Standards and interpretations effective in the current period
The accounting policies used in these financial statements are consistent with those applied in the last annual financial statements,
as amended where relevant to reflect the adoption of new standards, amendments and interpretations which became effective in
the year as listed below:
• Amendments to IAS 1 – Classification of liabilities as current or non-current
• Amendments to IAS 1 – Non-current Liabilities with Covenants
• Amendments to IAS 7 and IFRS 7 – Disclosures: Supplier finance arrangements
• Amendments to IFRS 16 – Lease liability in a sale and leaseback.
Impact of accounting standards and interpretations in issue but not yet effective
At the date of approval of these financial statements there are a number of new standards and amendments to existing standards
in issue but not yet effective. The Group has not adopted the new or amended standards in preparing these consolidated financial
statements. The standards are set out below:
• Amendments to IFRS9 and IFRS 7 - Contracts Referencing Nature-dependent Electricity
• Amendments to IFRS 9 and IFRS 7 - Disclosure of the classification and measurement of financial instruments
• IFRS 18 Presentation and Disclosure in Financial Statements
• IFRS 19 Subsidiaries without Public Accountability: Disclosures.
The Group has yet to assess the full outcome of these new standards, amendments and interpretations, however with the exception
of IFRS 18 these other new standards, amendments and interpretations are not expected to have a significant impact on the Group’s
financial statements.
Critical accounting judgements and key sources of estimation uncertainty
The Group’s significant accounting policies are stated in the relevant notes to the Group financial statements. The preparation of
financial statements requires management to exercise judgement in applying the Group’s accounting policies. It also requires the use
of estimates and assumptions that affect the reported amounts of assets and liabilities, income and expenses.
Critical accounting judgements
The areas which involve a high degree of judgement or complexity in applying the accounting policies of the Group are explained
in more detail in the accounting policy descriptions in the related notes to the financial statements. Classification of joint venture
vehicles (note 3.4) has the most significant impact on the financial statements of the Group.
Key sources of estimation uncertainty
The estimates and associated assumptions are based on historical experience and various other factors that are believed to be
reasonable under the circumstances, the results of which form the basis of making judgements about carrying values of assets and
liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
Estimates and assumptions are reviewed on an ongoing basis with revisions recognised in the period in which the estimates are
revised and in any future periods affected. The areas involving the most sensitive estimates and assumptions that are significant to
the financial statements are valuation of investment property and investment property under development (note 3.1).
THE UNITE GROUP PLC
Annual Report and Accounts 2024
160
FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS continued
Section 2: Results for the year
This section focuses on the results and performance of the Group and provides a reconciliation between the primary
statements and EPRA performance measures. On the following pages you will find disclosures explaining the Group’s
results for the year, segmental information, taxation, earnings and net tangible asset value (NTA) per share.
The Group uses EPRA earnings, adjusted earnings and NTA movement as key comparable indicators across other
real estate companies in Europe. EPRA earnings, adjusted earnings and NTA movement are Alternative Performance
Measures (APMs), further details of which are set out in section 8.
IFRS performance measures
2024
2023
2024
2023
Note
£m
£m
pps
pps
Profit after tax *
2.2b
441.9
102.5
96.3
24.7
Net assets *
2.3d
4,811.5
4,067.0
982
931
* Profit after tax represents profit attributed to the owners of the Parent Company, and net assets represents equity attributable to the
owners of the Parent Company.
EPRA performance measures
2024
2023
2024
2023
Note
£m
£m
pps
pps
EPRA earnings
2.2c
201.9
176.1
44.0
42.4
Adjusted earnings **
2.2c
213.8
184.3
46.6
44.3
EPRA NTA
2.3d
4,758.4
4,014.7
972
920
** Adjusted earnings are calculated as EPRA earnings after adding back software as a service costs (net of deferred tax) and abortive costs
(see note 2.2a), in order to reflect the performance of the Group’s underlying operating activities.
2.1 Segmental information
The Board of Directors monitors the business along two activity lines:
The Operations segment manages rental properties, owned directly by the Group or by joint ventures. Its revenues are derived
from rental income and asset management fees earned from joint ventures. The way in which the Operations segment adds value
to the business is set out in the Operations review on pages 24-26. The Operations segment is the main contributor to adjusted
earnings and adjusted EPS and these are therefore the key indicators which are used by the Board to monitor the Group’s financial
performance. The Board does not manage or monitor the Operations segment through the balance sheet and therefore no
segmental information for assets and liabilities is provided.
The Group’s Property business undertakes the acquisition and development of properties. The way in which the Property segment
adds value to the business is set out in the Property review on pages 29-32.
The reportable segments for the years ended 31 December 2024 and 31 December 2023 are Operations and Property.
The Group undertakes its Operations and Property activities directly and through joint ventures with third parties. The joint ventures
are an integral part of each segment and are included in the information used by the Board to monitor the business.
Detailed analysis of the performance of each of these reportable segments is provided in the following sections 2.2 to 2.3. The
Group’s properties are located exclusively in the United Kingdom. The Group therefore has one geographical segment.
2.2 Earnings
EPRA earnings and adjusted earnings amend IFRS measures by removing principally the unrealised investment property valuation
gains and losses such that users of the financial statements are able to see the extent to which dividend payments (dividend per
share) are underpinned by earnings arising from operational activity. In 2024 and 2023, software as a service costs, which were
previously capitalised under the existing intangibles policy have been excluded from adjusted earnings (net of deferred tax), to align
with the International Financial Reporting Interpretations Committee (IFRIC) agenda decision in 2021. The reconciliation between
profit attributable to owners of the Parent Company and EPRA earnings is available in note 2.2b.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
161
2.2a) EPRA earnings
2024
Share of joint ventures
Group on
EPRA basis
Unite
Students
USAF
LSAV
Total
Total
£m
£m
£m
£m
£m
Rental income
282.0
59.0
57.0
116.0
398.0
Property operating expenses
(87.2)
(20.7)
(14.0)
(34.7)
(121.9)
Net operating income
194.8
38.3
43.0
81.3
276.1
Management fees
21.9
(4.6)
-
(4.6)
17.3
Overheads
(37.5)
(0.5)
(0.4)
(0.9)
(38.4)
Interest on lease liabilities
(8.8)
-
-
-
(8.8)
Net financing costs
(6.9)
(11.5)
(16.8)
(28.3)
(35.2)
Operations segment result
163.5
21.7
25.8
47.5
211.0
Property segment result
(3.8)
-
-
-
(3.8)
Unallocated to segments
(4.8)
(0.2)
(0.3)
(0.5)
(5.3)
EPRA earnings
154.9
21.5
25.5
47.0
201.9
Software as a service costs
11.9
-
-
-
11.9
Adjusted earnings
166.8
21.5
25.5
47.0
213.8
Included in the above is rental income of £20.3 million and property operating expenses of £11.5 million relating to sale and leaseback
properties. Included in the above is also rental income of £4.0 million and property operating expenses of £1.2 million, relating to a build-to-
rent property. Unallocated to segments includes the fair value of share-based payments of (£2.3 million), contributions to the Unite Foundation
and social causes of (£0.6 million), a deferred tax credit of £2.6 million and current tax charge of (£5.1 million). Depreciation and amortisation
totalling (£5.7 million) is included within overheads. The software as a service costs are presented net of deferred tax of £4.0 million.
2023
Share of joint ventures
Group on
EPRA basis
Unite
Students
USAF
LSAV
Total
Total
£m
£m
£m
£m
£m
Rental income
259.2
57.5
52.8
110.3
369.5
Property operating expenses
(79.8)
(20.0)
(13.2)
(33.2)
(113.0)
Net operating income
179.4
37.5
39.6
77.1
256.5
Management fees
21.4
(4.5)
-
(4.5)
16.9
Overheads
(32.2)
(0.4)
(0.5)
(0.9)
(33.1)
Interest on lease liabilities
(7.7)
-
-
-
(7.7)
Net financing costs
(22.9)
(9.4)
(15.1)
(24.5)
(47.4)
Operations segment result
138.0
23.2
24.0
47.2
185.2
Property segment result
(2.7)
-
-
-
(2.7)
Unallocated to segments
(6.0)
(0.2)
(0.2)
(0.4)
(6.4)
EPRA earnings
129.3
23.0
23.8
46.8
176.1
Software as a service costs
8.2
-
-
-
8.2
Adjusted earnings
137.5
23.0
23.8
46.8
184.3
Included in the above is rental income of £19.0 million and property operating expenses of £10.2 million relating to sale and leaseback
properties. Included in the above is also rental income of £3.8 million and property operating expenses of £1.2 million, relating to a build-to-
rent property. Unallocated to segments includes the fair value of share-based payments of (£3.4 million), costs due to leadership changes of
(£2.9 million), contributions to the Unite Foundation and social causes of (£1.6 million), a deferred tax credit of £2.5 million and current tax
charge of (£1.0 million). Depreciation and amortisation totalling (£6.3 million) is included within overheads. The software as a service costs
are presented net of deferred tax of £2.8 million.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
162
FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS continued
2.2b) IFRS reconciliation to EPRA earnings and adjusted earnings
EPRA earnings excludes movements relating to changes in values of investment properties (owned, leased and under development),
profits/losses from the disposal of properties and swap/debt break costs which are included in the profit reported under IFRS. EPRA
earnings and adjusted earnings reconcile to the profit attributable to owners of the Company as follows:
Note
2024
2023
£m
£m
Profit attributable to owners of the Parent Company
441.9
102.5
Net valuation (gains)/losses on property (owned)
3.1
(186.7)
37.2
(Gains)/losses on property disposals (owned)
9.8
(11.8)
Net valuation losses on property (leased)
3.1
1.9
10.4
Amortisation of fair value of debt recognised on acquisition
(4.1)
(4.3)
Share of joint venture (gains)/losses on investment property
3.4b
(67.0)
21.9
Share of joint venture property disposals
3.4b
2.4
3.5
Swap cancellation and loan break costs
4.3
3.1
-
Mark to market changes in interest rate swaps
4.3
0.4
17.2
Current tax relating to property disposals
0.2
(0.1)
Deferred tax
2.5d
-
(0.2)
Non-controlling interest share of reconciling items*
-
(0.2)
EPRA earnings
201.9
176.1
Software as a service costs
11.9
8.2
Adjusted earnings
213.8
184.3
* The non-controlling interest, arises as a result of the Company not owning 100% of the share capital of one of its subsidiaries, USAF
(Feeder) Guernsey Limited. This non-controlling interest was disposed of in 2024. More detail is provided in note 3.4.
2.2c) Earnings per share
Basic EPS calculation is based on the earnings attributable to the equity shareholders of The Unite Group PLC and the weighted
average number of shares which have been in issue during the year. Basic EPS is adjusted in line with EPRA guidelines in order to
allow users to compare the business performance of the Group with other listed real estate companies in a consistent manner and
to reflect how the business is managed on a day-to-day basis.The calculations of basic and EPRA EPS and adjusted EPS for the year
ended 31 December 2024 and 2023 are as follows:
Note
2024
2023
2024
2023
£m
£m
pps
pps
Earnings
Basic
441.9
102.5
96.3
24.7
Diluted
96.1
24.6
EPRA
2.2b
201.9
176.1
44.0
42.4
Diluted EPRA
43.9
42.2
Adjusted earnings
2.2b
213.8
184.3
46.6
44.3
Diluted adjusted earnings
46.5
44.2
2024
2023
Weighted average number of shares (thousands)
Basic
458,969
415,733
Dilutive potential ordinary shares (share options)
1,087
1,165
Diluted
460,056
416,898
Movements in the weighted average number of shares have resulted from the issue of shares arising from the capital raise in
July 2024, employee share-based payment schemes and the scrip dividend.
In 2024, there were 37,319 options excluded from the potential dilutive shares that did not affect the diluted weighted average
number of shares (2023: 16,505).
THE UNITE GROUP PLC
Annual Report and Accounts 2024
163
2.3 Net assets
2.3a) EPRA NTA
EPRA NTA makes adjustments to IFRS measures by removing the fair value of financial instruments and the carrying value of
intangibles. The reconciliation between IFRS NAV and EPRA NTA is available in note 2.3c.
2024
Share of joint ventures
Group
on EPRA
basis
Unite
Students
USAF
LSAV
Total
Total
£m
£m
£m
£m
£m
Investment properties (owned)*
4,025.5
829.6
996.9
1,826.5
5,852.0
Investment properties (leased)
71.8
-
-
-
71.8
Investment properties under development
451.4
-
-
-
451.4
Total property portfolio
4,548.7
829.6
996.9
1,826.5
6,375.2
Debt on properties
(1,263.7)
(273.1)
(338.0)
(611.1)
(1,874.8)
Lease liabilities
(72.8)
-
-
-
(72.8)
Cash
274.3
70.4
20.0
90.4
364.7
Net debt
(1,062.2)
(202.7)
(318.0)
(520.7)
(1,582.9)
Other assets and (liabilities)
11.7
(22.6)
(12.6)
(35.2)
(23.5)
EPRA net assets
3,498.2
604.3
666.3
1,270.6
4,768.8
Intangible assets
(10.4)
-
-
-
(10.4)
EPRA NTA
3,487.8
604.3
666.3
1,270.6
4,758.4
Loan to value**
22%
24%
32%
29%
24%
Loan to value post-IFRS 16
23%
24%
32%
29%
25%
2023
Share of joint ventures
Group
on EPRA
basis
Unite
Students
USAF
LSAV
Total
Total
£m
£m
£m
£m
£m
Investment properties (owned)*
3,727.8
827.8
954.7
1,782.5
5,510.3
Investment properties (leased)
84.7
-
-
-
84.7
Investment properties under development
174.7
-
-
-
174.7
Total property portfolio
3,987.2
827.8
954.7
1,782.5
5,769.7
Debt on properties
(1,067.6)
(243.5)
(337.0)
(580.5)
(1,648.1)
Lease liabilities
(83.8)
-
-
-
(83.8)
Cash
37.5
18.2
21.5
39.7
77.2
Net debt
(1,113.9)
(225.3)
(315.5)
(540.8)
(1,654.7)
Other assets and (liabilities)
(39.0)
(22.3)
(29.7)
(52.1)
(91.0)
EPRA net assets
2,834.3
580.2
609.5
1,189.7
4,024.0
Intangible assets
(9.3)
-
-
-
(9.3)
EPRA NTA
2,825.0
580.2
609.5
1,189.7
4,014.7
Loan to value**
26%
27%
33%
30%
28%
Loan to value post-IFRS 16
28%
27%
33%
30%
29%
* Investment property (owned) includes assets classified as held for sale in the IFRS balance sheet.
** Loan to value (LTV) calculated excluding investment properties (leased) and the corresponding lease liabilities. LTV is an APM – see section 8.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
164
FINANCIAL STATEMENTS
2.3b) Movement in EPRA NTA during the year
Contributions to EPRA NTA by each segment during the year is as follows:
2024
Share of joint ventures
Group
on EPRA
basis
Unite
Students
USAF
LSAV
Total
Total
Note
£m
£m
£m
£m
£m
Operations
Operations segment result
2.2a
163.5
21.7
25.8
47.5
211.0
Add back amortisation of intangibles
3.3b
4.0
-
-
-
4.0
Total Operations
167.5
21.7
25.8
47.5
215.0
Property
Rental growth
269.6
29.7
46.4
76.1
345.7
Yield movement
(107.0)
(2.8)
(4.3)
(7.1)
(114.1)
Disposal (losses)
(5.5)
(2.4)
-
(2.4)
(7.9)
Investment property gains (owned)*
157.1
24.5
42.1
66.6
223.7
Investment property loss (leased)
3.1
(1.9)
-
-
-
(1.9)
Disposals losses investment property (leased)
(4.3)
-
-
-
(4.3)
Investment property gains (under development)
3.1
24.1
-
-
-
24.1
Pre-contract/other development costs
2.2a
(3.8)
-
-
-
(3.8)
Total Property
171.2
24.5
42.1
66.6
237.8
Unallocated
Shares issued
442.1
-
-
-
442.1
Investment in joint ventures
28.3
(18.7)
(9.6)
(28.3)
-
Dividends paid
(137.8)
-
-
-
(137.8)
Swap cancellation and debt break costs
(3.5)
-
-
-
(3.5)
Purchase of intangibles
(5.1)
-
-
-
(5.1)
Share-based payment charge
(2.4)
-
-
-
(2.4)
Other
2.5
(3.4)
(1.5)
(4.9)
(2.4)
Total Unallocated
324.1
(22.1)
(11.1)
(33.2)
290.9
Total EPRA NTA movement in the year
662.8
24.1
56.8
80.9
743.7
Total EPRA NTA brought forward
2,825.0
580.2
609.5
1,189.7
4,014.7
Total EPRA NTA carried forward
3,487.8
604.3
666.3
1,270.6
4,758.4
* Investment property gains (owned) includes gains on assets classified as held for sale in the IFRS balance sheet.
The £2.4 million Other balance within the Unallocated segment includes the purchase of own shares of (£1.5 million), contributions to
the Unite Foundation and other social causes of (£0.6 million) and tax credits of £2.6 million.
NOTES TO THE FINANCIAL STATEMENTS continued
THE UNITE GROUP PLC
Annual Report and Accounts 2024
165
2.3b) Movement in EPRA NTA during the year continued
2023
Share of joint ventures
Group
on EPRA
basis
Unite
Students
USAF
LSAV
Total
Total
Note
£m
£m
£m
£m
£m
Operations
Operations segment result
2.2a
137.8
23.3
24.1
47.4
185.2
Add back amortisation of intangibles
3.3b
5.2
-
-
-
5.2
Total Operations
143.0
23.3
24.1
47.4
190.4
Property
Rental growth
185.2
41.8
56.1
97.9
286.7
Yield movement
(215.9)
(34.4)
(85.7)
(120.1)
(339.6)
Disposal Gains / (losses)
11.8
(3.7)
0.3
(3.4)
8.4
Investment property (losses)/gains (owned)*
(18.9)
3.7
(29.3)
(25.6)
(44.5)
Investment property losses (leased)
3.1
(10.4)
-
-
-
(10.4)
Investment property losses (under development)
3.1
(6.6)
-
-
-
(6.6)
Pre-contract/other development costs
2.2a
(2.8)
-
-
-
(2.8)
Total Property
(38.7)
3.7
(29.3)
(25.6)
(64.3)
Unallocated
Shares issued
294.9
-
-
-
294.9
Investment in joint ventures
27.3
(21.8)
(5.5)
(27.3)
-
Dividends paid
(117.3)
-
-
-
(117.3)
Abortive acquisition costs
(1.6)
-
-
-
(1.6)
Share-based payment charge
(3.4)
-
-
-
(3.4)
Other
(0.4)
(0.2)
(0.2)
(0.4)
(0.8)
Total Unallocated
199.6
(22.0)
(5.7)
(27.7)
172.0
Total EPRA NTA movement in the year
303.9
5.0
(10.9)
(6.1)
298.0
Total EPRA NTA brought forward
2,521.1
575.2
620.4
1,195.6
3,716.7
Total EPRA NTA carried forward
2,825.0
580.2
609.5
1,189.7
4,014.7
The £0.8 million Other balance within the Unallocated segment includes the purchase of own shares of (£0.6 million), contributions to
the Unite Foundation of (£1.6 million) and tax credits of £1.1 million.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
166
FINANCIAL STATEMENTS
2.3c) Reconciliation to IFRS
To determine EPRA NTA, net assets reported under IFRS are adjusted to exclude the fair value of financial instruments, associated tax
and the carrying value of intangibles.
To determine EPRA NRV, net assets reported under IFRS are adjusted to exclude the fair value of financial instruments, associated tax
and real estate transfer tax.
To determine EPRA NDV, net assets reported under IFRS are adjusted to exclude the fair value of financial instruments, but include
the fair value of fixed interest rate debt and the carrying value of intangibles.
The net assets reported under IFRS reconcile to EPRA NTA, NRV and NDV as follows:
2024
NTA
NRV
NDV
£m
£m
£m
Net asset reported under IFRS
4,811.5
4,811.5
4,811.5
Mark to market interest rate swaps
(53.6)
(53.6)
-
Unamortised swap gain
(1.0)
(1.0)
(1.0)
Mark to market of fixed rate debt
-
-
31.7
Unamortised fair value of debt recognised on acquisition
11.1
11.1
11.1
Current tax
0.8
0.8
-
Deferred tax
-
-
-
Intangibles per IFRS balance sheet
(10.4)
-
-
Real estate transfer tax
-
467.4
-
EPRA reporting measures
4,758.4
5,236.2
4,853.3
2023
NTA
NRV
NDV
£m
£m
£m
Net asset reported under IFRS
4,067.0
4,067.0
4,067.0
Mark to market interest rate swaps
(58.1)
(58.1)
-
Unamortised swap gain
(1.2)
(1.2)
(1.2)
Mark to market of fixed rate debt
-
-
35.0
Unamortised fair value of debt recognised on acquisition
15.2
15.2
15.2
Current tax
0.7
0.7
-
Deferred tax
0.4
0.4
-
Intangibles per IFRS balance sheet
(9.3)
-
-
Real estate transfer tax
-
306.7
-
EPRA reporting measures
4,014.7
4,330.7
4,116.0
NOTES TO THE FINANCIAL STATEMENTS continued
THE UNITE GROUP PLC
Annual Report and Accounts 2024
167
2.3d) NTA, NRV and NDV per share
The Board uses EPRA NTA to monitor the performance of the Property segment on a regular basis.
Note
2024
2023
2024
2023
£m
£m
pps
pps
Net assets
4,811.5
4,067.0
982
931
EPRA NTA
2.3a
4,758.4
4,014.7
974
931
EPRA NTA (diluted)
2.3a
4,761.4
4,018.6
972
920
EPRA NRV
2.3c
5,236.2
4,330.7
1,071
994
EPRA NRV (diluted)
5,239.2
4,334.6
1,069
992
EPRA NDV
2.3c
4,853.3
4,116.0
993
944
EPRA NDV (diluted)
4,856.3
4,119.9
994
943
Number of shares (thousands)
2024
2023
Basic
488,792
435,855
Outstanding share options
1,308
1,165
Diluted
490,100
437,019
2.4 Revenue and costs
Accounting policies
The Group recognises revenue from the following major sources:
• Rental income
• Management and performance fees
• Acquisition fees.
Revenue is measured based on the consideration to which the Group expects to be entitled in a contract with a customer and
excludes amounts collected on behalf of third parties. The Group recognises revenue when it transfers control of its service to
a customer.
Rental income
Rental income comprises direct-lets to students and leases to universities and commercial tenants. This revenue is recognised
in the income statement over the length of the tenancy period as the Group provides the services to its customers. Included in
the rental contract is the use of utilities, broadband services and contents insurance. The Group does not offer these services as
standalone products. Under IFRS 15 the Group does not consider these services to be individually material and has, consequently,
bundled these obligations as a single contract. The transaction prices for rental income are explicitly stated in each contract. A
contract liability can result from payments received in advance, until the date at which control is transferred to the customer
and at that point the revenue begins to be recognised over the tenancy period. Lease incentives are sometimes recognised on
commercial units; these are recognised as an integral part of the total rental income and spread over the term of the lease.
The Group recognises rental income derived from contracts over 12 months in length in the Income Statement on a straight-line
basis in accordance with IFRS 16.
Management and performance fees
The Group acts as asset and property manager for USAF and LSAV and receives management fees in relation to these services.
Revenue from these fees is recognised on a straight-line basis over time as the joint ventures simultaneously receive and
consume benefits as the Group performs its management obligations which are determined by the services provided over
the course of each academic year, and this reflects the profile of activities being performed. Detailed calculations in order to
determine the transaction prices for these revenue streams are held within the joint venture agreements.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
168
FINANCIAL STATEMENTS
2.4 Revenue and costs continued
The Group is entitled to a USAF performance fee if the joint venture outperforms certain benchmarks. The Group recognises a
USAF performance fee at a point in time in the year to which the fee relates. The Group initially assesses the probability of a fee
being earned and its transaction price at half year and adjusts for any potential risks to receiving this income at year-end, when
the achieved outturn is known. The USAF performance fee is settled within 12 months of the year to which the fee relates and the
Group receives an enhanced equity interest in USAF as consideration for the performance fee.
The Group is entitled to a LSAV performance fee if the joint venture outperforms certain benchmarks over its life ending in 2032.
The Group recognises an LSAV performance fee at an amount which is considered highly probable to become due based
upon estimates of the future performance of the joint venture; such estimates include future rental income and the discount
rate (yield). Prior to the maturity of the joint venture, the Group pro-rates the total LSAV performance fee over the life of the
joint venture and recognises a proportion of the fee, only where sufficient certainty over outperformance of the benchmark is
determined to exist.
As per IFRS 15, the estimated amount of variable consideration is included in the transaction price only to the extent that it is
highly probable that a significant reversal in the amount of revenue recognised will not occur when the uncertainty associated
with the variable consideration is resolved. The performance fee is variable and dependent on meeting specific performance
targets. Accordingly where there is too much uncertainty over the cumulative outperformance of the benchmarks, particularly in
earlier periods of the performance fee period, which cover each ten-year term of the venture, then no amounts of performance
fee can be recognised as it is not highly probable that the performance fee will be earned.
Management and performance fees are presented in revenue net of the Group’s share of the corresponding expense within the
relevant fund.
At 31 December 2024, no amounts are deemed to meet the highly probable criteria and therefore we have not disclosed any
future fees receivable from these ongoing contracts.
Acquisition fees
The Group receives acquisition fees from its joint venture partners. This revenue is linked to the acquisition of land or property
and is therefore recognised at the point in time that control of the asset is transferred to the joint venture. The transaction price
for this revenue stream is stipulated in the joint venture agreement as a percentage of the value of the acquisition. No such land
or property acquisitions have occurred in 2024 or 2023.
The Group earns revenue from the following activities:
2024
2023
Note
£m
£m
Rental income*
Operations segment
2.2a
282.0
259.2
Management fees
Operations segment
17.3
17.1
299.3
276.3
Impact of minority interest on management fees
-
(0.2)
Total revenue
299.3
276.1
* EPRA earnings includes £398.0 million (2023: £369.5 million) of rental income, which is comprised of £282.0 million (2023: £259.2 million)
recognised on wholly-owned assets and a further £116.0 million (2023: £110.3 million) from joint ventures, which is included in share of
joint venture profit/(loss) in the consolidated income statement.
The cost of sales included in the consolidated income statement includes property operating expenses of £86.4 million
(2023: £76.8 million).
NOTES TO THE FINANCIAL STATEMENTS continued
THE UNITE GROUP PLC
Annual Report and Accounts 2024
169
2.5 Tax
As a REIT, rental profits and gains on disposal of investment properties are exempt from corporation tax. The Group pays
UK corporation tax on the profits from its residual business, including management fees received from joint ventures, together
with UK income tax on rental income that arises from investments held by offshore subsidiaries in which the Group holds a
non-controlling interest.
Accounting policies
The tax charge for the year is recognised in the income statement, statement of comprehensive income and the statement of
changes in equity, according to the accounting treatment of the related transaction. The tax charge comprises both current and
deferred tax.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to tax
payable in respect of previous years. The current tax charge is based on tax rates that are enacted or substantively enacted
at the year-end.
Deferred tax arises due to certain temporary differences between the carrying amounts of assets and liabilities for financial
reporting purposes and those for taxation purposes. Temporary differences relating to investments in subsidiaries and joint
ventures are not provided for to the extent that they will probably not reverse in the foreseeable future. The amount of deferred
tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities.
As a REIT, rental profits and gains on disposal of investment properties and property rich investments are exempt from
corporation tax. As a result, no deferred tax provision has been recognised at the balance sheet date in respect of property assets
or units in USAF and LSAV held by members of the REIT Group.
2.5a) Tax – income statement
The total taxation charge/(credit) in the income statement is analysed as follows:
2024
2023
£m
£m
Corporation tax on residual business income arising in UK companies
4.9
1.0
Income tax on UK rental income arising in non-UK companies
0.1
0.4
Prior year adjustments
(0.2)
(0.2)
Current tax charge
4.8
1.2
Reversal of deferred tax provision in respect of REIT property business assets
-
-
Origination and reversal of temporary differences
(2.6)
(2.3)
Adjustments in respect of prior periods
-
-
Deferred tax (credit)
(2.6)
(2.3)
Total tax charge/(credit) in income statement
2.2
(1.1)
The movement in deferred tax provided is shown in more detail in note 2.5d.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
170
FINANCIAL STATEMENTS
2.5a) Tax - income statement continued
In the income statement, a tax charge of £2.2 million arises on a profit before tax of £444.0 million. The taxation charge that would
arise at the standard rate of UK corporation tax is reconciled to the actual tax charge as follows:
2024
2023
£m
£m
Profit before tax
444.0
102.5
Income tax using the UK corporation tax rate of 25% (2023: 23.5%)
111.0
24.1
Property rental business profits exempt from tax in the REIT Group
(42.7)
(45.7)
Property revaluations not subject to tax
(66.6)
16.2
Mark to market changes in interest rate swaps not subject to tax
(0.4)
3.0
Unrealised gains on investments
(0.4)
-
Effect of other permanent differences
1.4
1.3
Effect of tax deduction transferred to equity on share schemes
0.1
0.2
Rate difference on deferred tax
-
-
Prior years adjustments
(0.2)
(0.2)
Total tax charge/(credit) in income statement
2.2
(1.1)
As a UK REIT, the Group is exempt from UK corporation tax on the profits from its property rental business. Accordingly, the element
of the Group’s profit before tax relating to its property rental business has been separately identified in the reconciliation above.
No deferred tax asset has been recognised in respect of the Group’s accumulated tax losses on the basis that they are not expected
to be utilised in future periods. At 31 December 2024, these losses totalled £15.3 million (2023: £15.3 million).
Although the Group does not pay UK corporation tax on the profits from its property rental business, it is required to distribute 90%
of the profits from its property rental business after accounting for tax adjustments as a Property Income Distribution (PID). PIDs are
charged to tax in the same way as property income in the hands of the recipient. For the year ended 31 December 2024, the required
PID is expected to be fully paid by the end of 2025.
2.5b) Tax – other comprehensive income
Within other comprehensive income a tax charge totalling £nil (2023: £nil) has been recognised.
2.5c) Tax – statement of changes in equity
Within the statement of changes in equity a tax charge totalling £nil (2023: £0.2 million charge) has been recognised representing
deferred tax. An analysis of this is included below in the deferred tax movement table.
2.5d) Tax – balance sheet
The table below outlines the deferred tax (assets)/liabilities that are recognised in the balance sheet, together with their movements
in the year:
2024
Charged/
Charged/
At 31
(Credited) in
(Credited) in
At 31
December
2023
income
equity
December
2024
£m
£m
£m
£m
Investments
0.4
(0.4)
-
-
Property, plant and machinery
(4.9)
(2.3)
-
(7.2)
Share schemes
(1.1)
-
0.1
(1.0)
Tax value of carried forward losses recognised
-
0.1
(0.1)
-
Net tax liabilities/(assets)
(5.6)
(2.6)*
-
(8.2)
* The £2.6m credit above includes tax movements totalling £2.3m in respect of Property, plant and machinery and Losses which are included
in EPRA, which is why they are not included in the IFRS reconciliation in note 2.2b).
NOTES TO THE FINANCIAL STATEMENTS continued
THE UNITE GROUP PLC
Annual Report and Accounts 2024
171
2.5d) Tax – balance sheet continued
2023
Charged/
Charged/
At 31
(Credited) in
(Credited) in
At 31
December
2022
income
equity
December
2023
£m
£m
£m
£m
Investments
0.4
-
-
0.4
Property, plant and machinery
(2.8)
(2.1)
-
(4.9)
Share schemes
(1.2)
(0.4)
0.5
(1.1)
Tax value of carried forward losses recognised
-
0.2
(0.2)
-
Net tax liabilities/(assets)
(3.6)
(2.3)*
0.3
(5.6)
* The £2.3 million credit above includes tax movements totalling £2.5 million in respect of Property, plant and machinery, Share schemes,
and Losses which are included in EPRA, which is why they are not included in the IFRS reconciliation in note 2.2b); removing them results
in achieving the £0.2 million movement which is excluded as per EPRA’s best practice recommendations.
The deferred tax liability at 31 December 2024 has been calculated based on the rate at which it is expected to reverse.
As a REIT, disposals of investment property and property rich investments are exempt from tax and as a result no deferred tax
liability has been recognised in relation to these assets.
Company
Deferred tax has not been recognised on temporary differences of £1.7 million (2023: £1.7 million) in respect of revaluation of
subsidiaries and investment in joint ventures as it is considered unlikely that these investments will be divested.
2.6 Audit fees
During the year, the Group obtained the following services from the Company’s auditor and its associates:
2024
2023
£m
£m
Fees payable to the Group’s auditors for the audit of the Parent Company and consolidated financial statements
0.6
0.5
Fees payable to the Group’s auditors for other services to the Group:
- Audit of the financial statements of subsidiaries
0.1
0.1
Total audit fees payable to the Group’s auditors
0.7
0.6
Audit-related assurance services
0.1
0.1
Other services
0.1
-
Total non-audit fees
0.2
0.1
Non-audit fees in 2023 relate entirely to services provided in respect of the half-year review. Within 2024, non-audit fees include
services provided in respect of the half year review and reporting accounting procedures.
Details on the Company’s policy on the use of the auditor for non-audit services is also set out in the Audit & Risk Committee report
on pages 101-105.
No services were provided pursuant to contingent fee arrangements.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
172
FINANCIAL STATEMENTS
Section 3: Asset management
The Group holds its property portfolio directly and through its joint ventures. The performance of the property portfolio,
whether wholly-owned or in joint ventures, is the key factor that drives net asset value (NAV), one of the Group’s key
performance indicators. The following pages provide disclosures about the Group’s investments in property assets and
joint ventures and their performance over the year.
3.1 Wholly-owned property assets
The Group’s wholly-owned property portfolio is held in four groups on the balance sheet at the carrying values detailed below.
In the Group’s EPRA NTA all these groups are shown at market value, except where otherwise stated.
i) Investment property (owned)
These are assets that the Group intends to hold for a long period to earn rental income or capital appreciation. The assets are
measured at fair value in the balance sheet with changes in fair value taken to the income statement.
ii) Investment property (leased)
These are assets the Group sold to institutional investors and simultaneously leased back. These right-of-use assets are measured at
fair value in the balance sheet with changes in fair value taken to the income statement.
iii) Investment property (under development)
These are assets which are currently in the course of construction and which will be transferred to Investment property on
completion. The assets are initially recognised at cost and are subsequently measured at fair value in the balance sheet with changes
in fair value taken to the income statement.
iv) Investment property classified as held for sale
These are assets whose carrying amount will be recovered through a sale transaction rather than to hold for long-term rental income
or capital appreciation. This condition is regarded as met only when the sale is highly probable and the investment property is
available for immediate sale in its present condition. Management must be committed to the sale which should be expected to qualify
for recognition as a completed sale within one year from the date of classification. The assets are measured at fair value in the balance
sheet, with changes in fair value taken to the income statement. They are presented as current assets in the IFRS balance sheet.
Accounting policies
Investment property (owned) and investment property (under development)
Investment property (owned) and investment property (under development) are held at fair value.
The external valuation of property assets involves significant judgement and changes to the core assumptions: rental income,
occupancy and property management costs, as well as estimated future costs, could have a significant impact on the carrying value
of these assets. Further details of the valuation process are included below.
Construction and borrowing costs are capitalised if they are directly attributable to the acquisition and construction of a property
asset. Capitalisation of borrowing costs commences when the activities to prepare the asset are in progress and expenditures and
borrowing costs are being incurred. Capitalisation of borrowing costs continues until the assets are substantially ready for their
intended use but stops if development activities are suspended. The capitalisation rate is arrived at by reference to the actual rate
payable on borrowings for development purposes or, with regard to that part of the development cost financed out of general
borrowings, to the average rate. During the year the average capitalisation rate used was 6.4% (2023: 6.4%).
The recognition of acquisitions of investment property and land occurs at the date when control passes to Unite Group. The
recognition of disposals of investment property occurs on legal completion when control passes from Unite Group. In accordance
with IFRS 15, gains/(losses) from the disposal of investment property are recognised at a point in time.
Contingent consideration receivables are recognised on disposals where the amount of additional consideration is readily
identifiable. It is recognised at the constrained value determined by the amount that is highly probable to be receivable at the time of
the disposal, and any subsequent change in value is recognised in profit or loss in the later period.
The fair value of development properties is determined using a residual method, valuing each property at an estimate of what its fair
value would be completed, less the estimated total costs to complete (inclusive of a profit for the developer.
Investment property (leased)
The Group holds certain investment property under historical sale and leaseback arrangements, acting as an intermediate lessor
and subleasing its right-of-use assets. For each leased property, the Group assesses whether a contract is or contains a lease, at
inception of the contract. The Group recognises a right-of-use asset and a corresponding lease liability (see note 4.6a) with respect to
all lease arrangements in which it is the lessee. The right-of-use assets are initially measured at cost in accordance with IFRS 16 and
subsequently at fair value in the balance sheet with changes in fair value taken to the income statement in accordance with IAS 40.
NOTES TO THE FINANCIAL STATEMENTS continued
THE UNITE GROUP PLC
Annual Report and Accounts 2024
173
Valuation process
The valuations of the properties are performed twice a year on the basis of valuation reports prepared by external, independent
valuers, having an appropriate recognised professional qualification. The fair values are based on market values as defined in the
RICS Appraisal and Valuation Manual, issued by the Royal Institution of Chartered Surveyors, and taking account of committed fire
safety and external facade works as provided by Unite. CB Richard Ellis Ltd, Jones Lang LaSalle Ltd and Messrs Knight Frank LLP,
Chartered Surveyors were the valuers in the years ended 31 December 2024 and 2023.
The Group has transferred the 2024 addition in respect of committed spend on fire safety and façade works taking place in 2025 and
2026 to property valuations, which is presented as a deduction to fair value below.
The valuations are based on:
Information provided by the Group such as current rents, occupancy, operating costs, terms and conditions of leases and nomination
agreements and capital expenditure. This information is derived from the Group’s financial systems and is subject to the Group’s
overall control environment.
Assumptions and valuation models used by the valuers – the assumptions are typically market related, such as yield, discount rates
and NOI. These are based on their professional judgement and market observation.
The information provided to the valuers – and the assumptions and the valuation models used by the valuers – are reviewed by
leadership of the Property function and the CFO. This includes a review of the fair value movements over the year.
The fair value of the Group’s wholly-owned properties and the movements in the carrying value of the Group’s wholly-owned
property portfolio during the year ended 31 December 2024 are shown in the table below.
Investment
property
(owned)
Investment
property
(leased)
Investment
property under
development
Total
£m
£m
£m
£m
At 1 January 2024
3,694.3
84.7
174.7
3,953.7
Additions
282.9
-
64.9
347.8
Cost capitalised
68.3
2.2
198.8
269.3
Interest capitalised
-
-
15.5
15.5
Transfer from investment property under development
37.0
-
(37.0)
-
Transfer from work in progress
-
-
17.9
17.9
Transfer to assets held for sale
(92.6)
-
-
(92.6)
Disposals
(112.2)
(13.2)
(7.5)
(132.9)
Valuation gains
228.4
-
33.9
262.3
Valuation losses
(65.8)
(1.9)
(9.8)
(77.5)
Net valuation gains/(losses)
162.6
(1.9)
24.1
184.8
Committed fire safety and external facade works
(14.8)
-
-
(14.8)
Carrying value at 31 December 2024
4,025.5
71.8
451.4
4,548.7
THE UNITE GROUP PLC
Annual Report and Accounts 2024
174
FINANCIAL STATEMENTS
Valuation process continued
The fair value of the Group’s wholly-owned properties and the movements in the carrying value of the Group’s wholly-owned
property portfolio during the year ended 31 December 2023 are shown in the table below.
2023
Investment
property
(owned)
Investment
property
(leased)
Investment
property
under
development
Total
£m
£m
£m
£m
At 1 January 2023
3,623.4
90.3
202.7
3,916.4
Additions
-
-
-
-
Cost capitalised
66.5
4.8
58.9
130.2
Interest capitalised
-
-
8.4
8.4
Transfer from investment property under development
88.7
-
(88.7)
-
Transfer from work in progress
-
-
-
-
Transfer to assets held for sale
(33.5)
-
-
(33.5)
Disposals
-
-
-
-
Valuation gains
121.1
-
32.4
153.5
Valuation losses
(151.7)
(10.4)
(39.0)
(201.1)
Net valuation gains/(losses)
(30.6)
(10.4)
(6.6)
(47.6)
Committed fire safety and external facade works
(20.2)
(20.2)
Carrying value at 31 December 2023
3,694.3
84.7
174.7
3,953.7
Assets classified as held for sale at 31 December 2024 are comprised of £92.6 million of investment property (owned). Assets held
for sale are reported within the Property segment and represent a portfolio of properties (split across the Group and joint ventures)
intended to be sold within the next 12 months.
Total interest capitalised in investment properties (owned) and investment properties under development at 31 December 2024 was
£81.9 million (2023: £66.4 million) on a cumulative basis.
Total internal costs capitalised in investment properties (owned) and investment properties under development was £84.4 million at
31 December 2024 (2023: £77.1 million) on a cumulative basis.
Interests in land not currently under construction totalling £13.5 million (2023: £8.3 million).
Capital Commitments
The Company has contractual commitments of £324.7 million due within one year (2023: £282.9 million) and £263.0 million
due within two to four years (2023: £208.5 million). This relates to land, property, plant, and equipment as well as committed
development costs.
NOTES TO THE FINANCIAL STATEMENTS continued
THE UNITE GROUP PLC
Annual Report and Accounts 2024
175
Recurring fair value measurement
All investment and development properties are classified as Level 3 in the fair value hierarchy.
2024
2023
Class of asset
£m
£m
London – rental properties
1,286.7
1,154.9
Prime regional – rental properties
1,314.2
1,156.0
Major regional – rental properties
1,346.7
1,246.0
Provincial – rental properties
100.7
104.0
London – development properties
269.5
86.2
Prime regional – development properties
157.7
57.0
Major regional – development properties
13.0
22.0
London build-to-rent
69.8
66.9
Prime regional build-to-rent - development properties
11.2
9.5
Investment property (owned)
4,569.5
3,902.5
Investment property (leased)
71.8
84.7
Market value (including assets classified as held for sale)
4,641.3
3,987.2
Investment property (classified as held for sale)
(92.6)
(33.5)
Market value
4,548.7
3,953.7
The valuations have been prepared in accordance with the latest version of the RICS Valuation – Global Standards (incorporating the
International Valuation Standards) and the UK national supplement (the Red Book) based on net rental income, estimated future
costs, occupancy, property management costs and the net initial yield or discount rate.
Where the asset is leased to a university, the valuations also reflect the length of the lease, the allocation of maintenance and
insurance responsibilities between the Group and the lessee, and the market’s general perception of the lessee’s creditworthiness.
The resulting valuations are cross-checked against comparable market transactions.
For development properties, the fair value is usually calculated by estimating the fair value of the completed property (using the
discounted cash flow method) less estimated costs to completion.
Fair value using unobservable inputs (Level 3)
2024
2023
£m
£m
Opening fair value
3,953.7
3,916.4
Additions
347.8
-
Gains and losses recognised in income statement
184.8
(47.5)
Transfer to assets held for sale
(92.6)
(33.5)
Capital expenditure
302.7
138.5
Disposals
(132.9)
-
Committed fire safety and external facade works
(14.8)
(20.2)
Closing fair value
4,548.7
3,953.7
Investment property (classified as held for sale)
92.6
33.5
Closing fair value (including assets classified as held for sale)
4,641.3
3,987.2
THE UNITE GROUP PLC
Annual Report and Accounts 2024
176
FINANCIAL STATEMENTS
Quantitative information about fair value measurements using unobservable inputs (Level 3)
2024
Fair value
£m
Valuation
technique
Unobservable inputs
Range
Weighted
average
London - rental properties
1,286.7
RICS Red Book
Net rental income (£ per week)
Estimated rental growth (% p.a.)
Discount rate (yield) (%)
£214- £479
2% - 3%
4.2% - 4.8%
£351
3%
4.5%
Prime regional - rental properties
1,314.2
RICS Red Book
Net rental income (£ per week)
Estimated rental growth (% p.a.)
Discount rate (yield) (%)
£160-£342
2% - 9%
4.3% - 7.1%
£221
4%
5.1%
Major regional - rental properties
1,346.7
RICS Red Book
Net rental income (£ per week)
Estimated rental growth (% p.a.)
Discount rate (yield) (%)
£87-£224
2% - 6%
5.1%- 7.9%
£158
3%
6.2%
Provincial - rental properties
100.7
RICS Red Book
Net rental income (£ per week)
Estimated rental growth (% p.a.)
Discount rate (yield) (%)
£119-£171
2% - 6%
7.2% - 38.1%
£133
3%
14.7%
London - development properties
269.5
RICS Red Book
Estimated cost to complete (£m)
Estimated rental growth (% p.a.)
Discount rate (yield) (%)
Net rental income (£ per week)
£71m-£171m
3%
4.4%-4.5%
£299-£485
£123m
3%
4.5%
£345
Prime regional - development
properties
157.7
RICS Red Book
Estimated cost to complete (£m)
Estimated rental growth (% p.a.)
Discount rate (yield) (%)
Net rental income (£ per week)
£22m- £263m
3.0%
4.4%-5.2%
£247-£271
£165m
3%
4.6%
£258
Major regional - development
properties
13.0
RICS Red Book
Estimated cost to complete (£m)
Estimated rental growth (% p.a.)
Discount rate (yield) (%)
Net rental income (£ per week)
£107m
3%
5.4%
£236
£107m
3%
5.4%
£236
4,488.5
Investment property - build-to-rent
69.8
RICS Red Book
Net rental income (£ per week)
Estimated rental growth (% p.a.)
Discount rate (yield) (%)
£490
3%
4.6%
£490
3%
4.6%
Development property - build-to-rent
11.2
RICS Red Book
Estimated cost to complete (£m)
Estimated rental growth (% p.a.)
Discount rate (yield) (%)
Net rental income (£ per week)
£17m
3%
4.4%
£226
£17m
3%
4.4%
£226
4,569.5
Investment property - leased
71.8
Discounted
cash flows
Net rental income (£ per week)
Estimated rental growth (% p.a.)
Discount rate (yield) (%)
£119- £233
1% - 5%
10.0%
£156
3%
10.0%
Fair value at 31 December 2024
4,641.3
NOTES TO THE FINANCIAL STATEMENTS continued
THE UNITE GROUP PLC
Annual Report and Accounts 2024
177
Quantitative information about fair value measurements using unobservable inputs (Level 3) continued
2023
Fair value
£m
Valuation
technique
Unobservable inputs
Range
Weighted
average
London - rental properties
1,154.9
RICS Red Book Net rental income (£ per week)
Estimated rental growth (% p.a.)
Discount rate (yield) (%)
£206-£424
2% - 4%
4.0% - 4.7%
£324
3%
4.3%
Prime regional - rental properties
1,156.0
RICS Red Book Net rental income (£ per week)
Estimated rental growth (% p.a.)
Discount rate (yield) (%)
£152-£270
2% - 5%
4.3% - 6.7%
£189
3%
4.9%
Major regional - rental properties
1,246.0
RICS Red Book Net rental income (£ per week)
Estimated rental growth (% p.a.)
Discount rate (yield) (%)
£84-£189
2% - 5%
4.9% - 7.2%
£135
3%
5.7%
Provincial - rental properties
104.0
RICS Red Book Net rental income (£ per week)
Estimated rental growth (% p.a.)
Discount rate (yield) (%)
£103-£162
2% - 3%
7.0% - 21.7%
£136
3%
8.9%
London - development properties
86.2
RICS Red Book Estimated cost to complete (£m)
Estimated rental growth (% p.a.)
Discount rate (yield) (%)
£102.2m-£177.1m
3%
4.0%
£150.1m
3%
4.0%
Prime regional - development
properties
57.0
RICS Red Book Estimated cost to complete (£m)
Estimated rental growth (% p.a.)
Discount rate (yield) (%)
£50.0m - £52.0m
3.0%
4.4%-5.2%
£51.4m
3%
4.7%
Major regional - development
properties
22.0
RICS Red Book Estimated cost to complete (£m)
Estimated rental growth (% p.a.)
Discount rate (yield) (%)
£19.4m - £124.1m
3%
5.2%
£97.6m
3%
5.2%
3,826.1
Investment property (BTR)
66.9
RICS Red Book Net rental income (£ per week)
Estimated rental growth (% p.a.)
Discount rate (yield) (%)
£412
3%
4.1%
£412
3%
4.1%
Development property (BTR)
9.5
RICS Red Book Estimated cost to complete (£m)
Estimated rental growth (% p.a.)
Discount rate (yield) (%)
£12.6m
3%
4.4%
£12.6m
3%
4.4%
3,902.5
Investment property - leased
84.7
Discounted
cash flows
Net rental income (£ per week)
Estimated rental growth (% p.a.)
Discount rate (yield) (%)
£106 - £207
1.8% - 2.7%
6.3%
£168
2.3%
6.3%
Fair value at 31 December 2023
3,987.2
THE UNITE GROUP PLC
Annual Report and Accounts 2024
178
FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS continued
Fair value sensitivity analysis
A decrease in net rental income or occupancy will result in a decrease in the fair value, whereas a decrease in the discount rate (yield)
will result in an increase in fair value. There are inter-relationships between these rates as they are partially determined by market
conditions. These two key sources of estimation uncertainty are considered to represent those most likely to have a material impact
on the valuation of the Group’s investment property (owned and development) within the next 12 months as a result of reasonably
possible changes in assumptions used. The potential effect of such reasonably possible changes has been assessed by the Group
and is set out below:
Fair value at
31 December
2024
+5% change
in estimated
net rental
income
-5% change in
estimated net
rental income
+25 bps change
in net initial
yield
-25 bps change
in net initial
yield
Class of asset
£m
£m
£m
£m
£m
Rental properties
London
1,286.7
1,338.5
1,208.5
1,204.4
1,350.7
Prime regional
1,314.2
1,369.1
1,236.8
1,240.7
1,372.0
Major regional
1,346.7
1,402.7
1,267.1
1,278.3
1,396.6
Provincial
100.7
105.9
95.6
98.0
103.8
Development properties
London
269.5
281.7
257.6
256.8
284.0
Prime regional
157.7
166.3
150.6
150.3
167.5
Major regional
13.0
12.8
11.6
11.7
12.8
Build-to-rent
London
69.8
71.6
64.8
64.7
72.1
Prime regional
11.2
11.8
10.6
10.6
11.9
Market value
4,569.5
4,760.4
4,303.2
4,315.5
4,771.4
3.2 Inventories
Accounting policies
Inventories are shown at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the
ordinary course of business less the estimated costs of completion and selling expenses. All costs directly associated with the
purchase of land, and all subsequent qualifying expenditure is capitalised.
2024
2023
£m
£m
Interests in land
13.5
25.3
Other stocks
0.1
0.9
Inventories
13.6
26.2
At 31 December 2024 and 31 December 2023 interests in land includes conditionally exchanged schemes.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
179
3.2 Inventories continued
Accounting policies
Leased assets
The Group assesses whether a contract is or contains a lease at its inception. The Group recognises a right-of-use asset and a
corresponding lease liability (see note 4.6a) with respect to all lease arrangements in which it is the lessee. Right-of-use assets are
initially measured at cost, which comprises a value set equal to the lease liability, adjusted for prepaid or accrued lease payments
and lease incentives. They are subsequently measured at this initial value less accumulated depreciation and impairment losses.
Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. Property, plant and
equipment mainly comprise leasehold improvements at the Group’s head office and London office as well as computer hardware
at these sites.
Depreciation is charged to the income statement on a straight-line basis over the estimated useful lives. Freehold land is not
depreciated. The estimated useful lives are as follows:
• Right-of-use assets
Shorter of lease and economic life
• Property, plant and equipment
4–7 years
Intangible assets
Software-as-a-Service (SaaS) arrangements
IAS 38 Intangible Assets – In March 2019, the IFRS Interpretations Committee (IFRIC), concluded that SaaS arrangements are likely
to be service arrangements, rather than booked as intangible or leased assets, because the customer only has a right to use
software on a supplier’s cloud infrastructure. Therefore, the supplier controls the software and not the customer.
Intangible assets predominantly comprise of on-premises computer software which allows customers to book online and
processes transactions within the sales cycle. The expenditure capitalised includes the cost of materials, direct labour and an
appropriate proportion of overheads. The assets are amortised on a straight-line basis over four to seven years, being the
estimated useful lives of the intangible assets, from the date they are available for use. Amortisation is charged to the income
statement within overheads.
3.3 Right of use assets and other non-current assets
3.3a) Right-of-use assets
2024
2023
Buildings
Other
Total
Buildings
Other
Total
£m
£m
£m
£m
£m
£m
Cost
At 1 January
5.0
0.8
5.8
5.0
1.3
6.3
Additions
3.9
-
3.9
-
-
-
Disposals
-
(0.5)
(0.5)
-
(0.5)
(0.5)
At 31 December
8.9
0.3
9.2
5.0
0.8
5.8
Amortisation
At 1 January
(3.7)
(0.4)
(4.1)
(2.9)
(0.7)
(3.6)
Depreciation/amortisation charge for the year
(0.7)
(0.2)
(0.9)
(0.8)
(0.2)
(1.0)
Disposals
-
0.5
0.5
-
0.5
0.5
At 31 December
(4.4)
(0.1)
(4.5)
(3.7)
(0.4)
(4.1)
Carrying value at 1 January
1.3
0.4
1.7
Carrying amount at 31 December
4.5
0.2
4.7
2.1
0.6
2.7
The Group leases several assets including office equipment and vehicles. The average lease term is five years (2023: three years).
THE UNITE GROUP PLC
Annual Report and Accounts 2024
180
FINANCIAL STATEMENTS
3.3a) Right-of-use assets continued
Approximately 7% of the leases expired in the current financial year (2023: 15%). The expired office contract was replaced and
therefore, there were £3.0 million additions in 2024 (2023: £nil million).
The maturity analysis of lease liabilities is presented in note 4.6a.
Details of interest on lease liabilities and total cash outflows for leases are presented in notes 4.3 and 5.1.
3.3b) Other non-current assets
The Group’s other non-current assets can be analysed as follows:
2024
2023
Property,
plant and
equipment
Intangible
assets
Total
Property,
plant and
equipment
Intangible
assets
Total
£m
£m
£m
£m
£m
£m
Cost or valuation
At 1 January
14.5
68.6
83.1
13.6
67.0
80.6
Additions
1.8
5.1
6.9
0.9
1.6
2.6
Disposals
-
-
-
-
-
-
At 31 December
16.3
73.7
90.0
14.5
68.6
83.1
Depreciation, amortisation and impairment losses
At 1 January
(11.1)
(59.3)
(70.4)
(10.4)
(54.8)
(65.2)
Depreciation/amortisation charge for the year
(0.8)
(4.0)
(4.8)
(0.7)
(4.5)
(5.2)
At 31 December
(11.9)
(63.3)
(75.2)
(11.1)
(59.3)
(70.4)
Carrying value at 1 January
3.4
9.3
12.7
3.2
12.2
15.4
Carrying amount at 31 December
4.4
10.4
14.8
3.4
9.3
12.7
Intangible assets include £0.5 million (2023: £1.9 million) of assets not being amortised as they are not yet ready for use. Property,
plant and equipment assets include £nil (2023: £nil) of assets not being depreciated as they are not ready for use. At 31 December
2024, the Group had capital commitments of £nil (2023: £nil) relating to intangible assets and £nil (2023: £nil) relating to property,
plant and equipment.
NOTES TO THE FINANCIAL STATEMENTS continued
THE UNITE GROUP PLC
Annual Report and Accounts 2024
181
3.4 Investments in joint ventures (Group)
Accounting policies
Joint ventures are those entities over whose activities the Group has joint control, established by contractual agreement. The
consolidated financial statements include joint ventures initially at cost, subsequently increased or decreased by the Group’s
share of total gains and losses of joint ventures on an equity basis. Interest free joint venture investment loans are initially
recorded at fair value – the difference between the nominal amount and fair value being treated as an investment in the joint
venture. The implied discount is amortised over the contracted life of the investment loan.
The Directors consider that the agreements integral to its joint ventures result in the Group having joint control over the key
matters required to operate the joint ventures. A significant degree of judgement is exercised in this assessment due to the
complexity of the contractual arrangements.
USAF and LSAV are jointly owned entities that are accounted for as joint ventures. Due to the complexity of the contractual
arrangements and Unite Group’s role as manager of the joint venture vehicles, the assessment of joint control involves
judgements around a number of significant factors. These factors include how Unite Group as fund manager has the ability to direct
relevant activities such as acquisitions, disposals, capital expenditure for refurbishments and funding whether through debt or
equity. This assessment for USAF is complex because of the number of unit holders and how their rights are represented through
an Advisory Committee. For some of the activities it is not clear who has definitive control of the activities: in some scenarios the
Group can control, in others the Advisory Committee. However, for the activities which are considered to have the greatest impact
on the returns of USAF, acquisitions and equity financing, it has been determined that the Group and the Advisory Committee
have joint control in directing these activities and that on balance, it is appropriate to account for USAF as a joint venture. The
assessment for LSAV is more straightforward because the Group and GIC each own 50% of the joint venture and there is therefore
much clearer evidence that control over the key activities is shared by the two parties.
The Group has two joint ventures:
Joint venture
Group’s share of assets/
results 2024 (2023)
Objective
Partner
Legal entity in which
Group has interest
The UNITE UK Student
Accommodation Fund
(USAF)
29.1%*
(29.5%)*
Operate student
accommodation
throughout the UK
Consortium of investors
UNITE UK Student
Accommodation Fund,
a Jersey Unit Trust
London Student
Accommodation
Venture (LSAV)
50%
(50%)
Operate student
accommodation in London
and Birmingham
GIC Real Estate Pte, Ltd
Real estate investment
vehicle of the Government
of Singapore
LSAV Unit Trust, a
Jersey Unit Trust and
LSAV (Holdings) Ltd,
incorporated in Jersey
* At the start of the year, part of the Group’s interest was held through a subsidiary, USAF (Feeder) Guernsey Limited, in which there was an
external investor. This was disposed of during the year. In 2023, a non-controlling interest occured on consolidation of the Group’s results
representing the external investor’s share of profits and assets relating to its investment in USAF. In 2023, the ordinary shareholders of Unite
Group PLC were beneficially interested in 28.15% of USAF.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
182
FINANCIAL STATEMENTS
3.4a) Net assets and results of the joint ventures
The summarised balance sheets and results for the year, and the Group’s share of these joint ventures are as follows:
2024
USAF
LSAV
Total
£m
£m
£m
Summarised balance sheet
Gross
MI
Share
Gross
Share
Gross
Share
Investment property
2,847.3
-
829.6
1,993.8
996.9
4,841.1
1,826.5
Cash
241.6
-
70.4
40.0
20.0
281.6
90.4
Borrowings Non-Current
(937.3)
-
(273.1)
(276.0)
(138.0)
(1,213.3)
(411.1)
Borrowings Current
-
-
-
(400.0)
(200.0)
(400.0)
(200.0)
Swap assets
-
-
-
-
-
-
-
Other current assets
7.9
-
2.3
22.8
11.4
30.7
13.7
Other current liabilities
(85.7)
-
(25.0)
(47.8)
(23.9)
(133.5)
(48.9)
Net assets
2,073.8
-
604.2
1,332.8
666.4
3,406.6
1,270.6
Minority interest
-
-
-
-
-
-
-
Swap liabilities
-
-
-
-
-
-
-
EPRA net assets
2,073.8
-
604.2
1,332.8
666.4
3,406.6
1,270.6
Summarised income statement
Rental income
207.5
-
58.8
112.2
56.1
319.7
114.9
Other income
0.7
-
0.2
1.8
0.9
2.5
1.1
Total Revenue
208.2
-
59.0
114.0
57.0
322.2
116.0
Cost of sales
(73.1)
-
(20.7)
(28.0)
(14.0)
(101.1)
(34.7)
Operating expenses
(2.6)
-
(0.7)
(1.4)
(0.7)
(4.0)
(1.4)
Results from operating activities before (losses)/
gains on property
132.5
-
37.6
84.6
42.3
217.1
79.9
Profit/(loss) on disposal of property
(8.5)
-
(2.4)
-
-
(8.5)
(2.4)
Net valuation movement
81.4
-
26.2
81.5
40.8
162.9
67.0
Net financing (costs)/gains
(40.5)
-
(11.5)
(33.6)
(16.8)
(74.1)
(28.3)
Profit before tax
164.9
-
49.9
132.5
66.3
297.4
116.2
Taxation
(0.1)
-
-
(0.6)
(0.3)
(0.7)
(0.3)
Profit for the year after tax
164.8
-
49.9
131.9
66.0
296.7
115.9
Other comprehensive income
(0.7)
-
(0.3)
(3.6)
(2.0)
(4.3)
(2.3)
Total comprehensive (expense)/income
164.1
-
47.6
128.3
64.0
292.4
113.6
Dividends received from the joint ventures during the year
13.8
13.8
27.6
* Investment property includes assets classified as held for sale in the IFRS balance sheet.
NOTES TO THE FINANCIAL STATEMENTS continued
THE UNITE GROUP PLC
Annual Report and Accounts 2024
183
3.4a) Net assets and results of the joint ventures continued
2023
USAF
LSAV
Total
£m
£m
£m
Summarised balance sheet
Gross
MI
Share
Gross
Share
Gross
Share
Investment property
2,940.8
38.7
827.8
1,909.4
954.7
4,850.2
1,821.2
Cash
64.7
0.9
18.2
43.0
21.5
107.7
40.6
Debt
(865.0)
(11.4)
(243.5)
(674.0)
(337.0)
(1,539.0)
(591.9)
Swap assets
1.4
-
0.4
3.6
1.8
5.0
2.2
Other current assets
12.4
0.2
3.5
(2.8)
(1.4)
9.6
2.3
Other current liabilities
(92.1)
(1.2)
(25.8)
(56.6)
(28.4)
(148.7)
(55.4)
Net assets
2,062.2
27.2
580.6
1,222.6
611.2
3,284.8
1,219.1
Minority interest
-
(27.2)
-
-
-
-
(27.2)
Swap liabilities
(1.4)
-
(0.4)
(3.6)
(1.7)
(5.0)
(2.1)
EPRA net assets
2,060.7
-
580.1
1,219.0
609.5
3,279.8
1,189.7
Summarised income statement
Rental income
203.4
2.7
57.3
103.6
51.8
307.0
111.8
Other income
0.9
-
0.2
2.0
1.0
2.9
1.2
Total Revenue
204.3
2.7
57.5
105.6
52.8
309.9
113.0
Cost of sales
(70.6)
(1.5)
(19.9)
(26.4)
(13.2)
(97.0)
(34.6)
Operating expenses
(2.4)
-
(0.6)
(1.2)
(0.6)
(3.6)
(1.2)
Results from operating activities before (losses)/
gains on property
131.3
1.2
37.0
78.0
39.0
209.3
77.2
Profit/(loss) on disposal of property
(13.1)
-
(3.7)
0.6
0.3
(12.5)
(3.4)
Net valuation movement
20.3
-
7.4
(59.2)
(29.6)
(38.9)
(22.2)
Net financing (costs)/gains
(33.5)
-
(9.5)
(30.0)
(15.0)
(63.5)
(24.5)
Profit before tax
105.0
1.2
31.2
(10.6)
(5.3)
94.4
27.1
Taxation
(0.1)
-
-
(0.2)
(0.1)
(0.3)
(0.1)
(Loss)/Profit for the year after tax
104.9
1.2
31.2
(10.8)
(5.4)
94.1
27.0
Other comprehensive income
(2.3)
-
(0.7)
(1.2)
(0.6)
(3.5)
(1.3)
Total comprehensive (expense)/income
102.6
1.2
30.5
(12.0)
(6.0)
90.6
25.7
Dividends received from the joint ventures during the year
0.8
21.8
5.4
28.0
Net assets and profit/(loss) for the year above include the non-controlling interest, whereas EPRA NTA excludes the
non-controlling interest.
USAF and LSAV use derivatives to hedge their borrowings. These derivatives are designated in cash flow hedge relationships which
are considered to be fully effective. The share of joint venture mark to market movements on hedging instruments is recognised in
the Group’s Other Comprehensive Income within the share of joint venture mark to market movements on hedging instruments. The
total notional value of borrowings in hedge relationships at 31 December 2024 is £340 million (2023: £415.0 million). See note 4.5 for
further details.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
184
FINANCIAL STATEMENTS
3.4b) Movement in carrying value of the Group’s investments in joint ventures
The carrying value of the Group’s investment in joint ventures increased by £46.0 million during the year ended 31 December 2024
(2023: £7.6 million decrease), resulting in an overall carrying value of £1,265.0 million (2023: £1,219.0 million).
The following table shows how the decrease has arisen:
2024
2023
£m
£m
Recognised in the income statement:
Operations segment result
47.5
47.4
Non-controlling interest share of Operations segment result
(0.2)
1.3
Management fee adjustment relating to trading with joint venture
4.8
4.5
Net valuation (losses)/gains on investment property
67.0
(21.9)
Property disposals
(2.4)
(3.5)
Ineffective swap
(0.4)
(0.4)
Other
(0.4)
(0.4)
115.9
27.0
Recognised in equity:
Movement in effective hedges
(2.3)
(2.1)
Other adjustments to the carrying value:
Profit adjustment related to trading with joint venture
(4.8)
(4.5)
Disposal of non-controlling interest
(27.9)
-
Additional capital invested in USAF
(7.4)
-
Distributions received
(27.5)
(28.0)
Increase/(Decrease) in carrying value
46.0
(7.6)
Carrying value at 1 January
1,219.0
1,226.6
Carrying value at 31 December
1,265.0
1,219.0
NOTES TO THE FINANCIAL STATEMENTS continued
THE UNITE GROUP PLC
Annual Report and Accounts 2024
185
3.4c) Transactions with joint ventures
The Group acts as asset and property manager for the joint ventures and receives management fees in relation to these services.
In addition, the Group is entitled to performance fees from USAF and LSAV if the joint ventures outperform certain benchmarks. No
performance fees were recognised in the year (2023: £nil).
2024
2023
£m
£m
USAF
16.9
16.6
LSAV
4.9
4.8
Asset management fees
21.8
21.4
Investment management fees
-
-
Total fees
21.8
21.4
On an EPRA basis, fees from joint ventures are shown net of the Group’s share of the cost to the joint ventures.
The Group’s share of the management fees to the joint ventures is £4.6 million (2023: £4.5 million), which results in management fees
from joint ventures of £17.3 million being shown in the Operating segment result in note 2.2a (2023: £16.9 million).
During the year, the Group purchased seven properties from USAF for gross proceeds of £235.5m and sold two properties to USAF
for total gross proceeds of £118.5m. Both sale and purchase were transacted at fair value which was the same as the carrying value.
As part of these transactions, the Group paid £117.0m of cash to USAF reflecting the net difference in value between these assets,
this balance is presented within investing activities in the consolidated statement of cash flows.
3.5 Investments in subsidiaries (Company)
Accounting policies
In the financial statements of the Company, investments in subsidiaries are held at fair value. Changes in fair value are recognised
in profit or loss and presented in retained earnings in equity.
Carrying value of investment in subsidiaries
The movements in the Company’s interest in unlisted subsidiaries and joint ventures during the year are as follows:
Investment in
subsidiaries
2024
2023
£m
£m
At 1 January
2,450.8
2,397.0
Revaluation
200.5
53.8
At 31 December
2,651.3
2,450.8
The carrying value of investment in subsidiaries has been calculated using the equity attributable to the owners of the Company from
the consolidated balance sheet adjusted for the fair value of fixed rate loans. This includes investment property, investment property
under development and swaps at a fair value calculated by a third-party expert. All investment properties and investment properties
under development are classified as Level 3 in the IFRS 13 fair value hierarchy are discussed on page 187. The fixed rate loans range
between Level 1 and Level 2 in the IFRS 13 fair value hierarchy are discussed further on page 187.
Significant assumptions underlying the valuation of investment in subsidiaries are valuation of investment property and investment
property under development, together with the value of borrowings and inter-company debt. A full list of the Company’s subsidiaries
and joint ventures can be found in note 9.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
186
FINANCIAL STATEMENTS
Section 4: Funding
The Group finances its development and investment activities through a mixture of retained earnings, borrowings and
equity. The Group continuously monitors its financing arrangements to manage its gearing.
Interest rate swaps are used to manage the Group’s risk to fluctuations in interest rate movements.
The following pages provide disclosures about the Group’s funding position, including borrowings, gearing and hedging
instruments; its exposure to market risks; and its capital management policies.
Accounting policies
Financial instruments
Financial assets and financial liabilities are recognised in the Group’s balance sheet when the Group becomes a party to the
contractual provisions of the instrument.
Financial assets and financial liabilities are initially measured at fair value, less any attributable transaction costs,
and subsequently at amortised cost. Total financial assets at amortised costs is £37.5m (2023: £34.8m). Total financial liabilities at
amortised costs is £1,347.5m (2023: 1,123.9m).
With the exception of investments in subsidiaries and derivative financial instruments, no other financial assets or liabilities have
been classified as either fair value through profit or loss or fair value through other comprehensive income.
The accounting policies applicable to specific financial assets and liabilities, and financing costs, are set out in the relevant notes.
Impairment of financial assets
The Group recognises a loss allowance for expected credit losses on trade receivables.
The Accounting Policy is set out in full in note 5.2.
Derivative financial instruments
The Group enters into derivative financial instruments to manage its exposure to interest rate risk. Further details of derivative
financial instruments, including the relevant accounting policies, are disclosed in notes 4.2 and 4.5.
4.1 Borrowings
Accounting policies
Interest bearing borrowings are recognised initially at fair value, less attributable transaction costs. Subsequent to initial
recognition, interest bearing borrowings are stated at amortised cost with any difference between cost and redemption
value being recognised in the income statement over the period of the borrowings on an effective interest basis.
The table below analyses the Group’s borrowings which comprise bank and other loans by when they fall due for payment:
Group – Carrying value
Company – Carrying value
2024
2023
2024
2023
£m
£m
£m
£m
Current
In one year or less, or on demand
-
299.4
-
-
Non-current
In more than one year but not more than two years
147.6
-
147.6
-
In more than two years but not more than five years
572.3
320.7
572.3
45.7
In more than five years
543.8
447.6
543.8
423.0
1,263.7
1,067.6
1,263.7
468.7
Unamortised fair value of debt recognised on acquisition
10.1
14.0
-
-
Total borrowings
1,273.8
1,081.6
1,263.7
468.7
In addition to the borrowings currently drawn as shown above, the Group has available undrawn facilities of £750.0 million
(2023: £550.0 million). A further overdraft facility of £10.0 million (2023: £10.0 million) is also available.
NOTES TO THE FINANCIAL STATEMENTS continued
THE UNITE GROUP PLC
Annual Report and Accounts 2024
187
The carrying value and fair value of the Group’s borrowings is analysed below:
2024
2023
Group
Carrying
value
Fair
value
Carrying
value
Fair
value
£m
£m
£m
£m
Level 1 IFRS fair value hierarchy
975.0
956.6
875.0
852.3
Other loans and unamortised arrangement fees
288.7
275.4
192.6
180.3
Total borrowings
1,263.7
1,232.0
1,067.6
1,032.6
2024
2023
Company
Carrying
value
Fair
value
Carrying
value
Fair
value
£m
£m
£m
£m
Level 1 IFRS fair value hierarchy
975.0
956.6
275.0
268.4
Other loans and unamortised arrangement fees
288.7
275.4
193.7
180.3
Total borrowings
1,263.7
1,232.0
468.7
448.7
The fair value of loans classified as Level 1 in the IFRS fair value hierarchy is determined using quoted prices in active markets for
identical liabilities.
The following table shows the changes in liabilities arising from financing activities:
2024
Group
At 1 January
2024
Financing
cash flows
Interest
expense
Fair value
adjustments
Other
changes
At 31 December
2024
Borrowings
1,081.6
193.2
-
(4.1)
3.1
1,273.8
Lease liabilities
83.8
(19.8)
8.8
-
-
72.8
Interest rate swaps
(56.0)
-
-
0.4
2.2
(53.4)
Total liabilities from financing activities
1,109.4
173.4
8.8
(3.7)
5.3
1,293.2
Company
Borrowings
468.6
800.0
-
0.2
(5.1)
1,263.7
Interest rate swaps
(56.0)
-
-
0.4
2.2
(53.4)
Total liabilities from financing activities
412.5
800.0
-
0.6
(2.9)
1,210.3
2023
Group
At 1 January
2023
Financing
cash flows
Interest
expense
Fair value
adjustments
Other
changes
At 31 December
2023
Borrowings
1,265.9
(182.5)
-
(4.3)
2.5
1,081.6
Lease liabilities
92.3
(16.2)
7.7
-
-
83.8
Interest rate swaps
(73.2)
-
-
17.2
-
(56.0)
Total liabilities from financing activities
1,285.0
(198.7)
7.7
12.9
2.5
1,109.4
Company
Borrowings
649.6
(182.5)
-
0.8
0.8
468.7
Interest rate swaps
(73.2)
-
-
17.2
-
(56.0)
Total liabilities from financing activities
576.4
(182.5)
-
18.0
0.8
412.7
THE UNITE GROUP PLC
Annual Report and Accounts 2024
188
FINANCIAL STATEMENTS
4.2 Interest rate swaps
The Group uses interest rate swaps to manage the Group’s exposure to interest rate fluctuations. In accordance with the Group’s
Treasury Policy, the Group does not hold or issue interest rate swaps for trading purposes. The derivatives of the Company are the
same as those of the Group, and the hedge accounting disclosures in note 4.5a are also relevant for the Company.
Accounting policies
Interest rate swaps are recognised initially and subsequently at fair value, with mark to market movements recognised in the
income statement unless cash flow hedge accounting is applied.
The Group designates certain interest rate derivatives as hedging instruments. The interest rate swap is designated as the hedging
instrument in a hedge of the variability in cash flows attributable to the interest risk of borrowings. At inception, the Group
documents the relationship between the hedging instrument and the hedged item, along with the risk management objectives
and its strategy for undertaking various hedge transactions.
Furthermore, at the inception of the hedge and on an ongoing basis, the Group documents whether the hedging instrument is
effective in offsetting changes in fair values or cash flows of the hedged item attributable to the hedged risk, which is when the
hedging relationships meet all of the following hedge effectiveness requirements:
• There is an economic relationship between the hedged item and the hedging instrument
• The effect of credit risk does not dominate the value changes that result from that economic relationship
• The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the Group
actually hedges and the quantity of the hedging instrument that the Group actually uses to hedge that quantity of hedged item.
The effective portion of changes in fair value of the interest rate swap is recognised in Other Comprehensive Income and
presented under the heading of Hedging reserve in equity, limited to the cumulative change in fair value of the hedged item from
inception of the hedge. Any ineffective portion of changes in the fair value of the interest rate swap is recognised immediately
in profit or loss. Amounts previously recognised in other comprehensive income and accumulated in equity are reclassified to
profit or loss in the periods when the hedged item affects profit or loss, in the same line as the recognised hedged item. If the
Group expects that some or all of the loss accumulated in the hedging reserve will not be recovered in the future, that amount is
immediately reclassified to profit or loss.
The Group discontinues hedge accounting only when the hedging relationship (or a part thereof) ceases to meet the qualifying
criteria. This includes instances when the hedging instrument expires or is sold, terminated or exercised. The discontinuation
is accounted for prospectively. Any gain or loss recognised in Other Comprehensive Income and accumulated in the hedging
reserve at that time remains in equity and is reclassified to profit or loss when the forecast transaction occurs. When a forecast
transaction is no longer expected to occur, the gain or loss accumulated in the hedging reserve is reclassified immediately to
profit or loss.
The fair value of interest rate swaps is the estimated amount that the Group would receive or pay to terminate the swap at the
balance sheet date, taking into account current interest rates and the current creditworthiness of the swap counterparties.
The following table shows the fair value of interest rate swaps which at 31 December 2024 are not designated in accounting
hedge relationships:
2024
2023
£m
£m
Current
7.4
-
Non-current
46.0
56.0
Fair value of interest rate swaps
53.4
56.0
The fair value of interest rate swaps has been calculated by a third-party, discounting estimated future cash flows on the basis of market
expectations of future interest rates, representing Level 2 in the IFRS 13 fair value hierarchy. At 31 December 2024, the fair value above
comprises current assets of £7.4 milion and non-current assets of £46.0 million (2023: non-current assets of £56.0 million).
NOTES TO THE FINANCIAL STATEMENTS continued
THE UNITE GROUP PLC
Annual Report and Accounts 2024
189
4.3 Net financing costs/(gains)
Accounting policies
Net financing costs comprise interest payable on borrowings and interest on lease liabilities, less interest receivable on funds
invested (both calculated using the effective interest rate method) and gains and losses on hedging instruments that are
recognised in the income statement.
2024
2023
Recognised in the income statement:
£m
£m
Interest income
(16.7)
(1.3)
Finance income
(16.7)
(1.3)
Gross interest expense on loans
39.0
32.5
Amortisation of fair value of debt recognised on acquisition
(4.1)
(4.3)
Interest capitalised
(15.5)
(8.4)
Loan interest and similar charges
19.4
19.8
Interest on lease liabilities
8.8
7.7
Mark to market changes in interest rate swaps
0.4
17.2
Swap cancellation and loan break costs
3.1
-
Finance costs
31.7
44.7
Net financing costs
15.0
43.4
The average cost of the Group’s wholly-owned debt at 31 December 2024 is 3.0% (2023: 2.7%). The overall average cost of debt on an
EPRA basis is 3.6% (2023: 3.2%).
4.4 Gearing
LTV is a key indicator that the Group uses to manage its indebtedness. The Group also monitors gearing, which is calculated using
EPRA net tangible assets (NTA) and adjusted net debt. Adjusted net debt excludes IFRS 16 lease liabilities, the unamortised fair value
of debt recognised on acquisition and mark to market of interest rate swaps as shown below.
The Group’s gearing ratios are calculated as follows:
2024
2023
Note
£m
£m
Cash and cash equivalents
5.1
274.3
37.5
Current borrowings
4.1
-
(299.4)
Non-current borrowings
4.1
(1,273.8)
(782.2)
Lease liabilities
4.6a
(72.8)
(83.8)
Interest rate swaps
4.2
53.4
56.0
Net debt per balance sheet
(1,018.9)
(1,071.9)
Lease liabilities
4.6a
72.8
83.8
Unamortised fair value of debt recognised on acquisition
2.3c
11.1
15.2
Adjusted net debt
(935.0)
(972.9)
Reported net asset value
4,811.5
4,067.0
EPRA NTA
2.3c
4,758.4
4,014.7
Gearing
Basic (net debt/reported net asset value)
21%
26%
Adjusted gearing (adjusted net debt/EPRA NTA)
20%
24%
Loan to value
2.3a
24%
28%
THE UNITE GROUP PLC
Annual Report and Accounts 2024
190
FINANCIAL STATEMENTS
4.5 Financial risk factors
The Group’s activities expose it to a variety of financial risks: market risks (primarily interest rate risk), credit risk and liquidity risk.
The Group’s Treasury Policy focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on
the Group’s financial performance. Details on credit risk can be found in note 5.3.
4.5a) Interest rate risk
The Group is exposed to interest rate risk because entities in the Group borrow funds at both fixed and floating interest rates. The
risk is managed by the Group by maintaining an appropriate mix between fixed and floating rate borrowings, and by the use of
interest rate swap contracts. Hedging activities are evaluated regularly to align with defined risk appetite; ensuring the most cost-
effective hedging strategies are applied.
The Group’s exposures to interest rates on financial assets and financial liabilities are detailed in the liquidity risk management
section of this note.
The Group holds its debt finance under both floating and fixed rate arrangements. The floating debt is hedged through the use of
interest rate swap agreements. The Group’s guideline has been to hedge 75%–95% of the Group’s interest rate exposure for terms of
approximately two to ten years.
At 31 December 2024, 89% (2023:96% of the Group’s borrowing was held at fixed rates, driven by lower borrowings as a result of the
capital raise in July 2024. Excluding the £450 million (2023: £200 million) of swaps the fixed investment borrowing is at an average
rate of 4.1% (2023: 3.1%) following the new bond issuance in June 2024 for an average period of 5.8 years (2023: 4.4 years), including
all debt with current swaps the average rate is 3.3% (2023: 2.9%).
Under interest rate swap contracts, the Group agrees to exchange the difference between fixed and floating rate interest amounts
calculated on agreed notional principal amounts. Such contracts enable the Group to mitigate the risk of changing interest rates
upon the issuance of forecast fixed rate debt held and the cash flow exposures on the issued variable rate debt held. The fair value
of interest rate swaps at the reporting date is determined by discounting the future cash flows using the curves at the reporting date
and is disclosed below. The average interest rate is based on the outstanding balances at the end of the financial year.
As the critical terms of the hedge contracts and their corresponding hedged items are the same, the Group performs a qualitative
assessment of effectiveness and it is expected that the value of the interest rate swap contracts and the value of the corresponding
hedged items will systematically change in opposite direction in response to movements in the underlying interest rates. The main
source of hedge ineffectiveness in these hedge relationships has historically been the effect of the counterparty and the Group’s
own credit risk on the fair value of the hedge contracts, which is not reflected in the fair value of the hedged item attributable to
the change in interest rates. No other sources of ineffectiveness emerged from these hedging relationships. However, changes in
anticipated draw down of debt in 2022 as a result of planned property disposals have meant that the hedged items were no longer
expected to occur. As a result the hedge relationships were discontinued from 1 July 2021 and the interest rate swaps are no longer
designated as ‘effective’.
The fair value of these instruments is assets of £53.4 million (2023: £56.0 million) with £7.4 million maturing in 12 months (2023: £nil).
The interest rate swaps settle on a monthly basis. The floating rate on the interest rate swaps is one-month SONIA (2023: one-month
SONIA). The Group will settle the difference between the fixed and floating interest rate on a net basis.
At the end of the current year and the previous year, the Group had no cash flow hedges in hedge relationships.
The sensitivity analyses below have been determined based on the exposure to interest rates for both derivative and non-
derivative instruments as at 31 December 2024. For floating rate liabilities, the analysis is prepared assuming the amount of liability
outstanding at the reporting date was outstanding for the whole year. A 1% increase or decrease is used when reporting interest
rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in
interest rates.
If interest rates had been 1% higher and all other variables were held constant the Group’s profit for the year ended.
As the notional value of the interest rate swap contracts is greater than the amount of borrowing at variable rate, the Group
is exposed to fluctuations in interest rates. If interest rates had been 1% higher and all other variables were held constant the
Group’s profit for the year ended 31 December 2024 would increase by £3.7 million (2023: £1.7 million). There would be with no
impact directly recognised in the Statement of Changes in Equity. The Group’s sensitivity to interest rates has remained reasonably
consistent year-on-year.
NOTES TO THE FINANCIAL STATEMENTS continued
THE UNITE GROUP PLC
Annual Report and Accounts 2024
191
4.5b) Credit risk on financial instruments
In order to minimise credit risk, the Group has adopted a policy of only dealing with creditworthy counterparties and obtaining
sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The Group only transacts
with entities that are rated the equivalent of investment grade and investments in these instruments, where the counterparties
have minimum A- credit rating, are considered to have low credit risk for the purpose of impairment assessment. The credit rating
information is supplied by independent rating agencies where available and, if not available, the Group uses other publicly available
financial information including CDS prices and its own trading records to rate its major customers. The Group’s exposure and the
credit ratings of its counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst
approved counterparties in line with Board Policy.
Before accepting any new customer, the finance team uses external credit ratings to assess the potential customer’s credit quality
and defines credit limits by customer. Monitoring procedures are also in place to ensure that follow-up action is taken when ratings
deteriorate. The Group does not hold any credit enhancements to cover its credit risks associated with its financial assets.
The Group considers the following as constituting an event of default for internal credit risk management purposes as historical
experience indicates that financial assets that meet either of the following criteria are generally not recoverable:
• When there is a breach of financial covenants by the debtor
• Information developed internally or obtained from external sources indicates that the debtor is unlikely to pay its creditors,
including the Group, in full (without taking into account collateral held by the Group).
Details of the credit quality of the Group’s financial assets as well as the Group’s maximum exposure to credit risk by credit risk rating
grades are set out in note 5.3.
4.5c) Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due.
Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has established an appropriate liquidity
risk management framework for the management of the Group’s short-, medium- and long-term funding and liquidity management
requirements. The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by
continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities. Details
of additional undrawn facilities that the Group has at its disposal to further reduce liquidity risk are set out below.
For development activities, the Group has a policy of raising substantially the full amount of capital required for each development before
commencing construction. The funding requirements of developments are therefore secured at the outset of works.
The Group has the following financial instruments which impact the liquidity risk of the Group either now or in the future:
• Financial assets including interest rate swaps, trade receivables, amounts due from joint ventures, other receivables and cash
• Financial liabilities including borrowings, lease liabilities, interest rates swaps, trade payables, retentions on construction contracts
for properties, other payables and accrued expenses.
The following tables detail the Group’s remaining contractual maturity for its non-derivative financial liabilities with agreed
repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest
date on which the Group can be required to pay.
2024
Weighted
average effective
interest rate
Less
than 1
month
1-3
months
3 months
- 1 year
1-5 years
5+ years
Total
Carrying
amount
%
£m
£m
£m
£m
£m
£m
£m
Variable interest rate instruments
6.2%
0.8
1.5
6.9
170.8
-
180.0
149.4
Fixed interest rate instruments
4.4%
1.9
3.9
44.0
458.5
783.4
1,291.7
1,124.4
Lease liabilities
4.2%
1.0
2.9
7.9
48.5
48.8
109.1
72.8
Trade and other payables
n/a
-
177.0
-
-
-
177.0
177.0
Total
3.7
185.3
58.8
677.8
832.2
1,757.8
1,523.6
THE UNITE GROUP PLC
Annual Report and Accounts 2024
192
FINANCIAL STATEMENTS
2023
Weighted
average effective
interest rate
Less
than 1
month
1-3
months
3 months
- 1 year
1-5 years
5+ years
Total
Carrying
amount
%
£m
£m
£m
£m
£m
£m
£m
Variable interest rate instruments
7.0%
0.3
0.6
2.6
57.9
-
61.5
46.5
Fixed interest rate instruments
3.1%
1.1
2.2
28.8
399.4
766.2
1,197.7
1,036.9
Lease liabilities
4.2%
1.1
2.3
10.2
54.5
66.8
134.9
83.8
Trade and other payables
n/a
-
134.0
-
-
-
134.0
134.3
Total
2.5
139.1
41.6
511.8
833.0
2,361.1
1,302.2
The Company has £180.0m (2023: £61.5m) of variable rate borrowings with a weighted average rate of 6.2% and £1,291.7m of fixed rate
borrowings with a weighted average rate of 4.4% (2023: 3.1%). The maturity of the Company’s borrowings is disclosed in note 4.1.
The Group has access to financing facilities as described below, of which £610.0 million were unused at the reporting date (2023:
£560.0 million). The Group expects to meet its other obligations from operating cash flows.
4.5c) Liquidity risk continued
2024
2023
£m
£m
Unsecured bank overdraft facility, reviewed annually and payable at call:
- amount used
-
-
- amount unused
10.0
10.0
Unsecured committed bank loan facilities which may be extended by mutual agreement:
- amount used
150.0
50.0
- amount unused
750.0
550.0
900.0
600.0
4.5d) Covenant compliance
The Group monitors its covenant position and the forecast headroom available on a monthly basis. At 31 December 2024, the Group
was in full compliance with all of its borrowing covenants.
The Group’s unsecured borrowings carry several covenants. The covenant regime is IFRS based and gives the Group substantial
operational flexibility, allowing property acquisitions, disposals and developments to occur with relative freedom.
2024
2023
Covenant
Actual
Covenant
Actual
Gearing
<1.50
0.21
<1.5
0.27
Unencumbered assets ratio
>1.70
4.48
>1.7
3.71
Secured gearing
<0.25
-
<0.25
-
Development assets ratio
<30%
8%
<30%
3%
Joint venture ratio
<55%
22%
<55%
23%
Interest cover
>2.00
81.56
>2.00
8.23
The Liberty Living Finance PLC bond issuer substitution to Unite Group PLC was completed in December 2024 bringing the £300m
2029 bond under The Unite Group PLC.
NOTES TO THE FINANCIAL STATEMENTS continued
THE UNITE GROUP PLC
Annual Report and Accounts 2024
193
4.6 Leases
4.6a) Lease liabilities
Accounting policies
The Group assesses whether a contract is or contains a lease, at inception of the contract. The Group recognises a right-of-use
asset (see note 3.1a) and a corresponding lease liability with respect to all lease arrangements in which it is the lessee.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date,
discounted by using the Group’s incremental borrowing rate (since the rate implicit in the leases cannot be readily determined)
of 4.17%.
The lease liability is presented as a separate line in the consolidated balance sheet.
The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the
effective interest method) and by reducing the carrying amount to reflect the lease payments made.
The Group remeasures the lease liability whenever:
• The lease term has changed, in which case the lease liability is remeasured by discounting the revised lease payments using a
revised discount rate
• The lease payments change due to changes in an index, in which cases the lease liability is remeasured by discounting the
revised lease payments using an unchanged discount rate (unless the lease payments change is due to a change in a floating
interest rate, in which case a revised discount rate is used)
• A lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability
is remeasured based on the lease term of the modified lease by discounting the revised lease payments using a revised
discount rate at the effective date of the modification.
The Group did not make any such adjustments during the period presented.
Undiscounted cash flows
Carrying value
2024
2023
2024
2023
Lease liabilities
£m
£m
£m
£m
Analysed as:
Non-current
97.3
121.3
66.8
78.4
Current
11.8
13.6
6.0
5.4
Total lease liability
109.1
134.9
72.8
83.8
Lease liability maturity analysis
Year 1
11.8
13.6
6.0
5.4
Year 2
12.2
13.5
6.6
7.4
Year 3
12.0
13.7
6.9
7.9
Year 4
12.2
13.5
7.7
8.8
Year 5
12.1
13.8
8.1
8.8
Onwards
48.8
66.8
37.5
45.5
Total
109.1
134.9
72.8
83.8
The Group does not face a significant liquidity risk with regard to its lease liabilities. Lease liabilities are monitored within the Group’s
treasury function.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
194
FINANCIAL STATEMENTS
4.6b) Lease receivables
The Group accounts for its tenancy contracts offered to commercial and individual tenants as operating leases.
Operating lease contracts with universities contain RPI uplifts and market review clauses.
The lessee does not have an option to purchase the property at the expiry of the lease period.
Maturity analysis of operating lease receivables
The future minimum lease payments receivable under non-cancellable operating leases are as follows:
2024
2023
£m
£m
Year 1
254.0
236.8
Year 2
155.0
129.5
Year 3
106.4
83.8
Year 4
87.3
71.9
Year 5
73.9
60.4
Onwards
270.2
273.6
Total
946.8
856.0
4.7 Capital management
The capital structure of the Group consists of shareholders’ equity and adjusted net debt, including cash held on deposit. The Group’s
equity is analysed into its various components in the Statement of Changes in Equity. The components and calculation of adjusted
net debt is set out in note 4.4. Capital is managed so as to continue as a going concern and to promote the long-term success of the
business and to maintain sustainable returns for shareholders and joint venture partners.
The Group uses a number of key metrics to manage its capital structure:
• Net debt (note 4.4)
• Gearing (note 4.4)
• LTV (note 2.3a)
• Weighted average cost of investment debt (note 4.5a)
• Interest cover (note 4.5d).
In order to manage levels of adjusted gearing over the medium term, the Group seeks to deliver NAV growth and to recycle capital
invested in lower performing assets to fund new investment. Three property assets were sold in 2024.
The Group only commits to development schemes where there is a meaningful spread between development yields and funding costs.
The Group does not commit to developing new sites until sufficient funding is secured to fulfill the cost of the development in full.
The Board monitors the ability of the Group to pay dividends out of available cash and distributable profits. Based on the assumption
that no shareholders take up the final scrip dividend, the full year will be covered by operating cash flows. The full year dividend is
expected to be £182.1 million compared to operating cash flow of £216.4 million.
NOTES TO THE FINANCIAL STATEMENTS continued
THE UNITE GROUP PLC
Annual Report and Accounts 2024
195
4.8 Equity
Accounting policies
Ordinary shares are classified as equity. External costs directly attributable to the issue of new shares, other than on a business
combination, are shown as a deduction, net of tax, in equity from the proceeds. Share issue costs incurred directly in connection
with a business combination are deducted from the proceeds of the issue.
The Company’s issued share capital has increased during the year as follows:
2024
2023
Called up, allotted and fully paid ordinary
shares of £0.25p each
No. of
shares
Ordinary
shares
Share
Premium
No. of
shares
Ordinary
shares
Share
Premium
£m
£m
£m
£m
At 1 January
435,854,542
109.4
2,447.6
400,317,225
100.1
2,162.0
Shares issued (capital raise)
50,000,000
12.1
430.1
33,149,172
8.6
286.3
Shares issued (scrip dividend)
2,808,461
0.7
(0.7)
2,232,001
0.6
(0.6)
Share options exercised
129,071
-
(0.1)
156,144
0.1
(0.1)
At 31 December
488,792,074
122.2
2,876.9
435,854,542
109.4
2,447.6
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share
at meetings of the Company. All shares rank equally with regard to the Company’s residual assets.
The Company’s reserves are as follows:
• Called-up share capital reserves contain the nominal value of the shares issued
• Share premium reserves contain the excess consideration received above the nominal value of the shares issued
• Merger reserves contain the excess in the value of shares issued by the Company in exchange for the value of shares acquired in
respect of subsidiaries acquired (specifically on the acquisition of the Unilodge portfolio in June 2001)
• Hedging reserves contain the cumulative gains and losses on hedging instruments deemed effective
• Retained earnings contain the cumulative profits and losses of the Company net of dividends paid and other adjustments.
4.9 Dividends
Accounting policies
Dividends are recognised through equity on the earlier of their approval by the Company’s shareholders or their payment.
During the year, the Company paid the final 2023 dividend of £64.0 million – 23.6p per share – and an interim 2024 dividend of £52.0
million – 12.4p per share (2023: final 2022 dividend 21.7p and an interim dividend 11.8p).
After the year-end, the Directors proposed a final dividend per share of 24.9p (2023: 23.6p), bringing the total dividend per share for
the year to 37.3p (2023: 35.4p). No provision has been made in relation to this dividend.
The Group has modelled tax adjusted property business profits for 2024 and 2025 and the PID requirement in respect of the year
ended 31 December 2024 is expected to be satisfied by the end of 2025.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
196
FINANCIAL STATEMENTS
Section 5: Working capital
This section focuses on how the Group generates its operating cash flows. Careful management of working capital is vital
to ensure that the Group can meet its trading and financing obligations within its ordinary operating cycle.
On the following pages you will find disclosures around the Group’s cash position and how cash is generated from the
Group’s trading activities, and disclosures around trade receivables and payables.
Accounting policies
Cash and cash equivalents comprise cash balances and call deposits. Cash equivalents are short term, highly liquid investments
that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
Bank overdrafts that are repayable on demand and form an integral part of the Group’s cash management are included as
a component of cash and cash equivalents for the purpose of the statement of cash flows.
5.1 Cash and cash equivalents
The Group’s cash position at 31 December 2024 was £274.3 million (2023: £37.5 million). Of this balance, £180m was cash equivalents
money market deposits, £94.3 million was cash.
The Group’s cash balances include £1.1 million (2023: £1.1 million) whose use at the balance sheet date is restricted by funding
agreements to pay operating costs.
The Group generates cash from its operating activities as follows:
Group
2024
2023
Note
£m
£m
Profit for the year
441.8
103.6
Adjustments for:
Depreciation and amortisation
3.3
5.7
6.3
Fair value of share based payments
6.1
2.4
3.4
Change in value of investment property (owned and under development)
3.1
(186.7)
37.2
Change in value of investment property (leased)
3.1
1.9
10.4
Net finance costs
4.3
2.7
18.5
Interest payment for leased assets
8.8
7.7
Swap break and debt exit costs
3.1
-
Mark to market changes in interest rate swaps
0.3
17.2
Loss/(profit) on disposal of investment property
9.8
(11.8)
Share of joint venture profit
3.4b
(115.9)
(27.0)
Trading with joint venture adjustment
3.4b
4.6
4.5
Tax charge/(credit)
2.5a
2.1
(1.1)
Cash flows from operating activities before changes in working capital
180.6
168.8
Decrease/(increase) in trade and other receivables
(12.0)
(24.8)
(lncrease)/decrease in inventories
(5.3)
(13.5)
Increase/(decrease) in trade and other payables
48.2
24.4
Cash flows from operating activities
211.5
155.0
Tax paid/ (received)
4.9
(1.8)
Net cash flows from operating activities
216.4
153.2
Cash flows consist of the following segmental cash inflows/(outflows): Operations £210.4 million (2023: £178.0 million),
Property (£249.6 million) (2023: (£354.0 million)) and Unallocated £276.0 million (2023: £175.5 million).
The Unallocated amount includes a net cash outflow of dividends paid of £137.8 million (2023: £117.3 million) and a cash inflow of
£442.0 million (net of fees) as a result of the capital raise in July 2024 (2023: £295.0 million).
NOTES TO THE FINANCIAL STATEMENTS continued
THE UNITE GROUP PLC
Annual Report and Accounts 2024
197
5.2 Trade and other receivables
Accounting policies
On the basis that trade receivables meet the business model and cash flow characteristics tests, they are initially recognised at
transaction price and then subsequently measured at amortised cost.
The Group applies the IFRS 9 simplified model of recognising lifetime expected credit losses for all trade receivables as these
items do not have a significant financing component.
In measuring the expected credit losses, the trade receivables have been assessed on a collective basis as they possess shared
credit risk characteristics. They have been grouped based on the days past due and also according to whether the tenant is a
commercial organisation (including universities) or an individual student.
The expected loss rates are based on the payment profile for sales by academic year as well as the corresponding historical
credit losses during the period. The historical rates are adjusted to reflect any current and forward-looking macroeconomic
factors affecting the customer’s ability to settle the amount outstanding, however given the short period exposed to credit risk,
the impact of macroeconomic factors has not been considered significant within the reporting period.
Trade receivables are written off (i.e. derecognised) when there is no reasonable expectation of recovery. Failure to make
payments within a reasonable period from the invoice date and failure to engage with the Group on alternative payment
arrangements, amongst others, are considered indicators of no reasonable expectation of recovery.
Other financial asset balances are assessed for expected credit losses based on the underlying nature of the asset, including
maturity and age of the asset such as whether a longer-term asset or a short-term working capital balance is subject to regular
settlement arrangements, using the 12-month ECL model. No credit losses have been recognised in respect of these balances.
Financial assets written off may still be subject to enforcement activities under the Group’s recovery procedures, taking into
account legal advice where appropriate. Any recoveries made are recognised in profit or loss.
The Company’s impairment policies in relation to financial assets are consistent with those of the Group, with additional
consideration given to loans to Group undertakings. In this respect, the Company recognises lifetime ECL when there has been
a significant increase in credit risk (such as changes to credit ratings) since initial recognition. However, if the credit risk on the
loans have not increased significantly since initial recognition, the Company measures the loss allowance for that financial
instrument at an amount equal to 12-month ECL.
The Company expects that the loans to Group undertakings will be repaid in full at maturity or when called. If the Group
undertakings were unable to repay loan balances, the Company expects that in such circumstances the counterparty would
negotiate extended credit terms with the Company. As such, the expected credit loss is considered immaterial. No change
in credit risk is deemed to have occurred since initial recognition and therefore a 12-month expected credit loss has been
calculated based on the assessed probability of default.
Trade and other receivables can be analysed as follows:
Group
Company
Note
2024
2023
2024
2023
£m
£m
£m
£m
Trade receivables
37.5
34.8
-
-
Amounts owed by joint ventures
56.7
49.4
-
-
Prepayments and accrued income
16.2
14.8
-
-
Other receivables
34.2
33.8
-
-
Trade and other receivables
144.6
132.8
-
-
Loans to Group undertakings (non-current)
5.6
-
-
3,416.1
2,130.0
Trade and other receivables (non-current)
-
-
3,416.1
2,130.0
The Group offers tenancy contracts to commercial (universities and retail unit tenants) and individual tenants based on the
academic year. The Group monitors and manages the recoverability of its receivables based on the academic year to which the
amounts relate. Rental income is payable immediately, therefore all receivables relating to tenants are past the payment due date.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
198
FINANCIAL STATEMENTS
5.2 Trade and other receivables continued
We do not anticipate there to be any expected credit loss on amounts receivable from joint ventures as these remain profitable.
Details of amounts due from Group undertakings to the Company are disclosed in note 5.6.
2024
Ageing by academic year
Total
2024/25
2023/24
Prior years
£m
£m
£m
£m
Rental debtors
Commercial tenants (past due and impaired)
1.5
0.5
0.6
0.4
Individual tenants (past due and impaired)
47.3
39.9
2.8
4.6
Expected credit loss carried
(11.3)
(2.9)
(3.4)
(5.0)
Trade receivables
37.5
37.5
-
-
2023
Ageing by academic year
Total
2023/24
2022/23
Prior years
£m
£m
£m
£m
Rental debtors
Commercial tenants (past due and impaired)
1.8
0.6
0.5
0.7
Individual tenants (past due and impaired)
51.4
39.5
3.7
8.2
Expected credit loss carried
(18.4)
(5.3)
(4.2)
(8.9)
Trade receivables
34.8
34.8
-
-
Included within trade receivables is £20.3 million of receivables relating to joint venture debtors (2023: £16 million).
Movements in the Group’s expected credit losses of trade receivables can be shown as follows:
2024
2023
£m
£m
At 1 January
18.4
15.6
Expected credit loss charged to income statement in year
0.9
3.0
Receivables written off during the year (utilisation of expected credit loss)
(8.0)
(0.2)
At 31 December
11.3
18.4
The loss allowance for trade receivables is estimated as an amount equal to the lifetime expected credit loss (ECL). This loss has been
estimated using the Group’s history of loss for similar assets and takes into account current and forecast conditions.
The impact of credit losses is not considered significant in respect of the financial statements.
5.3 Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual
obligations. It arises principally from the Group’s cash balances, the Group’s receivables from customers and joint ventures and loans
provided to the Group’s joint ventures.
At the year-end, the Group’s maximum exposure to credit risk was as follows:
Note
2024
2023
£m
£m
Cash
5.1
274.3
37.5
Trade receivables
5.2
37.5
34.8
Amounts due from joint ventures (excluding loans that are capital in nature)
5.2
56.7
49.4
368.5
121.7
NOTES TO THE FINANCIAL STATEMENTS continued
THE UNITE GROUP PLC
Annual Report and Accounts 2024
199
5.3a) Cash
The Group operates investment guidelines with respect to surplus cash. Counterparty limits for cash deposits are largely based upon
long-term ratings published by credit rating agencies and credit default swap rates. Deposits are placed with financial institutions
with A- or better credit ratings.
5.3b) Trade receivables
The Group’s customers can be split into two groups – (i) students (individuals) and (ii) commercial organisations including universities.
The Group’s exposure to credit risk is influenced by the characteristics of each customer.
5.3c) Joint ventures
Amounts receivable from joint ventures fall into two categories – working capital balances and investment loans. The Group has
strong working relationships with its joint venture partners, and the joint ventures themselves have strong financial performance,
retain net asset positions and are cash generative, and therefore the Group views this as a low credit risk balance. No impairment
has therefore been recognised in 2024 or 2023.
5.4 Trade and other payables
Accounting policies
Trade payables are initially recognised at the value of the invoice received from a supplier (fair value) and subsequently at
amortised cost. The carrying value of trade payables is considered approximate to fair value.
Group amounts are payable on demand.
Trade and other payables due within one year can be analysed as follows:
Group
Company
2024
2023
2024
2023
£m
£m
£m
£m
Trade payables
73.7
42.3
-
-
Retentions on construction contracts for properties
8.1
6.3
-
-
Amounts due to Group undertakings
-
-
102.1
66.7
Other payables and accrued expenses
95.3
85.4
24.8
9.1
Deferred income
78.4
73.8
-
-
Trade and other payables
255.5
207.8
126.9
75.8
Included within other payables and accrued expenses is £19.4 million of capital expenditure accruals (2023: £19.1 million).
Deferred income relates to rental income that has been collected in advance of it being recognised as income and includes £41.1
million of income relating to joint ventures (2023: £38.4 million).
5.5 Provisions
Accounting policies
Provisions are recognised when the Group has a present obligation as a result of a past event, it is probable that the Group will be
required to settle that obligation, and a reliable estimate can be made of the amount of that obligation. Provisions are measured
at the Directors’ best estimate of the expenditure required to settle the obligation and are discounted to present value where the
effect is material.
The Group continues to carry out replacement works for properties with HPL cladding and those where there is a legal obligation to do
so, with activity prioritised according to risk assessments. The remaining cost of the works is expected to be £5.6 million (Unite share:
£5.3 million), of which £5.1 million is in respect of wholly-owned properties. Whilst the overall timetable for these works is uncertain,
management anticipate this will be incurred over the next 12–24 months.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
200
FINANCIAL STATEMENTS
5.5 Provisions continued
The Government’s Building Safety Bill, covering building standards, was passed in April 2022 and has introduced more stringent
fire safety regulations. The Group will ensure it remains aligned to fire safety regulations as they evolve and continue to make any
required investment to ensure its buildings remain safe to occupy. The Group has provided for the costs of remedial work where
there is a legal obligation to do so.
The amounts provided reflect the current best estimate of the extent and future cost of the remedial works required and are based
on known costs and quotations where possible, and reflect the most likely outcome. However, these estimates may be updated as
work progresses or if government legislation and regulation changes.
The regulations continue to evolve in this area and Unite Group will ensure that its buildings are safe for occupation and compliant
with laws and regulations.
The Group has not recognised any assets in respect of future claims, but expect to recover 50–75% of remediation costs through
claims from contractors.
The Group has recognised provisions for the cost of these cladding works as follows:
Gross
£m
Unite Group Share
£m
Wholly-
owned
USAF
LSAV
Total
Wholly-
owned
USAF
LSAV
Total
At 31 December 2022
29.5
55.6
28.2
113.3
29.5
15.6
14.1
59.2
Adjustment due to re-estimates
(3.6)
(3.3)
-
(6.9)
(3.6)
(0.9)
-
(4.5)
Additions
21.3
51.5
22.2
95.0
21.3
14.5
11.1
46.9
Utilisation
(21.8)
(49.7)
(6.9)
(78.4)
(21.8)
(14.0)
(3.5)
(39.3)
Transferred to valuations
(20.2)
(48.2)
(12.3)
(80.7)
(20.2)
(13.6)
(6.2)
(40.0)
At 31 December 2023
5.2
5.9
31.2
42.3
5.2
1.6
15.5
22.3
Adjustment due to re-estimates
(0.1)
(2.0)
-
(2.1)
(0.1)
(0.6)
-
(0.7)
Additions
-
-
-
-
-
-
-
-
Utilisation
-
(3.4)
(4.6)
(8.0)
-
(0.9)
(2.2)
(3.1)
Transferred to valuations
-
-
(26.6)
(26.6)
-
-
(13.3)
(13.3)
At 31 December 2024
5.1
0.5
-
5.6
5.1
0.1
-
5.2
5.6 Transactions with other Group companies
The Company was charged by Unite Integrated Solutions plc for corporate costs of £5.0 million (2023: £4.8 million). As a result of
these intercompany transactions, the following amounts were due from/to the Company’s subsidiaries at the year-end.
2024
2023
£m
£m
Unite Holdings Limited
121.9
126.6
LDC (Holdings) Limited
1,658.0
1,112.0
Liberty Living Group
1,509.2
891.4
LDC (Portfolio) Ltd
127.0
-
Amounts due from Group undertakings
3,416.1
2,130.0
Unite Integrated Solutions plc
102.1
62.0
Amounts due to Group undertakings
102.1
62.0
The Parent Company has received management fees from its joint ventures, which are disclosed in note 3.4c.
The Company ensures the recoverability of intercompany receivable balances at the balance sheet date by ensuring that the
counterparties have sufficient net assets to settle the balance outstanding.
NOTES TO THE FINANCIAL STATEMENTS continued
THE UNITE GROUP PLC
Annual Report and Accounts 2024
201
Section 6: Key management and employee benefits
The Group’s greatest resource is its staff and it works hard to develop and retain its people. The remuneration policies in
place are aimed to help recognise the contribution that Unite Group’s people make to the performance of the Group.
On the following pages you will find disclosures around wages and salaries and share option schemes which allow
employees of the Group to take an equity interest in the Group.
Accounting policies
The Group operates a defined contribution pension scheme. Obligations for contributions to defined contribution pension plans
are recognised as an expense in the income statement as incurred.
6.1 Staff numbers and costs
With the exception of the Directors, who are employed by Unite Group PLC, all employees are employed by subsidiaries of the
Group. The employee costs of Unite Group PLC are borne by another Group company.
The average number of persons employed by the Group (including Directors) during the year (calculated on a monthly basis),
analysed by category, was as follows:
Number of employees
2024
2023
Managerial and administrative
617
580
Site operatives
1,291
1,241
1,908
1,821
The aggregate payroll costs of these persons were as follows:
2024
2023
£m
£m
Wages and salaries
79.6
72.1
Social security costs
7.9
6.8
Pension costs
3.8
3.3
Fair value of share-based payments
2.4
3.4
93.7
85.6
The wages and salaries costs include redundancy costs of £0.5 million (2023: £0.2 million) and costs due to senior leadership changes
of £nil million (2023: £2.9 million).
The total number of persons employed by the Group (including Directors) and Company as at 31 December 2024 was 625 managerial
and administrative and 1,281 site operatives.
6.2 Key management personnel
The remuneration of the Directors, including Non-Executive Directors, who are the key management personnel of the Group and
Company, is set out below in aggregate for each of the applicable categories specified in IAS 24 Related Party Disclosures. Further
information about the remuneration of individual Directors is provided in the audited part of the Directors’ Remuneration Report on
page 128 which covers the requirements of schedule 5 of the relevant legislation.
2024
2023
£m
£m
Short-term employee benefits
2.7
2.4
Post employment benefits
0.1
0.1
Share-based payment benefits
0.5
1.2
3.3
3.7
THE UNITE GROUP PLC
Annual Report and Accounts 2024
202
FINANCIAL STATEMENTS
6.3 Share-based compensation
A transaction is classified as a share-based transaction where the Group receives services from employees and pays for these in
shares or similar equity instruments. The Group operates a number of share-based compensation schemes allowing employees to
acquire shares in the Company.
6.3a) Share schemes
The Group operates the following schemes:
Long-term incentive plan (LTIP), comprising the:
– Performance Share Plan (PSP); and
Details can be found in the Directors’ Remuneration Report
– HMRC Approved Employee Share Option Scheme (ESOS)
Save As You Earn Scheme (SAYE)
Open to employees, vesting periods of three years,
service condition
6.3b) Outstanding share options
The table below summarises the movements in the number of share options outstanding for the Group and their average exercise price:
Weighted
average
Number of
Weighted
average
Number of
exercise
price
options
exercise
price
options
(thousands)
(thousands)
2024
2024
2023
2023
Outstanding at 1 January
£2.49
1,942
£0.19
2,083
Forfeited during the year
£5.15
(170)
£2.01
(765)
Exercised during the year
£1.20
(201)
£4.91
(176)
Granted during the year
£2.84
810
£2.95
800
Outstanding at 31 December
£2.53
2,381
£0.18
1,942
Exercisable at 31 December
£9.65
84
£5.80
78
For those options exercised in the year, the average share price during 2024 was £9.35 (2023: £9.40).
For those options still outstanding, the range of exercise prices at the year-end was 0p to 1,121p (2023: 0p to 1,121p) and the
weighted average remaining contractual life of these options was 3.9 years (2023: 2.9 years).
The Group funds the purchase of its own shares by the Employee Share Ownership Trust to meet the obligations of the LTIP
and executive bonus scheme. The purchases are shown as Own shares acquired in retained earnings.
As at 31 December 2024, the number of shares held by the ESOT was 203,898 (2023: 209,954).
The accounting is in accordance with the relevant standards. No further information is given as the amounts for share-based
payments are immaterial.
Section 7: Post balance sheet events
The Group has reviewed events up to 25 February 2025 and have determined that no material post balance sheet events have occurred.
NOTES TO THE FINANCIAL STATEMENTS continued
THE UNITE GROUP PLC
Annual Report and Accounts 2024
203
Section 8: Alternative performance measures
The Group uses alternative performance measures (APMs), which are not defined or specified under IFRS. These APMs, which are
not considered to be a substitute for IFRS measures, provide additional helpful information. APMs are consistent with how business
performance is planned, reported and assessed internally by management and the Board. The APMs below have been calculated
on a see through/Unite Group share basis, as referenced to the notes to the financial statements. Reconciliations to equivalent IFRS
measures are included in notes 2.2b and 2.2c. Definitions can also be found in the glossary.
Adjusted earnings of the Group excludes the non-recurring impact of one-off transactions, improving comparability between
reporting periods.
Non-EPRA measures may not have comparable calculation bases between companies and therefore may not provide meaningful
industry-wide comparability.
2024
2023
Note
£m
£m
EBIT
Net operating income (NOI)
2.2a
276.1
256.5
Management fees
2.2a
17.3
16.9
Overheads
2.2a
(22.5)
(22.1)
270.9
251.3
EBIT margin %
Rental income
2.2a
398.0
369.5
EBIT
8
270.9
251.3
68.1%
68.0%
EBITDA
Net operating income
2.2a
276.1
256.5
Management fees
2.2a
17.3
16.9
Overheads
2.2a
(22.5)
(22.1)
Depreciation and amortisation
3.3
5.7
6.3
276.6
257.6
Net debt
Cash
2.3a
364.7
77.2
Debt
2.3a
(1,874.8)
(1,648.1)
(1,510.1)
(1,570.9)
EBITDA : Net debt
EBITDA
8
276.6
257.6
Net debt
8
(1,510.1)
(1,570.9)
Ratio
5.5
6.1
Interest cover (Unite Group share)
EBIT
8
270.9
251.3
Net financing costs
2.2a
(35.2)
(47.4)
Interest on lease liabilities
2.2a
(8.8)
(7.7)
Total interest
(43.9)
(55.1)
Ratio
6.2
4.6
THE UNITE GROUP PLC
Annual Report and Accounts 2024
204
FINANCIAL STATEMENTS
Reconciliation: IFRS profit before tax to EPRA earnings and adjusted earnings
2024
2023
Note
£m
£m
IFRS profit before tax
444.0
102.5
Net valuation (gains) on investment property
2.2b
(253.7)
59.1
Property disposals
2.2b
12.2
(8.3)
Net valuation losses on investment property (leased)
2.2b
1.9
10.4
Amortisation of fair value of debt recognised on acquisition
2.2b
(4.1)
(4.3)
Changes in valuation of interest rate swaps
2.2b
0.4
17.2
Swap cancellation and debt exit fees
2.2b
3.1
-
Non-controlling interest, tax and other items
(1.9)
(0.4)
EPRA earnings
201.9
176.1
Software as a service costs
11.9
8.2
Adjusted earnings
213.8
184.3
Adjusted EPS yield
2024
2023
Adjusted earnings per share (A)
46.6p
44.3p
EPRA NTA 1 January (B)
920p
927p
Adjusted EPS yield (A/B)
5.1%
4.8%
Total accounting return
2024
2023
Opening EPRA NTA (A)
920p
927p
Closing EPRA NTA
972p
920p
Movement in EPRA NTA
52p
(7p)
2023 final dividend
23.6p
21.7p
2024 interim dividend
12.4p
11.8p
Total Movement in NTA (B)
88.0p
25.9p
Total Accounting Return - % (B)/(A)
9.6%
2.9%
EPRA performance measures
2024
2023
2024
2023
£m
£m
pps
pps
EPRA earnings
201.9
176.1
44.0
42.4
Adjusted earnings*
213.8
184.3
46.6
44.3
EPRA NTA
4,758.4
4,014.7
972
920
EPRA NRV
5,236.2
4,330.7
1,069
992
EPRA NDV
4,853.3
4,116.0
994
943
EPRA net initial yield
4.8%
4.8%
EPRA topped up net initial yield
4.8%
4.8%
EPRA like-for-like gross rental income
2.6%
2.6%
EPRA vacancy rate
2.0%
0.3%
EPRA cost ratio (including vacancy costs)
35.2%
35.2%
EPRA cost ratio (excluding vacancy costs)
34.9%
34.9%
* Adjusted earnings calculated as EPRA earnings less software as a service and abortive costs.
NOTES TO THE FINANCIAL STATEMENTS continued
THE UNITE GROUP PLC
Annual Report and Accounts 2024
205
EPRA like-for-like rental income (calculated based on total portfolio value of £9.1 billion)
Like-for-like
properties
Development
property
Other
Properties*
Total EPRA
Earnings
2024
Rental income
345.7
6.8
45.5
398.0
Property operating expenses
(106.4)
(2.1)
(13.4)
(121.9)
Net rental income
239.3
4.7
32.1
276.1
2023
Rental income
321.5
2.0
46.0
369.5
Property operating expenses
(100.0)
(0.4)
(12.6)
(113.0)
Net rental income
221.5
1.6
33.4
256.5
Like-for-like net rental income £m
18.0
Like-for-like net rental income %
8.0%
Like-for-like gross rental income £m
24.2
Like-for-like gross rental income %
7.5%
* Other properties include acquisitions, disposals, major refurbishments and changes in ownership.
EPRA vacancy rate
2024
2023
£m
£m
Estimated rental value of vacant space
6.5
0.9
Estimated rental value of the whole portfolio
320.3
283.9
EPRA vacancy rate
2.0%
0.3%
EPRA net initial yield
2024
2023
Net operating income (£m)
305.5
278.3
Property market value (£m)
5,948.2
5,510.4
Notional acquisition costs (£m)
392.2
288.6
6,340.3
5,799.0
EPRA net initial yield (%)*
4.8%
4.8%
Difference in projected versus historical GOI
0.3%
0.2%
Unite net initial yield
5.1%
5.0%
* No lease incentives are provided by the Group and accordingly the Topped Up Net Initial Yield measure is also 4.8% (2023: 4.8%).
THE UNITE GROUP PLC
Annual Report and Accounts 2024
206
FINANCIAL STATEMENTS
EPRA cost ratio
2024
2023
£m
£m
Property operating expenses
87.2
79.8
Overheads*
21.6
21.2
Development / pre contract
3.8
2.7
Unallocated expenses
8.8
8.8
121.4
112.5
Share of JV property operating expenses
34.7
33.2
Share of JV operating expenses
0.9
0.9
Share of JV unallocated expenses
0.5
0.4
157.5
147.0
Less: Joint venture management fees
(17.3)
(16.9)
Total costs (A)
140.2
130.1
Group vacant property costs**
(0.9)
(0.8)
Share of JV vacant property costs**
(0.3)
(0.3)
Total costs excluding vacant property costs (B)
138.9
129.0
Gross rental income
Rental income
282.0
259.2
Share of JV rental income
116.0
110.3
Total gross rental income (C)
398.0
369.5
Total EPRA cost ratio (including vacant property costs) (A)/(C)
35.2%
35.2%
Total EPRA cost ratio (excluding vacant property costs) (B)/(C)
34.9%
34.9%
* Excludes software as a service cost net of deferred tax and abortive costs.
** Vacant property costs reflect the per bed share of operating expenses allocated to vacant beds.
Unite Group’s EBIT margin excludes non-operational expenses which are included within the EPRA cost ratio above.
Unite Group capitalises costs in relation to staff costs and professional fees associated with property development activity.
NOTES TO THE FINANCIAL STATEMENTS continued
THE UNITE GROUP PLC
Annual Report and Accounts 2024
207
EPRA yield movement
NOI yield
Yield movement (bps)
%
H1
H2
FY
Wholly-owned
5.2%
8
7
15
USAF
5.2%
(1)
2
1
LSAV
4.5%
-
2
2
Rental properties (Group share)
5.1%
7
11
18
Property-related capital expenditure
2024
2023
Wholly
owned
Share of
JVs
Group
share
Wholly
owned
Share of
JVs
Group
share
London
13.0
18.5
31.5
4.3
20.5
24.8
Prime regional
12.4
6.1
18.5
19.3
4.8
24.1
Major regional
36.8
13.8
50.6
24.6
3.0
27.6
Provincial
2.6
4.5
7.1
5.2
1.3
6.5
Total rental properties
64.8
42.9
107.7
53.5
29.6
83.0
Acquisitions
282.9
34.5
317.4
2.1
-
2.1
Developments
263.7
-
263.7
58.8
-
58.8
Capitalised interest
15.5
-
15.5
8.4
-
8.4
Total property related capex
626.9
77.4
704.3
122.7
29.6
152.3
EPRA loan to value
2024
£m
2023
£m
Investment property (owned)
5,852.0
5,510.4
Investment property (under development)
451.4
174.7
Intangibles
10.4
9.3
Total property value and other eligible assets
6,313.8
5,694.4
Cash at bank and in hand
364.7
77.2
Borrowings
(1,874.8)
(1,648.1)
Net other payables
(33.9)
(100.3)
EPRA Net debt
(1,544.0)
(1,671.2)
EPRA loan to value
24.4%
29.3%
THE UNITE GROUP PLC
Annual Report and Accounts 2024
208
FINANCIAL STATEMENTS
Section 9: Company subsidiaries and joint ventures
In accordance with Section 409 of the Companies Act 2006, a full list of subsidiaries and equity accounted investments as at
31 December 2024 is disclosed below. Unless otherwise stated, the Group’s ownership interest represents 100% of the ordinary
shares, units or partnership capital held indirectly by Unite Group PLC. No subsidiary undertakings have been excluded from the
consolidation. The Unite Foundation has a year-end of 30 September to facilitate academic year reporting. All other subsidiaries have
a year-end of 31 December.
Registered office and principal place of business: South Quay House, Temple Back, Bristol, United Kingdom, BS1 6FL
Filbert Village GP Limited (06016554) (21.3%)
LDC (Hillhead) Limited (06176554)**
Filbert Village Student Accommodation Limited Partnership (29.1%)
LDC (Holdings) Limited (02625007)*
LDC (180 Stratford) Limited (14254727)**
LDC (Imperial Wharf) Limited (04541678)**
LDC (AIB Warehouse) Limited (04872419)**
LDC (International House) Limited (10131352)**
LDC (Alscot Road) Limited (06176428)**
LDC (Kelham Island) Limited (05152229)**
LDC (Brunel House) Limited (09760628)**
LDC (Leasehold A) Limited (04066933)**
LDC (Camden Court Leasehold) Limited (05140620)**
LDC (Leasehold B) Limited (05978242)**
LDC (Camden Court) Limited (05082671)**
LDC (Loughborough) Limited (04207522)**
LDC (Capital Cities Nominee No.1) Limited (05347228) (50.%)**
LDC (Magnet Court Leasehold) Limited (05140255)**
LDC (Capital Cities Nominee No.2) Limited (05359457) (50.%)**
LDC (Millennium View) Limited (09890375)**
LDC (Capital Cities Nominee No.3) Limited (08792780) (50.%)**
LDC (MTF Portfolio) Limited (05530557)**
LDC (Capital Cities Nominee No.4) Limited (08792688) (50.%)**
LDC (Nairn Street) GP1 Limited (07580262) (21.3%)
LDC (Capital Cities) Limited (05347220) (50.%)**
LDC (Nairn Street) GP2 Limited (07580257) (21.3%)
LDC (Causewayend) Limited (08895966)**
LDC (Nairn Street) GP3 Limited (07808933)
LDC (Chantry Court Leasehold) Limited (05140258)**
LDC (Nairn Street) GP4 Limited (07808919)
LDC (Chaucer House) Limited (09898020)**
LDC (Nairn Street) Holdings Limited (07579402)**
LDC (Constitution Street) Limited (09210998)**
LDC (Nairn Street) Limited Partnership (29.1%)
LDC (Construction Two) Limited (04847268)**
LDC (Nairn Street) Management Limited Partnership (29.1%)
LDC (Euro Loan) Limited (06623603)**
LDC (New Wakefield Street) Limited (10436455)**
LDC (Ferry Lane 2) GP1 Limited (07359448) (50.%)**
LDC (Newgate) Limited (08895869)**
LDC (Ferry Lane 2) GP2 Limited (07359481) (50.%)**
LDC (Old Hospital) Limited (09702143)**
LDC (Ferry Lane 2) GP3 Limited (07503842)**
LDC (Oxford Road Bournemouth) Limited (04407309)**
LDC (Ferry Lane 2) GP4 Limited (07503913)**
LDC (Portfolio 100) Limited (07989369)**
LDC (Ferry Lane 2) Holdings Limited (07504099) (50.%)**
LDC (Portfolio 20) Limited (08803996)**
LDC (Ferry Lane 2) Limited Partnership (50.0%)**
LDC (Portfolio Five) Limited (06079581)**
LDC (Ferry Lane 2) Management Limited Partnership (50.0%)**
LDC (Portfolio Four) Limited (04985603)**
LDC (Finance) Limited (09760806)**
LDC (Portfolio One) Limited (03005262)**
LDC (Greetham Street) Limited (08895825)**
LDC (Portfolio) Limited (08419375)**
LDC (Gt Suffolk St) GP1 Limited (07274156)**
LDC (Project 110) Limited (05083580)**
LDC (Gt Suffolk St) GP2 Limited (07274000)**
LDC (Project 111) Limited (05791650)**
LDC (Gt Suffolk St) Holdings Limited (07353946)**
LDC (Radmarsh Road) Limited (05435290)**
LDC (Gt Suffolk St) Limited Partnership**
LDC (Skelhorne) Limited (09898132)**
LDC (Gt Suffolk St) Management GP1 Limited (07354719)**
LDC (Smithfield) Limited (03373096)**
LDC (Gt Suffolk St) Management GP2 Limited (07354728)**
LDC (St Leonards) Limited (08895830)**
LDC (Gt Suffolk St) Management Limited Partnership**
LDC (St Pancras Way) GP1 Limited (07359501)**
LDC (Hampton Street) Limited (06415998)**
LDC (St Pancras Way) GP2 Limited (07359428)**
* Held directly by the Company.
** Company is exempt from the requirements of the Companies Act relating to the audit of individual financial statements by virtue
of s477 or s379A for the financial year ended 31 December 2024.
NOTES TO THE FINANCIAL STATEMENTS continued
THE UNITE GROUP PLC
Annual Report and Accounts 2024
209
Registered office and principal place of business: South Quay House, Temple Back, Bristol, United Kingdom, BS1 6FL
LDC (St Pancras Way) GP3 Limited (07503268)**
Liberty Living Investments Nominee 3 Limited (10519085)**
LDC (St Pancras Way) GP4 Limited (07503251)**
Liberty Living Limited (04055891)**
LDC (St Pancras Way) Holdings Limited (07360734)**
Liberty Living SpareCo Limited (04616115)**
LDC (St Pancras Way) Limited Partnership**
Liberty Living UK Limited (06064187)**
LDC (St Pancras Way) Management Limited Partnership**
Liberty Park (Bedford) Limited (BVI) **
LDC (St Vincent's) Limited (10218310)**
Liberty Park (Bristol) Limited (07615601)**
LDC (Stratford) GP1 Limited (07547911) (50.%)
Liberty Park (US Bristol) Limited (07615619)**
LDC (Stratford) GP2 Limited (07547994) (50.%)
Liberty Plaza (London) Limited (07745097)**
LDC (Stratford) Limited Partnership (50.%)**
Liberty Plaza (Newcastle) Limited (BVI) **
LDC (Swindon NHS) Limited (04207502)**
Liberty Point (Coventry) Limited (04992358)**
LDC (Tara House) Limited (09214177)**
Liberty Point (Manchester) Limited (04828083)**
LDC (Thurso Street) GP1 Limited (07199022)**
Liberty Point Southampton (Block A) Limited (10314954)**
LDC (Thurso Street) GP2 Limited (07198979)**
Liberty Prospect Point (Liverpool) Limited (04637570)**
LDC (Thurso Street) GP3 Limited (07434001)**
Liberty Quay (Newcastle) Limited (05234174)**
LDC (Thurso Street) GP4 Limited (07434133)**
Liberty Quay 2 (Newcastle) Limited (07376627)**
LDC (Thurso Street) Limited Partnership**
Liberty Severn Point (Cardiff) Limited (04313995)**
LDC (Thurso Street) Management Limited Partnership**
Liberty Village (Edinburgh) Limited (10323566)**
LDC (Ventura) Limited (04444628)**
LL Midco 2 Limited (08998308)**
LDC (Vernon Square) Limited (06444132)**
LSAV (Angel Lane) GP1 Limited (08593689) (50.%)**
LDC (William Morris II) Limited (05999281)**
LSAV (Angel Lane) GP2 Limited (08593692) (50.%)**
LDC Capital Cities Two (GP) Limited (08790742) (50.%)**
LSAV (Angel Lane) GP3 Limited (08646359)**
Liberty Atlantic Point (Liverpool) Limited (03885187)**
LSAV (Angel Lane) GP4 Limited (08646929)**
Liberty Heights (Manchester) Limited (07399622)**
LSAV (Angel Lane) Limited Partnership (50.%)**
Liberty Living (HE) Holdings Ltd – Company Only (10977869)**
LSAV (Angel Lane) Management Limited Partnership (50.%)**
Liberty Living (LH Manchester) Limited (07120141)**
LSAV (Arch View) GP1 Limited (13210709) (50.%)
Liberty Living (Liberty AP) Limited (03633307)**
LSAV (Arch View) GP3 Limited (13210526)**
Liberty Living (Liberty PP) Limited (03991475)**
LSAV (Arch View) LP (50.%)**
Liberty Living (LP Bristol) Limited (07242607)**
LSAV (Arch View) Management LP (50.%)**
Liberty Living (LP Coventry) Limited (04330729)**
LSAV (Arch View) Nominee 1 Limited (13210518) (50.%)**
Liberty Living (LP Manchester) Limited (04314013)**
LSAV (Arch View) Nominee 3 Limited (13210553)**
Liberty Living (LQ Newcastle) Limited (04302869)**
LSAV (Aston Student Village) GP1 Limited (10498478) (50.%)
Liberty Living (LQ2 Newcastle) Limited (07298853)**
LSAV (Aston Student Village) GP2 Limited (10498481) (50.%)
Liberty Living Finance PLC (10979349)**
LSAV (Aston Student Village) GP3 Limited (10498217)**
Liberty Living Group Limited (Jersey)*/**
LSAV (Aston Student Village) GP4 Limited (10498484)**
Liberty Living Investments 1 Limited Partnership**
LSAV (Aston Student Village) Limited Partnership (50.%)
Liberty Living Investments 2 Limited Partnership**
LSAV (Aston Student Village) Management Limited Partnership (50.%)
Liberty Living Investments 3 Limited Partnership**
LSAV (Drapery Plaza) GP1 Limited (13209904) (50.%)
Liberty Living Investments GP1 Limited (09375866)**
LSAV (Drapery Plaza) GP3 Limited (13210206)**
Liberty Living Investments GP2 Limited (09375868)**
LSAV (Drapery Plaza) LP (50.%)**
Liberty Living Investments GP3 Limited (10518849)**
LSAV (Drapery Plaza) Management LP (50.%)**
Liberty Living Investments II Holdco 2 Limited (09574059)**
LSAV (Drapery Plaza) Nominee 1 Limited (13209909) (50.%)**
Liberty Living Investments II Holdco Limited (08929431)**
LSAV (Drapery Plaza) Nominee 3 Limited (13209979)**
Liberty Living Investments II Limited (09680931)**
LSAV (GP) Limited (50.%)
Liberty Living Investments Limited (09375870)**
LSAV (Holdings) Limited (50.%)
Liberty Living Investments Nominee 1 Limited (09375846)**
LSAV (Jersey Manager) Limited**
Liberty Living Investments Nominee 2 Limited (09375849)**
LSAV (No.1) GP1 Limited (13184531) (50.%)**
* Held directly by the Company.
** Company is exempt from the requirements of the Companies Act relating to the audit of individual financial statements by virtue
of s477 or s379A for the financial year ended 31 December 2024.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
210
FINANCIAL STATEMENTS
Registered office and principal place of business: South Quay House, Temple Back, Bristol, United Kingdom, BS1 6FL
LSAV (No.1) GP3 Limited (13184662)**
UNITE Capital Cities Two GP3 Limited (16148993)**
LSAV (No.1) LP (50.%)**
Unite Capital Cities Two Limited Partnership (50.%)
LSAV (No.1) Management LP (50.%)**
UNITE Construction (Angel Lane) Limited (08792704)**
LSAV (No.1) Nominee 1 Limited (13184589) (50.%)**
UNITE Construction (Stapleton) Limited (09023406)**
LSAV (No.1) Nominee 3 Limited (13184656)**
UNITE Construction (Wembley) Limited (09023474)**
LSAV (Property Holdings) LP (50.%)
Unite Finance Limited (04353305)*/**
LSAV (Stapleton) GP1 Limited (08593695) (50.%)**
Unite Finance One (Accommodation Services) Limited (04332937)**
LSAV (Stapleton) GP2 Limited (08593699) (50.%)**
Unite Finance One (Holdings) Limited (04316207)**
LSAV (Stapleton) GP3 Limited (08646819)**
Unite Finance One (Property) Limited (04303331)**
LSAV (Stapleton) GP4 Limited (08647019)**
Unite FM Limited (06807562)**
LSAV (Stapleton) Limited Partnership (50.%)**
UNITE For Success Limited (05157263)**
LSAV (Stapleton) Management Limited Partnership (50.%)**
Unite HEI Investments GP Limited (15584836)**
LSAV (Stratford) GP3 Limited (08751654)**
Unite HEI Investments LP (LP023677)**
LSAV (Stratford) GP4 Limited (08751629)**
Unite Holdings Limited (03148468)*/**
LSAV (Stratford) Management Limited Partnership (50.%)**
UNITE Homes Limited (05140262)**
LSAV (Trustee) Limited (50.%)
Unite Integrated Solutions plc (02402714)
LSAV (Wembley) GP1 Limited (08635735) (50.%)**
Unite Modular Solutions Limited (05140259)**
LSAV (Wembley) GP2 Limited (08636051) (50.%)**
Unite Newcastle GP Limited (15588783) (51.0%)**
LSAV (Wembley) GP3 Limited (08725127)**
Unite Rent Collection Limited (05982935)**
LSAV (Wembley) GP4 Limited (08725235)**
UNITE Student Living Limited (06204135)**
LSAV (Wembley) Limited Partnership (50.%)**
Unite Students Accommodation (Beijing) Business Service Company Ltd**
LSAV (Wembley) Management Limited Partnership (50.%)**
USAF Finance II Limited (08526474) (21.3%)
LSAV FACILITY 1 HOLDINGS LIMITED (13913388) (50.%)**
USAF GP No 1 Limited (05897875) (21.3%)
LSAV FACILITY 1 MANAGEMENT HOLDINGS LIMITED (13913371)**
USAF GP No 10 Limited (06714734) (21.3%)
LSAV Management Holdings Limited (13305327)**
USAF GP No 11 Limited (07075210) (21.3%)
LSAV Rent Collection Limited (08496230)**
USAF GP No 11 Management Limited (07351883) (21.3%)
Stardesert Limited (04437102)**
USAF GP No 12 Limited (07368735) (21.3%)
The UNITE Foundation
USAF GP No 14 Limited (09089977) (21.3%)
Unite (Capital Cities) Jersey Ltd**
USAF GP No 15 Limited (09585201) (21.3%)
Unite Accommodation Management 16 Limited (07061314)**
USAF GP No 18 Limited (10219336) (21.3%)
Unite Accommodation Management 18 Limited (08328484)**
USAF GP No 6 Limited (05897755) (21.3%)
Unite Accommodation Management 19 Limited (08790504) (50.%)**
USAF GP No 8 Limited (06381914) (21.3%)
Unite Accommodation Management 2 Limited (05193166)**
USAF GP No.15A Limited (12644211) (21.3%)
Unite Accommodation Management 20 Limited (08790642) (50.%)**
USAF GP No.16A Limited (12644210) (21.3%)
Unite Accommodation Management 6 Limited (05077346)**
USAF GP No.16B Limited (14707370) (21.3%)
Unite Accommodation Management 9 Limited (06190863)**
USAF GP No.17A Limited (12644208) (21.3%)
Unite Accommodation Management Limited (06190905)**
USAF GP No.17B Limited (14707101) (21.3%)
Unite Accommodation Management One Hundred Limited (07989080)**
USAF GP No. 17C Ltd (15455410) (21.3%)
Unite Capital Cities 3 GP1 Limited (13913884) (50.%)
USAF GP No. 18A Ltd (15455404) (21.3%)
UNITE CAPITAL CITIES 3 LIMITED PARTNERSHIP (50.%)**
USAF GP No.19 Limited (14707096) (21.3%)
Unite Capital Cities 3 Management Limited (13913891) (50.%)**
USAF Holdings K Limited (14700139) (21.3%)
Unite Capital Cities 3 Nominee 1 Limited (13913890) (50.%)**
USAF Holdings B Limited (06324325) (21.3%)
UNITE Capital Cities Holdings Limited (08801242) (50.%)**
USAF Holdings C Limited (06381882) (21.3%)
Unite Capital Cities Limited Partnership (50.%)**
USAF Holdings H Limited (09089805) (21.3%)
* Held directly by the Company.
** Company is exempt from the requirements of the Companies Act relating to the audit of individual financial statements by virtue
of s477 or s379A for the financial year ended 31 December 2024.
NOTES TO THE FINANCIAL STATEMENTS continued
THE UNITE GROUP PLC
Annual Report and Accounts 2024
211
Registered office and principal place of business: South Quay House, Temple Back, Bristol, United Kingdom, BS1 6FL
USAF Holdings I Limited (09581882) (21.3%)
USAF No.16B Nominee 2 Limited (14707390) (21.3%)**
USAF Holdings J Limited (10215997) (21.3%)
USAF No.17A Limited Partnership (29.1%)
USAF Holdings Limited (05870107) (21.3%)
USAF No.17B Limited Partnership (29.1%)
USAF Jersey Investments Ltd**
USAF No.17B Nominee 1 Limited (14707108) (21.3%)**
USAF Jersey Manager Ltd
USAF No.17B Nominee 2 Limited (14707114) (21.3%)**
USAF LP Limited (05860874)**
USAF No.17C Nominee 1 Limited (15455419) (21.3%)**
USAF Management 10 Limited (06714695) (29.1%)
USAF No.17C Nominee 2 Limited (15455417) (21.3%)**
USAF Management 11 Limited (07082782) (29.1%)
USAF No.18A Nominee 1 Limited (15455414) (21.3%)**
USAF Management 12 Limited (07365681) (29.1%)
USAF No.18A Nominee 2 Limited (15455424) (21.3%)**
USAF Management 14 Limited (09232206) (29.1%)
USAF No.17C LP (29.1%)
USAF Management 16 Ltd (07735741) (29.1%)**
USAF No.18 Limited Partnership (29.1%)
USAF Management 17 Ltd (05591986) (29.1%)**
USAF No.18A LP (29.1%)
USAF Management 18 Limited (10219775) (29.1%)**
USAF No.19 Limited Partnership (29.1%)
USAF Management 6 Limited (06225945) (29.1%)
USAF No.6 Limited Partnership (29.1%)
USAF Management 8 Limited (06387597) (29.1%)
USAF No.8 Limited Partnership (29.1%)
USAF Management 8 No.2 Limited (15935823) (29.1%)
USAF Nominee No.1 Limited (05855598) (21.3%)**
USAF Management GP No.14 Limited (09130985)**
USAF Nominee No.10 Limited (06714690) (21.3%)**
USAF Management GP No.15 Limited (09749946)**
USAF Nominee No.10A Limited (06714615) (21.3%)**
USAF Management GP No.16 Limited (09750068)**
USAF Nominee No.11 Limited (07075251) (21.3%)**
USAF Management GP No.17 Limited (09750061)**
USAF Nominee No.11A Limited (07075213) (21.3%)**
Usaf Management GP No.18 Limited (12410758)**
USAF Nominee No.12 Limited (07368733) (21.3%)**
USAF Management GP No. 18A Ltd (15522502)
USAF Nominee No.12A Limited (07368755) (21.3%)**
USAF Management Limited (05862721) (29.1%)
USAF Nominee No.14 Limited (09231609) (21.3%)**
USAF Management No. 14 Limited Partnership (29.1%)
USAF Nominee No.14A Limited (09231604) (21.3%)**
USAF Management No. 15 Limited Partnership (29.1%)
USAF Nominee No.15 Limited (12644205) (21.3%)**
USAF Management No. 16 Limited Partnership (29.1%)
USAF Nominee No.15A Limited (12644204) (21.3%)**
USAF Management No. 17 Limited Partnership (29.1%)
USAF Nominee No.16 Limited (12644201) (21.3%)**
USAF Management No. 18 Limited Partnership (29.1%)
USAF Nominee No.16A Limited (12644197) (21.3%)**
USAF Management No. 18A LP (LP023597) (29.1%)
USAF Nominee No.17 Limited (12644192) (21.3%)**
USAF MANAGEMENT NO. 19 LIMITED (14707093) (29.1%)
USAF Nominee No.17A Limited (12644187)(21.3%)**
USAF No.1 Limited Partnership (29.1%)
USAF Nominee No.18 Limited (10218595) (21.3%)**
USAF No.10 Limited Partnership (29.1%)
USAF Nominee No.18A Limited (10219339) (21.3%)**
USAF No.11 Limited Partnership (29.1%)
USAF Nominee No.19 Limited (14706129) (21.3%)**
USAF No.11 Management Limited Partnership (29.1%)
USAF Nominee No.19A Limited (14706126) (21.3%)**
USAF No.12 Limited Partnership (29.1%)
USAF Nominee No.1A Limited (05835512) (21.3%)**
USAF No.14 Limited Partnership (29.1%)
USAF Nominee No.6 Limited (05855599) (21.3%)**
USAF No.15 Limited Partnership (29.1%)
USAF Nominee No.6A Limited (05885802) (21.3%)**
USAF No.15A Limited Partnership (29.1%)
USAF Nominee No.8 Limited (06381861) (21.3%)**
USAF No.16A Limited Partnership (29.1%)
USAF Nominee No.8A Limited (06381869) (21.3%)**
USAF No.16B Limited Partnership (29.1%)
USAF RCC Limited (05983554) (21.3%)
USAF No.16B Nominee 1 Limited (14707400) (21.3%)**
* Held directly by the Company.
** Company is exempt from the requirements of the Companies Act relating to the audit of individual financial statements by virtue
of s477 or s379A for the financial year ended 31 December 2024.
THE UNITE GROUP PLC
Annual Report and Accounts 2024
212
FINANCIAL STATEMENTS
Registered office and principal place of business: 13 Castle Street, St Helier, Jersey, JE4 5UT
LDC (Gt Suffolk St) Unit Trust
LSAV (Aston Student Village) Unit Trust (50.0%)
LDC (St Pancras Way) Unit Trust
LSAV (Holdings) Limited (50.0%)
LDC (Thurso Street) Unit Trust
LSAV (Trustee) Limited (50.0%)
LSAV (Jersey Manager) Limited
LSAV Unit Trust (50.0%)
Unite (Capital Cities) Jersey Limited
Unite Capital Cities Unit Trust (50.0%)
USAF Jersey Investments Limited
USAF Portfolio 18 Unit Trust (29.1%)
USAF Jersey Manager Limited
LDC (Nairn Street) Unit Trust (29.1%)
LDC (Ferry Lane 2) Unit Trust (50.0%)
Unite HEI Investments Unit Trust (51.0%)
LDC (Stratford) Unit Trust (50.0%)
Unite UK Student Accommodation Fund (21.3%)
LSAV (Drapery Plaza) Unit Trust (50.0%)
LSAV (Arch View) Unit Trust (50.0%)
Registered office and principal place of business: Third Floor, La Plaiderie Chambers, St Peter Port, Guernsey, GY1 1WG
USAF Feeder Guernsey Limited
USAF Portfolio 16 Unit Trust (29.1%)
USAF Portfolio 15 Unit Trust (29.1%)
USAF Portfolio 17 Unit Trust (29.1%)
Registered office and principal place of business: Saltire Court, 20 Castle Terrace, Edinburgh, EH1 2EN
LSAV (GP) Limited (SC431844) (50.0%)
LSAV (Property Holdings) Limited Partnership (50.0%)
Registered office and principal place of business: Trident Chambers, Wickhams Cay, P.O. Box 146, Road Town, Tortola,
British Virgin Islands
Liberty Park (Bedford) Limited
Liberty Plaza (Newcastle) Limited
Registered office and principal place of business: Second Floor, St George’s Court, Upper Church Street, Douglas,
Isle of Man, IM1 1EE
Filbert Street Student Accommodation Unit Trust (29.1%)**
NOTES TO THE FINANCIAL STATEMENTS continued
THE UNITE GROUP PLC
Annual Report and Accounts 2024
213
FINANCIAL RECORD (unaudited)
2024
2023
2022
2021
2020
EPRA earnings (£m)
202
176
157
152
97
EPRA earnings per share (pence)
44
42
39
38
26
Adjusted earnings (£m)
214
184
163
110
93
Adjusted earnings (pence)
47
44
41
28
24
IFRS profit/(loss) before tax (£m)
442
103
351
342
(120)
IFRS profit/(loss) before tax per share (pence)
103
25
88
86
(32)
EPRA net tangible assets (NTA) (£m)
4,758
4,015
3,717
3,532
3,266
EPRA NTA per share (pence)
972
920
927
882
818
IFRS net assets (£m)
4,812
4.067
3,788
3,528
3,235
IFRS NAV per share (pence)
982
931
944
880
809
LTV (%)
24%
28%
31%
29%
34%
Managed portfolio value
8,938
8,663
8,522
8,108
7,838
Total accounting return (TAR)
9.6%
2.9%
8.10%
10.20%
(3.40%)
FINANCIAL STATEMENTS
HEADLINE
Subheadline
THE UNITE GROUP PLC
Annual Report and Accounts 2024
214
Other
information
OTHER INFORMATION
THE UNITE GROUP PLC
Annual Report and Accounts 2024
215
OTHER INFORMATION
216
Glossary
Cover Company information
THE UNITE GROUP PLC
Annual Report and Accounts 2024
216
OTHER INFORMATION
Adjusted earnings
An alternative performance measure based on EPRA earnings, adjusted to remove the impact of abortive acquisition costs,
software as a service cost net of deferred tax and other items of an exceptional nature. The items have been excluded
from adjusted earnings to improve the comparability of results year-on-year.
Adjusted earnings
per share/EPS
The earnings per share based on adjusted earnings and weighted average number of shares in issue (basic).
Adjusted EPS yield
Adjusted EPS as a percentage of opening EPRA NTA (diluted).
Adjusted net debt
Net debt per the balance sheet, adjusted to remove IFRS 16 lease liabilities and the unamortised fair value of debt
recognised on the acquisition of Liberty Living.
Basis points (BPS)
A basis point is a term used to describe a small percentage, usually in the context of change, and equates to 0.01%.
Diluted earnings/EPS
Where earnings values per share are used, basic measures divide the earnings by the weighted average number of issued
shares in issue throughout the period, whilst the diluted measure also takes into account the effect of share options which
have been granted and which are expected to be converted into shares in the future.
Diluted NTA/NAV
Where NTA/NAV per share is used, basic measures divide the NTA/NAV by the number of shares issued at the reporting
date, whilst the diluted measure also takes into account the effect of share options which have been granted and which
are expected to be converted into shares in the future (both for the additional number of shares that will be issued and the
value of additional consideration that will be received in issuing them).
Direct-let
Properties where short-hold tenancy agreements are made directly between Unite Students and the student.
EBITDA
The Group’s adjusted EBIT, adding back depreciation and amortisation.
EPRA
The European Public Real Estate Association, who produce best practice recommendations for financial reporting.
EPRA cost ratio
The ratio of property operating expenses, overheads and management fees, against rental income, calculated on
an EPRA basis.
EPRA earnings
EPRA earnings exclude movements relating to changes in values of investment properties, profits/losses from the disposal
of properties, swap/debt break costs, interest rate swaps and the related tax effects.
EPRA earnings per share/EPS
The earnings per share based on EPRA earnings and weighted average number of shares in issue (basic).
EPRA like-for-like
rental growth
The growth in rental income measured by reference to the part of the portfolio of the Group that has been consistently
in operation, and not under development nor subject to acquisition or disposal, and which accordingly enables more
meaningful comparison in underlying rental income levels.
EPRA net tangible assets
(NTA)
EPRA NTA includes all property at market value but excludes the mark to market of financial instruments, deferred tax and
intangible assets. EPRA NTA provides a consistent measure of NAV on a going concern basis.
EPRA net tangible assets
per share
The diluted NTA per share figure based on EPRA NTA.
EPRA net reinstatement
value (NRV)
EPRA NRV includes all property at market value but excludes the mark to market of financial instruments, deferred tax
and real estate transfer tax. EPRA NRV assumes that entities never sell assets and represents the value required to rebuild
the entity.
EPRA net disposal
value (NDV)
EPRA NDV includes all property at market value, excludes the mark to market of financial instruments but includes the fair
value of fixed interest rate debt and the carrying value of intangible assets. EPRA NDV represents the shareholders’ value in
a disposal scenario.
EPRA net initial yield (NIY)
Annualised NOI generated by the Group’s rental properties expressed as a percentage of their fair value, taking into
account notional acquisition costs.
EPRA topped up net
initial yield (NIY)
EPRA Net Initial Yield adjusted to include the effect of the expiration of rent free periods (or other unexpired lease
incentives such as discounted rent periods or step rents).
EPRA vacancy rate
The ratio of the estimated market rental value of vacant spaces against the estimated market rental value of the entire
property portfolio (including vacant spaces).
ESG
Environmental, Social and Governance.
Full occupancy
Full occupancy is defined as occupancy in excess of 97%.
GRESB
GRESB is a benchmark of the Environmental, Social and Governance (ESG) performance of real assets.
Gross asset value (GAV)
The fair value of rental properties, leased properties and development properties.
The Group
Wholly-owned balances plus Unite Group’s interests relating to USAF and LSAV.
Group debt
Wholly-owned borrowings plus Unite Group’s share of borrowings attributable to USAF and LSAV.
HMO
Houses in multiple occupation, where buildings or flats are shared by multiple tenants who rent their own rooms and the
property’s communal spaces on an individual basis.
IFRS NAV per share
IFRS equity attributable to the owners of the Parent Company from the consolidated balance sheet divided by the total number
of shares of the Parent Company in issue at the reporting date.
GLOSSARY
THE UNITE GROUP PLC
Annual Report and Accounts 2024
217
Interest cover ratio (ICR)
Calculated as EBIT divided by the sum of net financing costs and IFRS 16 lease liability interest costs.
Lease
Properties which are leased to universities for a number of years.
Like-for-like metrics
Like-for-like is the change in metric, on a gross basis, calculated using properties owned throughout the current and previous period.
Loan to value (LTV)
Net debt as a proportion of the value of the rental properties, excluding balances in respect of leased properties under IFRS 16.
Prepared on a see-through basis. In the opinion of the Directors, this measure enables an appraisal of the indebtedness of the
business, which closely aligns with key covenants in the Group’s financing agreements.
Loan to value post IFRS 16
Net debt as a proportion of the value of the rental properties, including balances in respect of leased properties under IFRS 16.
Prepared on a see-through basis.
LTV (EPRA)
Net debt as a proportion of the value of the rental properties including balances in respect of leased properties and all other
assets and liabilities.
LSAV
The London Student Accommodation Joint Venture (LSAV) is a joint venture between Unite Group and GIC, in which both hold a
50% stake. LSAV has a maturity date of September 2032.
Major regional
Properties located in Aberdeen, Birmingham, Cardiff, Glasgow, Leeds, Leicester, Liverpool, Newcastle, Nottingham,
Sheffield and Southampton.
Net asset value (NAV)
The total of all assets less the value of all liabilities at each reporting date.
Net debt (EPRA)
Borrowings net of cash. IFRS 16 lease liabilities are excluded from net debt on an EPRA basis. In the opinion of the Directors, net
debt is a useful measure to monitor the overall indebtedness position of the Group.
Net debt per balance sheet
Borrowings, IFRS 16 lease liabilities and the mark to market of interest rate swaps, net of cash.
Net debt to EBITDA
Net debt as a proportion of EBITDA.
Net financing costs (EPRA)
Interest payable on borrowings less interest capitalised into developments and finance income.
Net operating income (NOI)
The Group’s rental income less property operating expenses.
Net zero carbon
Net zero carbon operations by 2030 covers Scope 1 & 2 emissions from our buildings, including all building energy used by our
student tenants, as well as selected Scope 3 emissions as per the BBP Climate Change Commitment. This is underpinned by
science based carbon targets which have been validated by the SBTi as being aligned with a 1.5°C limit to warming.
NOI margin
The Group’s NOI expressed as a percentage of rental income.
Nomination agreements
Agreements at properties where universities have entered into a contract to reserve rooms for their students, usually guaranteeing
occupancy. The universities usually either nominate students to live in the building and Unite Students enters into short-hold tenancies
with the students or the university enters into a contract with Unite Students and makes payment directly to Unite Students.
Provincial
Properties located in Bournemouth, Coventry, Loughborough, Medway, Portsmouth and Swindon.
Prime regional
Properties located in Bath, Bristol, Durham, Edinburgh, Manchester and Oxford.
Property operating expenses
Operating costs directly related to rental properties, therefore excluding central overheads.
Rental growth
Calculated as the year-on-year change in the average annual price for sold beds. In the opinion of the Directors, this measure
enables a more meaningful comparison in rental income as it excludes the impact of changes in occupancy.
Rental properties (leased)/
Sale and leaseback
Properties that have been sold to a third-party investor then leased back to the Group. Unite Group is also responsible for the
management of these assets on behalf of the owner.
Resident ambassadors
Student representatives who engage with students living in the property to create a community and sense of belonging.
SaaS
Software-as-a-Service is a licensing and distribution model used to deliver cloud-based software applications to users over the internet.
See-through
(also Unite Group share)
Wholly-owned balances plus Unite Group’s share of balances relating to USAF and LSAV.
Senior Leadership
Directors (including the Executive Committee and Company Secretary) and Heads of Function.
TCFD
The Task Force on Climate-related Financial Disclosures develops voluntary, consistent climate-related financial risk disclosures
for use by companies in providing information to investors, lenders, insurers and other stakeholders.
Total accounting return
Growth in diluted EPRA NTA per share plus dividends paid, expressed as a percentage of diluted EPRA NTA per share at the
beginning of the period. In the opinion of the Directors, this measure enables an appraisal of the return generated by the
business for shareholders during the year.
Total shareholder return
The growth in value of a shareholding over a specified period, assuming dividends are reinvested to purchase additional shares.
USAF/the fund
The Unite UK Student Accommodation Fund (USAF) is Europe’s largest fund focused purely on income-producing student
accommodation investment assets.
The fund is an open-ended infinite life vehicle with unique access to Unite Group’s development pipeline. Unite Group acts as
fund manager for the fund, as well as owning a significant minority stake.
WAULT
Weighted average unexpired lease term to expiry.
Wholly-owned
Balances relating to properties that are 100% owned by The Unite Group PLC or its 100% subsidiaries.
THE UNITE GROUP PLC
EXECUTIVE TEAM
Joe Lister
Chief Executive Officer
Mike Burt
Chief Financial Officer
Registered Office
South Quay House, Temple Back, Bristol BS1 6FL
Registered Number in England
03199160
Company Secretary
Christopher Szpojnarowicz
AUDITOR
Deloitte LLP
1 New Street Square, London EC4A 3HQ
FINANCIAL ADVISERS
J.P. Morgan Cazenove
25 Bank Street, London E14 5JP
Deutsche Numis
45 Gresham Street, London EC2V 7BF
REGISTRAR
Computershare Investor Services plc
PO Box 82
The Pavilions
Bridgwater Road
Bristol
BS99 7NH
FINANCIAL PR CONSULTANTS
Sodali & Co
122 Leadenhall Street
City of London
EC3V 4AB
Find out more online at
www.unitegroup.com