Unite Group, the UK's largest student accommodation owner, has reiterated its 2026 guidance despite weaker rents and falling property valuations.
It still expects adjusted earnings per share of 41.5p to 43.0p.
Some 95.6% of its beds are sold for the 2026/27 academic year, against 95.3% a year earlier and within its 94% to 96% guidance.
Like-for-like income growth is only 0.6%, because annual rent per bed fell 0.3%.
Unite said a shift towards undergraduates and away from postgraduates meant shorter tenancies, which hurt direct-let pricing.
Semester and short-term lettings could add another 0.5% to income this year.
Valuations fall
Independent valuers cut the Unite UK Student Accommodation Fund (USAF) by 4.0% in the third quarter to £2,815 million.
The London Student Accommodation Joint Venture (LSAV) fell 3.4% to £1,900 million.
Valuers pointed to higher yields, which reflect the return investors demand relative to price, and lower rental assumptions.
Over the first nine months, USAF is down 7.9% and LSAV 9.1%.
Disposals continue
Unite has completed £200 million of disposals this year, including its King's Place development, at a 6% discount to book value.
A further £225 million is under offer, and it still expects £300 million to £400 million of sales in 2026.
Chief executive Joe Lister said the market "continues to adjust to higher interest rates".
Its Empiric (Hello Student) portfolio is 92% sold, up from 87%, and should deliver around 5% income growth.
Pro forma net debt to earnings before interest, tax, depreciation and amortisation fell to 7.3 times from 7.5 times at the end of June.
