The UK’s largest provider of student accommodation has said it has “high visibility for a rapid recovery of earnings” in the next academic year and has forecasted a return to full occupancy and rental growth.
Unite Students, which is headquartered in Bristol, has released results for the year ending December 31 2020, which show a widening of pre-tax losses to £120.1million from £101.2million a year earlier.
EPRA earnings - an underlying measure preferred by the organisation - were down 12% to £97.3million.
The organisation, which provides accommodation to about 75,000 university students in hundreds of properties across the UK , said that it had provided £100million worth of rental discounts to students who had been forced to return home due to coronavirus restrictions.
Richard Smith, chief executive of Unite Students, said that despite a “tough year” the outlook for the business and the higher education sector was “strong”.
The company said it expected strong demand for the 2021/22 academic year with accommodation reservations at 66% with the pandemic likely to cause a later booking cycle.
Forecasting growth in its rental market of 2-3% and occupancy between 95-98% for the period, the company recommended a final dividend of 12.75p per share for 2020.
Mr Smith said: “Together with our development and university partnership pipeline of c.4,000 beds, this provides high visibility over a rapid recovery in earnings as market conditions stabilise.
“While Covid-19 provides some ongoing uncertainty, we remain confident in the medium and long-term outlook for the business thanks to our alignment to the strongest universities as well as the significant growth opportunities from new developments, university partnerships and by attracting more of the 955,000 students living in houses of multiple occupancy.”
The company said it had successfully integrated a 24,000 bed portfolio it acquired from competitor Liberty Living in 2019.
A survey the company recently published found that 86% of students were keen to get back on to a university campus when it is safe to do so.
Following the Government’s announcement in February of its roadmap out of lockdown, in-person learning has resumed for higher education students who are studying practical and creative arts subjects requiring specialist equipment and facilities.
All other students are currently advised not to return to campus or their term-time accommodation.
