Maddoxx
01 Apr 2015
Unite property funds qtrly rise 4.3% and 6.8% A press search will reveal a huge amount of investment activity focussed on student accommodation. It is a far cry from when Unite first came to my attention - they were pretty much the only game in town and trying to make the case for student property as an investment class and alternative to commercial property.It's very different now - student accommodation is fast becoming the asset class of choice. Student property was incredibly resilient throughout the Global Economic Crisis and has continued to perform steadily to date. The demand that this is generating is yet to be fully reflected in Unite's valuations. Evidence for this is present in today's Unite Student Accommodation Fund (USAF)RNS."At 31 March 2015, USAF's property portfolio was independently valued at £1,641 million representing a like for like increase of 4.3% during the quarter."A 4.3% gain in a single quarter - and more to come..."Commenting on the valuations, Joe Lister, Unite Students Chief Financial Officer, said:"The USAF and LSAV portfolios have had a strong start to the year. The large volume of transactions in the sector is beginning to result in a significant level of yield compression and we anticipate further compression over the remainder of 2015."Cheers Maddox
Maddoxx
01 Apr 2015
Unite property funds qtrly rise 4.3% and 6.8% A press search will reveal a huge amount of investment activity focussed on student accommodation. It is a far cry from when Unite first came to my attention - they were pretty much the only game in town and trying to make the case for student property as an investment class and alternative to commercial property.It's very different now - student accommodation is fast becoming the asset class of choice. Student property was incredibly resilient throughout the Global Economic Crisis and has continued to perform steadily to date. The demand that this is generating is yet to be fully reflected in Unite's valuations. Evidence for this is present in today's Unite Student Accommodation Fund (USAF)RNS."At 31 March 2015, USAF's property portfolio was independently valued at £1,641 million representing a like for like increase of 4.3% during the quarter."A 4.3% gain in a single quarter - and more to come...Commenting on the valuations, Joe Lister, Unite Students Chief Financial Officer, said:"Commenting on the valuations, Joe Lister, Unite Students Chief Financial Officer, said:"The USAF and LSAV portfolios have had a strong start to the year. The large volume of transactions in the sector is beginning to result in a significant level of yield compression and we anticipate further compression over the remainder of 2015."Cheers Maddox
Maddoxx
23 Feb 2015
Unite Finals - earnings transformation confirmed Hi Guys,A fantastic set of results again from Unite Group which confirm that the earnings transformation is happening. Unite is maturing as a business and the balance is shifting from development gains towards rental income. As Unite will need to recycle less cash back into development they will be able to increase the dividends paid-out. The robust growth in earnings (44%) reported today has driven a 133% in dividends. The future is also looking positive with the existing pipeline forecast to double the dividend payout as it's built-out over the next few years by 2018. What's more, Unite are also expecting to see a further upwards re-valuation of their property portfolio in this first half. There are a number of student property assets up for sale and there should thus be read-across from what valuations these assets achieve.So we can have a reasonable expectation of yet more good news in the next results.Regards, Maddox
Maddoxx
12 Jan 2015
Unite's supply-demand sweet-spot Hi Guys,Unite report that they have secured another development site on which to build this time in Coventry. Key points to takeaway:>> It's clearly an attractive location right in the centre of Coventry adjacent to an existing high performing student residence; but more importantly,>> They have secured it at an attractive price, consistent with their strategic plan.The high investor demand for developed student properties appears not to be hampering Unite securing the land it requires for growth. So this news provide some important confirmation that Unite supply-side strategy is on track.With the cap removed on student numbers and Theresa May's guns being spiked the market appears strong - further supported by rental price rises. The demand-side also look positive.Regards, Maddox
Maddoxx
09 Jan 2015
A +ve valuation uplift and more to come Hi Guys,Positive valuation news again today. However, I'm somewhat surprised that there is not a higher valuation growth driven by yield compression. This is caused by a read across from open market property sales, where student property is changing hands at higher valuations than reflected below. The revaluation of Unite's portfolio is undertaken independently and it suggests the valuer has a been conservative. Joe Lister's comment clearly signals that we should see an uplift in valuations from this closer alignment with open market prices once more transactions complete.'At 31 December 2014, USAF's property portfolio was independently valued at £1,573 million representing an increase of 1.2% during the quarter. The portfolio now comprises 24,820 beds in 68 properties across 22 university towns and cities. LSAV's property portfolio was independently valued at £426 million, up 1.4% in the quarter, and comprises 2,968 beds in 11 properties across London and three properties in Edinburgh.The USAF property portfolio has increased in value by 3.9% and the LSAV portfolio by 4.6% over the year on a like-for-like basis, with rental growth contributing approximately three-quarters of the movement and modest yield compression making up the remainder.The USAF portfolio is now valued at an average yield of 6.5% and the LSAV portfolio at an average of 5.9%.Commenting on the valuations, Joe Lister, Unite Students Chief Financial Officer, said:"The USAF and LSAV portfolios have both performed well in 2014, with a further year of strong occupancy and rental growth supplemented by modest yield compression. Based on indicative pricing of pending transactions in the market we expect yields to compress meaningfully from December 2014 levels during 2015 as those transactions complete."
Maddoxx
07 Jan 2015
May's threat to UK's Intl education sector Hi Guys,Welcome reports on the BBC R4 Today prog suggests that Theresa May - The Home Secretary's campaign to destroy the UKs International Student Education Sector has failed. The UK's Department of Business Innovation and Skills estimated that international students contributed over £10.2 billion per year to the UK economy and education sector in 2011/12.Thresa May was seeking to have all foreign students immediately deported after completing their course of study - included in the Tory's 2015 Election Manifesto. Thankfully, its been reported that George Osborn has vetoed this nonsense.May has previously managed to significantly damage the legitimate foreign student education sector by having the UK Border Agency force the deportation of what were clearly legitimate students halfway through their degrees. The fall in Indian & Pakistani students coming to the UK has been attributed to this action.[link] Maddox
Ripley94
28 Nov 2014
Re: N/c
Maddoxx
28 Nov 2014
Student property attracts BlackRock Nice rise in Unite - what's the reason? Well, as I mentioned a few posts ago there are lot of student property deals on the cards. this provides an obvious read-across to the value of Unite's portfolio. Here is one:"Investment and asset manager BlackRock has purchased a major student accommodation package adjacent to the University of Plymouth.Advised by DTZ, the firm bought Frobisher House, a 134-bedroom scheme leased to the university, for £9.4m and Regent Cottages, which is currently being developed to provide another 193 student bedrooms.GVA represented Saltire Property Developments Ltd and Urban Crib, the vendors at Frobisher House.Student accommodation provider Victoria Hall will manage the buildings on behalf of BlackRock UK Property Fund.Nick Allan, senior director at DTZ, said: "This is a strategic acquisition adjacent to the university's campus in a market that has one of the highest ratios of students per bed space of any university city in the UK."hxxp://www.insidermedia.com/insider/south-west/128488-blackrock-invests-plymouth-student-accommodation/Regards, Maddox
Maddoxx
18 Nov 2014
Investors Chronicle have tipped Unite as a Buy at 434p Hi Guys,[link] analysis and comment is very much in line with the posts in this thread and its a very good summary. The IC format requires that a few bear-points are included and for the record they are:>> A modest dividend yield below 2%; and>> A political risk regarding student numbers.Well, yes the yield on purchase is not attractive but as Jonas Crossland, the article's author, states this should change:"The dividend yield is rather modest, forecast to be less than 2 per cent in 2015. However, it's twice covered by after-tax earnings, and Unite expects to double earnings per share in the four years to 2018, so there could be plenty of scope for an improved payout."And the political risk on student numbers? He's scraping the barrel to find that one. I can't see any party or coalition seeing political advantage in stifling students' wish to study for a degree. Education is one of our more successful export industries.Regards, Maddox
Ripley94
18 Nov 2014
Re: N/C
