TIDMUTG
RNS Number : 2534R
Unite Group PLC (The)
05 March 2021
PRESS RELEASE
5 March 2021
THE UNITE GROUP PLC
('Unite Students', 'Unite', the 'Group', or the ' Company ')
ADDITIONAL RENTAL DISCOUNT
Unite Students, the UK's leading owner, manager and developer of
student accommodation, today announces an additional three-week
extension to its 50% rent discount for students, originally
announced on 11 January. This takes the total discount period to 10
weeks, up to the end of the Government's stay at home rule on 29
March.
The ten-week rental discount and four-week complimentary tenancy
extension will be available to students not living in their
accommodation between 18 January and 28 March 2021. Approximately
60% of checked-in students have now returned to our buildings. The
decision has been taken following publication of the Government's
roadmap out of lockdown, set out on 22 February, which includes an
end to the stay at home rule on 29 March. Subject to no further
major changes in Government guidelines, this will be the Group's
final rent discount relating to Covid-19.
Based on take-up of the rental discount to date and occupancy in
our buildings, the total 10-week rental discount and tenancy
extension is expected to result in a reduction in rental income of
up to GBP10 million (Unite share), equivalent to 2.5 pence of EPRA
EPS for the 2021 financial year. This represents a lower impact
than previously anticipated, despite the three-week extension to
the discount, reflecting the high number of students now in
occupation in our buildings.
Update on cash collection and debt covenants
We have now collected 95% of rent due to date for the 2020/21
academic year. To be eligible for the rent discounts, students are
required to be up to date with their rental payments.
Given the strength of our cash collection, scheduled payments by
Universities and physical occupancy in our buildings, we are
confident in retaining headroom under all our ICR covenants across
the Group and its funds and joint ventures.
Headroom under our ICR covenants is expected to increase
materially from Q2 2021 as the material impact of tenancy
cancellations in Q2 2020 are removed from the 12-month historical
ICR calculation.
Richard Smith, Unite Students Chief Executive Officer, commented
:
"Since the outbreak of Covid-19, we have strived to play our
part and do the right thing for our students in a fair and
proportionate way. We also know from our own survey of students
that the majority want to return and enjoy University life. This
final rent discount means we will have provided a total of 10-weeks
of financial support while students were asked to stay at home by
the Government. This comes on top of the waiver of rent for the
third term of the 2019/20 academic year during the first national
lockdown, when we were the first provider of PBSA to offer
this.
"All our properties continue to remain open, as they have
throughout the pandemic. Like any private landlord, we do not
normally provide refunds for time students choose to spend away
from a property during a tenancy. However, we acknowledge that
students have faced challenges this year and that's why we have
supported them consistently through the pandemic. We remain
committed to ensuring that students can continue to experience the
real life-long benefits of university life."
1. Survey of 2,000 students for Unite Students by Yonder Data Solutions from 10 to 14 February.
ENDS
For further information, please contact:
Unite Students
Richard Smith / Joe Lister / Michael Burt Tel: +44 117 302 7005
Unite press office Tel: +44 7754 749 301
Powerscourt
Justin Griffiths / Victoria Heslop Tel: +44 20 7250 1446
About Unite Students
Unite Students is the UK's largest owner, manager and developer
of purpose-built student accommodation, serving the country's
world-leading Higher Education sector. We provide homes to 76,000
students across 180 properties in 27 leading University towns and
cities. We currently partner with over 60 Universities across the
UK.
Our people are driven by a common purpose: to provide a 'Home
for Success' for the students who live with us. Unite's
accommodation is safe and secure, high quality and affordable.
Students live predominantly in ensuite study bedrooms, with rents
covering all bills, insurance, 24-hour security and high-speed
Wi-Fi. We also hold a five-star British Safety Council audit
rating.
Founded in 1991 in Bristol, Unite Group is an award-winning Real
Estate Investment Trust (REIT), listed on the London Stock Exchange
and a member of the FTSE 250 Index. Unite is invested in and
operates two specialist funds and joint ventures with institutional
investment partners: the GBP3 billion Unite UK Student
Accommodation Fund (USAF) and the GBP1 billion London Student
Accommodation Vehicle (LSAV).
For more information, visit:
Unite's corporate website www.unite-group.co.uk
The student site www.unitestudents.com
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