CREATING A

HOME FOR

SUCCESS

THE UNITE GROUP PLC

Annual Report and Accounts 2023

THE UNITE GROUP PLC Annual Report & Accounts 2023

FINANCIAL HIGHLIGHTS

OUR 2023 ANNUAL REPORT

Adjusted earnings

£184.3m

2022: £163.4m

Adjusted earnings per share

44.3p

2022: 40.9p

Dividend per share

35.4p

2022: 32.7p

EPRA NTA per share

920p

2022: 927p

Total accounting return

2.9%

2022: 8.1%

IFRS diluted earnings per share (p)

24.6p

2022: 87.6p

OPERATIONAL HIGHLIGHTS

Record 99.8% occupancy in

2023/24 academic year

Significant capital investment

in our existing estate

Completed 705-bed new

property in Nottingham

Partner for 2,000-

bed jointventure with

Newcastle University

Four pipeline

developments on track for

2024–26 delivery

Delivering on our

sustainability targets

We were named Student Accommodation Operator of the Year for the

second year running at Property Week’s RESI Awards 2023. The award

recognises our commitment to supporting students’ mental and physical

health, as well as our diversity and inclusion initiatives.

We also secured Alternatives Team of the Year at

Property Week’s Property Awards. Our win highlighted

our achievements with developments and operations,

innovation, client feedback, diversity and inclusion, our

sustainability agenda, employee initiatives and The

Academy, which is our commitment to providing our

employees with lifelong learningopportunities.

AWARD-WINNING 2023

Students voted five of our properties across the

country as Best Properties in Student Crowd’s Student

Voice Awards 2023. Cambrian Point, Cardiff; Angel

Lane, London; Sky Plaza, Leeds; New Medlock House,

Manchester; and Brass Founders, Sheffield were all voted

in first place, while three of our properties were awarded

second place and eight won third place. The Student

Voice Awards are given to the highest-rated properties

based on authentic student reviews on the Student

Crowdplatform.

THE UNITE GROUP PLC Annual Report and Financial Statements 2023

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION

CONTENTS

Strategic report

2 Our strategy in action

10 Who we are

12 Investment case

14 Business model

18 Chief Executive’s review

24 CEO and CFO Q&A

26 Market overview

30 Key performance indicators

32 Financial review

48 Sustainability

58 Climate-related financial disclosures

(including TCFD)

67 Principal risks and uncertainties

Corporate governance

80 Chair’s introduction

to governance

82 Board of Directors

86 Board statements

89 Board leadership and purpose

97 Division of responsibilities

99 Section 172

102 Board activities

110 Nomination Committee

114 Audit & Risk Committee

120 Sustainability Committee

123 Health & Safety Committee

127 Remuneration Committee

163 Directors’ Report

166 Statement of Directors’ responsibilities

Financial statements

167 Independent auditor’s report

176 Consolidated income statement

176 Consolidated statement of

comprehensive income

177 Consolidated balance sheet

178 Company balance sheet

179 Consolidated statement of changes

inshareholders’ equity

180 Company statement of changes

inshareholders’ equity

181 Consolidated statement of cashflows

182 Notes to the financial statements

Other information

237 Financial record

238 Glossary

241 Company information

OUR REPORTING SUITE

Annual Report

https://www.unitegroup.com/annual-report-2023

Sustainability Report

https://www.unitegroup.com/sustainability

Investor site

https://www.unitegroup.com/investors

CONTENTS

“The business has delivered

another year of strong operational

and financial performance, with

growth in earnings and dividend,

full occupancy, and ongoing

investment into our platform

and portfolio. We continue to see

strong demand and pressures on

housing supply and are confident

in our growth outlook.”

Joe Lister

Chief Executive Officer

THE UNITE GROUP PLC Annual Report and Financial Statements 2023

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION

OUR STRATEGY IN ACTION

Everything we do at Unite Students goes into providing a

home, where the tens of thousands of students who live

with us canthrive.

This is more than a space to live. We offer a place where students feel

they belong, in an inclusive community with plenty of opportunities

to have fun. Our accommodation is offered at a range of price points,

including affordable beds. All staff working in our student properties

are trained in mental health and active listening with access to round-

the-clock support should students need it.

We deliver this through our common purpose of creating a Home for

Success. Our teams provide the right home where students can learn,

so they can be their best and go on to achieve theirambitions.

This involves everyone in the business doing the right thing for our

stakeholders – meeting the needs of students and their parents, the

universities we partner with, our own teams, local communities and

our investors, who recognise the link between ourpurpose and our

plans for long-term growth.

This chapter demonstrates how we have lived our purpose in 2023.

CREATING A HOME

FOR SUCCESS

Committed and talented people

The passion and commitment of our people is the main driving force behind our success.

We believe doing what’s right for students starts with doing what’s right for our people.

We recognise the importance of being a place where people want to come to work.

Wesupport our people and invest in their skills. We are also working to create a culture

where difference is valued, so both our customers and employees feel they genuinely belong.

Our ongoing commitment to our colleagues was demonstrated by internal promotions in

key areas right across the business, including our new Chief Executive Officer, Joe Lister,

and our Chief Financial Officer, Mike Burt.

First Real Living Wage

employer in the sector.

A culture where

difference is valued.

Best-in-class

training and

careerprogression.

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OUR STRATEGY IN ACTION continued

ATTRACTIVE

RETURNS FOR

SHAREHOLDERS

More than a space to live, we provide homes where

students feel they belong, where they can thrive.

CREATING A HOME FOR SUCCESS

OUR PURPOSE

OUR STRATEGIC OBJECTIVES

DELIVERING

FOR OUR

CUSTOMERS

AND

UNIVERSITIES

A RESPONSIBLE

AND RESILIENT

BUSINESS

Keeping

ussafe

Creating room

for everyone

Raising the

bar together

Doing

what’sright

GUIDED BY OUR VALUES

Read more about our work in

student mental health.

OUR STRATEGY IN ACTION continued

Our 24/7 Student Wellbeing Helpline and Digital Therapy

initiative was launched in 2023, adding to our existing

welfare support. It provides students with unlimited access

to a British Association for Counselling and Psychotherapy

accredited, 24/7 counselling helpline. This includes an

interpretation service in over 240 languages and online

support resources, including cognitive behavioural therapy.

We provide these services through a partnership with

Endsleigh Insurance, as part of our Support to Stay

framework. The framework aims to give all students a

supportive living environment so they can fulfil their

potential, particularly when experiencing medical,

physical or mental-health difficulties. All our property

teams complete training on a range of student support

matters, including support for students with disabilities,

safeguarding and signposting students for support. Also,

our Resident Ambassadors continue to provide important

peer-to-peer support to students, and lead on social events

within our properties.

Earlier this year, we launched a pilot scheme in partnership

with Aldi supermarket to distribute food vouchers to

students most in need of financial support, at four

universities. Provision was means-tested and recipients

were determined by our university partners – Liverpool

John Moores University, Middlesex University, Birmingham

City University and the University of Westminster.

We also revamped our customer service CARE principles

– Connect, Act, Respect and Encourage – to help students

feel even more welcome within our buildings.

60+

university partnerships

Established provider

of choice for more

than 60 UK universities.

+42

customer Net

PromoterScore

Up 4 points from +38

in2022.

+32

university Net

PromoterScore

Higher Education Trust

(NPS) up 25 points from

+7in 2022.

2,000

new beds

Through an innovative

partnership with

NewcastleUniversity.

£79m

investment

To enhance our

existingproperties.

04 05

THE UNITE GROUP PLC Annual Report and Financial Statements 2023

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION

OUR STRATEGY IN ACTION continued

A RESPONSIBLE

AND RESILIENT

BUSINESS

The property sector needs to reduce

its carbon footprint so like many

businesses, we are playing our part.

We are driving lasting improvements

in our sustainability performance

and aspire to lead the living sector

onsustainability.

The targets we have set are ambitious, including

delivering against a plan to become net zero

carbon by 2030 across our existing estate and new

developments. Our efforts on sustainability don’t

just stop with our environmental commitments, we

are also making a positive impact for our employees,

students and young people, and localcommunities.

Through a programme of thought leadership,

wehelp shape the standards which will define the

PBSA and Higher Education sectors for decades

tocome.

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CASE STUDY

Leading on sustainability

New Sustainable

ConstructionFramework

Our Sustainable Construction Framework is a roadmap

that lays out our approach to the sustainable design and

construction of new PBSA, refurbishments and retrofits.

It explores how we work internally, as well as with our

supply chain, and identifies key areas of focus. This is

three-pronged, covering supply chains, biodiversity and

socialimpact.

Our core elements include carbon reduction, energy

efficiency and a move towards a circular economy. The

framework is a resource for our own teams and to meet

the needs of external stakeholders, such as investors,

university partners, students and local authorities.

We have already made some significant progress but

recognise there is more work to do. Our new Morriss

House development in Nottingham (pictured) achieved

embodied carbon of c.800kg/m

which is 33% below the

RIBA baseline of 1,200kg/m

Net Zero Carbon by 2030

CDP rating improved from

B to -A, reflecting progress

made in our management

of climate-related risks

andissues.

£2.4m

invested in good causes

Making a difference through

investment in social

impactinitiatives.

99%

of properties A-C EPC rated

Up from 80% in 2022.

community projects

Received 9 Gold and 20 Silver

Positive Impact Awards.

Detailed sustainability

achievements

Are covered inmore detail

on pages 48–57 of this report

and throughourseparate

Sustainability Report.

Leading positive change

Held our Living Black at

University conference and

published the Living Black

at University Commission

Report, and our research

intoneurodiversity.

OUR STRATEGY IN ACTION continued

The framework shows our aspirations, also ensuring each

development project delivers a great place to live and work.

We want to go beyond carbon reduction in construction

and optimise the performance of our properties.

Other areas include health and wellbeing, water and

long-term resilience against climate change risks. We’re

also looking to enhance the wider impact of our projects

–forcommunities and the environment.

Find out more about our

Sustainable Construction

Framework.

06 07

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OUR STRATEGY IN ACTION continued

ATTRACTIVE

RETURNS FOR

SHAREHOLDERS

There is strong demand for high-quality

student accommodation across the UK

and demographic growth underpins

a positive outlook for several years.

Working closely with university

partners, we are focused on increasing

the supply of much-needed student

accommodation and intend to invest

£200-250 million p.a. to achieve this.

Thiscommitment will free up shared

homes for families.

The UK has a world-leading Higher Education

sector and we are proud to support its ongoing

success. We take our responsibilities seriously as

leaders in the PBSA sector, which contributes £7

billion to the UK economy and is closely aligned

tothe success of world-leading UK universities.

THE UNITE GROUP PLC Annual Report and Financial Statements 2023

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CASE STUDY

Joint venture with Newcastle University

toprovide 2,000 beds

Unite Students has entered into a new joint venture (JV)

partnership with Newcastle University to deliver 2,000

high-quality, affordable beds in 2027 and 2028.

Dependent on gaining planning approval later in 2024,

this sector-leading scheme will provide the Russell Group

university with the opportunity to unlock the potential

of their campus and to deliver much-needed, new

accommodation for their students.

The proposed c.£250 million development will see 1960s

accommodation replaced at the university’s Castle Leazes

site. The JV deepens our existing 20-year relationship with

Newcastle University, which will benefit from our scale

and operational expertise, as well as third-party funding

toimprove the accommodation available to their students.

Construction is expected to commence in early 2025.

Newcastle University will own a 49% stake and Unite

Students a 51% stake, with the remaining funding

comingfrom debt secured against the JV.

£8.7bn

portfolio

Significant opportunity to

enhance our existing £8.7

billion portfolio* through

ongoing, capital programmes.

* Portfolio owned and managed.

8% growth in adjusted EPS

Record earnings and

sustainable rental growth.

£1.3bn

pipeline

Our development pipeline

now totals 7,327 beds.

28% loan-to-value (LTV) ratio

Robust balance sheet with

capital recycled through the

sale of weaker assets.

Unlock campus potential

Deepening relationships

withuniversities to help

themunlock the potential

oftheir campuses.

OUR STRATEGY IN ACTION continued

To support Newcastle University’s accommodation

requirements during the development phase, Unite

Students has separately entered into a four-year

nominationagreement for 1,600 beds in other Unite

Students’ properties in the city.

Read more about the JV.

08 09

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2023

rank

CITY

COMPLETED

BEDS (23/24)

1 London 12,574

2 Liverpool 5,975

3 Manchester 5,639

4 Birmingham 5,582

5 Leeds 5,533

6 Bristol 4,085

7 Newcastle 3,763

8 Cardiff 3,481

9 Sheffield 2,798

10 Portsmouth 2,706

Top 10 52,136

Total 70,442

WHO WE ARE

Liverpool

Aberdeen

Edinburgh

Glasgow

Newcastle

Durham

Leeds

Sheffield

Manchester

Leicester

Nottingham

Loughborough

Coventry

Birmingham

London

Medway

Bournemouth

Southampton

Bath

Portsmouth

Cardiff

Bristol

Oxford

Beds

70,442

In properties across the UK

Ranked

No.1

The largest provider of student

accommodation inthe UK

University partners

60+

Working alongside university

partners to deliver their

accommodation needs

Properties

158

Operating in 23 cities and towns

across England, Scotland and Wales

KEY STATS

Unite Students is the UK’s largest owner,

manager and developer of purpose-

built student accommodation, meeting

the country’s demand for high-quality

studenthousing.

HOME FOR

SUCCESS

THE UNITE GROUP PLC Annual Report and Financial Statements 2023

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION

2023

rank

CITY

COMPLETED

BEDS (23/24)

1 London 12,574

2 Liverpool 5,975

3 Manchester 5,639

4 Birmingham 5,582

5 Leeds 5,533

6 Bristol 4,085

7 Newcastle 3,763

8 Cardiff 3,481

9 Sheffield 2,798

10 Portsmouth 2,706

Top 10 52,136

Total 70,442

WHO WE ARE continued

Karan leads the operational and commercial functions

for Unite Students, working with his team to enhance the

student experience, deliver commercial performance

and raise brand awareness.

Q: How is Unite Students putting students at the heart

of everything it does?

A: “Our focus is on providing a home where students can

thrive. A home that is affordable, supportive, fun, inclusive,

safe, secure, as well as environmentally friendly. It is about

giving our residents the foundation to achieve any of the

goals or ambitions they aspire to.

In line with this, we are investing significantly across our

estate – with £79 million spent on building improvements and

offer enhancements over the last year, and more planned.

It’s also about ensuring our offer is fit for purpose for

all students and we’ve ramped up efforts on customer

segmentation to meet this need effectively.”

Q: Student wellbeing has always been a core focus for

Unite Students, why is it so important?

A: “Our residents are coming to live with us at a pivotal

point in life. They are taking the leap, beginning the

transition to independence and in most cases, living

away from home for the first time. We therefore need

tobe more than just their accommodation provider –

weneed to help them to navigate the change. As a parent,

Iwould expect nothing less if my son was living in a Unite

Studentsproperty.

That’s why we offer 24/7 round-the-clock support at all

our properties, place a focus on creating community and

have clear pathways for any students facing difficulty.

We’re continuously reviewing and improving our approach

here – always ensuring our students have somewhere to

turn, whatever their concern. Last year, we launched our

industry-leading welfare programme, Support to Stay,

which has been well received by students and our university

partners. This year, we have expanded that programme by

including additional counselling and therapy support for

Unite Students’ residents.“

Q&A

with Karan Khanna,

Chief Operating Officer

Q: What measures are you taking to help students

manage the cost-of-living crisis?

A: “We are acutely aware of the cost-of-living pressures

facing students. Here at Unite Students, affordability sits

at the heart of everything we do, and we’re committed

to providing value for money. The Unite Group provides

a range of fixed-price, all-inclusive products – covering

all utility bills, Wi-Fi, contents insurance and 24-hour

security – which gives students certainty on their outgoings

and is highly competitive, compared to other forms of

accommodation. We also have a comprehensive package

ofsupport available for those who may be struggling under

our Support to Stay offer.”

Q: How important is the sustainability agenda for

students when selecting accommodation?

A: “Our research shows that students care deeply about

living in a sustainable way – and so do we. That is why

we are committed to enabling our residents to limit

their impact on the environment day-to-day within

our properties – via substantial investment in energy

management solutions, such as air source heat pumps,

forexample – as well as to progressing towards net zero

asa business.

We also strive to have a positive, long-lasting impact on

the local communities in which we operate. Our colleagues

are actively involved in voluntary Positive Impact schemes,

while many of our properties now incorporate community

spaces. At Hayloft Point, for example, we’ve partnered with

Streets of Growth, a youth intervention charity, providing

them space at a peppercorn annual rent, giving them their

first permanent HQ.

We’ve come a long way on sustainability but there is still

work to do and this is a core focus for 2024.”

Watch Karan Khanna and

Claire Barber, Group Asset

ManagementDirector, as they

answer morequestions.

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INVESTMENT CASE

We are the UK’s largest owner, manager and

developer of purpose-built student accommodation.

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, and

sustainable income growth.

Value for money

We offer students a value-for-money

living experience, in a community

where they belong and with round-

the-clock support. Our range of

fixed-price, all-inclusive products

cover all utility bills, Wi-Fi, contents

insurance, maintenance and 24-hour

security, giving students certainty on

their outgoings.

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.

Structurally

growing sector

Demographic growth

The UK’s 18-year-old population

is set to grow by 16% by 2030,

supporting demand for an

additional c.130k undergraduate

places at current participation rates.

Rising Higher

Educationparticipation

Participation rates for 18-year-olds

going to university have been at

record levels for the past two years,

demonstrating young people’s

desires and recognition of the

opportunities and life experience

that university provides.

Growing international demand

The UK has a world-leading Higher

Education sector and we are seeing

record levels of international

students. The Government is

supportive and is focused on

attracting more students from

Africa, the Middle East and Asian

countries outside ofChina.

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

accommodation and services.

Passionate city teams

Service excellence is delivered

by 1,400 passionate colleagues

who work in our properties. This

brings together our experience of

over 30years of operating in the

PBSAsector.

Sector-leading

operating margins

We drive cost efficiencies through

scale using our PRISM technology

platform. Management fees from

joint ventures and funds cover two-

thirds of our annual overheads.

18-year-old participation

rate in Higher Education 2023/24

35.8%

Alignment to high and

medium-tariff universities

87%

Number of beds let under

nomination agreements for2023/24

37,000

SUSTAINABLE GROWTH

High-quality

portfolio

Best-in-class

operating platform

THE UNITE GROUP PLC Annual Report and Financial Statements 2023

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INVESTMENT CASE continued

Sustainable rental growth

Underlying rental growth driven by

student demand and contracted

increases under our multi-year

university nomination agreements,

supported by ongoing investment

into our estate.

Growing dividends

As a result of our Real Estate

Investment Trust (REIT) status,

we target sustainable growth in

dividends for our investors. We

distribute 80% of our recurring

earnings each year as dividends.

Targeting attractive total

returnsof 8.5-19% p.a.

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.

Market share gains

fromHMOsector

Almost a million students live in

houses in multiple occupation

(HMO), providing a significant

opportunity to attract more non-

first year students.

Development of £200-250m

perannum

Proven ability to drive earnings

and development profits through

our in-house development team.

Investment focused on the strongest

8–10 markets in the UK.

New university partnerships

Opportunities for new

developments on- and off-

campus,as well as partnerships

forthe transfer of universities’

existing accommodationstock.

Emerging young

professional market

Significant potential to expand our

platform to cater for the growing

number of professional renters

living in major student cities.

Net zero carbon

Becoming a net zero carbon

business for both our operations

and developments by 2030, based

on SBTi-validated targets.

Energy-efficient homes

99% of our portfolio already

achieves an EPC rating of A–C with

asset-level plans to reach 100%.

1% of adjusted

profitscommitment

We have committed to donating 1%

of annual adjusted profits to social

initiatives aligned to our purpose

of creating a Home for Success for

students and widening participation

in HigherEducation.

Unite Foundation

Through our financial commitment,

the charity Unite Foundation provides

accommodation scholarships for

estranged and care-experienced

students throughout the course of

their studies.

Total accounting

returns over the

past 10 years

12.4% p.a.

Full-time students living

in university-owned

accommodation or HMOs

1.4 million

Target reduction in

Scope 1+2 carbon

emissions by 2030

56%

High visibility

over returns

Substantial growth

opportunities

Leadership in

sustainability

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Best-in-class

operating platform

BUSINESS MODEL

We are differentiated by our operating platform,

long-standing university partnerships, our development

expertise and our values.

We manage two co-investment vehicles – Unite UK

Student Accommodation Fund (USAF), a specialist

fund, and London Student Accommodation Vehicle

(LSAV), a 50:50 joint venture with Singapore sovereign

wealth fund GIC which provide recurring fee income

and access to additional capital.

We adopt a consistent sales and operating

model across our entire portfolio, regardless

offundownership.

Manage

We drive sustainable 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

We are trusted by universities and are the provider

of choice for the UK Higher Education sector.

We partner with leading UK universities through

nomination agreements. These partnerships

enable us to support universities in delivering

their accommodation guarantee to first-year

and international students and provide us with

asignificant level of income visibility each year.

Our joint venture with Newcastle University is an

exciting opportunity to deepen our partnership

withthe university and paves the way for further

on-campus or stock transfer partnerships.

Partner

We create a Home for Success for the 70,000

students who live with us.

This is more than a space to live, it is a home where

students feel they belong to a community and where

they can thrive. Our best-in-class welfare support and

operational teams are dedicated to delivering on

this promise.

Serve

HOW WE DO IT

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BUSINESS MODEL continued

We aim to dispose of £100–£150

million 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 capital recycling provides

funding to invest in new development

opportunities and improvements to our

existing portfolio, while maintaining the

strength of our balance sheet.

Recycle

Portfolio enhancement

We appraise and selectively acquire single assets and

portfolios which enhance portfolio quality, where there

isclear alignment to the strongest universities.

Acquire

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 c.£200–£250 million p.a. into development

in those markets with the highest barriers to entry, where

our expertise and university relationships give us a significant

competitive edge in delivering schemes.

Develop

THE UNITE GROUP PLC Annual Report and Financial Statements 2023

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BUSINESS MODEL continued

How we engaged

Our colleagues working in properties

around the country engage with students

on a day-to-day basis, supplemented

by peer-to-peer engagement and social

activities provided by our resident

ambassadors. During the year we

partnered with Endsleigh Insurance

to provide 24/7 access to trained

counsellors and other support services.

We also engage with students using

our MyUnite app, including pre-arrival

support and networking opportunities.

Throughout their stay, students are

encouraged to participate in surveys

and campaigns, such as Personal Safety

Week and Winter Wellbeing and they

are signposted to our Support for You

webpage.

This is complemented by our customer

research programme which includes

surveys on specific issues, providing

arich source of insight.

Value creation in 2023

•

Embedded the Support to Stay

programme with our university

partners, delivering support when

students needed it most.

•

Provided access to a 24/7 student

wellbeing helpline and digital

therapyservices.

•

Trialled new design concepts

for ourbedrooms, kitchens and

amenityspaces.

•

Supported the award of 106 new

accommodation scholarships by the

Unite Foundation.

•

Refreshed our service style, CARE, to

further enhance customer service.

Priorities for 2024

We will focus on improving the customer

experience. This will include property

upgrades through refurbishment

projects. We will continue to respond

to the needs of under-represented

students and those with additional

challenges. Upgrades to our technology

platform will deliver an improved end-

to-end experience from booking and

throughout a student’s stay with us.

How we engaged

We held quarterly sessions of our

employee engagement forum,

Culture Matters, during the year with

attendance by Non-Executive Director,

Ilaria del Beato. Feedback from our

representatives has helped to inform

the review of our people-related policies,

see page 94 for further details.

We hold regular Unite Live sessions

with our CEO and key senior leaders

to provide business updates, including

financial and economic factors affecting

the performance, with the opportunity

for employees to askquestions.

We conduct regular employee

engagement surveys with findings

shared with our teams, to help jointly

develop action plans.

Engagement in the company performance

is through the annual bonus scheme.

Reward and recognition

programme introduced in 2023

•

8% average pay award, with frontline

teams receiving over 10% in uplifts,

maintaining Real Living Wage.

•

Introduced a sector-leading family

leave policy.

•

Embedded our diversity, equity,

belonging and wellbeing strategy.

•

Launched a dedicated training

programme for General Managers.

•

Launched in 2022, The Academy

delivered 36,000 training events,

through a personalised, tailored

learning experience for ourteams.

Priorities for 2024

Our focus is to provide our employees

with a great place to work.

In 2024 we will focus on delivering on

our talent agenda by investing in our

learning and development programmes

and continuing our focus on diversity,

equity, inclusion and belonging.

How we engaged

Through our Higher Education

engagement team, we meet regularly

with leaders across the UK university

sector. We engage at different levels

within institutions to discuss a range of

topics from strategic planning to day-to-

day operational requirements.

We engage actively in the wider

Higher Education sector, presenting

at conferences and contributing

toresearch.

We have launched the Living Black at

University Commission, to help black

students more easily acclimatise to life

at university.

Value creation in 2023

•

Provided 37,000 beds to universities

for the 2023/24 academic year.

•

Secured planning permission to create

a new college at Rushford Court in

Durham with our long-term partners,

the University of Durham and work

started on site.

•

Our Support to Stay framework links

wellbeing services with those of our

university partners.

•

A sold-out conference by the Living

Black Commission, the publication

of toolkits on cultural services and

research, an EDI Data Maturity

Framework and practical tips,

resources and case studies.

Priorities for 2024

We will continue to support the growth

ambitions of our university partners

through nomination agreements and

joint venture opportunities which

deepen strategic partnerships.

We will continue our research

programme, in partnership with

universities, so we can better

understand the evolving needs

ofeachcohort of students.

STAKEHOLDER VALUE

Students

Key issues

•

Value for money

•

Customer service

•

Safety and welfare support

Our People

Key issues

•

Learning and development

•

Diversity, equity and inclusion

•

Health, safety and wellbeing

Universities

Key issues

•

Student experience and welfare

•

Operational performance

•

Health and safety

THE UNITE GROUP PLC Annual Report and Financial Statements 2023

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION

BUSINESS MODEL continued

How we engaged

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 on development

projects so the design of our buildings,

public spaces and community facilities

meet their needs.

Our Positive Impact programme

encourages participation and includes

awards for volunteering projects

undertaken by our employees which

deliver measurable benefits in their

localcommunities.

Value creation in 2023

•

We committed to the development of

a further 3,000 beds which will free up

more traditional accommodation in

the communities where we operate.

•

29 community impact projects

received 20 Silver and 9 Gold

PositiveImpact Awards.

•

22% of all employees participated

involunteering.

Priorities for 2024

We aim to increase community

engagement through our Positive

Impact programme, via volunteering

initiatives delivered by local teams in

ourproperties and central offices.

We will continue to engage with local

authorities and local communities

around sites identified for new

development to explain the potential

community benefits of creating new,

high-quality student accommodation.

How we engaged

We completed the redesign of the

procurement function in 2023, moving

to a standardised approach to the

management of our supply chain. The

role of the function has expanded into

professional services, business services

and construction, in addition to the

existing portfolio of estates, facilities

management, and technology.

We continued to ensure our buildings

meet existing and emerging safety

regulations, including planned work

forthe remediation of cladding.

Underpinned by our Unite Group

Supplier Code and procurement

approaches, we published our

Sustainable Construction Framework

during the year, which will inform how

we procure net zero developments in

the future.

Value creation in 2023

•

Spent £275 million with suppliers

across development activity, cladding

remediation andrefurbishments.

•

Higher quality service from suppliers,

supporting improved NPS scores

fromcustomers.

•

Reduced risk through anenhanced

supplier vettingprocess.

Priorities for 2024

We will expand our new procurement

approach across the wider business and

progress the development ofour new

technology platform withpartners.

We will utilise our Sustainable

Construction Framework, published

at the end of 2023, to inform

the way in which we procure net

zerodevelopments.

How we engaged

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 included our response to higher

inflation, increased interest rates and

the acute shortage of high-quality

student accommodation. These

discussions informed our decision

to raise capital to invest in new

accommodation and accelerate the

upgrade of our existing estate.

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.

In November, the Executive team and

other senior leaders hosted a property

tour in London which focused on the

activity of our development and asset

management teams.

Value creation in 2023

•

Delivered 99.8% occupancy and

rental growth of 7.4% for the 2023/24

academic year.

•

8% growth in adjusted earnings per

share (EPS).

•

Total accounting return of 2.9%.

•

Full year dividend per share of 35.4p.

Priorities for 2024

We will deliver growth in EPS, through

rental growth, improvement in operating

margins, and investment in our portfolio

while ensuring a robust capital structure.

We aim to achieve this through a strong

sales performance for 2024/25, ongoing

cost discipline and management of

interest rate risk.

Communities

Key issues

•

Trust and transparency

•

Housing availability

•

Local investment and job creation

Suppliers

Key issues

•

Quality

•

Performance and efficiency

•

Risk management

Investors

Key issues

•

Financial performance

•

Strategic direction

•

Sustainability and risk management

THE UNITE GROUP PLC Annual Report and Financial Statements 2023

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION

CHIEF EXECUTIVE’S REVIEW

A POSITIVE

OUTLOOK

FOR THE

YEAR AHEAD

“The strength of our relationships

with universities, combined with our

best-in-class operating platform,

strong balance sheet and development

expertise, create unrivalled

opportunities for partnership

both on- and off-campus.”

Joe Lister

Chief Executive Officer

The business has performed strongly in 2023, delivering record

earnings and dividends. 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. We operate in a

structurally growing sector, underpinned by the attractiveness of the

UK’s Higher Education sector to domestic and international students.

The growing shortage of accommodation to meet this demand

supports sustainable rental growth and our standing in the sector

and creates compelling investment opportunities for the business.

Record earnings and dividend

We delivered record occupancy during the year, supporting

growth in adjusted earnings to £184.3 million and adjusted EPS

of 44.3p, up 13% and 8% respectively year-on-year. The impact

of rental growth, development completions and lower interest

costs more than offset increases in operational costs during the

year. The growth in adjusted EPS also reflects the increased share

count following our capital raise in July 2023. IFRS profit before

tax of £102.5 million and EPS of 24.6p (2022: £350.5 million and

87.6p) also reflect the valuation change of our property portfolio

during the year. We have proposed a final dividend of 23.6p

which, if approved, totals 35.4p for the full year, representing

apayout ratio of 80% of adjusted EPS.

Total accounting returns for the year were 2.9%, with adjusted

earnings offsetting a 1% decrease in EPRA NTA per share to 920p.

Our LTV ratio reduced to 28% during the year, reflecting lower

netdebt following the capital raise in July and broadly stable

property valuations.

ADJUSTED EARNINGS

£184.3m

(2023: £163.4)

DIVIDEND PER SHARE

35.4p

(2023: 32.7p)

ADJUSTED EARNINGS PER SHARE

44.3p

(2023: 40.9p)

Watch Joe Lister share

his thoughts on our

performance in 2023

and the future outlook

for the business.

THE UNITE GROUP PLC Annual Report and Financial Statements 2023

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION

CHIEF EXECUTIVE’S REVIEW continued

Net debt:EBITDA and ICR also improved to 6.1x and 4.6x

respectively (2022: 7.3x and 3.7x). Our robust balance sheet

provides the financial headroom to deliver our committed

development pipeline and pursue new growth opportunities.

Our key financial performance indicators are set out below:

Financial highlights

2023 2022

Adjusted earnings £184.3m £163.4m

Adjusted EPS 44.3p 40.9p

IFRS profit before tax £102.5m £350.5m

IFRS diluted EPS 24.6p 87.6p

Dividend per share 35.4p 32.7p

Adjusted EPS yield 4.8% 4.6%

Total accounting return 2.9% 8.1%

EPRA NTA per share 920p 927p

IFRS net assets per share 931p 944p

Loan to value 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.

Positive outlook for 2024/25

We continue to see strong demand for our well-located,

value-for-money student accommodation at a time of

declining numbers of Houses in Multiple Occupancy (HMOs),

obsolescence in older university stock and lower levels of

new supply. This is reflected in our strong progress with

reservations for the 2024/25 academic year.

Across the Group’s entire property portfolio, 80% of rooms are

now sold for the 2024/25 academic year, ahead of our typical

leasing pace and slightly below demand in reservation rates

last year (2023/24: 83%).

We have seen increased demand from universities as they look

to secure accommodation earlier in the sales cycle, resulting in

nomination agreements for an additional 1% beds for 2024/25

compared to the same stage of the 2023/24 sales cycle. These

agreements deepen our relationships with universities and

provide income security at rental levels comparable with

direct-let sales.

Direct-let sales have also started well, with customers looking

to secure accommodation early in the sales cycle. We have

continued to see strong demand from UK students as our

product grows in popularity with second- and third-year

students who recognise the value of our all-inclusive product.

As a result of this strong demand and the need to offset cost

pressures in our business, we now expect to deliver rental

growth of at least 6% for 2024/25 (previously at least 5%).

Providing value for money

We are committed to delivering value for money to our

customers and increasing rents at a responsible and sustainable

pace. We recognise the cost-of-living pressures faced by students

and parents and are confident that our fixed price, all-inclusive

offer will continue to provide value for money.

Our rents are 7% more affordable in real terms than 2019 (based

on CPI) and have grown in line with the student maintenance

loan over the same period. Rental increases are a response to

higher operating costs, particularly for utilities and staff, as well

as our commitment to being a Real Living Wage employer.

CASE STUDY

Morriss House opens to students

Our new 705-bed development, Morriss House in

Nottingham, welcomed students at the start of the

2023/24academic year. The development, on Derby Road

in Lenton, had a gross development value of £89 million.

We have a decade-long partnership with the University

of Nottingham, a world-leading university, and this

development is next to the university’s Jubilee Campus.

The property contains low-carbon features, running on

renewable electricity with solar panels installed on the

roofand an all-electric heating system, including air

sourceheat pumps.

Green public space connects the development to the

RiverLeen and the University of Nottingham campus.

Inside, Morriss House has the largest study and social

spaces in Unite Students’ portfolio and an open reception

providing a welcome hub for students, as well as an open-

air amphitheatre. The development, previously a former

car showroom, also provides c.16,000 sq ft (gross internal

area) of a commercial building for external use.

Watch our video to find out

more about this property.

THE UNITE GROUP PLC Annual Report and Financial Statements 2023

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION

CHIEF EXECUTIVE’S REVIEW continued

Our pricing is comparable in cost to HMOs once bills are

included. This is before allowing for the high quality of our

product and 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. Our rents have also grown by

less than the wider private rental sector, which rose 10% in

2023 (source: Zoopla), and at a comparable rate to university

ownedaccommodation (source: Cushman &Wakefield).

We also continue to make significant capital investment into

our operating model and estate to improve the customer

experience, as well as the safety and sustainability of our

buildings. During 2023, we continued to enhance the service

weoffer to students through the embedding of our 24/7

operating model, the expansion of our Support to Stay

programme for student wellbeing and the launch of a 24/7

mental health and wellbeing helpline in partnership with

Endsleigh and Health Assured.

Growing shortage of high-quality student homes

Structural factors continue to drive a growing supply/demand

imbalance for student accommodation. Demographic growth

will see the population of UK 18-year-olds increase by 124,000

(16%) by 2030, supporting growing demand for UK Higher

Education. Demand from international students also remains

high, as reflected in the 23% growth in overseas students

since2019/20 (source: HESA).

Many university cities are facing housing shortages and our

investment activity is focused on those markets with the most

acute need. Since 2021, there has been an 8% reduction in the

number of HMOs in England (source: Department for Levelling

Up), equivalent to 100,000-150,000 fewer beds available for

students to rent. Private landlords are choosing to leave the

sector in response to rising mortgage costs and increasing

regulation. New supply of PBSA is also down 60% on pre-

pandemic levels, reflecting planning backlogs and viability

challenges created by higher costs of construction and funding.

Obsolescence of older university accommodation is also expected

to increase due to building age and the need to operate buildings

more sustainably. In many cities, property valuations are below

replacement costs, further constraining new supply.

The combination of these factors has significantly increased

demand for our accommodation in many cities and we expect

this supply challenge to continue for a number of years.

Strategic overview

Our purpose is to deliver a Home for Success to allow students

to make the most of their time at university. We also support

the growth of the UK’s Higher Education sector by delivering

new high-quality, homes that are affordable and sustainable.

We achieve this by partnering with universities to deliver long-

term growth and attractive returns for our shareholders.

Our strategy is focused on three key objectives to deliver

ourpurpose:

• Delivering for our customers and universities

• Attractive returns for shareholders

• Being a responsible and resilient business

Delivering for our customers and universities

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. We are currently in the process

of a £26 million upgrade to our PRISM platform to enhance

customer experience and deliver operational efficiencies,

which will start to deliver in 2024 with the remainder in 2025.

The impact of our customer initiatives is reflected in an

increase in our Net Promoter Scores to +42 for students

at check-in (2022: +38) and +32 (2022: +7) with university

partners. We are targeting further improvements in our

customer experience during 2024. We have also seen an

increase in our retention of direct-let customers for 2023/24

andthe proportion of beds under nomination agreements

rose to 53% (2022/23: 52%).

Our long-term university relationships remain a key

differentiator for Unite Students and a significant source of

potential growth opportunities. This is reflected in over 90%

of our development pipeline by cost being underpinned by

university partnerships, either through long-term nomination

agreements or a joint venture, in the case of our strategic

partnership with Newcastle University.

Attractive returns for shareholders

We delivered full occupancy for the 2023/24 academic year and

rental growth of 7.4%, reflecting improving market conditions.

Total accounting returns were 2.9% for the year, reflecting

adjusted earnings and broadly stable property valuations

(2022: 8.1%). Strong rental growth offset the valuation impact

of increases in property yields as the market adjusted to an

environment of higher interest rates.

The quality and scale of our portfolio is key to delivering

attractive, sustainable returns for our shareholders. We

successfully delivered £84 million in development and major

asset management projects in the year at a blended yield

on cost of 9%. We continue to recycle capital with a focus on

increasing alignment to the strongest universities and expect

to complete the disposal of a £197 million portfolio in the first

half of 2024 (Unite share: £79 million).

In July 2023, we raised £300 million in equity to accelerate our

investment activity into development and asset management.

We have fully allocated the proceeds and expect the

transaction to enhance earnings and total returns as projects

are delivered between 2024 and 2027. We are tracking further

opportunities in London and strong regional markets at

attractive returns and expect to add to our pipeline in 2024.

Being a responsible and resilient business

Our Sustainability Strategy is focused on delivering a

positiveimpact for our stakeholders. This is driven by the

social contribution we make to the students who live with us,

our employees and local communities as well as our progress

in minimising our impact on the environment. We are proud

to be a Real Living Wage employer and havehonoured the

recommended 10% increase for 2024 for our relevantemployees.

THE UNITE GROUP PLC Annual Report and Financial Statements 2023

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION

CHIEF EXECUTIVE’S REVIEW continued

Claire Barber, Group Asset Management Director,

joined Unite Students in January 2023. Here, she

discusses theyear’s key asset management work

andmajor projects planned for 2024.

Q: What were your aims for 2023 and how are these

continuing into 2024?

A: “To create a strong pipeline, be very clear on what we’re

doing and spend the time understanding the buildings so

we can create the best possible offer for the customer.

In 2024, we’re making our biggest ever investment into

building improvement projects. We’re doing this in a way

that’s carefully thought through, so we’re spending money

sensibly. It is about making the right level of investment,

which will be different for each building. It’s about setting

ourselves up for success in the future.

The team has been working to identify an asset

management pipeline. This includes the assets we want

to invest in, how we could potentially segment our offer

to appeal to different types of students and the level of

returnthe investment would create.”

Q: Why do we need to invest?

A: “It is important we provide students with value for

money, and this requires investment in our buildings. I

am leading the business’s estate investment programme,

which will see investment into our estate over the next five

to seven years to ensure we deliver a portfolio that we are

proud of and makes us the home of choice for students.”

Q: How does design and sustainability tie into our

asset management Initiatives projects?

A: “We are trying to take a holistic approach to investment

in our properties, so any projects identified, be these

value-add asset management initiatives (refurbishments

or extensions), estates work, fire safety – we want to link

it altogether, so we only impact the customer once. In all

our projects, sustainability is of paramount importance

and we have a clear path to net zero carbon by 2030.

There is a planned programme ofworks to achieve this.

We’re developing a matrix of specifications with our

new generation design specification, which is still being

developed and tested.

Q&A

with Claire Barber,

Group Asset Management Director

This includes redesigned kitchens, geared more towards

our students having space to socialise and eat together.

It’s not a one-size-fits-all approach, but there will be a clear

evolution of the Unite Students look and feel, including

amenity space, which you can see in our new builds such

as our 705-bed Morriss House in Nottingham.”

Q: What has our work in 2023 meant for

ourstakeholders?

A: “From a student perspective, our work is important

because it enhances their experience. Particularly with

the bedrooms, bathrooms and kitchens. But we’re also

thinking more about how students experience the spaces

they’re in, so we’re being more considered and thoughtful

about how they can meet as a group in a flat. We’ve also

tried to understand what amenity space is well used in our

buildings to meet students’ needs, for example, smaller

study areas.

This year we have focused our investment in projects in

three of our strongest markets – London, Birmingham,

and Edinburgh. Oak Brook Park in Birmingham needed

investment, given its age and increasing student

expectations around quality. Similarly with The Bridge

House in Edinburgh – it’s an impressive location and

great market, so our investment has a big impact on how

the brand is seen. The Bridge House also underwent a

cladding project at the same time, so the building has been

completely transformed both internally and externally.”

Q: What will be the major works in 2024?

A: “Our focus in 2024 will be on two properties in Glasgow,

subject to the relevant consents, and another in Bristol.

Allthree are positioned in incredible locations. Work is also

ongoing in some of our existing properties in London, as

well as broader investment in fire safety improvements in

properties around the country.”

Watch Claire Barber and Karan

Khanna, Chief Operating Officer,

answer more questions around

enhancing the student experience.

THE UNITE GROUP PLC Annual Report and Financial Statements 2023

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION

CHIEF EXECUTIVE’S REVIEW continued

We continue to make good progress towards our objective

of becoming a net zero carbon business by 2030. During the

year, we invested £8 million in energy initiatives to reduce

consumption, save carbon and ensure ongoing compliance with

regulations. This contributed to a further improvement in the

EPC ratings of our portfolio during the year, with over 99% of

the portfolio now A–C rated (2022: 80%). We have now reduced

the energy intensity of our estate by 8% compared to our

2019 baseline. We also published our sustainable construction

framework, setting out our approach to reducing the embodied

carbon and whole life impact of our development pipeline by

around half by 2030. Our most recent development completions

demonstrate that we on track to deliver this improvement

by2030.

Higher Education and housing policy

Higher Education is one of the UK’s leading sectors,

contributing £130 billion to the economy, delivering world-class

research and supporting employment of more than 750,000

people. Our universities attract young people from around

the world for the quality of learning and life experiencethe

UKoffers.

International students are fundamental to the sector’s

health and contribute £42 billion to the UK economy. The

Government recently reiterated its commitment to hosting

600,000 international students each year, with a focus on

attracting the best and brightest. Changes to UK visa rules

mean that from January 2024, postgraduate taught students

can no longer be accompanied by their family members. We

expect this change to particularly impact postgraduate student

numbers from India and Nigeria, who are more likely to bring

dependants, with a disproportionate impact on lower-ranked

universities. Postgraduates from India and Nigeria accounted

for less than 3% of our bookings for 2023/24. Moreover,

our product offering is focused on single occupancy rooms,

meaning we expect limited direct impact from the change.

The Renters Reform bill is expected to be introduced in late

2024 and will further increase regulatory requirements for

HMO landlords. We expect the change to further reduce the

availability of HMOs as more landlords will choose to leave the

sector, increasing demand for the professionally managed,

sustainable accommodation we provide. Purpose-built student

accommodation is recognised as being different to traditional

rental accommodation, with students seeking accommodation for

one academic year, and has been excluded from the bill’s scope.

We are confident that our alignment to the strongest universities,

high-quality portfolio and responsible approach to rent setting

position us well to navigate potential changes inpolicy.

Management succession

I would like to extend my thanks to Richard Smith and

acknowledge his significant achievements over the last eight

years as CEO. He has been a driving force behind our successful

strategy of aligning to the best universities and building Unite

Students into a purpose-led, responsible business.

I am excited to take over as CEO after 22 years with the business

and look forward to working with the leadership team and all our

colleagues to deliver the next stage of Unite Student’s growth.

Opportunities for growth

We now have our largest ever development pipeline at £1.3

billion, focused on delivering new homes in the most supply

constrained markets and aligned to the UK’s strongest

universities. It will deliver significant earnings and NTA growth

over the next four years. The outlook for development is

strong and we are tracking a number of further opportunities

at attractive returns, which we will look to secure over the next

6–12 months.

Universities increasingly see access to high-quality and

value-for-money accommodation as a barrier to growth.

Funding challenges and competing priorities for capital are

encouraging universities to partner with Unite Students to

deliver new accommodation. This has become more pressing

due to acute housing shortages post-pandemic and growing

obsolescence in university estates. In February we announced

our first joint venture with a university, to redevelop existing

accommodation in partnership with Newcastle University.

The agreement to deliver 2,000 new beds on the University’s

land highlights how Unite Students is uniquely positioned to

address housing shortages.

We believe that there is also an exciting 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 asset in Stratford has performed

well during our first full year of ownership and is now fully

integrated into our operational platform. We are exploring

opportunities to grow our operational platform by partnering

with co-investors.

Positive outlook for growth

We are confident in the outlook for the business. Student

accommodation is structurally supported by growing demand

for Higher Education and constrained supply, which supports

long-term sustainable rental growth and creates significant

investment opportunities to deliver new homes.

The strength of our relationships with universities, combined

with our best-in-class operating platform, strong balance sheet

and development expertise creates unrivalled opportunities

for university partnerships both on- and off-campus. We are

the provider of choice for universities seeking nominations

agreements, which underpins over half of our letting activity

each year and underwrites over 90% of our development

pipeline. Our first joint venture with Newcastle University

underlines these qualities and we are confident there is more

to come as we help universities unlock potential housing

supply on their campuses.

Strong reservations support rental growth of least 6% for

the 2024/25 academic year. Despite ongoing cost pressures,

this supports an improvement in our EBIT margin and 3–5%

growth in adjusted EPS in 2024. We expect earnings growth to

accelerate from 2026 as development completions increase.

Rental growth, together with value creation through

planning milestones, development and asset management

supports total accounting returns of 10–12% in 2024, prior

toyieldmovements.

THE UNITE GROUP PLC Annual Report and Financial Statements 2023

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION

The key pillars of our strategy reflect our commitment to deliver long-term value for our stakeholders. This means

delivering for our customers and universities by creating a Home for Success for students, providing attractive returns

for shareholders and ensuring we operate as a responsible and resilient business so we can create a positive impact for

the environment, our people and communities.

DELIVERING FOR OUR

CUSTOMERS AND

UNIVERSITIES

STRATEGIC FOCUS

•

Delivering a best-in-class

studentexperience.

•

Investment to enhance

ourproperties.

•

Investment in our

digital capabilities and

technologyplatform.

PROGRESS IN 2023

•

Further improved student support

through a wellbeing partnership

withEndsleigh.

•

Significantly improved our Student

Net Promoter Score to+42.

•

Opened a new development,

Morriss House, in Nottingham

and refurbished three properties

in Edinburgh, Birmingham

andLondon.

OBJECTIVES FOR 2024

•

Deliver an enhanced

digital experience through

continued investment in our

technologyplatforms.

•

Deliver our Bromley Place

development in Nottingham for the

2024/25 academic year.

•

Secure a university partnership

jointventure.

•

Deliver asset management projects

on around 5,000 beds to further

enhance ourportfolio.

•

Continue to deliver our technology

upgrade programme to enhance

customer experience.

CREATING A

RESPONSIBLE AND

RESILIENT BUSINESS

STRATEGIC FOCUS

•

Becoming net zero carbon across

our operations and developments

by2030.

•

Creating positive impact for

communities and students.

•

Supporting wider access to

HigherEducation through the

UniteFoundation and sector-

leadingresearch.

•

Maintaining our proactive approach

tofire safety.

PROGRESS IN 2023

•

Delivered energy-efficient capital

projects representing over £8.2

million in total investment and

increased the proportion of floor

space achieving A–C EPC ratings

from80% to 99%.

•

Published our Sustainable

Construction Framework.

•

Provided 106 new Unite

Foundationscholarships.

OBJECTIVES FOR 2024

•

Embed our Sustainable Construction

Framework within our supply chain.

•

Enhance the Unite Group’s reputation

with key stakeholders.

•

Deliver lasting improvements

in environmental performance

through capital projects and

studentengagement.

•

Continue to progress fire safety

improvement projects.

ATTRACTIVE

RETURNSFOR

SHAREHOLDERS

STRATEGIC FOCUS

•

Sustainable growth in rental income

and earnings.

•

Delivery of attractive total

accountingreturns.

•

Sourcing new growth opportunities

through development and

universitypartnerships.

PROGRESS IN 2023

•

Achieved >99% occupancy and

7% rental growth for the 2023/24

academic year.

•

Committed to five new

developmentschemes.

•

Delivered 8% adjusted EPS growth.

•

Raised capital to accelerate growth in

earnings and total returns.

OBJECTIVES FOR 2024

•

Secure new investment opportunities

through development and

universitypartnerships.

•

Deliver 10–12% total accounting

return before yield movement.

•

Continue asset disposals to recycle

capital and enhance portfolio quality.

•

Grow EBIT margin by around

0.5–1.0%.

OUR STRATEGIC OBJECTIVES

THE UNITE GROUP PLC Annual Report and Financial Statements 2023

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Q: You both secured internal promotions at the start

of January 2024. What are your main ambitions for the

business goingforward?

Joe Lister: “I’ve taken over the role of Chief Executive at a time

of great opportunity. Unite Students is poised to take advantage

of a significant period of growth thanks to our unique position,

market-leading platform, and unrivalled relationships with

university partners.

Growth is, therefore, absolutely a key ambition for the business

going forward. There is a shortage in student accommodation and

we are focused on increasing supply of high-quality, affordable

homes through our development pipeline and by helping

universities to unlock the value of their campuses.

Ensuring Unite Students continues to be a great place to live is

also front of mind. We’re committed to making sure that our all-

inclusive proposition remains relevant to evolving student needs

– and a broad student mix. More than just a space to live, we offer

a home and a community – where students can thrive.

An enhanced employee proposition is another key ambition for

me as we look ahead – ensuring that Unite Students is a great

place to work. We want to attract and nurture the best talent –

which is why we’re proud to be the first in our sector to be a Real

Living Wage employer and are committed to offering our staff

best-in-class training and career progression opportunities.”

CEO AND CFO Q&A

Watch Joe Lister and Mike Burt

sharetheir thoughts on our performance

in 2023.

with Joe Lister, Chief Executive Officer

& Mike Burt, Chief Financial Officer

Q&A

Q: What are the main areas of focus in 2024?

Joe Lister: “An immediate focus of mine has been visiting all our

sites and cities to speak to people on the ground. I want people to

know they’re being listened to – to make sure I fully understand

their concerns and where they see opportunities. This will be

crucial in ensuring a smooth transition for the new leadership

team. I’m honoured to have received such a positive reception

so far but that’s not something I – or any of us – want to take for

granted. That also links to our focus on culture and values. We

want to build on a culture where difference is valued so that all

our customers and employees feel they belong.”

Mike Burt: “As Joe has said, culture and clearly-understood values

are hugely important to all of us at Unite Students. That filters

through to our overarching purpose: creating a Home for Success.

A key area of focus throughout 2024 must be doing the right thing

for all our stakeholders. That includes our customers, universities,

local communities, and our investors.

Putting us in the best possible position for sustainable growth is

key. The acute need for new student beds supports the strongest

growth outlook Unite Students has seen for several years. We

have a fantastic pipeline of 7,300 beds in the strongest university

cities, which will see us invest around £1.2 billion to increase the

supply of much-needed student accommodation. Delivering our

growth potential while also maintaining a high-quality balance

sheet is crucial, which is why we chose to raise equity in 2023 to

support our future growth ambitions.”

“Unite Students now accounts for

4 in 10 beds nominated by Higher

Education institutions, and this

is a key area of growth potential.

We’re trusted by universities

to deliver safe, high-quality

homes and a stand-out student

experience, where everyone’s

wellbeing is prioritised.”

Joe Lister

Chief Executive Officer

THE UNITE GROUP PLC Annual Report and Financial Statements 2023

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION

CEO AND CFO Q&A continued

Q: How do you plan to build on three decades of success?

Mike Burt: “It’s an exciting time for us and the sector – and

we’re fortunate to find ourselves in a position where we can

continue to grow our platform and go from strength to strength.

The growth we’ve delivered in the past gives us the foundations

to push ahead and thanks to our track record we are a partner

ofchoice for the UK Higher Education sector.”

Joe Lister: “Those strong relationships and historical ties are

key. Unite Students now accounts for 4 in 10 beds nominated

by Higher Education institutions, and this is a key area of growth

potential for us. That we’re trusted by universities to deliver safe,

high-quality homes and a stand-out student experience, where

everyone’s wellbeing is prioritised, is testament to our successes

to date. We see huge potential for working collaboratively with

university partners further, to unlock the full potential of their

campuses. That’s why we’re so excited about our joint venture

with Newcastle University, an industry-first deal which will

deliver 2,000 affordable beds to students.”

Q: How will you continue to make Unite Students a great

place to work?

Joe Lister: “Our Home for Success ethos extends to all those who

work with us.

We are focused on being a great place to work and, as we’ve said,

are working to create a culture where everyone can thrive. Part of

that is building and supporting great frontline teams and we have

various initiatives to help attract and nurture the best talent.

I’m really excited by the potential of The Academy, which was

launched in October 2022 and encourages on-the-job learning and

development for colleagues across all career stages. This ranges

from fast-track leadership training to mentoring and coaching.

Our strong employee offer and staff benefits provide a great place

to build a meaningful career.

We’re working with young people at such an important time of

their lives and as such that gives us a huge opportunity to provide

real value to them. Our teams frequently go above and beyond

and volunteer in local communities, which is so important and

appreciated by our students.”

Q: What do you think investors are looking for as the

business grows?

Mike Burt: “It’s clearly a challenging time for many businesses.

We’re operating in a high cost and inflationary environment which

impacts the viability of new development, alongside a broader

cost-of-living crisis. Generating value and sustainable growth for

our investors, while also maintaining a prudent approach to costs,

is key. It’s about balance right now.

Our strong track record, high-quality balance sheet and disciplined

approach to capital allocation is very important to investors.

Our approach, a really strong team and a stand-out customer

proposition delivers sustainable growth in earnings and dividends,

backed by a high-quality balance sheet, which translates to

attractive returns for our investors.”

Q: How is sustainability going to shape how we do

businessin future?

Joe Lister: “We aspire to lead the living sector on sustainability –

that’s important to us and is reflected by our ambitious targets.

We’re already delivering against our plan to become a net zero

carbon business by 2030 and are committed to having a positive

impact on people and the communities in which we operate.

We’re also delivering against our new Sustainable Construction

Framework which formalises our approach to sustainable design

and construction, as well as looking at how we reduce carbon

emissions internally and with supply chain partners.”

Mike Burt: “We’ve invested c.£50 million in sustainability

improvements since 2018, which sets us in good stead. Our

sustainability framework sets our growing social impact within the

context of our wider sustainability goals, which is important to us.

We now commit to donating 1% of our adjusted profits to

social initiatives, to ensure we are continuously giving back. This

delivered £2.4 million of investment last year and, as part of that,

we’re proud of our continued support of the Unite Foundation,

which does vital work for care leavers and estranged students.

Over 700 young people have now benefited from accommodation

scholarships since 2012.

In addition, research we commissioned in 2023 showed that

purpose-built student accommodation contributed more than

£7 billion to the national economy through operational costs and

spending of undergraduate students, demonstrating the impact of

the sector.”

Q: How will Unite Students maintain its

sector-leadingposition?

Joe Lister: “As we’ve said, we believe we have a really exciting

future and are well-positioned to build on our successes to date.

As well as providing significant socio-economic benefits to the

areas in which we operate, student accommodation is a vital part

of the university experience.

However, the UK is increasingly short of suitable, high-quality

accommodation – especially as HMO landlords continue to leave

the market. We therefore have a crucial role to play in increasing

supply and we have a clear strategy to do so – maintaining our

sector-leading position at the same time. In addition, our ongoing

investment into building enhancements, new technology and our

broader service offering means we can be confident of providing

the best possible proposition and support to our students.”

THE UNITE GROUP PLC Annual Report and Financial Statements 2023

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION

The outlook for our business is influenced by structural trends in Higher Education and student accommodation,

which impact the size of our addressable market. Cyclical factors also have an impact on the economic conditions

we face, the cost and availability of funding for the business and our investment plans. Together these factors

influence our strategy and the long-term growth prospects of the Unite Group.

UK Higher Education policy recognises the global standing

of the UK’s universities, including how universities attract

students from all over the world, conduct vital research and

contribute £42 billion to the UK economy, and the benefits

this provides to our society.

The Higher Education sector regulator, the Office for Students

(OfS), is responsible for monitoring the quality of HE provision

to ensure successful outcomes for students. The OfS has

established minimum expectations for course continuation,

completion rates and graduate outcomes, to determine if

perceived low-quality courses should be subject to caps on

student numbers.

Changes to visa rules, which become effective in 2024, mean

postgraduate taught students will no longer be able to bring

dependant family members to live with them in the UK.

Private landlords face a growing regulatory burden. Minimum

EPC standards, local authority licencing and the upcoming

Renters Reform Bill all add to the challenges of being an

HMOlandlord and some will choose to leave the sector.

The number of full-time students in UK Higher Education

hasgrown by 545,000 (32%) over the past 10 years,

driven bya combination of rising participation rates

andinternationalgrowth.

The application rate to university by UK school leavers is

above pre-pandemic levels, reflecting the continued value

young adults place on a higher level of education and the life

experience and opportunities it offers. There has also been

significant growth in postgraduate students over the last four

years, with an extra 190,000 students compared to 2017/18.

International student numbers have also continued to grow

thanks to increased demand from non-EU markets such

as China and India, more than offsetting a reduction in EU

student numbers post-Brexit.

Looking forward, there is potential for strong growth

in student numbers over the next decade. This reflects

significant demographic growth, which will see the population

of UK 18-year-olds increase by 124,000 (16%) by 2030.

Government

policy

Growing demand for

Higher Education

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.

•

Changes to visa policy, restricting the ability of

taught postgraduate students to bring dependant

family members to the UK, are unlikely to significantly

impact demand for our single occupancy rooms. Our

portfolio also has limited indirect exposure to those

cities and universities expected to be most negatively

impacted by the visa change.

•

We are confident that our strategic alignment to

high- and mid-ranked universities positions us

to successfully navigate future changes in the

Government’s Higher Education policy.

What it means for Unite Students

•

Increased demand for PBSA from students and

universitypartners.

•

Opportunities for new development in markets

wherethe supply/demand imbalance is greatest.

MARKET TRENDS

MARKET OVERVIEW

THE UNITE GROUP PLC Annual Report and Financial Statements 2023

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION

MARKET OVERVIEW continued

The number of households living in the private rented sector

in England and Wales has more than doubled over the

past 20 years. As a result, government policy in the private

rented sector is focused on ensuring that homes are of good

quality and safe for tenants. The Government estimates that

over a fifth of privately rented homes are in poor condition

and launched a consultation in the second half of 2022

on whether minimum standards should be introduced.

The Renters (Reform) Bill will increase tenants’ rights and

may reduce the attractiveness of letting to students, if

they are able to end tenancies early. PBSA is recognised by

theGovernment as being different to traditional HMOs and

has been removed from the draft legislation.

The Government has recognised the shortage of housing

inthe UK and the need for new housing in our markets.

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) which require rental properties to

achieve EPC ratings of at least C by 2027 and B by 2030.

Universities recognise that high-quality and affordable

student accommodation is a major differentiator in their

ability to attract and retain students. They will typically seek

toguarantee accommodation for their domestic first-year and

international students. Universities own around 300,000 beds

of their own accommodation but new investment tends to

be prioritised towards their academic estate and investment

in research capabilities. As a result, universities have relied

on private PBSA owners to deliver new accommodation to

support growth in student numbers.

Inflationary pressures and higher interest rates have increased

the operational and financial challenges faced by universities

and there is a growing appetite for partnerships with leading

operators of student accommodation.

Focus on quality,

sustainable housing

University

outsourcing

Structural trends

Demand for PBSA is underpinned by a range of structural

drivers, which support growth in student numbers for UK

Higher Education.

What it means for Unite Students

•

Growing regulation of the HMO sector may

resultinmore private landlords seeking to exit

themarket, creating opportunities 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 sector. We

believe there is an opportunity to grow our platform

in the living sector by catering to the growing number

of young professionals living in major UK cities.

What it means for Unite Students

•

Demand for new, long-term nomination agreements

with universities.

•

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 UNITE GROUP PLC Annual Report and Financial Statements 2023

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION