GLORIOUS CHART

Well 3 years later ...I'm in! I know the property sector looks like a wasteland at the moment but students will still be flocking to universities and they'll all need places to live. And only so many of them will choose the mummy & daddy option. Very cheap IMHO at present.

Not a bad set of results given the current market conditions. And as they were up 18% on the day I guess the market agreed for once:

The UNITE Group made an adjusted loss for the year is 44.8m compared to a loss of 62.9m for 2007.

Excluding one-off costs, primarily relating to market conditions, the group's decision to scale back its development activity and actions taken to reduce the overhead base of the business, adjusted profit shows a loss of 5.7m for 2008 (2007: 3.6m loss). On an IFRS basis, reported loss of 115.9m (2007: 37.5m).

The student accommodation apecialist reported adjusted, fully diluted NAV per share for 2008 fell 21% to 325p down from 410p.

On an IFRS basis, net assets excluding minority interests fell to 320m (258p per share) from 450m (364p per share) a year earlier, principally as a result of the decline in property values.

Investment portfolio valuation fell by only 5%, compared to an industry average fall of 27%. The outperformance is predominantly attributable to rental growth and rental growth prospects.

Adjusted net debt reduced from a peak of 862m in November 2006 to 531m at 31st December 2008 as a result of UNITE's evolution to a co-investing asset manager business model.

The group reported full compliance with all borrowing covenants and a cash balance of 112m as at 31st December 2008, with 57m available for general purposes after full provision for committed development expenditure.

Operational change programme on track to deliver savings ahead of 10m per annum target across the group's operations in 2009, with additional savings also arising from a reduction in Group overheads.

Successful asset sales totalling 154m of non-core assets to third parties during 2008, well in excess of original target of 100m. In 2009 to date, further sales totalling 15m have already been unconditionally exchanged and a further 30m are in solicitor's hands.

UNITE said it remains on track to deliver against its objective set in 2007 to double net operating income from its managed student portfolio within five years.

Mark Allan, CEO, commented: 'Demand for good quality, well-located student accommodation investment assets remained robust through the majority of 2008. Transactions over the course of 2008, and already this year, provide meaningful valuation evidence across all major segments of the portfolio. Taking this evidence into account, we believe that yield expansion in student accommodation investments will continue to be less pronounced than across the broader property market, with rental growth prospects also providing an effective buffer. Nonetheless, the Group's immediate focus remains the proactive management of its balance sheet in an environment of falling property values.

'With 99% occupancy across our portfolio, annual rental growth of 9.5% achieved last year and reservations for the 2009/10 academic year already at 65%, student accommodation performance is clearly standing up well in the face of a severe recession. We plan to capitalise on this resilience to ensure that the Group is as well placed as possible for the challenging times ahead.'

Looks like a sound short now, SP well over extended and far too much debt....

Broker snap: KBC's note of caution on Unite
09 Mar, 2009 11:59


Shares in student accommodation provider Unite Group soared Monday after the company narrowed full-year losses and gave an upbeat assessment of future prospects.

However, broker KBC Peel Hunt has taken the opportunity to downgrade the stock from "buy" to "hold" as it believes "the shares will wait to see whether the business model weathers credit uncertainties."

Unite is targeting a reduction in business overheads of 9m per year "but cash flows, we estimate, minus 10m -20m per annum.," KBC said.

"The 58m equity raising and asset disposals to third parties by the USAF Fund have been useful and allowed Unite to subsequently sell a further 171m of product to USAF late in the year," KBC notes, but adds that the disposals were below market rate and although they have reduced the gearing of the holding company "the fall in valuation of Unite's wholly owned portfolio as well as its share of the Fund assets has meant gearing has increased from 106% to 131% at Dec 2008."

Despite concerns about the need to keep gearing under control, the broker believes the shares remain worth holding.

"We retain the hope that Unite, which is leveraged circa 240% at the low point, can meet its plans," the broker concludes.

A lot of confidence from Directors with three buying this week. I'm not convinced by all the doom & gloom.

Unite, Tipped by Investors Inteligence today...

For Unite Group, a breakout looms after it staged a healthy advance to the important 300p resistance (see right). As this is the fourth attempt, a break above the resistance would constitute an important buy signal.

Some very strong broker backing aswell;

UNITE Group PLC

FORECASTS
2009 2010

Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

KBC Peel Hunt Ltd
22-12-09 BUY -41.61 -33.94 -36.88 -22.89 1.50

Evolution Securities Ltd
01-12-09 BUY -13.60 -10.00 -2.00 -1.30

Numis Securities Ltd
01-12-09 BUY 0.70 39.90

Noble & Company
11-11-09 None 8.90 -8.90 12.70 7.90

Some bullish TA from a US site here...

http://quote.barchart.com/texpert.asp?sym=UTG.LS&code=BSTK

Interesting fact sheets......

http://unitegroup.hemscott.com/servlet/HsPublic?context=ir.access&ir_client_id=3743&ir_option=PDF_TEARSHEET

Detailed Broker Forecasts 2009 2010

Date Rec Pre-tax EPS DPS Pre-tax EPS DPS

KBC Peel Hunt Ltd 22/12/2009 BUY -41.6 -33.9 -36.9 -22.9 1.50

Evolution Securities Ltd 01/12/2009 BUY -13.6 -10.0 -2.00 -1.30

Numis Securities Ltd 01/12/2009 BUY 0.70 39.9

Noble & Company 11/11/2009 8.90 -8.90 12.7 7.90

Student accommodation provider Unite Group (Munich: 634811 - news) was another morning soarer, up 26.5p (12%) to 250p, again based on an interim results release. In this case, the boost topped a great year for the shares, which has seen them gain around two thirds from a pre-Christmas low of 150p.

The results? A doubling of pre-tax profit to £33.5m, and a trebling of adjusted earnings per share to 9p. The interim dividend was doubled to 1p per share. The demand for university places, coupled with strong asset values, makes the outlook appear bright.

Highlights

Strong financial performance

· Recurring profits from operations (Net Portfolio Contribution) increased to £14.4 million (year to December 2011: £11.0 million, six months to June 2011: £7.2 million);



· Adjusted earnings per share increased 190% to 9.0 pence (six months to June 2011: 3.1 pence);



· Adjusted, diluted NAV per share up 5.3% to 335 pence (December 2011: 318 pence, June 2011: 310 pence);



· Like for like rental growth for the six months since December 2011 of 1.8%, delivering capital growth of £20 million;



· Average portfolio initial yield stable at 6.6%;



· Operations cashflow increased 17.8% to £13.9 million for the six months;



· Interim dividend increased to 1.0 pence per share (2011 interim: 0.5 pence). Full year dividend expected to represent 25% of Net Portfolio Contribution.


http://www.moneyam.com/action/news/showArticle?id=4435121

Student property specialists, Unite Group, gets the thumbs up from Tempus in the Times after revealing profits from operations that were nearly double analysts' expectations on Thursday. The £14.4m figure almost gets Unite to its full year targets and the demographics of student accommodation are in its favour. Applications for places haven’t fallen by as much as had been feared despite the rise in fees. Early progress may be slow after a big surge yesterday but Unite Group is a buy.

Good buy rec in IC, with further gains likely .

UNITE Group: Oriel Securities upgrades to add.

LONDON (SHARECAST) - Unite Group, the UK's largest developer and manager of student accommodation, has announced an extension of its existing joint (JV) with GIC Real Estate, the real estate arm of the government of Singapore Investment Corp. as well as the creation of a new partnership through which Unite will undertake its next phase of London development activity.

The life of the JV will be extended until September 2022 from its original maturity date of March 2013, and Unite will be able to increase its stake in the JV from 30% to 50% by the 2016 year-end.

Approximately £100m of the JV's existing assets, equivalent to around 25% of its total portfolio at June 30th 2012, will be sold over the next four years. The disposals will be targeted so as to focus it's remaining holdings on its highest quality London locations and the majority of proceeds will then be applied to de-leveraging in the JV.

The JV's existing senior debt facility of £236m, provided by a syndicate of lenders headed by HSH Nordbank, matures in September 2014 and will need to be replaced with a new facility. It is UNITE's intention to have the replacement facility arranged and in place during 2013.

A separate 50/50 JV between the two organisations will be established with the aim of investing £330m in development activity in London. As part of this, Unite will sell two of its existing London development projects to the new JV for cash consideration in line with previously disclosed valuations on completion.

The two JVs can be combined once Unite increases its stake in the original JV to 50%.

"From a strategic perspective the transaction allows Unite to accelerate its investment in London development activity at a time when potential returns are particularly compelling and the scale of opportunity is greater than Unite could fund alone," the firm said.

The share price rose 2.96% to 261p by 08:42.

Done very well, sold my holding

Bought some first thing and already in profit.

Were too tempting to not buy.

Liked the Midas article this weekend.

Chart looks like its setting up an up trend channel.

UTG UNITE Group PLC

Gone long on UTG just thinking of all those extra UNI Places this next year, they are going to need more accomadation.

Friday tips round-up: Playtech, Unite Group

Fri 29 August 2014 08:39

A A A
Betting and gaming software provider Playtech's first half results showed the company is firing on almost all cylinders, but much is already baked into the share price, writes The Times's Tempus. Sales at its casino division rose by 29%, driven by multiple customer wins in various territories, accompanied by a 35% increase at its sports business. However, the expansion in the latter was flattered by the World Cup and is not a sustainable rate of growth. Bingo and poker on the other hand are facing stiff competition.

The company nevertheless is left in the enviable position of having to decide how best to deploy its €366m cash pile. The board is hoping that the spread of regulation later in the year might present it with opportunities for investment. Even so, while the technology outfit is growing fast and regulatory changes offer enormous potential for gaming markets, on 19 times' earnings the stock is "not cheap, and probably only a hold," says Tempus.

Property investing is about yield, borrowing cheaply and obtaining a stable stream of income with those funds, and Unite Group is excelling at it. Over the first six months of the year the provider of student accommodation has managed to cut the average cost of its debt by 60 basis points to 4.7%. In parallel, the average maturity of that debt has been extended to over seven years and is almost all on fixed terms. Meanwhile, its portfolio of assets yields a steady 9% to 10%.

Furthermore, the company is benefiting from the increased rates of growth in university attendance. Unite expects to add another 1,600 beds, mainly in London, to its portfolio over the coming two years. It should come as little surprise therefore that the company is set to hit its earnings target of 18p per share a year early. The shares only offer a 1.3% dividend yield but what you are paying for in this case is the expansion in the net asset value of the portfolio - which is reasonable. The stock still looks attractive, so 'buy' says The Daily Telegraph's Questor column.

Please note: Digital Look provides a round-up of news, tips and information that is impacting share prices and the market. Digital Look cannot take any responsibility for information provided by third parties. This is for your general information only as not intended to be relied upon by users in making an investment decision or any other decision. Please obtain a copy of the relevant publication and carry out your own research before considering acting on any of this information.