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Unite extends student rental discount to coincide with end to 'stay-at-home' rule
StockMarketWire.com
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Student accommodation provider Unite has announced an additional three-week extension to its 50% rental discount, taking the total discount period for students to 10 weeks to coincide with the end to the government's stay-at-home rule on 29 March.
The total 10-week rental discount and tenancy extension is expected to result in a reduction in rental income of up to £10 million, a lower impact than the company previously forecast given student occupation in its buildings.
The group said the 10-week rental discount and four-week complimentary tenancy extension will be available to students not living in their accommodation between 18 January and 28 March 2021 and will be its final rental discount relating to Covid-19, subject to no further changes in government guidelines.
Unite reported that approximately 60% of checked-in students have now returned to its buildings.
It has now collected 95% of rent due to date for the 2020/21 academic year and expects headroom under its ICR covenants to 'increase materially' from the second quarter of 2021 as the material impact of tenancy cancellations in the second quarter of 2020 are removed from the 12-month historical ICR calculation.
Chief executive Richard Smith said: 'Since the outbreak of Covid-19, we have strived to play our part and do the right thing for our students in a fair and proportionate way.
'We also know from our own survey of students that the majority want to return and enjoy university life.'
Story provided by StockMarketWire.com
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