The UK’s largest listed provider of student accommodation posted excellent first half year profits today and forecast more of the same for the second six months of 2010.
Unite, which is thought to be the biggest private landlord provider of student accommodation, managing over 38,000 beds, posted an 8% rise in the value of its assets to the end of June 2010.
It disclosed its net value share price soared from £2.65 to £2.89 in the period with profit at net portfolio contribution rising over 11% to a figure of £4.2 million. Unite put the good figures down to two main factors. Firstly the number of beds provided for students went up and secondly the rise in rental charge. The first six months of the year have shown a rental growth of slightly over 2% but Unite predict that will go to between 3-4% over the full year.
Earlier this year the company had forecast growth of between 3-5% for 2010/11 with an influx of overseas students helping balance any negative impact of the weak economy and the austerity measures imposed by the government.
Looking forward to 2011 and beyond, the company said funding of some £79 million was already in place for over 1000 beds next year with another 2000+ in the pipeline for London alone in 2012.
Irrespective of the amount of properties they own or manage landlords should always consider having landlord insurance.