THE UNITE GROUP PLC

Annual Report and Accounts 2024

158

FINANCIAL STATEMENTS

Section 1: Basis of preparation

This section lays out the Group’s accounting policies that relate to the financial statements as a whole.

Where an accounting policy is specific to a particular note to the financial statements, the policy is described in the note

to which it relates and has been clearly identified in a box.

Basis of consolidation

The financial statements consolidate those of Unite Group PLC (the Company) and its subsidiaries (together referred to as the Group)

and include the Group’s interests in jointly controlled entities. The Company financial statements present information about the

Company as a separate entity and not as a group.

The Company financial statements have been prepared in accordance with Financial Reporting Standard 101 – Reduced disclosure

framework (FRS 101), and the Group financial statements have been prepared in accordance with International Financial Reporting

Standards as adopted by the United Kingdom (Adopted IFRS), in conformity with the Companies Act 2006, and approved by the

Directors. On publishing the Company financial statements here together with the Group financial statements, the Company is taking

advantage of the exemption in s408 of the Companies Act 2006 not to present its individual income statement and related notes.

The Company is also taking advantage of the FRS 101 disclosure exemptions from requirements of IFRS 7, IFRS 13 and IAS 1 including

presenting a Company statement of cash flows.

The accounting policies have been applied consistently to all periods presented in these consolidated financial statements. The

Company is a public company limited by shares and is registered in England, United Kingdom, where it is also domiciled.

Subsidiaries are those entities controlled by the Company. Control exists when the Company has an existing right that gives it

the current ability to direct the relevant activities of the subsidiary, has exposure or right to variable returns from its involvement

in the subsidiary and has the ability to use its power to affect its returns. The financial statements of subsidiaries are included in

the consolidated financial statements from the date that control commences until the date that control ceases. Intra-Group balances

and transactions, and any unrealised gains and losses arising from intra-Group transactions, such as property disposals and

management fees, are eliminated in preparing the consolidated financial statements. Unrealised gains arising from transactions with

joint ventures are eliminated to the extent of the Group’s retained interest in the entity. Unrealised losses are eliminated in the same

way as unrealised gains except where the loss provides evidence of a reduction in the net realisable value of current assets or an

impairment in the value of non-current assets.

Non-controlling interests are shown as a line item within equity and comprise the non-controlling interests in subsidiaries which

are not directly or indirectly attributable to the Group. Non-controlling interests were assigned to one subsidiary as at 31 December

2023. There was no non-controlling interest as at 31 December 2024 (see note 3.4).

Measurement convention

The financial statements are prepared on the historical cost basis except for investment property (owned), investment property

(leased), investment property (under development), investments in subsidiaries and interest rate swaps all of which are stated

at their fair value.

Going concern

In determining the appropriate basis of preparation of the financial statements, the Directors are required to consider whether the

Group can continue in operational existence for at least 12 months from the date of this report.

The Directors have considered a range of scenarios for future performance through the 2024/25 and 2025/26 academic years.

This included a base case assuming cash collection and performance for the 2024/25 academic year remains in line with current

expectations and sales performance for the 2025/26 academic year consistent with published guidance; and a reasonable worst-case

scenario where income for the 2025/26 academic year is impacted by reduced sales, equivalent to occupancy of around 90%.

The impact of our ESG asset transition plans are included within the capex element of our cashflows, which have been modelled to

align with the Group’s 2030 net zero carbon targets. Under each of these scenarios, the Directors are satisfied that the Group has

sufficient liquidity and will maintain covenant compliance over the next 12 months. To further support the Directors’ going concern

assessment, a Reverse Stress Test was performed to determine the level of performance at which adopting the going concern

basis of preparation may not be appropriate. This involved assessing the minimum amount of income required to ensure financial

covenants would not be breached. Within the tightest covenant, occupancy could fall to approximately 50% in the Group and 70%

in the funds before there would be a breach. The Group has capacity for property valuations to fall by around 70% in the Group and

40% in the funds before there would be a breach of LTV and gearing covenants in facilities where such covenants exist. Were income

or asset values to fall beyond these levels, the Group has certain cure rights, such that an immediate default could be avoided.

NOTES TO THE FINANCIAL STATEMENTS

THE UNITE GROUP PLC

Annual Report and Accounts 2024

159

The Directors are satisfied that the possibility of such an outcome is sufficiently remote that adopting the going concern basis of

preparation is appropriate.

Apart from the undrawn RCF, £150m of which matures in March 2026, there is no borrowing maturity in the wholly-owned group

until 2027. Refinancing for the USAF £395m secured bond is well progressed in advance of its maturity in June 2025. The LSAV Bank

of America loan has two extension options at the borrower’s discretion. The Group are currently in the process of extending which

will take the maturity out to May 2026.

The Directors have considered the impact of climate change in the context of our strategic report and the Group’s target of net zero

carbon emissions by 2030. These considerations did not have a material impact on our financial reporting. There is limited exposure

and vulnerability of climate change on the Group’s investment property portfolio, carrying value of non-current assets, and the

estimates of future profitability used in our assessment of the recoverability of deferred tax assets.

Accordingly, after making enquiries and having considered forecasts and appropriate sensitivities, the Directors have formed

a judgement, at the time of approving the financial statements, that there is a reasonable expectation that the Group has adequate

resources to continue in operational existence for the foreseeable future, being at least 12 months from the date of these

financial statements.

Standards and interpretations effective in the current period

The accounting policies used in these financial statements are consistent with those applied in the last annual financial statements,

as amended where relevant to reflect the adoption of new standards, amendments and interpretations which became effective in

the year as listed below:

• Amendments to IAS 1 – Classification of liabilities as current or non-current

• Amendments to IAS 1 – Non-current Liabilities with Covenants

• Amendments to IAS 7 and IFRS 7 – Disclosures: Supplier finance arrangements

• Amendments to IFRS 16 – Lease liability in a sale and leaseback.

Impact of accounting standards and interpretations in issue but not yet effective

At the date of approval of these financial statements there are a number of new standards and amendments to existing standards

in issue but not yet effective. The Group has not adopted the new or amended standards in preparing these consolidated financial

statements. The standards are set out below:

• Amendments to IFRS9 and IFRS 7 - Contracts Referencing Nature-dependent Electricity

• Amendments to IFRS 9 and IFRS 7 - Disclosure of the classification and measurement of financial instruments

• IFRS 18 Presentation and Disclosure in Financial Statements

• IFRS 19 Subsidiaries without Public Accountability: Disclosures.

The Group has yet to assess the full outcome of these new standards, amendments and interpretations, however with the exception

of IFRS 18 these other new standards, amendments and interpretations are not expected to have a significant impact on the Group’s

financial statements.

Critical accounting judgements and key sources of estimation uncertainty

The Group’s significant accounting policies are stated in the relevant notes to the Group financial statements. The preparation of

financial statements requires management to exercise judgement in applying the Group’s accounting policies. It also requires the use

of estimates and assumptions that affect the reported amounts of assets and liabilities, income and expenses.

Critical accounting judgements

The areas which involve a high degree of judgement or complexity in applying the accounting policies of the Group are explained

in more detail in the accounting policy descriptions in the related notes to the financial statements. Classification of joint venture

vehicles (note 3.4) has the most significant impact on the financial statements of the Group.

Key sources of estimation uncertainty

The estimates and associated assumptions are based on historical experience and various other factors that are believed to be

reasonable under the circumstances, the results of which form the basis of making judgements about carrying values of assets and

liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

Estimates and assumptions are reviewed on an ongoing basis with revisions recognised in the period in which the estimates are

revised and in any future periods affected. The areas involving the most sensitive estimates and assumptions that are significant to

the financial statements are valuation of investment property and investment property under development (note 3.1).

THE UNITE GROUP PLC

Annual Report and Accounts 2024

160

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS continued

Section 2: Results for the year

This section focuses on the results and performance of the Group and provides a reconciliation between the primary

statements and EPRA performance measures. On the following pages you will find disclosures explaining the Group’s

results for the year, segmental information, taxation, earnings and net tangible asset value (NTA) per share.

The Group uses EPRA earnings, adjusted earnings and NTA movement as key comparable indicators across other

real estate companies in Europe. EPRA earnings, adjusted earnings and NTA movement are Alternative Performance

Measures (APMs), further details of which are set out in section 8.

IFRS performance measures

		2024	2023	2024	2023
	Note	£m	£m	pps	pps
Profit after tax *	2.2b	441.9	102.5	96.3	24.7
Net assets *	2.3d	4,811.5	4,067.0	982	931

* Profit after tax represents profit attributed to the owners of the Parent Company, and net assets represents equity attributable to the

owners of the Parent Company.

EPRA performance measures

		2024	2023	2024	2023
	Note	£m	£m	pps	pps
EPRA earnings	2.2c	201.9	176.1	44.0	42.4
Adjusted earnings **	2.2c	213.8	184.3	46.6	44.3
EPRA NTA	2.3d	4,758.4	4,014.7	972	920

** Adjusted earnings are calculated as EPRA earnings after adding back software as a service costs (net of deferred tax) and abortive costs

(see note 2.2a), in order to reflect the performance of the Group’s underlying operating activities.

2.1 Segmental information

The Board of Directors monitors the business along two activity lines:

The Operations segment manages rental properties, owned directly by the Group or by joint ventures. Its revenues are derived

from rental income and asset management fees earned from joint ventures. The way in which the Operations segment adds value

to the business is set out in the Operations review on pages 24-26. The Operations segment is the main contributor to adjusted

earnings and adjusted EPS and these are therefore the key indicators which are used by the Board to monitor the Group’s financial

performance. The Board does not manage or monitor the Operations segment through the balance sheet and therefore no

segmental information for assets and liabilities is provided.

The Group’s Property business undertakes the acquisition and development of properties. The way in which the Property segment

adds value to the business is set out in the Property review on pages 29-32.

The reportable segments for the years ended 31 December 2024 and 31 December 2023 are Operations and Property.

The Group undertakes its Operations and Property activities directly and through joint ventures with third parties. The joint ventures

are an integral part of each segment and are included in the information used by the Board to monitor the business.

Detailed analysis of the performance of each of these reportable segments is provided in the following sections 2.2 to 2.3. The

Group’s properties are located exclusively in the United Kingdom. The Group therefore has one geographical segment.

2.2 Earnings

EPRA earnings and adjusted earnings amend IFRS measures by removing principally the unrealised investment property valuation

gains and losses such that users of the financial statements are able to see the extent to which dividend payments (dividend per

share) are underpinned by earnings arising from operational activity. In 2024 and 2023, software as a service costs, which were

previously capitalised under the existing intangibles policy have been excluded from adjusted earnings (net of deferred tax), to align

with the International Financial Reporting Interpretations Committee (IFRIC) agenda decision in 2021. The reconciliation between

profit attributable to owners of the Parent Company and EPRA earnings is available in note 2.2b.

THE UNITE GROUP PLC

Annual Report and Accounts 2024

161

2.2a) EPRA earnings

2024
		Share of joint ventures
					Group on
					EPRA basis
	Unite
	Students	USAF	LSAV	Total	Total
	£m	£m	£m	£m	£m
Rental income	282.0	59.0	57.0	116.0	398.0
Property operating expenses	(87.2)	(20.7)	(14.0)	(34.7)	(121.9)
Net operating income	194.8	38.3	43.0	81.3	276.1
Management fees	21.9	(4.6)	-	(4.6)	17.3
Overheads	(37.5)	(0.5)	(0.4)	(0.9)	(38.4)
Interest on lease liabilities	(8.8)	-	-	-	(8.8)
Net financing costs	(6.9)	(11.5)	(16.8)	(28.3)	(35.2)
Operations segment result	163.5	21.7	25.8	47. 5	211.0
Property segment result	(3.8)	-	-	-	(3.8)
Unallocated to segments	(4.8)	(0.2)	(0.3)	(0.5)	(5.3)
EPRA earnings	154.9	21.5	25.5	47.0	201.9
Software as a service costs	11.9	-	-	-	11.9
Adjusted earnings	166.8	21.5	25.5	47.0	213.8

Included in the above is rental income of £20.3 million and property operating expenses of £11.5 million relating to sale and leaseback

properties. Included in the above is also rental income of £4.0 million and property operating expenses of £1.2 million, relating to a build-to-

rent property. Unallocated to segments includes the fair value of share-based payments of (£2.3 million), contributions to the Unite Foundation

and social causes of (£0.6 million), a deferred tax credit of £2.6 million and current tax charge of (£5.1 million). Depreciation and amortisation

totalling (£5.7 million) is included within overheads. The software as a service costs are presented net of deferred tax of £4.0 million.

2023		Share of joint ventures
					Group on
					EPRA basis
	Unite
	Students	USAF	LSAV	Total	Total
	£m	£m	£m	£m	£m
Rental income	259.2	57.5	52.8	110.3	369.5
Property operating expenses	(79.8)	(20.0)	(13.2)	(33.2)	(113.0)
Net operating income	179.4	37.5	39.6	77.1	256.5
Management fees	21.4	(4.5)	-	(4.5)	16.9
Overheads	(32.2)	(0.4)	(0.5)	(0.9)	(33.1)
Interest on lease liabilities	(7.7)	-	-	-	(7.7)
Net financing costs	(22.9)	(9.4)	(15.1)	(24.5)	(47.4)
Operations segment result	138.0	23.2	24.0	47.2	185.2
Property segment result	(2.7)	-	-	-	(2.7)
Unallocated to segments	(6.0)	(0.2)	(0.2)	(0.4)	(6.4)
EPRA earnings	129.3	23.0	23.8	46.8	176.1
Software as a service costs	8.2	-	-	-	8.2
Adjusted earnings	137.5	23.0	23.8	46.8	184.3

Included in the above is rental income of £19.0 million and property operating expenses of £10.2 million relating to sale and leaseback

properties. Included in the above is also rental income of £3.8 million and property operating expenses of £1.2 million, relating to a build-to-

rent property. Unallocated to segments includes the fair value of share-based payments of (£3.4 million), costs due to leadership changes of

(£2.9 million), contributions to the Unite Foundation and social causes of (£1.6 million), a deferred tax credit of £2.5 million and current tax

charge of (£1.0 million). Depreciation and amortisation totalling (£6.3 million) is included within overheads. The software as a service costs

are presented net of deferred tax of £2.8 million.

THE UNITE GROUP PLC

Annual Report and Accounts 2024

162

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS continued

2.2b) IFRS reconciliation to EPRA earnings and adjusted earnings

EPRA earnings excludes movements relating to changes in values of investment properties (owned, leased and under development),

profits/losses from the disposal of properties and swap/debt break costs which are included in the profit reported under IFRS. EPRA

earnings and adjusted earnings reconcile to the profit attributable to owners of the Company as follows:

	Note
		2024	2023
		£m	£m
Profit attributable to owners of the Parent Company		441.9	102.5
Net valuation (gains)/losses on property (owned)	3.1	(186.7)	37.2
(Gains)/losses on property disposals (owned)		9.8	(11.8)
Net valuation losses on property (leased)	3.1	1.9	10.4
Amortisation of fair value of debt recognised on acquisition		(4.1)	(4.3)
Share of joint venture (gains)/losses on investment property	3.4b	(67.0)	21.9
Share of joint venture property disposals	3.4b	2.4	3.5
Swap cancellation and loan break costs	4.3	3.1	-
Mark to market changes in interest rate swaps	4.3	0.4	17.2
Current tax relating to property disposals		0.2	(0.1)
Deferred tax	2.5d	-	(0.2)
Non-controlling interest share of reconciling items*		-	(0.2)
EPRA earnings		201.9	176.1
Software as a service costs		11.9	8.2
Adjusted earnings		213.8	184.3

* The non-controlling interest, arises as a result of the Company not owning 100% of the share capital of one of its subsidiaries, USAF

(Feeder) Guernsey Limited. This non-controlling interest was disposed of in 2024. More detail is provided in note 3.4.

2.2c) Earnings per share

Basic EPS calculation is based on the earnings attributable to the equity shareholders of The Unite Group PLC and the weighted

average number of shares which have been in issue during the year. Basic EPS is adjusted in line with EPRA guidelines in order to

allow users to compare the business performance of the Group with other listed real estate companies in a consistent manner and

to reflect how the business is managed on a day-to-day basis.The calculations of basic and EPRA EPS and adjusted EPS for the year

ended 31 December 2024 and 2023 are as follows:

	Note
		2024	2023	2024	2023
		£m	£m	pps	pps
Earnings
Basic		441.9	102.5	96.3	24.7
Diluted				96.1	24.6
EPRA	2.2b	201.9	176.1	44.0	42.4
Diluted EPRA				43.9	42.2
Adjusted earnings	2.2b	213.8	184.3	46.6	44.3
Diluted adjusted earnings				46.5	44.2

	2024	2023
Weighted average number of shares (thousands)
Basic	458,969	415,733
Dilutive potential ordinary shares (share options)	1,087	1,165
Diluted	460,056	416,898

Movements in the weighted average number of shares have resulted from the issue of shares arising from the capital raise in

July 2024, employee share-based payment schemes and the scrip dividend.

In 2024, there were 37,319 options excluded from the potential dilutive shares that did not affect the diluted weighted average

number of shares (2023: 16,505).

THE UNITE GROUP PLC

Annual Report and Accounts 2024

163

2.3 Net assets

2.3a) EPRA NTA

EPRA NTA makes adjustments to IFRS measures by removing the fair value of financial instruments and the carrying value of

intangibles. The reconciliation between IFRS NAV and EPRA NTA is available in note 2.3c.

2024
		Share of joint ventures
					Group
					on EPRA
					basis
	Unite
	Students	USAF	LSAV	Total	Total
	£m	£m	£m	£m	£m
Investment properties (owned)*	4,025.5	829.6	996.9	1,826.5	5,852.0
Investment properties (leased)	71.8	-	-	-	71.8
Investment properties under development	451.4	-	-	-	451.4
Total property portfolio	4,548.7	829.6	996.9	1,826.5	6,375.2
Debt on properties	(1,263.7)	(273.1)	(338.0)	(611.1)	(1,874.8)
Lease liabilities	(72.8)	-	-	-	(72.8)
Cash	274.3	70.4	20.0	90.4	364.7
Net debt	(1,062.2)	(202.7)	(318.0)	(520.7)	(1,582.9)
Other assets and (liabilities)	11.7	(22.6)	(12.6)	(35.2)	(23.5)
EPRA net assets	3,498.2	604.3	666.3	1,270.6	4,768.8
Intangible assets	(10.4)	-	-	-	(10.4)
EPRA NTA	3,487.8	604.3	666.3	1,270.6	4,758.4
Loan to value**	22%	24%	32%	29%	24%
Loan to value post-IFRS 16	23%	24%	32%	29%	25%

2023
	Share of joint ventures
					Group
					on EPRA
					basis
	Unite
	Students	USAF	LSAV	Total	Total
	£m	£m	£m	£m	£m
Investment properties (owned)*	3,727.8	827.8	954.7	1,782.5	5,510.3
Investment properties (leased)	84.7	-	-	-	84.7
Investment properties under development	174.7	-	-	-	174.7
Total property portfolio	3,987.2	827.8	954.7	1,782.5	5,769.7
Debt on properties	(1,067.6)	(243.5)	(337.0)	(580.5)	(1,648.1)
Lease liabilities	(83.8)	-	-	-	(83.8)
Cash	37.5	18.2	21.5	39.7	77.2
Net debt	(1,113.9)	(225.3)	(315.5)	(540.8)	(1,654.7)
Other assets and (liabilities)	(39.0)	(22.3)	(29.7)	(52.1)	(91.0)
EPRA net assets	2,834.3	580.2	609.5	1,189.7	4,024.0
Intangible assets	(9.3)	-	-	-	(9.3)
EPRA NTA	2,825.0	580.2	609.5	1,189.7	4,014.7
Loan to value**	26%	27%	33%	30%	28%
Loan to value post-IFRS 16	28%	27%	33%	30%	29%

* Investment property (owned) includes assets classified as held for sale in the IFRS balance sheet.

** Loan to value (LTV) calculated excluding investment properties (leased) and the corresponding lease liabilities. LTV is an APM – see section 8.

THE UNITE GROUP PLC

Annual Report and Accounts 2024

164

FINANCIAL STATEMENTS

2.3b) Movement in EPRA NTA during the year

Contributions to EPRA NTA by each segment during the year is as follows:

2024
			Share of joint ventures
						Group
						on EPRA
						basis
		Unite
		Students	USAF	LSAV	Total	Total
	Note	£m	£m	£m	£m	£m
Operations
Operations segment result	2.2a	163.5	21.7	25.8	47.5	211.0
Add back amortisation of intangibles	3.3b	4.0	-	-	-	4.0
Total Operations		167.5	21.7	25.8	47.5	215.0
Property
Rental growth		269.6	29.7	46.4	76.1	345.7
Yield movement		(107.0)	(2.8)	(4.3)	(7.1)	(114.1)
Disposal (losses)		(5.5)	(2.4)	-	(2.4)	(7.9)
Investment property gains (owned)*		157.1	24.5	42 .1	66.6	223.7
Investment property loss (leased)	3.1	(1.9)	-	-	-	(1.9)
Disposals losses investment property (leased)		(4.3)	-	-	-	(4.3)
Investment property gains (under development)	3.1	24.1	-	-	-	24.1
Pre-contract/other development costs	2.2a	(3.8)	-	-	-	(3.8)
Total Property		171.2	24.5	42.1	66.6	237.8
Unallocated
Shares issued		442 .1	-	-	-	4 42.1
Investment in joint ventures		28.3	(18.7)	(9.6)	(28.3)	-
Dividends paid		(137.8)	-	-	-	(137.8)
Swap cancellation and debt break costs		(3.5)	-	-	-	(3.5)
Purchase of intangibles		(5.1)	-	-	-	(5.1)
Share-based payment charge		(2.4)	-	-	-	(2.4)
Other		2.5	(3.4)	(1.5)	(4.9)	(2.4)
Total Unallocated		324.1	(22.1)	(11.1)	(33.2)	290.9
Total EPRA NTA movement in the year		662.8	24.1	56.8	80.9	743.7
Total EPRA NTA brought forward		2,825.0	580.2	609.5	1,189.7	4,014.7
Total EPRA NTA carried forward		3,487.8	604.3	666.3	1,270.6	4,758.4

* Investment property gains (owned) includes gains on assets classified as held for sale in the IFRS balance sheet.

The £2.4 million Other balance within the Unallocated segment includes the purchase of own shares of (£1.5 million), contributions to

the Unite Foundation and other social causes of (£0.6 million) and tax credits of £2.6 million.

NOTES TO THE FINANCIAL STATEMENTS continued

THE UNITE GROUP PLC

Annual Report and Accounts 2024

165

2.3b) Movement in EPRA NTA during the year continued

2023
			Share of joint ventures
						Group
						on EPRA
						basis
		Unite
		Students	USAF	LSAV	Total	Total
	Note	£m	£m	£m	£m	£m
Operations
Operations segment result	2.2a	137.8	23.3	24.1	47.4	185.2
Add back amortisation of intangibles	3.3b	5.2	-	-	-	5.2
Total Operations		143.0	23.3	24.1	47.4	190.4
Property
Rental growth		185.2	41.8	56.1	97.9	286.7
Yield movement		(215.9)	(34.4)	(85.7)	(120.1)	(339.6)
Disposal Gains / (losses)		11.8	(3.7)	0.3	(3.4)	8.4
Investment property (losses)/gains (owned)*		(18.9)	3.7	(29.3)	(25.6)	(44.5)
Investment property losses (leased)	3.1	(10.4)	-	-	-	(10.4)
Investment property losses (under development)	3.1	(6.6)	-	-	-	(6.6)
Pre-contract/other development costs	2.2a	(2.8)	-	-	-	(2.8)
Total Property		(38.7)	3.7	(29.3)	(25.6)	(64.3)
Unallocated
Shares issued		294.9	-	-	-	294.9
Investment in joint ventures		27.3	(21.8)	(5.5)	(27.3)	-
Dividends paid		(117.3)	-	-	-	(117.3)
Abortive acquisition costs		(1.6)	-	-	-	(1.6)
Share-based payment charge		(3.4)	-	-	-	(3.4)
Other		(0.4)	(0.2)	(0.2)	(0.4)	(0.8)
Total Unallocated		199.6	(22.0)	(5.7)	(27.7)	172.0
Total EPRA NTA movement in the year		303.9	5.0	(10.9)	(6.1)	298.0
Total EPRA NTA brought forward		2,521.1	575.2	620.4	1,195.6	3,716.7
Total EPRA NTA carried forward		2,825.0	580.2	609.5	1,189.7	4,014.7

The £0.8 million Other balance within the Unallocated segment includes the purchase of own shares of (£0.6 million), contributions to

the Unite Foundation of (£1.6 million) and tax credits of £1.1 million.

THE UNITE GROUP PLC

Annual Report and Accounts 2024

166

FINANCIAL STATEMENTS

2.3c) Reconciliation to IFRS

To determine EPRA NTA, net assets reported under IFRS are adjusted to exclude the fair value of financial instruments, associated tax

and the carrying value of intangibles.

To determine EPRA NRV, net assets reported under IFRS are adjusted to exclude the fair value of financial instruments, associated tax

and real estate transfer tax.

To determine EPRA NDV, net assets reported under IFRS are adjusted to exclude the fair value of financial instruments, but include

the fair value of fixed interest rate debt and the carrying value of intangibles.

The net assets reported under IFRS reconcile to EPRA NTA, NRV and NDV as follows:

2024
	NTA	NRV	NDV
	£m	£m	£m
Net asset reported under IFRS	4,811.5	4,811.5	4,811.5
Mark to market interest rate swaps	(53.6)	(53.6)	-
Unamortised swap gain	(1.0)	(1.0)	(1.0)
Mark to market of fixed rate debt	-	-	31.7
Unamortised fair value of debt recognised on acquisition	11.1	11.1	11.1
Current tax	0.8	0.8	-
Deferred tax	-	-	-
Intangibles per IFRS balance sheet	(10.4)	-	-
Real estate transfer tax	-	467.4	-
EPRA reporting measures	4,758.4	5,236.2	4,853.3

2023
	NTA	NRV	NDV
	£m	£m	£m
Net asset reported under IFRS	4,067.0	4,067.0	4,067.0
Mark to market interest rate swaps	(58.1)	(58.1)	-
Unamortised swap gain	(1.2)	(1.2)	(1.2)
Mark to market of fixed rate debt	-	-	35.0
Unamortised fair value of debt recognised on acquisition	15.2	15.2	15.2
Current tax	0.7	0.7	-
Deferred tax	0.4	0.4	-
Intangibles per IFRS balance sheet	(9.3)	-	-
Real estate transfer tax	-	306.7	-
EPRA reporting measures	4,014.7	4,330.7	4,116.0

NOTES TO THE FINANCIAL STATEMENTS continued

THE UNITE GROUP PLC

Annual Report and Accounts 2024

167

2.3d) NTA, NRV and NDV per share

The Board uses EPRA NTA to monitor the performance of the Property segment on a regular basis.

	Note
		2024	2023	2024	2023
		£m	£m	pps	pps
Net assets		4,811.5	4,067.0	982	931
EPRA NTA	2.3a	4,758.4	4,014.7	974	931
EPRA NTA (diluted)	2.3a	4,761.4	4,018.6	972	920
EPRA NRV	2.3c	5,236.2	4,330.7	1,071	994
EPRA NRV (diluted)		5,239.2	4,334.6	1,069	992
EPRA NDV	2.3c	4,853.3	4,116.0	993	944
EPRA NDV (diluted)		4,856.3	4,119.9	994	943

Number of shares (thousands)	2024	2023
Basic	488,792	435,855
Outstanding share options	1,308	1,165
Diluted	490,100	437,019

2.4 Revenue and costs

Accounting policies

The Group recognises revenue from the following major sources:

• Rental income

• Management and performance fees

• Acquisition fees.

Revenue is measured based on the consideration to which the Group expects to be entitled in a contract with a customer and

excludes amounts collected on behalf of third parties. The Group recognises revenue when it transfers control of its service to

a customer.

Rental income

Rental income comprises direct-lets to students and leases to universities and commercial tenants. This revenue is recognised

in the income statement over the length of the tenancy period as the Group provides the services to its customers. Included in

the rental contract is the use of utilities, broadband services and contents insurance. The Group does not offer these services as

standalone products. Under IFRS 15 the Group does not consider these services to be individually material and has, consequently,

bundled these obligations as a single contract. The transaction prices for rental income are explicitly stated in each contract. A

contract liability can result from payments received in advance, until the date at which control is transferred to the customer

and at that point the revenue begins to be recognised over the tenancy period. Lease incentives are sometimes recognised on

commercial units; these are recognised as an integral part of the total rental income and spread over the term of the lease.

The Group recognises rental income derived from contracts over 12 months in length in the Income Statement on a straight-line

basis in accordance with IFRS 16.

Management and performance fees

The Group acts as asset and property manager for USAF and LSAV and receives management fees in relation to these services.

Revenue from these fees is recognised on a straight-line basis over time as the joint ventures simultaneously receive and

consume benefits as the Group performs its management obligations which are determined by the services provided over

the course of each academic year, and this reflects the profile of activities being performed. Detailed calculations in order to

determine the transaction prices for these revenue streams are held within the joint venture agreements.

THE UNITE GROUP PLC

Annual Report and Accounts 2024

168

FINANCIAL STATEMENTS

2.4 Revenue and costs continued

The Group is entitled to a USAF performance fee if the joint venture outperforms certain benchmarks. The Group recognises a

USAF performance fee at a point in time in the year to which the fee relates. The Group initially assesses the probability of a fee

being earned and its transaction price at half year and adjusts for any potential risks to receiving this income at year-end, when

the achieved outturn is known. The USAF performance fee is settled within 12 months of the year to which the fee relates and the

Group receives an enhanced equity interest in USAF as consideration for the performance fee.

The Group is entitled to a LSAV performance fee if the joint venture outperforms certain benchmarks over its life ending in 2032.

The Group recognises an LSAV performance fee at an amount which is considered highly probable to become due based

upon estimates of the future performance of the joint venture; such estimates include future rental income and the discount

rate (yield). Prior to the maturity of the joint venture, the Group pro-rates the total LSAV performance fee over the life of the

joint venture and recognises a proportion of the fee, only where sufficient certainty over outperformance of the benchmark is

determined to exist.

As per IFRS 15, the estimated amount of variable consideration is included in the transaction price only to the extent that it is

highly probable that a significant reversal in the amount of revenue recognised will not occur when the uncertainty associated

with the variable consideration is resolved. The performance fee is variable and dependent on meeting specific performance

targets. Accordingly where there is too much uncertainty over the cumulative outperformance of the benchmarks, particularly in

earlier periods of the performance fee period, which cover each ten-year term of the venture, then no amounts of performance

fee can be recognised as it is not highly probable that the performance fee will be earned.

Management and performance fees are presented in revenue net of the Group’s share of the corresponding expense within the

relevant fund.

At 31 December 2024, no amounts are deemed to meet the highly probable criteria and therefore we have not disclosed any

future fees receivable from these ongoing contracts.

Acquisition fees

The Group receives acquisition fees from its joint venture partners. This revenue is linked to the acquisition of land or property

and is therefore recognised at the point in time that control of the asset is transferred to the joint venture. The transaction price

for this revenue stream is stipulated in the joint venture agreement as a percentage of the value of the acquisition. No such land

or property acquisitions have occurred in 2024 or 2023.

The Group earns revenue from the following activities:

			2024	2023
		Note	£m	£m
Rental income*	Operations segment	2.2a	282.0	259.2
Management fees	Operations segment		17.3	17.1
29			9.3	276.3
Impact of minority interest on management fees			-	(0.2)
Total revenue			299.3	276.1

* EPRA earnings includes £398.0 million (2023: £369.5 million) of rental income, which is comprised of £282.0 million (2023: £259.2 million)

recognised on wholly-owned assets and a further £116.0 million (2023: £110.3 million) from joint ventures, which is included in share of

joint venture profit/(loss) in the consolidated income statement.

The cost of sales included in the consolidated income statement includes property operating expenses of £86.4 million

(2023: £76.8 million).

NOTES TO THE FINANCIAL STATEMENTS continued

THE UNITE GROUP PLC

Annual Report and Accounts 2024

169

2.5 Tax

As a REIT, rental profits and gains on disposal of investment properties are exempt from corporation tax. The Group pays

UK corporation tax on the profits from its residual business, including management fees received from joint ventures, together

with UK income tax on rental income that arises from investments held by offshore subsidiaries in which the Group holds a

non-controlling interest.

Accounting policies

The tax charge for the year is recognised in the income statement, statement of comprehensive income and the statement of

changes in equity, according to the accounting treatment of the related transaction. The tax charge comprises both current and

deferred tax.

Current tax is the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to tax

payable in respect of previous years. The current tax charge is based on tax rates that are enacted or substantively enacted

at the year-end.

Deferred tax arises due to certain temporary differences between the carrying amounts of assets and liabilities for financial

reporting purposes and those for taxation purposes. Temporary differences relating to investments in subsidiaries and joint

ventures are not provided for to the extent that they will probably not reverse in the foreseeable future. The amount of deferred

tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities.

As a REIT, rental profits and gains on disposal of investment properties and property rich investments are exempt from

corporation tax. As a result, no deferred tax provision has been recognised at the balance sheet date in respect of property assets

or units in USAF and LSAV held by members of the REIT Group.

2.5a) Tax – income statement

The total taxation charge/(credit) in the income statement is analysed as follows:

	2024	2023
	£m	£m
Corporation tax on residual business income arising in UK companies	4.9	1.0
Income tax on UK rental income arising in non-UK companies	0.1	0.4
Prior year adjustments	(0.2)	(0.2)
Current tax charge	4.8	1.2
Reversal of deferred tax provision in respect of REIT property business assets	-	-
Origination and reversal of temporary differences	(2.6)	(2.3)
Adjustments in respect of prior periods	-	-
Deferred tax (credit)	(2.6)	(2.3)
Total tax charge/(credit) in income statement	2.2	(1.1)

The movement in deferred tax provided is shown in more detail in note 2.5d.

THE UNITE GROUP PLC

Annual Report and Accounts 2024

170

FINANCIAL STATEMENTS

2.5a) Tax - income statement continued

In the income statement, a tax charge of £2.2 million arises on a profit before tax of £444.0 million. The taxation charge that would

arise at the standard rate of UK corporation tax is reconciled to the actual tax charge as follows:

	2024	2023
	£m	£m
Profit before tax	444.0	102.5
Income tax using the UK corporation tax rate of 25% (2023: 23.5%)	111.0	24.1
Property rental business profits exempt from tax in the REIT Group	(42.7)	(45.7)
Property revaluations not subject to tax	(66.6)	16.2
Mark to market changes in interest rate swaps not subject to tax	(0.4)	3.0
Unrealised gains on investments	(0.4)	-
Effect of other permanent differences	1.4	1.3
Effect of tax deduction transferred to equity on share schemes	0.1	0.2
Rate difference on deferred tax	-	-
Prior years adjustments	(0.2)	(0.2)
Total tax charge/(credit) in income statement	2.2	(1.1)

As a UK REIT, the Group is exempt from UK corporation tax on the profits from its property rental business. Accordingly, the element

of the Group’s profit before tax relating to its property rental business has been separately identified in the reconciliation above.

No deferred tax asset has been recognised in respect of the Group’s accumulated tax losses on the basis that they are not expected

to be utilised in future periods. At 31 December 2024, these losses totalled £15.3 million (2023: £15.3 million).

Although the Group does not pay UK corporation tax on the profits from its property rental business, it is required to distribute 90%

of the profits from its property rental business after accounting for tax adjustments as a Property Income Distribution (PID). PIDs are

charged to tax in the same way as property income in the hands of the recipient. For the year ended 31 December 2024, the required

PID is expected to be fully paid by the end of 2025.

2.5b) Tax – other comprehensive income

Within other comprehensive income a tax charge totalling £nil (2023: £nil) has been recognised.

2.5c) Tax – statement of changes in equity

Within the statement of changes in equity a tax charge totalling £nil (2023: £0.2 million charge) has been recognised representing

deferred tax. An analysis of this is included below in the deferred tax movement table.

2.5d) Tax – balance sheet

The table below outlines the deferred tax (assets)/liabilities that are recognised in the balance sheet, together with their movements

in the year:

2024
		Charged/	Charged/
				At 31
		(Credited) in	(Credited) in
	At 31
	December
	2023
		income	equity
				December
				2024
	£m	£m	£m	£m
Investments	0.4	(0.4)	-	-
Property, plant and machinery	(4.9)	(2.3)	-	(7.2)
Share schemes	(1.1)	-	0.1	(1.0)
Tax value of carried forward losses recognised	-	0.1	(0.1)	-
Net tax liabilities/(assets)	(5.6)	(2.6)*	-	(8.2)

* The £2.6m credit above includes tax movements totalling £2.3m in respect of Property, plant and machinery and Losses which are included

in EPRA, which is why they are not included in the IFRS reconciliation in note 2.2b).

NOTES TO THE FINANCIAL STATEMENTS continued

THE UNITE GROUP PLC

Annual Report and Accounts 2024

171

2.5d) Tax – balance sheet continued

2023
		Charged/	Charged/
	At 31
		(Credited) in	(Credited) in
				At 31
	December
	2022	income	equity
				December
				2023
	£m	£m	£m	£m
Investments	0.4	-	-	0.4
Property, plant and machinery	(2.8)	(2.1)	-	(4.9)
Share schemes	(1.2)	(0.4)	0.5	(1.1)
Tax value of carried forward losses recognised	-	0.2	(0.2)	-
Net tax liabilities/(assets)	(3.6)	(2.3)*	0.3	(5.6)

* The £2.3 million credit above includes tax movements totalling £2.5 million in respect of Property, plant and machinery, Share schemes,

and Losses which are included in EPRA, which is why they are not included in the IFRS reconciliation in note 2.2b); removing them results

in achieving the £0.2 million movement which is excluded as per EPRA’s best practice recommendations.

The deferred tax liability at 31 December 2024 has been calculated based on the rate at which it is expected to reverse.

As a REIT, disposals of investment property and property rich investments are exempt from tax and as a result no deferred tax

liability has been recognised in relation to these assets.

Company

Deferred tax has not been recognised on temporary differences of £1.7 million (2023: £1.7 million) in respect of revaluation of

subsidiaries and investment in joint ventures as it is considered unlikely that these investments will be divested.

2.6 Audit fees

During the year, the Group obtained the following services from the Company’s auditor and its associates:

	2024	2023
	£m	£m
Fees payable to the Group’s auditors for the audit of the Parent Company and consolidated financial statements	0.6	0.5
Fees payable to the Group’s auditors for other services to the Group:
- Audit of the financial statements of subsidiaries	0.1	0.1
Total audit fees payable to the Group’s auditors	0.7	0.6
Audit-related assurance services	0.1	0.1
Other services	0.1	-
Total non-audit fees	0.2	0.1

Non-audit fees in 2023 relate entirely to services provided in respect of the half-year review. Within 2024, non-audit fees include

services provided in respect of the half year review and reporting accounting procedures.

Details on the Company’s policy on the use of the auditor for non-audit services is also set out in the Audit & Risk Committee report

on pages 101-105.

No services were provided pursuant to contingent fee arrangements.

THE UNITE GROUP PLC

Annual Report and Accounts 2024

172

FINANCIAL STATEMENTS

Section 3: Asset management

The Group holds its property portfolio directly and through its joint ventures. The performance of the property portfolio,

whether wholly-owned or in joint ventures, is the key factor that drives net asset value (NAV), one of the Group’s key

performance indicators. The following pages provide disclosures about the Group’s investments in property assets and

joint ventures and their performance over the year.

3.1 Wholly-owned property assets

The Group’s wholly-owned property portfolio is held in four groups on the balance sheet at the carrying values detailed below.

In the Group’s EPRA NTA all these groups are shown at market value, except where otherwise stated.

i) Investment property (owned)

These are assets that the Group intends to hold for a long period to earn rental income or capital appreciation. The assets are

measured at fair value in the balance sheet with changes in fair value taken to the income statement.

ii) Investment property (leased)

These are assets the Group sold to institutional investors and simultaneously leased back. These right-of-use assets are measured at

fair value in the balance sheet with changes in fair value taken to the income statement.

iii) Investment property (under development)

These are assets which are currently in the course of construction and which will be transferred to Investment property on

completion. The assets are initially recognised at cost and are subsequently measured at fair value in the balance sheet with changes

in fair value taken to the income statement.

iv) Investment property classified as held for sale

These are assets whose carrying amount will be recovered through a sale transaction rather than to hold for long-term rental income

or capital appreciation. This condition is regarded as met only when the sale is highly probable and the investment property is

available for immediate sale in its present condition. Management must be committed to the sale which should be expected to qualify

for recognition as a completed sale within one year from the date of classification. The assets are measured at fair value in the balance

sheet, with changes in fair value taken to the income statement. They are presented as current assets in the IFRS balance sheet.

Accounting policies

Investment property (owned) and investment property (under development)

Investment property (owned) and investment property (under development) are held at fair value.

The external valuation of property assets involves significant judgement and changes to the core assumptions: rental income,

occupancy and property management costs, as well as estimated future costs, could have a significant impact on the carrying value

of these assets. Further details of the valuation process are included below.

Construction and borrowing costs are capitalised if they are directly attributable to the acquisition and construction of a property

asset. Capitalisation of borrowing costs commences when the activities to prepare the asset are in progress and expenditures and

borrowing costs are being incurred. Capitalisation of borrowing costs continues until the assets are substantially ready for their

intended use but stops if development activities are suspended. The capitalisation rate is arrived at by reference to the actual rate

payable on borrowings for development purposes or, with regard to that part of the development cost financed out of general

borrowings, to the average rate. During the year the average capitalisation rate used was 6.4% (2023: 6.4%).

The recognition of acquisitions of investment property and land occurs at the date when control passes to Unite Group. The

recognition of disposals of investment property occurs on legal completion when control passes from Unite Group. In accordance

with IFRS 15, gains/(losses) from the disposal of investment property are recognised at a point in time.

Contingent consideration receivables are recognised on disposals where the amount of additional consideration is readily

identifiable. It is recognised at the constrained value determined by the amount that is highly probable to be receivable at the time of

the disposal, and any subsequent change in value is recognised in profit or loss in the later period.

The fair value of development properties is determined using a residual method, valuing each property at an estimate of what its fair

value would be completed, less the estimated total costs to complete (inclusive of a profit for the developer.

Investment property (leased)

The Group holds certain investment property under historical sale and leaseback arrangements, acting as an intermediate lessor

and subleasing its right-of-use assets. For each leased property, the Group assesses whether a contract is or contains a lease, at

inception of the contract. The Group recognises a right-of-use asset and a corresponding lease liability (see note 4.6a) with respect to

all lease arrangements in which it is the lessee. The right-of-use assets are initially measured at cost in accordance with IFRS 16 and

subsequently at fair value in the balance sheet with changes in fair value taken to the income statement in accordance with IAS 40.

NOTES TO THE FINANCIAL STATEMENTS continued

THE UNITE GROUP PLC

Annual Report and Accounts 2024

173

Valuation process

The valuations of the properties are performed twice a year on the basis of valuation reports prepared by external, independent

valuers, having an appropriate recognised professional qualification. The fair values are based on market values as defined in the

RICS Appraisal and Valuation Manual, issued by the Royal Institution of Chartered Surveyors, and taking account of committed fire

safety and external facade works as provided by Unite. CB Richard Ellis Ltd, Jones Lang LaSalle Ltd and Messrs Knight Frank LLP,

Chartered Surveyors were the valuers in the years ended 31 December 2024 and 2023.

The Group has transferred the 2024 addition in respect of committed spend on fire safety and façade works taking place in 2025 and

2026 to property valuations, which is presented as a deduction to fair value below.

The valuations are based on:

Information provided by the Group such as current rents, occupancy, operating costs, terms and conditions of leases and nomination

agreements and capital expenditure. This information is derived from the Group’s financial systems and is subject to the Group’s

overall control environment.

Assumptions and valuation models used by the valuers – the assumptions are typically market related, such as yield, discount rates

and NOI. These are based on their professional judgement and market observation.

The information provided to the valuers – and the assumptions and the valuation models used by the valuers – are reviewed by

leadership of the Property function and the CFO. This includes a review of the fair value movements over the year.

The fair value of the Group’s wholly-owned properties and the movements in the carrying value of the Group’s wholly-owned

property portfolio during the year ended 31 December 2024 are shown in the table below.

	Investment
	property
	(owned)
		Investment
		property
		(leased)
			Investment
			property under
			development	Total
	£m	£m	£m	£m
At 1 January 2024	3,694.3	84.7	174.7	3,953.7
Additions	282.9	-	64.9	347.8
Cost capitalised	68.3	2.2	198.8	269.3
Interest capitalised	-	-	15.5	15.5
Transfer from investment property under development	37.0	-	(37.0)	-
Transfer from work in progress	-	-	17.9	17.9
Transfer to assets held for sale	(92.6)	-	-	(92.6)
Disposals	(112.2)	(13.2)	(7.5)	(132.9)
Valuation gains	228.4	-	33.9	262.3
Valuation losses	(65.8)	(1.9)	(9.8)	(77.5)
Net valuation gains/(losses)	162.6	(1.9)	2 4.1	184.8
Committed fire safety and external facade works	(14.8)	-	-	(14.8)
Carrying value at 31 December 2024	4,025.5	71.8	451.4	4,548.7

THE UNITE GROUP PLC

Annual Report and Accounts 2024

174

FINANCIAL STATEMENTS

Valuation process continued

The fair value of the Group’s wholly-owned properties and the movements in the carrying value of the Group’s wholly-owned

property portfolio during the year ended 31 December 2023 are shown in the table below.

2023
	Investment
	property
	(owned)
		Investment
		property
		(leased)
			Investment
			property
			under
			development	Total
	£m	£m	£m	£m
At 1 January 2023	3,623.4	90.3	202.7	3,916.4
Additions	-	-	-	-
Cost capitalised	66.5	4.8	58.9	130.2
Interest capitalised	-	-	8.4	8.4
Transfer from investment property under development	88.7	-	(88.7)	-
Transfer from work in progress	-	-	-	-
Transfer to assets held for sale	(33.5)	-	-	(33.5)
Disposals	-	-	-	-
Valuation gains	121.1	-	32.4	153.5
Valuation losses	(151.7)	(10.4)	(39.0)	(201.1)
Net valuation gains/(losses)	(30.6)	(10.4)	(6.6)	(47.6)
Committed fire safety and external facade works	(20.2)			(20.2)
Carrying value at 31 December 2023	3,694.3	84.7	174	.7 3,953.7

Assets classified as held for sale at 31 December 2024 are comprised of £92.6 million of investment property (owned). Assets held

for sale are reported within the Property segment and represent a portfolio of properties (split across the Group and joint ventures)

intended to be sold within the next 12 months.

Total interest capitalised in investment properties (owned) and investment properties under development at 31 December 2024 was

£81.9 million (2023: £66.4 million) on a cumulative basis.

Total internal costs capitalised in investment properties (owned) and investment properties under development was £84.4 million at

31 December 2024 (2023: £77.1 million) on a cumulative basis.

Interests in land not currently under construction totalling £13.5 million (2023: £8.3 million).

Capital Commitments

The Company has contractual commitments of £324.7 million due within one year (2023: £282.9 million) and £263.0 million

due within two to four years (2023: £208.5 million). This relates to land, property, plant, and equipment as well as committed

development costs.

NOTES TO THE FINANCIAL STATEMENTS continued

THE UNITE GROUP PLC

Annual Report and Accounts 2024

175

Recurring fair value measurement

All investment and development properties are classified as Level 3 in the fair value hierarchy.

	2024	2023
Class of asset	£m	£m
London – rental properties	1,286.7	1,154.9
Prime regional – rental properties	1,314.2	1,156.0
Major regional – rental properties	1,346.7	1,246.0
Provincial – rental properties	100.7	104.0
London – development properties	269.5	86.2
Prime regional – development properties	157.7	57.0
Major regional – development properties	13.0	22.0
London build-to-rent	69.8	66.9
Prime regional build-to-rent - development properties	11.2	9.5
Investment property (owned)	4,569.5	3,902.5
Investment property (leased)	71.8	84.7
Market value (including assets classified as held for sale)	4,641.3	3,987.2
Investment property (classified as held for sale)	(92.6)	(33.5)
Market value	4,548.7	3,953.7

The valuations have been prepared in accordance with the latest version of the RICS Valuation – Global Standards (incorporating the

International Valuation Standards) and the UK national supplement (the Red Book) based on net rental income, estimated future

costs, occupancy, property management costs and the net initial yield or discount rate.

Where the asset is leased to a university, the valuations also reflect the length of the lease, the allocation of maintenance and

insurance responsibilities between the Group and the lessee, and the market’s general perception of the lessee’s creditworthiness.

The resulting valuations are cross-checked against comparable market transactions.

For development properties, the fair value is usually calculated by estimating the fair value of the completed property (using the

discounted cash flow method) less estimated costs to completion.

Fair value using unobservable inputs (Level 3)	2024	2023
	£m	£m
Opening fair value	3,953.7	3,916.4
Additions	347.8	-
Gains and losses recognised in income statement	184.8	(47.5)
Transfer to assets held for sale	(92.6)	(33.5)
Capital expenditure	302.7	138.5
Disposals	(132.9)	-
Committed fire safety and external facade works	(14.8)	(20.2)
Closing fair value	4,548.7	3,953.7
Investment property (classified as held for sale)	92.6	33.5
Closing fair value (including assets classified as held for sale)	4,641.3	3,987.2

THE UNITE GROUP PLC

Annual Report and Accounts 2024

176

FINANCIAL STATEMENTS

Quantitative information about fair value measurements using unobservable inputs (Level 3)

2024
	Fair value
	£m
		Valuation
		technique	Unobservable inputs	Range
					Weighted
					average
London - rental properties	1,286.7	RICS Red Book	Net rental income (£ per week)
			Estimated rental growth (% p.a.)
			Discount rate (yield) (%)
				£214- £479
				2% - 3%
				4.2% - 4.8%
					£351
					3%
					4.5%
Prime regional - rental properties	1,314.2	RICS Red Book	Net rental income (£ per week)
			Estimated rental growth (% p.a.)
			Discount rate (yield) (%)
				£160-£342
				2% - 9%
				4.3% - 7.1%
					£221
					4%
					5.1%
Major regional - rental properties	1,346.7	RICS Red Book	Net rental income (£ per week)
			Estimated rental growth (% p.a.)
			Discount rate (yield) (%)
				£87-£224
				2% - 6%
				5.1%- 7.9%
					£158
					3%
					6.2%
Provincial - rental properties	100.7	RICS Red Book	Net rental income (£ per week)
			Estimated rental growth (% p.a.)
			Discount rate (yield) (%)
				£119-£171
				2% - 6%
				7.2% - 38.1%
					£133
					3%
					14.7%
London - development properties	269.5	RICS Red Book	Estimated cost to complete (£m)
			Estimated rental growth (% p.a.)
			Discount rate (yield) (%)
			Net rental income (£ per week)
				£71m-£171m
				3%
				4.4%-4.5%
				£299-£485
					£123m
					3%
					4.5%
					£345
Prime regional - development
properties
	157.7	RICS Red Book	Estimated cost to complete (£m)
			Estimated rental growth (% p.a.)
			Discount rate (yield) (%)
			Net rental income (£ per week)
				£22m- £263m
				3.0%
				4.4%-5.2%
				£247-£271
					£165m
					3%
					4.6%
					£258
Major regional - development
properties
	13.0	RICS Red Book	Estimated cost to complete (£m)
			Estimated rental growth (% p.a.)
			Discount rate (yield) (%)
			Net rental income (£ per week)
				£107m
				3%
				5.4%
				£236
					£107m
					3%
					5.4%
					£236
	4,488.5
Investment property - build-to-rent	69.8	RICS Red Book	Net rental income (£ per week)
			Estimated rental growth (% p.a.)
			Discount rate (yield) (%)
				£490
				3%
				4.6%
					£490
					3%
					4.6%
Development property - build-to-rent	11.2	RICS Red Book	Estimated cost to complete (£m)
			Estimated rental growth (% p.a.)
			Discount rate (yield) (%)
			Net rental income (£ per week)
				£17m
				3%
				4.4%
				£226
					£17m
					3%
					4.4%
					£226
	4,569.5
Investment property - leased	71.8	Discounted
		cash flows
			Net rental income (£ per week)
			Estimated rental growth (% p.a.)
			Discount rate (yield) (%)
				£119- £233
				1% - 5%
				10.0%
					£156
					3%
					10.0%
Fair value at 31 December 2024	4,641.3

NOTES TO THE FINANCIAL STATEMENTS continued

THE UNITE GROUP PLC

Annual Report and Accounts 2024

177

Quantitative information about fair value measurements using unobservable inputs (Level 3) continued

2023
	Fair value
	£m
		Valuation
		technique	Unobservable inputs	Range
					Weighted
					average
London - rental properties	1,154.9	RICS Red Book	Net rental income (£ per week)
			Estimated rental growth (% p.a.)
			Discount rate (yield) (%)
				£206-£424
				2% - 4%
				4.0% - 4.7%
					£324
					3%
					4.3%
Prime regional - rental properties	1,156.0	RICS Red Book	Net rental income (£ per week)
			Estimated rental growth (% p.a.)
			Discount rate (yield) (%)
				£152-£270
				2% - 5%
				4.3% - 6.7%
					£189
					3%
					4.9%
Major regional - rental properties	1,246.0	RICS Red Book	Net rental income (£ per week)
			Estimated rental growth (% p.a.)
			Discount rate (yield) (%)
				£84-£189
				2% - 5%
				4.9% - 7.2%
					£135
					3%
					5.7%
Provincial - rental properties	104.0	RICS Red Book	Net rental income (£ per week)
			Estimated rental growth (% p.a.)
			Discount rate (yield) (%)
				£103-£162
				2% - 3%
				7.0% - 21.7%
					£136
					3%
					8.9%
London - development properties	86.2	RICS Red Book	Estimated cost to complete (£m)
			Estimated rental growth (% p.a.)
			Discount rate (yield) (%)
				£102.2m-£177.1m
				3%
				4.0%
					£150.1m
					3%
					4.0%
Prime regional - development
properties
	57.0	RICS Red Book	Estimated cost to complete (£m)
			Estimated rental growth (% p.a.)
			Discount rate (yield) (%)
				£50.0m - £52.0m
				3.0%
				4.4%-5.2%
					£51.4m
					3%
					4.7%
Major regional - development
properties
	22.0	RICS Red Book	Estimated cost to complete (£m)
			Estimated rental growth (% p.a.)
			Discount rate (yield) (%)
				£19.4m - £124.1m
				3%
				5.2%
					£97.6m
					3%
					5.2%
	3,826.1
Investment property (BTR)	66.9	RICS Red Book	Net rental income (£ per week)
			Estimated rental growth (% p.a.)
			Discount rate (yield) (%)
				£412
				3%
				4.1%
					£412
					3%
					4.1%
Development property (BTR)	9.5	RICS Red Book	Estimated cost to complete (£m)
			Estimated rental growth (% p.a.)
			Discount rate (yield) (%)
				£12.6m
				3%
				4.4%
					£12.6m
					3%
					4.4%
	3,902.5
Investment property - leased	84.7	Discounted
		cash flows
			Net rental income (£ per week)
			Estimated rental growth (% p.a.)
			Discount rate (yield) (%)
				£106 - £207
				1.8% - 2.7%
				6.3%
					£168
					2.3%
					6.3%
Fair value at 31 December 2023	3,987.2

THE UNITE GROUP PLC

Annual Report and Accounts 2024

178

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS continued

Fair value sensitivity analysis

A decrease in net rental income or occupancy will result in a decrease in the fair value, whereas a decrease in the discount rate (yield)

will result in an increase in fair value. There are inter-relationships between these rates as they are partially determined by market

conditions. These two key sources of estimation uncertainty are considered to represent those most likely to have a material impact

on the valuation of the Group’s investment property (owned and development) within the next 12 months as a result of reasonably

possible changes in assumptions used. The potential effect of such reasonably possible changes has been assessed by the Group

and is set out below:

	Fair value at
	31 December
	2024
		+5% change
		in estimated
		net rental
		income
			-5% change in
			estimated net
			rental income
				+25 bps change
				in net initial
				yield
					-25 bps change
					in net initial
					yield
Class of asset	£m	£m	£m	£m	£m
Rental properties
London	1,286.7	1,338.5	1,208.5	1,204.4	1,350.7
Prime regional	1,314.2	1,369.1	1,236.8	1,240.7	1,372.0
Major regional	1,346.7	1,402.7	1,267.1	1,278.3	1,396.6
Provincial	100.7	105.9	95.6	98.0	103.8
Development properties
London	269.5	281.7	257.6	256.8	284.0
Prime regional	157.7	166.3	150.6	150.3	167.5
Major regional	13.0	12.8	11.6	11.7	12.8
Build-to-rent
London	69.8	71.6	64.8	64.7	72.1
Prime regional	11.2	11.8	10.6	10.6	11.9
Market value	4,569.5	4,760.4	4,303.2	4,315.5	4,771.4

3.2 Inventories

Accounting policies

Inventories are shown at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the

ordinary course of business less the estimated costs of completion and selling expenses. All costs directly associated with the

purchase of land, and all subsequent qualifying expenditure is capitalised.

	2024	2023
	£m	£m
Interests in land	13.5	25.3
Other stocks	0.1	0.9
Inventories	13.6	26.2

At 31 December 2024 and 31 December 2023 interests in land includes conditionally exchanged schemes.

THE UNITE GROUP PLC

Annual Report and Accounts 2024

179

3.2 Inventories continued

Accounting policies

Leased assets

The Group assesses whether a contract is or contains a lease at its inception. The Group recognises a right-of-use asset and a

corresponding lease liability (see note 4.6a) with respect to all lease arrangements in which it is the lessee. Right-of-use assets are

initially measured at cost, which comprises a value set equal to the lease liability, adjusted for prepaid or accrued lease payments

and lease incentives. They are subsequently measured at this initial value less accumulated depreciation and impairment losses.

Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. Property, plant and

equipment mainly comprise leasehold improvements at the Group’s head office and London office as well as computer hardware

at these sites.

Depreciation is charged to the income statement on a straight-line basis over the estimated useful lives. Freehold land is not

depreciated. The estimated useful lives are as follows:

• Right-of-use assets Shorter of lease and economic life

• Property, plant and equipment 4–7 years

Intangible assets

Software-as-a-Service (SaaS) arrangements

IAS 38 Intangible Assets – In March 2019, the IFRS Interpretations Committee (IFRIC), concluded that SaaS arrangements are likely

to be service arrangements, rather than booked as intangible or leased assets, because the customer only has a right to use

software on a supplier’s cloud infrastructure. Therefore, the supplier controls the software and not the customer.

Intangible assets predominantly comprise of on-premises computer software which allows customers to book online and

processes transactions within the sales cycle. The expenditure capitalised includes the cost of materials, direct labour and an

appropriate proportion of overheads. The assets are amortised on a straight-line basis over four to seven years, being the

estimated useful lives of the intangible assets, from the date they are available for use. Amortisation is charged to the income

statement within overheads.

3.3 Right of use assets and other non-current assets

3.3a) Right-of-use assets

	2024				2023
	Buildings	Other	Total	Buildings	Other	Total
	£m	£m	£m	£m	£m	£m
Cost
At 1 January	5.0	0.8	5.8	5.0	1.3	6.3
Additions	3.9	-	3.9	-	-	-
Disposals	-	(0.5)	(0.5)	-	(0.5)	(0.5)
At 31 December	8.9	0.3	9.2	5.0	0.8	5.8
Amortisation
At 1 January	(3.7)	(0.4)	(4.1)	(2.9)	(0.7)	(3.6)
Depreciation/amortisation charge for the year	(0.7)	(0.2)	(0.9)	(0.8)	(0.2)	(1.0)
Disposals	-	0.5	0.5	-	0.5	0.5
At 31 December	(4.4)	(0.1)	(4.5)	(3.7)	(0.4)	(4.1)
Carrying value at 1 January	1.3	0.4	1.7
Carrying amount at 31 December	4.5	0.2	4.7	2 .1	0.6	2.7

The Group leases several assets including office equipment and vehicles. The average lease term is five years (2023: three years).

THE UNITE GROUP PLC

Annual Report and Accounts 2024

180

FINANCIAL STATEMENTS

3.3a) Right-of-use assets continued

Approximately 7% of the leases expired in the current financial year (2023: 15%). The expired office contract was replaced and

therefore, there were £3.0 million additions in 2024 (2023: £nil million).

The maturity analysis of lease liabilities is presented in note 4.6a.

Details of interest on lease liabilities and total cash outflows for leases are presented in notes 4.3 and 5.1.

3.3b) Other non-current assets

The Group’s other non-current assets can be analysed as follows:

	2024				2023
	Property,
	plant and
	equipment
		Intangible
		assets	Total
				Property,
				plant and
				equipment
					Intangible
					assets	Total
	£m	£m	£m	£m	£m	£m
Cost or valuation
At 1 January	14.5	68.6	83.1	13.6	67.0	80.6
Additions	1.8	5.1	6.9	0.9	1.6	2.6
Disposals	-	-	-	-	-	-
At 31 December	16.3	73.7	90.0	14.5	68.6	83.1
Depreciation, amortisation and impairment losses
At 1 January	(11.1)	(59.3)	(70.4)	(10.4)	(54.8)	(65.2)
Depreciation/amortisation charge for the year	(0.8)	(4.0)	(4.8)	(0.7)	(4.5)	(5.2)
At 31 December	(11.9)	(63.3)	(75.2)	(11.1)	(59.3)	(70.4)
Carrying value at 1 January	3.4	9.3	12.7	3.2	12.2	15.4
Carrying amount at 31 December	4.4	10.4	14.8	3.4	9.3	12.7

Intangible assets include £0.5 million (2023: £1.9 million) of assets not being amortised as they are not yet ready for use. Property,

plant and equipment assets include £nil (2023: £nil) of assets not being depreciated as they are not ready for use. At 31 December

2024, the Group had capital commitments of £nil (2023: £nil) relating to intangible assets and £nil (2023: £nil) relating to property,

plant and equipment.

NOTES TO THE FINANCIAL STATEMENTS continued

THE UNITE GROUP PLC

Annual Report and Accounts 2024

181

3.4 Investments in joint ventures (Group)

Accounting policies

Joint ventures are those entities over whose activities the Group has joint control, established by contractual agreement. The

consolidated financial statements include joint ventures initially at cost, subsequently increased or decreased by the Group’s

share of total gains and losses of joint ventures on an equity basis. Interest free joint venture investment loans are initially

recorded at fair value – the difference between the nominal amount and fair value being treated as an investment in the joint

venture. The implied discount is amortised over the contracted life of the investment loan.

The Directors consider that the agreements integral to its joint ventures result in the Group having joint control over the key

matters required to operate the joint ventures. A significant degree of judgement is exercised in this assessment due to the

complexity of the contractual arrangements.

USAF and LSAV are jointly owned entities that are accounted for as joint ventures. Due to the complexity of the contractual

arrangements and Unite Group’s role as manager of the joint venture vehicles, the assessment of joint control involves

judgements around a number of significant factors. These factors include how Unite Group as fund manager has the ability to direct

relevant activities such as acquisitions, disposals, capital expenditure for refurbishments and funding whether through debt or

equity. This assessment for USAF is complex because of the number of unit holders and how their rights are represented through

an Advisory Committee. For some of the activities it is not clear who has definitive control of the activities: in some scenarios the

Group can control, in others the Advisory Committee. However, for the activities which are considered to have the greatest impact

on the returns of USAF, acquisitions and equity financing, it has been determined that the Group and the Advisory Committee

have joint control in directing these activities and that on balance, it is appropriate to account for USAF as a joint venture. The

assessment for LSAV is more straightforward because the Group and GIC each own 50% of the joint venture and there is therefore

much clearer evidence that control over the key activities is shared by the two parties.

The Group has two joint ventures:

Joint venture	Group’s share of assets/
	results 2024 (2023)
		Objective	Partner	Legal entity in which
				Group has interest
The UNITE UK Student
Accommodation Fund
(USAF)
	29.1%*
	(29.5%)*
		Operate student
		accommodation
		throughout the UK
			Consortium of investors	UNITE UK Student
				Accommodation Fund,
				a Jersey Unit Trust
London Student
Accommodation
Venture (LSAV)
	50%
	(50%)
		Operate student
		accommodation in London
		and Birmingham
			GIC Real Estate Pte, Ltd
			Real estate investment
			vehicle of the Government
			of Singapore
				LSAV Unit Trust, a
				Jersey Unit Trust and
				LSAV (Holdings) Ltd,
				incorporated in Jersey

* At the start of the year, part of the Group’s interest was held through a subsidiary, USAF (Feeder) Guernsey Limited, in which there was an

external investor. This was disposed of during the year. In 2023, a non-controlling interest occured on consolidation of the Group’s results

representing the external investor’s share of profits and assets relating to its investment in USAF. In 2023, the ordinary shareholders of Unite

Group PLC were beneficially interested in 28.15% of USAF.

THE UNITE GROUP PLC

Annual Report and Accounts 2024

182

FINANCIAL STATEMENTS

3.4a) Net assets and results of the joint ventures

The summarised balance sheets and results for the year, and the Group’s share of these joint ventures are as follows:

2024	USAF			LSAV		Total
	£m			£m		£m
Summarised balance sheet	Gross	MI	Share	Gross	Share	Gross	Share
Investment property	2,847.3	-	829.6	1,993.8	996.9	4,841.1	1,826.5
Cash	241.6	-	70.4	40.0	20.0	281.6	90.4
Borrowings Non-Current	(937.3)	-	(273.1)	(276.0)	(138.0)	(1,213.3)	(411.1)
Borrowings Current	-	-	-	(400.0)	(200.0)	(400.0)	(200.0)
Swap assets	-	-	-	-	-	-	-
Other current assets	7.9	-	2.3	22.8	11.4	30.7	13.7
Other current liabilities	(85.7)	-	(25.0)	(47.8)	(23.9)	(133.5)	(48.9)
Net assets	2,073.8	-	604.2	1,332.8	666.4	3,406.6	1,270.6
Minority interest	-	-	-	-	-	-	-
Swap liabilities	-	-	-	-	-	-	-
EPRA net assets	2,073.8	-	604.2	1,332.8	666.4	3,406.6	1,270.6
Summarised income statement
Rental income	207.5	-	58.8	112.2	56.1	319.7	114.9
Other income	0.7	-	0.2	1.8	0.9	2.5	1.1
Total Revenue	208.2	-	59.0	114.0	57.0	322.2	116.0
Cost of sales	(73.1)	-	(20.7)	(28.0)	(14.0)	(101.1)	(34.7)
Operating expenses	(2.6)	-	(0.7)	(1.4)	(0.7)	(4.0)	(1.4)
Results from operating activities before (losses)/
gains on property
	132.5	-	37.6	84.6	42.3	217.1	79.9
Profit/(loss) on disposal of property	(8.5)	-	(2.4)	-	-	(8.5)	(2.4)
Net valuation movement	81.4	-	26.2	81.5	40.8	162.9	67.0
Net financing (costs)/gains	(40.5)	-	(11.5)	(33.6)	(16.8)	(74.1)	(28.3)
Profit before tax	164.9	-	49.9	132.5	66.3	297.4	116.2
Taxation	(0.1)	-	-	(0.6)	(0.3)	(0.7)	(0.3)
Profit for the year after tax	164.8	-	49.9	131.9	66.0	296.7	115.9
Other comprehensive income	(0.7)	-	(0.3)	(3.6)	(2.0)	(4.3)	(2.3)
Total comprehensive (expense)/income	164.1	-	47.6	128.3	64.0	292.4	113.6
Dividends received from the joint ventures during the year
			13.8		13.8		27.6

* Investment property includes assets classified as held for sale in the IFRS balance sheet.

NOTES TO THE FINANCIAL STATEMENTS continued

THE UNITE GROUP PLC

Annual Report and Accounts 2024

183

3.4a) Net assets and results of the joint ventures continued

2023	USAF			LSAV		Total
	£m			£m		£m
Summarised balance sheet	Gross	MI	Share	Gross	Share	Gross	Share
Investment property	2,940.8	38.7	827.8	1,909.4	954.7	4,850.2	1,821.2
Cash	64.7	0.9	18.2	43.0	21.5	107.7	40.6
Debt	(865.0)	(11.4)	(243.5)	(674.0)	(337.0)	(1,539.0)	(591.9)
Swap assets	1.4	-	0.4	3.6	1.8	5.0	2.2
Other current assets	12.4	0.2	3.5	(2.8)	(1.4)	9.6	2.3
Other current liabilities	(92.1)	(1.2)	(25.8)	(56.6)	(28.4)	(148.7)	(55.4)
Net assets	2,062.2	27.2	580.6	1,222.6	611.2	3,284.8	1,219.1
Minority interest	-	(27.2)	-	-	-	-	(27.2)
Swap liabilities	(1.4)	-	(0.4)	(3.6)	(1.7)	(5.0)	(2.1)
EPRA net assets	2,060.7	-	580.1	1,219.0	609.5	3,279.8	1,189.7
Summarised income statement
Rental income	203.4	2.7	57.3	103.6	51.8	307.0	111.8
Other income	0.9	-	0.2	2.0	1.0	2.9	1.2
Total Revenue	204.3	2.7	57.5	105.6	52.8	309.9	113.0
Cost of sales	(70.6)	(1.5)	(19.9)	(26.4)	(13.2)	(97.0)	(34.6)
Operating expenses	(2.4)	-	(0.6)	(1.2)	(0.6)	(3.6)	(1.2)
Results from operating activities before (losses)/
gains on property
	131.3	1.2	37.0	78.0	39.0	209.3	77.2
Profit/(loss) on disposal of property	(13.1)	-	(3.7)	0.6	0.3	(12.5)	(3.4)
Net valuation movement	20.3	-	7.4	(59.2)	(29.6)	(38.9)	(22.2)
Net financing (costs)/gains	(33.5)	-	(9.5)	(30.0)	(15.0)	(63.5)	(24.5)
Profit before tax	105.0	1.2	31.2	(10.6)	(5.3)	94.4	27.1
Taxation	(0.1)	-	-	(0.2)	(0.1)	(0.3)	(0.1)
(Loss)/Profit for the year after tax	104.9	1.2	31.2	(10.8)	(5.4)	94.1	27.0
Other comprehensive income	(2.3)	-	(0.7)	(1.2)	(0.6)	(3.5)	(1.3)
Total comprehensive (expense)/income	102.6	1.2	30.5	(12.0)	(6.0)	90.6	25.7
Dividends received from the joint ventures during the year
		0.8	21.8		5.4		28.0

Net assets and profit/(loss) for the year above include the non-controlling interest, whereas EPRA NTA excludes the

non-controlling interest.

USAF and LSAV use derivatives to hedge their borrowings. These derivatives are designated in cash flow hedge relationships which

are considered to be fully effective. The share of joint venture mark to market movements on hedging instruments is recognised in

the Group’s Other Comprehensive Income within the share of joint venture mark to market movements on hedging instruments. The

total notional value of borrowings in hedge relationships at 31 December 2024 is £340 million (2023: £415.0 million). See note 4.5 for

further details.

THE UNITE GROUP PLC

Annual Report and Accounts 2024

184

FINANCIAL STATEMENTS

3.4b) Movement in carrying value of the Group’s investments in joint ventures

The carrying value of the Group’s investment in joint ventures increased by £46.0 million during the year ended 31 December 2024

(2023: £7.6 million decrease), resulting in an overall carrying value of £1,265.0 million (2023: £1,219.0 million).

The following table shows how the decrease has arisen:

	2024	2023
	£m	£m
Recognised in the income statement:
Operations segment result	47.5	47.4
Non-controlling interest share of Operations segment result	(0.2)	1.3
Management fee adjustment relating to trading with joint venture	4.8	4.5
Net valuation (losses)/gains on investment property	67.0	(21.9)
Property disposals	(2.4)	(3.5)
Ineffective swap	(0.4)	(0.4)
Other	(0.4)	(0.4)
	115.9	27.0
Recognised in equity:
Movement in effective hedges	(2.3)	(2.1)
Other adjustments to the carrying value:
Profit adjustment related to trading with joint venture	(4.8)	(4.5)
Disposal of non-controlling interest	(27.9)	-
Additional capital invested in USAF	(7.4)	-
Distributions received	(27.5)	(28.0)
Increase/(Decrease) in carrying value	46.0	(7.6)
Carrying value at 1 January	1,219.0	1,226.6
Carrying value at 31 December	1,265.0	1,219.0

NOTES TO THE FINANCIAL STATEMENTS continued

THE UNITE GROUP PLC

Annual Report and Accounts 2024

185

3.4c) Transactions with joint ventures

The Group acts as asset and property manager for the joint ventures and receives management fees in relation to these services.

In addition, the Group is entitled to performance fees from USAF and LSAV if the joint ventures outperform certain benchmarks. No

performance fees were recognised in the year (2023: £nil).

	2024	2023
	£m	£m
USAF	16.9	16.6
LSAV	4.9	4.8
Asset management fees	21.8	21.4
Investment management fees	-	-
Total fees	21.8	21.4

On an EPRA basis, fees from joint ventures are shown net of the Group’s share of the cost to the joint ventures.

The Group’s share of the management fees to the joint ventures is £4.6 million (2023: £4.5 million), which results in management fees

from joint ventures of £17.3 million being shown in the Operating segment result in note 2.2a (2023: £16.9 million).

During the year, the Group purchased seven properties from USAF for gross proceeds of £235.5m and sold two properties to USAF

for total gross proceeds of £118.5m. Both sale and purchase were transacted at fair value which was the same as the carrying value.

As part of these transactions, the Group paid £117.0m of cash to USAF reflecting the net difference in value between these assets,

this balance is presented within investing activities in the consolidated statement of cash flows.

3.5 Investments in subsidiaries (Company)

Accounting policies

In the financial statements of the Company, investments in subsidiaries are held at fair value. Changes in fair value are recognised

in profit or loss and presented in retained earnings in equity.

Carrying value of investment in subsidiaries

The movements in the Company’s interest in unlisted subsidiaries and joint ventures during the year are as follows:

	Investment in
	subsidiaries
	2024	2023
	£m	£m
At 1 January	2,450.8	2,397.0
Revaluation	200.5	53.8
At 31 December	2,651.3	2,450.8

The carrying value of investment in subsidiaries has been calculated using the equity attributable to the owners of the Company from

the consolidated balance sheet adjusted for the fair value of fixed rate loans. This includes investment property, investment property

under development and swaps at a fair value calculated by a third-party expert. All investment properties and investment properties

under development are classified as Level 3 in the IFRS 13 fair value hierarchy are discussed on page 187. The fixed rate loans range

between Level 1 and Level 2 in the IFRS 13 fair value hierarchy are discussed further on page 187.

Significant assumptions underlying the valuation of investment in subsidiaries are valuation of investment property and investment

property under development, together with the value of borrowings and inter-company debt. A full list of the Company’s subsidiaries

and joint ventures can be found in note 9.

THE UNITE GROUP PLC

Annual Report and Accounts 2024

186

FINANCIAL STATEMENTS

Section 4: Funding

The Group finances its development and investment activities through a mixture of retained earnings, borrowings and

equity. The Group continuously monitors its financing arrangements to manage its gearing.

Interest rate swaps are used to manage the Group’s risk to fluctuations in interest rate movements.

The following pages provide disclosures about the Group’s funding position, including borrowings, gearing and hedging

instruments; its exposure to market risks; and its capital management policies.

Accounting policies

Financial instruments

Financial assets and financial liabilities are recognised in the Group’s balance sheet when the Group becomes a party to the

contractual provisions of the instrument.

Financial assets and financial liabilities are initially measured at fair value, less any attributable transaction costs,

and subsequently at amortised cost. Total financial assets at amortised costs is £37.5m (2023: £34.8m). Total financial liabilities at

amortised costs is £1,347.5m (2023: 1,123.9m).

With the exception of investments in subsidiaries and derivative financial instruments, no other financial assets or liabilities have

been classified as either fair value through profit or loss or fair value through other comprehensive income.

The accounting policies applicable to specific financial assets and liabilities, and financing costs, are set out in the relevant notes.

Impairment of financial assets

The Group recognises a loss allowance for expected credit losses on trade receivables.

The Accounting Policy is set out in full in note 5.2.

Derivative financial instruments

The Group enters into derivative financial instruments to manage its exposure to interest rate risk. Further details of derivative

financial instruments, including the relevant accounting policies, are disclosed in notes 4.2 and 4.5.

4.1 Borrowings

Accounting policies

Interest bearing borrowings are recognised initially at fair value, less attributable transaction costs. Subsequent to initial

recognition, interest bearing borrowings are stated at amortised cost with any difference between cost and redemption

value being recognised in the income statement over the period of the borrowings on an effective interest basis.

The table below analyses the Group’s borrowings which comprise bank and other loans by when they fall due for payment:

	Group – Carrying value		Company – Carrying value
	2024	2023	2024	2023
	£m	£m	£m	£m
Current
In one year or less, or on demand	-	299.4	-	-
Non-current
In more than one year but not more than two years	147.6	-	147.6	-
In more than two years but not more than five years	572.3	320.7	572.3	45.7
In more than five years	543.8	447.6	543.8	423.0
	1,263.7	1,067.6	1,263.7	468.7
Unamortised fair value of debt recognised on acquisition	10.1	14.0	-	-
Total borrowings	1,273.8	1,081.6	1,263.7	468.7

In addition to the borrowings currently drawn as shown above, the Group has available undrawn facilities of £750.0 million

(2023: £550.0 million). A further overdraft facility of £10.0 million (2023: £10.0 million) is also available.

NOTES TO THE FINANCIAL STATEMENTS continued

THE UNITE GROUP PLC

Annual Report and Accounts 2024

187

The carrying value and fair value of the Group’s borrowings is analysed below:

	2024		2023
Group
	Carrying
	value
		Fair
		value
			Carrying
			value
				Fair
				value
	£m	£m	£m	£m
Level 1 IFRS fair value hierarchy	975.0	956.6	875.0	852.3
Other loans and unamortised arrangement fees	288.7	275.4	192.6	180.3
Total borrowings	1,263.7	1,232.0	1,067.6	1,032.6

	2024		2023
Company
	Carrying
	value
		Fair
		value
			Carrying
			value
				Fair
				value
	£m	£m	£m	£m
Level 1 IFRS fair value hierarchy	975.0	956.6	275.0	268.4
Other loans and unamortised arrangement fees	288.7	275.4	193.7	180.3
Total borrowings	1,263.7	1,232.0	468.7	448.7

The fair value of loans classified as Level 1 in the IFRS fair value hierarchy is determined using quoted prices in active markets for

identical liabilities.

The following table shows the changes in liabilities arising from financing activities:

2024
Group
	At 1 January
	2024
		Financing
		cash flows
			Interest
			expense
				Fair value
				adjustments
					Other
					changes
						At 31 December
						2024
Borrowings	1,081.6	193.2	-	(4.1)	3.1	1,273.8
Lease liabilities	83.8	(19.8)	8.8	-	-	72.8
Interest rate swaps	(56.0)	-	-	0.4	2.2	(53.4)
Total liabilities from financing activities	1,109.4	173.4	8.8	(3.7)	5.3	1,293.2
Company
Borrowings	468.6	800.0	-	0.2	(5.1)	1,263.7
Interest rate swaps	(56.0)	-	-	0.4	2.2	(53.4)
Total liabilities from financing activities	412.5	800.0	-	0.6	(2.9)	1,210.3

2023
Group
	At 1 January
	2023
		Financing
		cash flows
			Interest
			expense
				Fair value
				adjustments
					Other
					changes
						At 31 December
						2023
Borrowings	1,265.9	(182.5)	-	(4.3)	2.5	1,081.6
Lease liabilities	92.3	(16.2)	7.7	-	-	83.8
Interest rate swaps	(73.2)	-	-	17.2	-	(56.0)
Total liabilities from financing activities	1,285.0	(198.7)	7.7	12.9	2.5	1,109.4
Company
Borrowings	649.6	(182.5)	-	0.8	0.8	468.7
Interest rate swaps	(73.2)	-	-	17.2	-	(56.0)
Total liabilities from financing activities	576.4	(182.5)	-	18.0	0.8	412.7

THE UNITE GROUP PLC

Annual Report and Accounts 2024

188

FINANCIAL STATEMENTS

4.2 Interest rate swaps

The Group uses interest rate swaps to manage the Group’s exposure to interest rate fluctuations. In accordance with the Group’s

Treasury Policy, the Group does not hold or issue interest rate swaps for trading purposes. The derivatives of the Company are the

same as those of the Group, and the hedge accounting disclosures in note 4.5a are also relevant for the Company.

Accounting policies

Interest rate swaps are recognised initially and subsequently at fair value, with mark to market movements recognised in the

income statement unless cash flow hedge accounting is applied.

The Group designates certain interest rate derivatives as hedging instruments. The interest rate swap is designated as the hedging

instrument in a hedge of the variability in cash flows attributable to the interest risk of borrowings. At inception, the Group

documents the relationship between the hedging instrument and the hedged item, along with the risk management objectives

and its strategy for undertaking various hedge transactions.

Furthermore, at the inception of the hedge and on an ongoing basis, the Group documents whether the hedging instrument is

effective in offsetting changes in fair values or cash flows of the hedged item attributable to the hedged risk, which is when the

hedging relationships meet all of the following hedge effectiveness requirements:

• There is an economic relationship between the hedged item and the hedging instrument

• The effect of credit risk does not dominate the value changes that result from that economic relationship

• The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the Group

actually hedges and the quantity of the hedging instrument that the Group actually uses to hedge that quantity of hedged item.

The effective portion of changes in fair value of the interest rate swap is recognised in Other Comprehensive Income and

presented under the heading of Hedging reserve in equity, limited to the cumulative change in fair value of the hedged item from

inception of the hedge. Any ineffective portion of changes in the fair value of the interest rate swap is recognised immediately

in profit or loss. Amounts previously recognised in other comprehensive income and accumulated in equity are reclassified to

profit or loss in the periods when the hedged item affects profit or loss, in the same line as the recognised hedged item. If the

Group expects that some or all of the loss accumulated in the hedging reserve will not be recovered in the future, that amount is

immediately reclassified to profit or loss.

The Group discontinues hedge accounting only when the hedging relationship (or a part thereof) ceases to meet the qualifying

criteria. This includes instances when the hedging instrument expires or is sold, terminated or exercised. The discontinuation

is accounted for prospectively. Any gain or loss recognised in Other Comprehensive Income and accumulated in the hedging

reserve at that time remains in equity and is reclassified to profit or loss when the forecast transaction occurs. When a forecast

transaction is no longer expected to occur, the gain or loss accumulated in the hedging reserve is reclassified immediately to

profit or loss.

The fair value of interest rate swaps is the estimated amount that the Group would receive or pay to terminate the swap at the

balance sheet date, taking into account current interest rates and the current creditworthiness of the swap counterparties.

The following table shows the fair value of interest rate swaps which at 31 December 2024 are not designated in accounting

hedge relationships:

	2024	2023
	£m	£m
Current	7.4	-
Non-current	46.0	56.0
Fair value of interest rate swaps	53.4	56.0

The fair value of interest rate swaps has been calculated by a third-party, discounting estimated future cash flows on the basis of market

expectations of future interest rates, representing Level 2 in the IFRS 13 fair value hierarchy. At 31 December 2024, the fair value above

comprises current assets of £7.4 milion and non-current assets of £46.0 million (2023: non-current assets of £56.0 million).

NOTES TO THE FINANCIAL STATEMENTS continued

THE UNITE GROUP PLC

Annual Report and Accounts 2024

189

4.3 Net financing costs/(gains)

Accounting policies

Net financing costs comprise interest payable on borrowings and interest on lease liabilities, less interest receivable on funds

invested (both calculated using the effective interest rate method) and gains and losses on hedging instruments that are

recognised in the income statement.

	2024	2023
Recognised in the income statement:	£m	£m
Interest income	(16.7)	(1.3)
Finance income	(16.7)	(1.3)
Gross interest expense on loans	39.0	32.5
Amortisation of fair value of debt recognised on acquisition	(4.1)	(4.3)
Interest capitalised	(15.5)	(8.4)
Loan interest and similar charges	19.4	19.8
Interest on lease liabilities	8.8	7.7
Mark to market changes in interest rate swaps	0.4	17.2
Swap cancellation and loan break costs	3.1	-
Finance costs	31.7	44.7
Net financing costs	15.0	43.4

The average cost of the Group’s wholly-owned debt at 31 December 2024 is 3.0% (2023: 2.7%). The overall average cost of debt on an

EPRA basis is 3.6% (2023: 3.2%).

4.4 Gearing

LTV is a key indicator that the Group uses to manage its indebtedness. The Group also monitors gearing, which is calculated using

EPRA net tangible assets (NTA) and adjusted net debt. Adjusted net debt excludes IFRS 16 lease liabilities, the unamortised fair value

of debt recognised on acquisition and mark to market of interest rate swaps as shown below.

The Group’s gearing ratios are calculated as follows:

		2024	2023
	Note	£m	£m
Cash and cash equivalents	5.1	274.3	37.5
Current borrowings	4.1	-	(299.4)
Non-current borrowings	4.1	(1,273.8)	(782.2)
Lease liabilities	4.6a	(72.8)	(83.8)
Interest rate swaps	4.2	53.4	56.0
Net debt per balance sheet		(1,018.9)	(1,071.9)
Lease liabilities	4.6a	72.8	83.8
Unamortised fair value of debt recognised on acquisition	2.3c	11.1	15.2
Adjusted net debt		(935.0)	(972.9)
Reported net asset value		4,811.5	4,067.0
EPRA NTA	2.3c	4,758.4	4,014.7
Gearing
Basic (net debt/reported net asset value)		21%	26%
Adjusted gearing (adjusted net debt/EPRA NTA)		20%	24%
Loan to value	2.3a	24%	28%

THE UNITE GROUP PLC

Annual Report and Accounts 2024

190

FINANCIAL STATEMENTS

4.5 Financial risk factors

The Group’s activities expose it to a variety of financial risks: market risks (primarily interest rate risk), credit risk and liquidity risk.

The Group’s Treasury Policy focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on

the Group’s financial performance. Details on credit risk can be found in note 5.3.

4.5a) Interest rate risk

The Group is exposed to interest rate risk because entities in the Group borrow funds at both fixed and floating interest rates. The

risk is managed by the Group by maintaining an appropriate mix between fixed and floating rate borrowings, and by the use of

interest rate swap contracts. Hedging activities are evaluated regularly to align with defined risk appetite; ensuring the most cost-

effective hedging strategies are applied.

The Group’s exposures to interest rates on financial assets and financial liabilities are detailed in the liquidity risk management

section of this note.

The Group holds its debt finance under both floating and fixed rate arrangements. The floating debt is hedged through the use of

interest rate swap agreements. The Group’s guideline has been to hedge 75%–95% of the Group’s interest rate exposure for terms of

approximately two to ten years.

At 31 December 2024, 89% (2023:96% of the Group’s borrowing was held at fixed rates, driven by lower borrowings as a result of the

capital raise in July 2024. Excluding the £450 million (2023: £200 million) of swaps the fixed investment borrowing is at an average

rate of 4.1% (2023: 3.1%) following the new bond issuance in June 2024 for an average period of 5.8 years (2023: 4.4 years), including

all debt with current swaps the average rate is 3.3% (2023: 2.9%).

Under interest rate swap contracts, the Group agrees to exchange the difference between fixed and floating rate interest amounts

calculated on agreed notional principal amounts. Such contracts enable the Group to mitigate the risk of changing interest rates

upon the issuance of forecast fixed rate debt held and the cash flow exposures on the issued variable rate debt held. The fair value

of interest rate swaps at the reporting date is determined by discounting the future cash flows using the curves at the reporting date

and is disclosed below. The average interest rate is based on the outstanding balances at the end of the financial year.

As the critical terms of the hedge contracts and their corresponding hedged items are the same, the Group performs a qualitative

assessment of effectiveness and it is expected that the value of the interest rate swap contracts and the value of the corresponding

hedged items will systematically change in opposite direction in response to movements in the underlying interest rates. The main

source of hedge ineffectiveness in these hedge relationships has historically been the effect of the counterparty and the Group’s

own credit risk on the fair value of the hedge contracts, which is not reflected in the fair value of the hedged item attributable to

the change in interest rates. No other sources of ineffectiveness emerged from these hedging relationships. However, changes in

anticipated draw down of debt in 2022 as a result of planned property disposals have meant that the hedged items were no longer

expected to occur. As a result the hedge relationships were discontinued from 1 July 2021 and the interest rate swaps are no longer

designated as ‘effective’.

The fair value of these instruments is assets of £53.4 million (2023: £56.0 million) with £7.4 million maturing in 12 months (2023: £nil).

The interest rate swaps settle on a monthly basis. The floating rate on the interest rate swaps is one-month SONIA (2023: one-month

SONIA). The Group will settle the difference between the fixed and floating interest rate on a net basis.

At the end of the current year and the previous year, the Group had no cash flow hedges in hedge relationships.

The sensitivity analyses below have been determined based on the exposure to interest rates for both derivative and non-

derivative instruments as at 31 December 2024. For floating rate liabilities, the analysis is prepared assuming the amount of liability

outstanding at the reporting date was outstanding for the whole year. A 1% increase or decrease is used when reporting interest

rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in

interest rates.

If interest rates had been 1% higher and all other variables were held constant the Group’s profit for the year ended.

As the notional value of the interest rate swap contracts is greater than the amount of borrowing at variable rate, the Group

is exposed to fluctuations in interest rates. If interest rates had been 1% higher and all other variables were held constant the

Group’s profit for the year ended 31 December 2024 would increase by £3.7 million (2023: £1.7 million). There would be with no

impact directly recognised in the Statement of Changes in Equity. The Group’s sensitivity to interest rates has remained reasonably

consistent year-on-year.

NOTES TO THE FINANCIAL STATEMENTS continued

THE UNITE GROUP PLC

Annual Report and Accounts 2024

191

4.5b) Credit risk on financial instruments

In order to minimise credit risk, the Group has adopted a policy of only dealing with creditworthy counterparties and obtaining

sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The Group only transacts

with entities that are rated the equivalent of investment grade and investments in these instruments, where the counterparties

have minimum A- credit rating, are considered to have low credit risk for the purpose of impairment assessment. The credit rating

information is supplied by independent rating agencies where available and, if not available, the Group uses other publicly available

financial information including CDS prices and its own trading records to rate its major customers. The Group’s exposure and the

credit ratings of its counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst

approved counterparties in line with Board Policy.

Before accepting any new customer, the finance team uses external credit ratings to assess the potential customer’s credit quality

and defines credit limits by customer. Monitoring procedures are also in place to ensure that follow-up action is taken when ratings

deteriorate. The Group does not hold any credit enhancements to cover its credit risks associated with its financial assets.

The Group considers the following as constituting an event of default for internal credit risk management purposes as historical

experience indicates that financial assets that meet either of the following criteria are generally not recoverable:

• When there is a breach of financial covenants by the debtor

• Information developed internally or obtained from external sources indicates that the debtor is unlikely to pay its creditors,

including the Group, in full (without taking into account collateral held by the Group).

Details of the credit quality of the Group’s financial assets as well as the Group’s maximum exposure to credit risk by credit risk rating

grades are set out in note 5.3.

4.5c) Liquidity risk

Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due.

Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has established an appropriate liquidity

risk management framework for the management of the Group’s short-, medium- and long-term funding and liquidity management

requirements. The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by

continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities. Details

of additional undrawn facilities that the Group has at its disposal to further reduce liquidity risk are set out below.

For development activities, the Group has a policy of raising substantially the full amount of capital required for each development before

commencing construction. The funding requirements of developments are therefore secured at the outset of works.

The Group has the following financial instruments which impact the liquidity risk of the Group either now or in the future:

• Financial assets including interest rate swaps, trade receivables, amounts due from joint ventures, other receivables and cash

• Financial liabilities including borrowings, lease liabilities, interest rates swaps, trade payables, retentions on construction contracts

for properties, other payables and accrued expenses.

The following tables detail the Group’s remaining contractual maturity for its non-derivative financial liabilities with agreed

repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest

date on which the Group can be required to pay.

2024
	Weighted
	average effective
	interest rate
		Less
		than 1
		month
			1-3
			months
				3 months
				- 1 year	1-5 years	5+ years	Total
								Carrying
								amount
	%	£m	£m	£m	£m	£m	£m	£m
Variable interest rate instruments	6.2%	0.8	1.5	6.9	170.8	-	180.0	149.4
Fixed interest rate instruments	4.4%	1.9	3.9	44.0	458.5	783.4	1,291.7	1,124.4
Lease liabilities	4.2%	1.0	2.9	7.9	48.5	48.8	109.1	72.8
Trade and other payables	n/a	-	177.0	-	-	-	17 7.0	177.0
Total		3.7	185.3	58.8	677.8	832.2	1,757.8	1,523.6

THE UNITE GROUP PLC

Annual Report and Accounts 2024

192

FINANCIAL STATEMENTS

2023
	Weighted
	average effective
	interest rate
		Less
		than 1
		month
			1-3
			months
				3 months
				- 1 year	1-5 years	5+ years	Total
								Carrying
								amount
	%	£m	£m	£m	£m	£m	£m	£m
Variable interest rate instruments	7.0%	0.3	0.6	2.6	57.9	-	61.5	46.5
Fixed interest rate instruments	3.1%	1.1	2.2	28.8	399.4	766.2	1,197.7	1,036.9
Lease liabilities	4.2%	1.1	2.3	10.2	54.5	66.8	134.9	83.8
Trade and other payables	n/a	-	134.0	-	-	-	134.0	134.3
Total		2.5	139.1	41.6 5	11.8	833.0	2,361.1	1,302.2

The Company has £180.0m (2023: £61.5m) of variable rate borrowings with a weighted average rate of 6.2% and £1,291.7m of fixed rate

borrowings with a weighted average rate of 4.4% (2023: 3.1%). The maturity of the Company’s borrowings is disclosed in note 4.1.

The Group has access to financing facilities as described below, of which £610.0 million were unused at the reporting date (2023:

£560.0 million). The Group expects to meet its other obligations from operating cash flows.

4.5c) Liquidity risk continued

	2024	2023
	£m	£m
Unsecured bank overdraft facility, reviewed annually and payable at call:
- amount used	-	-
- amount unused	10.0	10.0
Unsecured committed bank loan facilities which may be extended by mutual agreement:
- amount used	150.0	50.0
- amount unused	750.0	550.0
	900.0	600.0

4.5d) Covenant compliance

The Group monitors its covenant position and the forecast headroom available on a monthly basis. At 31 December 2024, the Group

was in full compliance with all of its borrowing covenants.

The Group’s unsecured borrowings carry several covenants. The covenant regime is IFRS based and gives the Group substantial

operational flexibility, allowing property acquisitions, disposals and developments to occur with relative freedom.

	2024		2023
	Covenant	Actual	Covenant	Actual
Gearing	<1.50	0.21	<1.5	0.27
Unencumbered assets ratio	>1.70	4.48	>1.7	3.71
Secured gearing	<0.25	-	<0.25	-
Development assets ratio	<30%	8%	<30%	3%
Joint venture ratio	<55%	22%	<55%	23%
Interest cover	>2.00	81.56	>2.00	8.23

The Liberty Living Finance PLC bond issuer substitution to Unite Group PLC was completed in December 2024 bringing the £300m

2029 bond under The Unite Group PLC.

NOTES TO THE FINANCIAL STATEMENTS continued

THE UNITE GROUP PLC

Annual Report and Accounts 2024

193

4.6 Leases

4.6a) Lease liabilities

Accounting policies

The Group assesses whether a contract is or contains a lease, at inception of the contract. The Group recognises a right-of-use

asset (see note 3.1a) and a corresponding lease liability with respect to all lease arrangements in which it is the lessee.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date,

discounted by using the Group’s incremental borrowing rate (since the rate implicit in the leases cannot be readily determined)

of 4.17%.

The lease liability is presented as a separate line in the consolidated balance sheet.

The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the

effective interest method) and by reducing the carrying amount to reflect the lease payments made.

The Group remeasures the lease liability whenever:

• The lease term has changed, in which case the lease liability is remeasured by discounting the revised lease payments using a

revised discount rate

• The lease payments change due to changes in an index, in which cases the lease liability is remeasured by discounting the

revised lease payments using an unchanged discount rate (unless the lease payments change is due to a change in a floating

interest rate, in which case a revised discount rate is used)

• A lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability

is remeasured based on the lease term of the modified lease by discounting the revised lease payments using a revised

discount rate at the effective date of the modification.

The Group did not make any such adjustments during the period presented.

	Undiscounted cash flows		Carrying value
	2024	2023	2024	2023
Lease liabilities	£m	£m	£m	£m
Analysed as:
Non-current	97.3	121.3	66.8	78.4
Current	11.8	13.6	6.0	5.4
Total lease liability	109.1	134.9	72.8	83.8
Lease liability maturity analysis
Year 1	11.8	13.6	6.0	5.4
Year 2	12.2	13.5	6.6	7.4
Year 3	12.0	13.7	6.9	7.9
Year 4	12.2	13.5	7.7	8.8
Year 5	12.1	13.8	8.1	8.8
Onwards	48.8	66.8	37.5	45.5
Total	109.1	134.9	72.8	83.8

The Group does not face a significant liquidity risk with regard to its lease liabilities. Lease liabilities are monitored within the Group’s

treasury function.

THE UNITE GROUP PLC

Annual Report and Accounts 2024

194

FINANCIAL STATEMENTS

4.6b) Lease receivables

The Group accounts for its tenancy contracts offered to commercial and individual tenants as operating leases.

Operating lease contracts with universities contain RPI uplifts and market review clauses.

The lessee does not have an option to purchase the property at the expiry of the lease period.

Maturity analysis of operating lease receivables

The future minimum lease payments receivable under non-cancellable operating leases are as follows:

	2024	2023
	£m	£m
Year 1	254.0	236.8
Year 2	155.0	129.5
Year 3	106.4	83.8
Year 4	87.3	71.9
Year 5	73.9	60.4
Onwards	270.2	273.6
Total	946.8	856.0

4.7 Capital management

The capital structure of the Group consists of shareholders’ equity and adjusted net debt, including cash held on deposit. The Group’s

equity is analysed into its various components in the Statement of Changes in Equity. The components and calculation of adjusted

net debt is set out in note 4.4. Capital is managed so as to continue as a going concern and to promote the long-term success of the

business and to maintain sustainable returns for shareholders and joint venture partners.

The Group uses a number of key metrics to manage its capital structure:

• Net debt (note 4.4)

• Gearing (note 4.4)

• LTV (note 2.3a)

• Weighted average cost of investment debt (note 4.5a)

• Interest cover (note 4.5d).

In order to manage levels of adjusted gearing over the medium term, the Group seeks to deliver NAV growth and to recycle capital

invested in lower performing assets to fund new investment. Three property assets were sold in 2024.

The Group only commits to development schemes where there is a meaningful spread between development yields and funding costs.

The Group does not commit to developing new sites until sufficient funding is secured to fulfill the cost of the development in full.

The Board monitors the ability of the Group to pay dividends out of available cash and distributable profits. Based on the assumption

that no shareholders take up the final scrip dividend, the full year will be covered by operating cash flows. The full year dividend is

expected to be £182.1 million compared to operating cash flow of £216.4 million.

NOTES TO THE FINANCIAL STATEMENTS continued

THE UNITE GROUP PLC

Annual Report and Accounts 2024

195

4.8 Equity

Accounting policies

Ordinary shares are classified as equity. External costs directly attributable to the issue of new shares, other than on a business

combination, are shown as a deduction, net of tax, in equity from the proceeds. Share issue costs incurred directly in connection

with a business combination are deducted from the proceeds of the issue.

The Company’s issued share capital has increased during the year as follows:

		2024			2023
Called up, allotted and fully paid ordinary
shares of £0.25p each
	No. of
	shares
		Ordinary
		shares
			Share
			Premium
				No. of
				shares
					Ordinary
					shares
						Share
						Premium
		£m	£m		£m	£m
At 1 January	435,854,542	109.4	2,447.6	400,317,225	100.1	2,162.0
Shares issued (capital raise)	50,000,000	12.1	430.1	33,149,172	8.6	286.3
Shares issued (scrip dividend)	2,808,461	0.7	(0.7)	2,232,001	0.6	(0.6)
Share options exercised	129,071	-	(0.1)	156,144	0.1	(0.1)
At 31 December	488,792,074	122.2	2,876.9	435,854,542	109.4	2,447.6

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share

at meetings of the Company. All shares rank equally with regard to the Company’s residual assets.

The Company’s reserves are as follows:

• Called-up share capital reserves contain the nominal value of the shares issued

• Share premium reserves contain the excess consideration received above the nominal value of the shares issued

• Merger reserves contain the excess in the value of shares issued by the Company in exchange for the value of shares acquired in

respect of subsidiaries acquired (specifically on the acquisition of the Unilodge portfolio in June 2001)

• Hedging reserves contain the cumulative gains and losses on hedging instruments deemed effective

• Retained earnings contain the cumulative profits and losses of the Company net of dividends paid and other adjustments.

4.9 Dividends

Accounting policies

Dividends are recognised through equity on the earlier of their approval by the Company’s shareholders or their payment.

During the year, the Company paid the final 2023 dividend of £64.0 million – 23.6p per share – and an interim 2024 dividend of £52.0

million – 12.4p per share (2023: final 2022 dividend 21.7p and an interim dividend 11.8p).

After the year-end, the Directors proposed a final dividend per share of 24.9p (2023: 23.6p), bringing the total dividend per share for

the year to 37.3p (2023: 35.4p). No provision has been made in relation to this dividend.

The Group has modelled tax adjusted property business profits for 2024 and 2025 and the PID requirement in respect of the year

ended 31 December 2024 is expected to be satisfied by the end of 2025.

THE UNITE GROUP PLC

Annual Report and Accounts 2024

196

FINANCIAL STATEMENTS

Section 5: Working capital

This section focuses on how the Group generates its operating cash flows. Careful management of working capital is vital

to ensure that the Group can meet its trading and financing obligations within its ordinary operating cycle.

On the following pages you will find disclosures around the Group’s cash position and how cash is generated from the

Group’s trading activities, and disclosures around trade receivables and payables.

Accounting policies

Cash and cash equivalents comprise cash balances and call deposits. Cash equivalents are short term, highly liquid investments

that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

Bank overdrafts that are repayable on demand and form an integral part of the Group’s cash management are included as

a component of cash and cash equivalents for the purpose of the statement of cash flows.

5.1 Cash and cash equivalents

The Group’s cash position at 31 December 2024 was £274.3 million (2023: £37.5 million). Of this balance, £180m was cash equivalents

money market deposits, £94.3 million was cash.

The Group’s cash balances include £1.1 million (2023: £1.1 million) whose use at the balance sheet date is restricted by funding

agreements to pay operating costs.

The Group generates cash from its operating activities as follows:

		Group
		2024	2023
	Note	£m	£m
Profit for the year		441.8	103.6
Adjustments for:
Depreciation and amortisation	3.3	5.7	6.3
Fair value of share based payments	6.1	2.4	3.4
Change in value of investment property (owned and under development)	3.1	(186.7)	37.2
Change in value of investment property (leased)	3.1	1.9	10.4
Net finance costs	4.3	2.7	18.5
Interest payment for leased assets		8.8	7.7
Swap break and debt exit costs		3.1	-
Mark to market changes in interest rate swaps		0.3	17.2
Loss/(profit) on disposal of investment property		9.8	(11.8)
Share of joint venture profit	3.4b	(115.9)	(27.0)
Trading with joint venture adjustment	3.4b	4.6	4.5
Tax charge/(credit)	2.5a	2.1	(1.1)
Cash flows from operating activities before changes in working capital		180.6	168.8
Decrease/(increase) in trade and other receivables		(12.0)	(24.8)
(lncrease)/decrease in inventories		(5.3)	(13.5)
Increase/(decrease) in trade and other payables		48.2	24.4
Cash flows from operating activities		211.5	155.0
Tax paid/ (received)		4.9	(1.8)
Net cash flows from operating activities		216.4	153.2

Cash flows consist of the following segmental cash inflows/(outflows): Operations £210.4 million (2023: £178.0 million),

Property (£249.6 million) (2023: (£354.0 million)) and Unallocated £276.0 million (2023: £175.5 million).

The Unallocated amount includes a net cash outflow of dividends paid of £137.8 million (2023: £117.3 million) and a cash inflow of

£442.0 million (net of fees) as a result of the capital raise in July 2024 (2023: £295.0 million).

NOTES TO THE FINANCIAL STATEMENTS continued

THE UNITE GROUP PLC

Annual Report and Accounts 2024

197

5.2 Trade and other receivables

Accounting policies

On the basis that trade receivables meet the business model and cash flow characteristics tests, they are initially recognised at

transaction price and then subsequently measured at amortised cost.

The Group applies the IFRS 9 simplified model of recognising lifetime expected credit losses for all trade receivables as these

items do not have a significant financing component.

In measuring the expected credit losses, the trade receivables have been assessed on a collective basis as they possess shared

credit risk characteristics. They have been grouped based on the days past due and also according to whether the tenant is a

commercial organisation (including universities) or an individual student.

The expected loss rates are based on the payment profile for sales by academic year as well as the corresponding historical

credit losses during the period. The historical rates are adjusted to reflect any current and forward-looking macroeconomic

factors affecting the customer’s ability to settle the amount outstanding, however given the short period exposed to credit risk,

the impact of macroeconomic factors has not been considered significant within the reporting period.

Trade receivables are written off (i.e. derecognised) when there is no reasonable expectation of recovery. Failure to make

payments within a reasonable period from the invoice date and failure to engage with the Group on alternative payment

arrangements, amongst others, are considered indicators of no reasonable expectation of recovery.

Other financial asset balances are assessed for expected credit losses based on the underlying nature of the asset, including

maturity and age of the asset such as whether a longer-term asset or a short-term working capital balance is subject to regular

settlement arrangements, using the 12-month ECL model. No credit losses have been recognised in respect of these balances.

Financial assets written off may still be subject to enforcement activities under the Group’s recovery procedures, taking into

account legal advice where appropriate. Any recoveries made are recognised in profit or loss.

The Company’s impairment policies in relation to financial assets are consistent with those of the Group, with additional

consideration given to loans to Group undertakings. In this respect, the Company recognises lifetime ECL when there has been

a significant increase in credit risk (such as changes to credit ratings) since initial recognition. However, if the credit risk on the

loans have not increased significantly since initial recognition, the Company measures the loss allowance for that financial

instrument at an amount equal to 12-month ECL.

The Company expects that the loans to Group undertakings will be repaid in full at maturity or when called. If the Group

undertakings were unable to repay loan balances, the Company expects that in such circumstances the counterparty would

negotiate extended credit terms with the Company. As such, the expected credit loss is considered immaterial. No change

in credit risk is deemed to have occurred since initial recognition and therefore a 12-month expected credit loss has been

calculated based on the assessed probability of default.

Trade and other receivables can be analysed as follows:

		Group		Company
	Note
		2024	2023	2024	2023
		£m	£m	£m	£m
Trade receivables		37.5	34.8	-	-
Amounts owed by joint ventures		56.7	49.4	-	-
Prepayments and accrued income		16.2	14.8	-	-
Other receivables		34.2	33.8	-	-
Trade and other receivables		144.6	132.8	-	-
Loans to Group undertakings (non-current)	5.6	-	-	3,416.1	2,130.0
Trade and other receivables (non-current)		-	-	3,416.1	2,130.0

The Group offers tenancy contracts to commercial (universities and retail unit tenants) and individual tenants based on the

academic year. The Group monitors and manages the recoverability of its receivables based on the academic year to which the

amounts relate. Rental income is payable immediately, therefore all receivables relating to tenants are past the payment due date.

THE UNITE GROUP PLC

Annual Report and Accounts 2024

198

FINANCIAL STATEMENTS

5.2 Trade and other receivables continued

We do not anticipate there to be any expected credit loss on amounts receivable from joint ventures as these remain profitable.

Details of amounts due from Group undertakings to the Company are disclosed in note 5.6.

2024		Ageing by academic year
	Total	2024/25	2023/24	Prior years
	£m	£m	£m	£m
Rental debtors
Commercial tenants (past due and impaired)	1.5	0.5	0.6	0.4
Individual tenants (past due and impaired)	47.3	39.9	2.8	4.6
Expected credit loss carried	(11.3)	(2.9)	(3.4)	(5.0)
Trade receivables	37.5	37.5	-	-

2023		Ageing by academic year
	Total	2023/24	2022/23	Prior years
	£m	£m	£m	£m
Rental debtors
Commercial tenants (past due and impaired)	1.8	0.6	0.5	0.7
Individual tenants (past due and impaired)	51.4	39.5	3.7	8.2
Expected credit loss carried	(18.4)	(5.3)	(4.2)	(8.9)
Trade receivables	34.8	34.8	-	-

Included within trade receivables is £20.3 million of receivables relating to joint venture debtors (2023: £16 million).

Movements in the Group’s expected credit losses of trade receivables can be shown as follows:

	2024	2023
	£m	£m
At 1 January	18.4	15.6
Expected credit loss charged to income statement in year	0.9	3.0
Receivables written off during the year (utilisation of expected credit loss)	(8.0)	(0.2)
At 31 December	11.3	18.4

The loss allowance for trade receivables is estimated as an amount equal to the lifetime expected credit loss (ECL). This loss has been

estimated using the Group’s history of loss for similar assets and takes into account current and forecast conditions.

The impact of credit losses is not considered significant in respect of the financial statements.

5.3 Credit risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual

obligations. It arises principally from the Group’s cash balances, the Group’s receivables from customers and joint ventures and loans

provided to the Group’s joint ventures.

At the year-end, the Group’s maximum exposure to credit risk was as follows:

	Note
		2024	2023
		£m	£m
Cash	5.1	274.3	37.5
Trade receivables	5.2	37.5	34.8
Amounts due from joint ventures (excluding loans that are capital in nature)	5.2	56.7	49.4
		368.5	121.7

NOTES TO THE FINANCIAL STATEMENTS continued

THE UNITE GROUP PLC

Annual Report and Accounts 2024

199

5.3a) Cash

The Group operates investment guidelines with respect to surplus cash. Counterparty limits for cash deposits are largely based upon

long-term ratings published by credit rating agencies and credit default swap rates. Deposits are placed with financial institutions

with A- or better credit ratings.

5.3b) Trade receivables

The Group’s customers can be split into two groups – (i) students (individuals) and (ii) commercial organisations including universities.

The Group’s exposure to credit risk is influenced by the characteristics of each customer.

5.3c) Joint ventures

Amounts receivable from joint ventures fall into two categories – working capital balances and investment loans. The Group has

strong working relationships with its joint venture partners, and the joint ventures themselves have strong financial performance,

retain net asset positions and are cash generative, and therefore the Group views this as a low credit risk balance. No impairment

has therefore been recognised in 2024 or 2023.

5.4 Trade and other payables

Accounting policies

Trade payables are initially recognised at the value of the invoice received from a supplier (fair value) and subsequently at

amortised cost. The carrying value of trade payables is considered approximate to fair value.

Group amounts are payable on demand.

Trade and other payables due within one year can be analysed as follows:

	Group		Company
	2024	2023	2024	2023
	£m	£m	£m	£m
Trade payables	73.7	42.3	-	-
Retentions on construction contracts for properties	8.1	6.3	-	-
Amounts due to Group undertakings	-	-	102.1	66.7
Other payables and accrued expenses	95.3	85.4	24.8	9.1
Deferred income	78.4	73.8	-	-
Trade and other payables	255.5	207.8	126.9	75.8

Included within other payables and accrued expenses is £19.4 million of capital expenditure accruals (2023: £19.1 million).

Deferred income relates to rental income that has been collected in advance of it being recognised as income and includes £41.1

million of income relating to joint ventures (2023: £38.4 million).

5.5 Provisions

Accounting policies

Provisions are recognised when the Group has a present obligation as a result of a past event, it is probable that the Group will be

required to settle that obligation, and a reliable estimate can be made of the amount of that obligation. Provisions are measured

at the Directors’ best estimate of the expenditure required to settle the obligation and are discounted to present value where the

effect is material.

The Group continues to carry out replacement works for properties with HPL cladding and those where there is a legal obligation to do

so, with activity prioritised according to risk assessments. The remaining cost of the works is expected to be £5.6 million (Unite share:

£5.3 million), of which £5.1 million is in respect of wholly-owned properties. Whilst the overall timetable for these works is uncertain,

management anticipate this will be incurred over the next 12–24 months.

THE UNITE GROUP PLC

Annual Report and Accounts 2024

200

FINANCIAL STATEMENTS

5.5 Provisions continued

The Government’s Building Safety Bill, covering building standards, was passed in April 2022 and has introduced more stringent

fire safety regulations. The Group will ensure it remains aligned to fire safety regulations as they evolve and continue to make any

required investment to ensure its buildings remain safe to occupy. The Group has provided for the costs of remedial work where

there is a legal obligation to do so.

The amounts provided reflect the current best estimate of the extent and future cost of the remedial works required and are based

on known costs and quotations where possible, and reflect the most likely outcome. However, these estimates may be updated as

work progresses or if government legislation and regulation changes.

The regulations continue to evolve in this area and Unite Group will ensure that its buildings are safe for occupation and compliant

with laws and regulations.

The Group has not recognised any assets in respect of future claims, but expect to recover 50–75% of remediation costs through

claims from contractors.

The Group has recognised provisions for the cost of these cladding works as follows:

		Gross
		£m
						Unite Group Share
						£m
	Wholly-
	owned	USAF	LSAV	Total
					Wholly-
					owned	USAF	LSAV	Total
At 31 December 2022	29.5	55.6	28.2	113.3	29.5	15.6	14.1	59.2
Adjustment due to re-estimates	(3.6)	(3.3)	-	(6.9)	(3.6)	(0.9)	-	(4.5)
Additions	21.3	51.5	22.2	95.0	21.3	14.5	11.1	46.9
Utilisation	(21.8)	(49.7)	(6.9)	(78.4)	(21.8)	(14.0)	(3.5)	(39.3)
Transferred to valuations	(20.2)	(48.2)	(12.3)	(80.7)	(20.2)	(13.6)	(6.2)	(40.0)
At 31 December 2023	5.2	5.9	31.2	42.3	5.2	1.6	15.5	22.3
Adjustment due to re-estimates	(0.1)	(2.0)	-	(2.1)	(0.1)	(0.6)	-	(0.7)
Additions	-	-	-	-	-	-	-	-
Utilisation	-	(3.4)	(4.6)	(8.0)	-	(0.9)	(2.2)	(3.1)
Transferred to valuations	-	-	(26.6)	(26.6)	-	-	(13.3)	(13.3)
At 31 December 2024	5.1	0.5	-	5.6	5.1	0.1	-	5.2

5.6 Transactions with other Group companies

The Company was charged by Unite Integrated Solutions plc for corporate costs of £5.0 million (2023: £4.8 million). As a result of

these intercompany transactions, the following amounts were due from/to the Company’s subsidiaries at the year-end.

	2024	2023
	£m	£m
Unite Holdings Limited	121.9	126.6
LDC (Holdings) Limited	1,658.0	1,112.0
Liberty Living Group	1,509.2	891.4
LDC (Portfolio) Ltd	127.0	-
Amounts due from Group undertakings	3,416.1	2,130.0
Unite Integrated Solutions plc	102.1	62.0
Amounts due to Group undertakings	102.1	62.0

The Parent Company has received management fees from its joint ventures, which are disclosed in note 3.4c.

The Company ensures the recoverability of intercompany receivable balances at the balance sheet date by ensuring that the

counterparties have sufficient net assets to settle the balance outstanding.

NOTES TO THE FINANCIAL STATEMENTS continued

THE UNITE GROUP PLC

Annual Report and Accounts 2024

201

Section 6: Key management and employee benefits

The Group’s greatest resource is its staff and it works hard to develop and retain its people. The remuneration policies in

place are aimed to help recognise the contribution that Unite Group’s people make to the performance of the Group.

On the following pages you will find disclosures around wages and salaries and share option schemes which allow

employees of the Group to take an equity interest in the Group.

Accounting policies

The Group operates a defined contribution pension scheme. Obligations for contributions to defined contribution pension plans

are recognised as an expense in the income statement as incurred.

6.1 Staff numbers and costs

With the exception of the Directors, who are employed by Unite Group PLC, all employees are employed by subsidiaries of the

Group. The employee costs of Unite Group PLC are borne by another Group company.

The average number of persons employed by the Group (including Directors) during the year (calculated on a monthly basis),

analysed by category, was as follows:

	Number of employees
	2024	2023
Managerial and administrative	617	580
Site operatives	1,291	1,241
	1,908	1,821

The aggregate payroll costs of these persons were as follows:

	2024	2023
	£m	£m
Wages and salaries	79.6	72.1
Social security costs	7.9	6.8
Pension costs	3.8	3.3
Fair value of share-based payments	2.4	3.4
	93.7	85.6

The wages and salaries costs include redundancy costs of £0.5 million (2023: £0.2 million) and costs due to senior leadership changes

of £nil million (2023: £2.9 million).

The total number of persons employed by the Group (including Directors) and Company as at 31 December 2024 was 625 managerial

and administrative and 1,281 site operatives.

6.2 Key management personnel

The remuneration of the Directors, including Non-Executive Directors, who are the key management personnel of the Group and

Company, is set out below in aggregate for each of the applicable categories specified in IAS 24 Related Party Disclosures. Further

information about the remuneration of individual Directors is provided in the audited part of the Directors’ Remuneration Report on

page 128 which covers the requirements of schedule 5 of the relevant legislation.

	2024	2023
	£m	£m
Short-term employee benefits	2.7	2.4
Post employment benefits	0.1	0.1
Share-based payment benefits	0.5	1.2
	3.3	3.7

THE UNITE GROUP PLC

Annual Report and Accounts 2024

202

FINANCIAL STATEMENTS

6.3 Share-based compensation

A transaction is classified as a share-based transaction where the Group receives services from employees and pays for these in

shares or similar equity instruments. The Group operates a number of share-based compensation schemes allowing employees to

acquire shares in the Company.

6.3a) Share schemes

The Group operates the following schemes:

Long-term incentive plan (LTIP), comprising the:

– Performance Share Plan (PSP); and Details can be found in the Directors’ Remuneration Report

– HMRC Approved Employee Share Option Scheme (ESOS)

Save As You Earn Scheme (SAYE) Open to employees, vesting periods of three years,

service condition

6.3b) Outstanding share options

The table below summarises the movements in the number of share options outstanding for the Group and their average exercise price:

			Weighted
			average	Number of
	Weighted
	average	Number of
	exercise
	price
		options
			exercise
			price
				options
		(thousands)		(thousands)
	2024	2024	2023	2023
Outstanding at 1 January	£2.49	1,942	£0.19	2,083
Forfeited during the year	£5.15	(170)	£2.01	(765)
Exercised during the year	£1.20	(201)	£4.91	(176)
Granted during the year	£2.84	810	£2.95	800
Outstanding at 31 December	£2.53	2,381	£0.18	1,942
Exercisable at 31 December	£9.65	84	£5.80	78

For those options exercised in the year, the average share price during 2024 was £9.35 (2023: £9.40).

For those options still outstanding, the range of exercise prices at the year-end was 0p to 1,121p (2023: 0p to 1,121p) and the

weighted average remaining contractual life of these options was 3.9 years (2023: 2.9 years).

The Group funds the purchase of its own shares by the Employee Share Ownership Trust to meet the obligations of the LTIP

and executive bonus scheme. The purchases are shown as Own shares acquired in retained earnings.

As at 31 December 2024, the number of shares held by the ESOT was 203,898 (2023: 209,954).

The accounting is in accordance with the relevant standards. No further information is given as the amounts for share-based

payments are immaterial.

Section 7: Post balance sheet events

The Group has reviewed events up to 25 February 2025 and have determined that no material post balance sheet events have occurred.

NOTES TO THE FINANCIAL STATEMENTS continued

THE UNITE GROUP PLC

Annual Report and Accounts 2024

203

Section 8: Alternative performance measures

The Group uses alternative performance measures (APMs), which are not defined or specified under IFRS. These APMs, which are

not considered to be a substitute for IFRS measures, provide additional helpful information. APMs are consistent with how business

performance is planned, reported and assessed internally by management and the Board. The APMs below have been calculated

on a see through/Unite Group share basis, as referenced to the notes to the financial statements. Reconciliations to equivalent IFRS

measures are included in notes 2.2b and 2.2c. Definitions can also be found in the glossary.

Adjusted earnings of the Group excludes the non-recurring impact of one-off transactions, improving comparability between

reporting periods.

Non-EPRA measures may not have comparable calculation bases between companies and therefore may not provide meaningful

industry-wide comparability.

		2024	2023
	Note	£m	£m
EBIT
Net operating income (NOI)	2.2a	276.1	256.5
Management fees	2.2a	17.3	16.9
Overheads	2.2a	(22.5)	(22.1)
		270.9	251.3
EBIT margin %
Rental income	2.2a	398.0	369.5
EBIT	8	270.9	251.3
		68.1%	68.0%
EBITDA
Net operating income	2.2a	276.1	256.5
Management fees	2.2a	17.3	16.9
Overheads	2.2a	(22.5)	(22.1)
Depreciation and amortisation	3.3	5.7	6.3
		276.6	257.6
Net debt
Cash	2.3a	364.7	77.2
Debt	2.3a	(1,874.8)	(1,648.1)
		(1,510.1)	(1,570.9)
EBITDA : Net debt
EBITDA	8	276.6	257.6
Net debt	8	(1,510.1)	(1,570.9)
Ratio		5.5	6.1
Interest cover (Unite Group share)
EBIT	8	270.9	251.3
Net financing costs	2.2a	(35.2)	(47.4)
Interest on lease liabilities	2.2a	(8.8)	(7.7)
Total interest		(43.9)	(55.1)
Ratio		6.2	4.6

THE UNITE GROUP PLC

Annual Report and Accounts 2024

204

FINANCIAL STATEMENTS

Reconciliation: IFRS profit before tax to EPRA earnings and adjusted earnings

		2024	2023
	Note	£m	£m
IFRS profit before tax		444.0	102.5
Net valuation (gains) on investment property	2.2b	(253.7)	59.1
Property disposals	2.2b	12.2	(8.3)
Net valuation losses on investment property (leased)	2.2b	1.9	10.4
Amortisation of fair value of debt recognised on acquisition	2.2b	(4.1)	(4.3)
Changes in valuation of interest rate swaps	2.2b	0.4	17.2
Swap cancellation and debt exit fees	2.2b	3.1	-
Non-controlling interest, tax and other items		(1.9)	(0.4)
EPRA earnings		201.9	176.1
Software as a service costs		11.9	8.2
Adjusted earnings		213.8	184.3

Adjusted EPS yield

	2024	2023
Adjusted earnings per share (A)	46.6p	44.3p
EPRA NTA 1 January (B)	920p	927p
Adjusted EPS yield (A/B)	5.1%	4.8%

Total accounting return

	2024	2023
Opening EPRA NTA (A)	920p	927p
Closing EPRA NTA	972p	920p
Movement in EPRA NTA	52p	(7p)
2023 final dividend	23.6p	21.7p
2024 interim dividend	12.4p	11.8p
Total Movement in NTA (B)	88.0p	25.9p
Total Accounting Return - % (B)/(A)	9.6%	2.9%

EPRA performance measures

	2024	2023	2024	2023
	£m	£m	pps	pps
EPRA earnings	201.9	176.1	44.0	42.4
Adjusted earnings*	213.8	184.3	46.6	44.3
EPRA NTA	4,758.4	4,014.7	972	920
EPRA NRV	5,236.2	4,330.7	1,069	992
EPRA NDV	4,853.3	4,116.0	994	943
EPRA net initial yield			4.8%	4.8%
EPRA topped up net initial yield			4.8%	4.8%
EPRA like-for-like gross rental income			2.6%	2.6%
EPRA vacancy rate			2.0%	0.3%
EPRA cost ratio (including vacancy costs)			35.2%	35.2%
EPRA cost ratio (excluding vacancy costs)			34.9%	34.9%

* Adjusted earnings calculated as EPRA earnings less software as a service and abortive costs.

NOTES TO THE FINANCIAL STATEMENTS continued

THE UNITE GROUP PLC

Annual Report and Accounts 2024

205

EPRA like-for-like rental income (calculated based on total portfolio value of £9.1 billion)

	Like-for-like
	properties
		Development
		property
			Other
			Properties*
				Total EPRA
				Earnings
2024
Rental income	345.7	6.8	45.5	398.0
Property operating expenses	(106.4)	(2.1)	(13.4)	(121.9)
Net rental income	239.3	4.7	32 .1	276.1
2023
Rental income	321.5	2.0	46.0	369.5
Property operating expenses	(100.0)	(0.4)	(12.6)	(113.0)
Net rental income	221.5	1.6	33.4	256.5
Like-for-like net rental income £m	18.0
Like-for-like net rental income %	8.0%
Like-for-like gross rental income £m	24.2
Like-for-like gross rental income %	7.5%

* Other properties include acquisitions, disposals, major refurbishments and changes in ownership.

EPRA vacancy rate

	2024	2023
	£m	£m
Estimated rental value of vacant space	6.5	0.9
Estimated rental value of the whole portfolio	320.3	283.9
EPRA vacancy rate	2.0%	0.3%

EPRA net initial yield

	2024	2023
Net operating income (£m)
	305.5	278.3
Property market value (£m)
	5,948.2	5,510.4
Notional acquisition costs (£m)	392.2	288.6
	6,340.3	5,799.0
EPRA net initial yield (%)*	4.8%	4.8%
Difference in projected versus historical GOI	0.3%	0.2%
Unite net initial yield	5.1%	5.0%

* No lease incentives are provided by the Group and accordingly the Topped Up Net Initial Yield measure is also 4.8% (2023: 4.8%).

THE UNITE GROUP PLC

Annual Report and Accounts 2024

206

FINANCIAL STATEMENTS

EPRA cost ratio

	2024	2023
	£m	£m
Property operating expenses	87.2	79.8
Overheads*	21.6	21.2
Development / pre contract	3.8	2.7
Unallocated expenses	8.8	8.8
	121.4	112.5
Share of JV property operating expenses	34.7	33.2
Share of JV operating expenses	0.9	0.9
Share of JV unallocated expenses	0.5	0.4
	157.5	147.0
Less: Joint venture management fees	(17.3)	(16.9)
Total costs (A)	140.2	130.1
Group vacant property costs**	(0.9)	(0.8)
Share of JV vacant property costs**	(0.3)	(0.3)
Total costs excluding vacant property costs (B)	138.9	129.0
Gross rental income
Rental income	282.0	259.2
Share of JV rental income	116.0	110.3
Total gross rental income (C)	398.0	369.5
Total EPRA cost ratio (including vacant property costs) (A)/(C)	35.2%	35.2%
Total EPRA cost ratio (excluding vacant property costs) (B)/(C)	34.9%	34.9%

* Excludes software as a service cost net of deferred tax and abortive costs.

** Vacant property costs reflect the per bed share of operating expenses allocated to vacant beds.

Unite Group’s EBIT margin excludes non-operational expenses which are included within the EPRA cost ratio above.

Unite Group capitalises costs in relation to staff costs and professional fees associated with property development activity.

NOTES TO THE FINANCIAL STATEMENTS continued

THE UNITE GROUP PLC

Annual Report and Accounts 2024

207

EPRA yield movement

	NOI yield		Yield movement (bps)
	%	H1	H2	FY
Wholly-owned	5.2%	8	7	15
USAF	5.2%	(1)	2	1
LSAV	4.5%	-	2	2
Rental properties (Group share)	5.1%	7	11	18

Property-related capital expenditure

		2024			2023
	Wholly
	owned
		Share of
		JVs
			Group
			share
				Wholly
				owned
					Share of
					JVs
						Group
						share
London	13.0	18.5	31.5	4.3	20.5	24.8
Prime regional	12.4	6.1	18.5	19.3	4.8	24.1
Major regional	36.8	13.8	50.6	24.6	3.0	27.6
Provincial	2.6	4.5	7.1	5.2	1.3	6.5
Total rental properties	64.8	42.9	107.7	53.5	29.6	83.0
Acquisitions	282.9	34.5	317.4	2.1	-	2.1
Developments	263.7	-	263.7	58.8	-	58.8
Capitalised interest	15.5	-	15.5	8.4	-	8.4
Total property related capex	626.9	77.4	704.3	122.7	29.6	152.3

EPRA loan to value

	2024
	£m
		2023
		£m
Investment property (owned)	5,852.0	5,510.4
Investment property (under development)	451.4	174.7
Intangibles	10.4	9.3
Total property value and other eligible assets	6,313.8	5,694.4
Cash at bank and in hand	364.7	77.2
Borrowings	(1,874.8)	(1,648.1)
Net other payables	(33.9)	(100.3)
EPRA Net debt	(1,544.0)	(1,671.2)
EPRA loan to value	24.4%	29.3%

THE UNITE GROUP PLC

Annual Report and Accounts 2024

208

FINANCIAL STATEMENTS

Section 9: Company subsidiaries and joint ventures

In accordance with Section 409 of the Companies Act 2006, a full list of subsidiaries and equity accounted investments as at

31 December 2024 is disclosed below. Unless otherwise stated, the Group’s ownership interest represents 100% of the ordinary

shares, units or partnership capital held indirectly by Unite Group PLC. No subsidiary undertakings have been excluded from the

consolidation. The Unite Foundation has a year-end of 30 September to facilitate academic year reporting. All other subsidiaries have

a year-end of 31 December.

Registered office and principal place of business: South Quay House, Temple Back, Bristol, United Kingdom, BS1 6FL
Filbert Village GP Limited (06016554) (21.3%)	LDC (Hillhead) Limited (06176554)**
Filbert Village Student Accommodation Limited Partnership (29.1%)	LDC (Holdings) Limited (02625007)*
LDC (180 Stratford) Limited (14254727)**	LDC (Imperial Wharf) Limited (04541678)**
LDC (AIB Warehouse) Limited (04872419)**	LDC (International House) Limited (10131352)**
LDC (Alscot Road) Limited (06176428)**	LDC (Kelham Island) Limited (05152229)**
LDC (Brunel House) Limited (09760628)**	LDC (Leasehold A) Limited (04066933)**
LDC (Camden Court Leasehold) Limited (05140620)**	LDC (Leasehold B) Limited (05978242)**
LDC (Camden Court) Limited (05082671)**	LDC (Loughborough) Limited (04207522)**
LDC (Capital Cities Nominee No.1) Limited (05347228) (50.%)**	LDC (Magnet Court Leasehold) Limited (05140255)**
LDC (Capital Cities Nominee No.2) Limited (05359457) (50.%)**	LDC (Millennium View) Limited (09890375)**
LDC (Capital Cities Nominee No.3) Limited (08792780) (50.%)**	LDC (MTF Portfolio) Limited (05530557)**
LDC (Capital Cities Nominee No.4) Limited (08792688) (50.%)**	LDC (Nairn Street) GP1 Limited (07580262) (21.3%)
LDC (Capital Cities) Limited (05347220) (50.%)**	LDC (Nairn Street) GP2 Limited (07580257) (21.3%)
LDC (Causewayend) Limited (08895966)**	LDC (Nairn Street) GP3 Limited (07808933)
LDC (Chantry Court Leasehold) Limited (05140258)**	LDC (Nairn Street) GP4 Limited (07808919)
LDC (Chaucer House) Limited (09898020)**	LDC (Nairn Street) Holdings Limited (07579402)**
LDC (Constitution Street) Limited (09210998)**	LDC (Nairn Street) Limited Partnership (29.1%)
LDC (Construction Two) Limited (04847268)**	LDC (Nairn Street) Management Limited Partnership (29.1%)
LDC (Euro Loan) Limited (06623603)**	LDC (New Wakefield Street) Limited (10436455)**
LDC (Ferry Lane 2) GP1 Limited (07359448) (50.%)**	LDC (Newgate) Limited (08895869)**
LDC (Ferry Lane 2) GP2 Limited (07359481) (50.%)**	LDC (Old Hospital) Limited (09702143)**
LDC (Ferry Lane 2) GP3 Limited (07503842)**	LDC (Oxford Road Bournemouth) Limited (04407309)**
LDC (Ferry Lane 2) GP4 Limited (07503913)**	LDC (Portfolio 100) Limited (07989369)**
LDC (Ferry Lane 2) Holdings Limited (07504099) (50.%)**	LDC (Portfolio 20) Limited (08803996)**
LDC (Ferry Lane 2) Limited Partnership (50.0%)**	LDC (Portfolio Five) Limited (06079581)**
LDC (Ferry Lane 2) Management Limited Partnership (50.0%)**	LDC (Portfolio Four) Limited (04985603)**
LDC (Finance) Limited (09760806)**	LDC (Portfolio One) Limited (03005262)**
LDC (Greetham Street) Limited (08895825)**	LDC (Portfolio) Limited (08419375)**
LDC (Gt Suffolk St) GP1 Limited (07274156)**	LDC (Project 110) Limited (05083580)**
LDC (Gt Suffolk St) GP2 Limited (07274000)**	LDC (Project 111) Limited (05791650)**
LDC (Gt Suffolk St) Holdings Limited (07353946)**	LDC (Radmarsh Road) Limited (05435290)**
LDC (Gt Suffolk St) Limited Partnership**	LDC (Skelhorne) Limited (09898132)**
LDC (Gt Suffolk St) Management GP1 Limited (07354719)**	LDC (Smithfield) Limited (03373096)**
LDC (Gt Suffolk St) Management GP2 Limited (07354728)**	LDC (St Leonards) Limited (08895830)**
LDC (Gt Suffolk St) Management Limited Partnership**	LDC (St Pancras Way) GP1 Limited (07359501)**
LDC (Hampton Street) Limited (06415998)**	LDC (St Pancras Way) GP2 Limited (07359428)**

* Held directly by the Company.

** Company is exempt from the requirements of the Companies Act relating to the audit of individual financial statements by virtue

of s477 or s379A for the financial year ended 31 December 2024.

NOTES TO THE FINANCIAL STATEMENTS continued

THE UNITE GROUP PLC

Annual Report and Accounts 2024

209

Registered office and principal place of business: South Quay House, Temple Back, Bristol, United Kingdom, BS1 6FL
LDC (St Pancras Way) GP3 Limited (07503268)**	Liberty Living Investments Nominee 3 Limited (10519085)**
LDC (St Pancras Way) GP4 Limited (07503251)**	Liberty Living Limited (04055891)**
LDC (St Pancras Way) Holdings Limited (07360734)**	Liberty Living SpareCo Limited (04616115)**
LDC (St Pancras Way) Limited Partnership**	Liberty Living UK Limited (06064187)**
LDC (St Pancras Way) Management Limited Partnership**	Liberty Park (Bedford) Limited (BVI) **
LDC (St Vincent's) Limited (10218310)**	Liberty Park (Bristol) Limited (07615601)**
LDC (Stratford) GP1 Limited (07547911) (50.%)	Liberty Park (US Bristol) Limited (07615619)**
LDC (Stratford) GP2 Limited (07547994) (50.%)	Liberty Plaza (London) Limited (07745097)**
LDC (Stratford) Limited Partnership (50.%)**	Liberty Plaza (Newcastle) Limited (BVI) **
LDC (Swindon NHS) Limited (04207502)**	Liberty Point (Coventry) Limited (04992358)**
LDC (Tara House) Limited (09214177)**	Liberty Point (Manchester) Limited (04828083)**
LDC (Thurso Street) GP1 Limited (07199022)**	Liberty Point Southampton (Block A) Limited (10314954)**
LDC (Thurso Street) GP2 Limited (07198979)**	Liberty Prospect Point (Liverpool) Limited (04637570)**
LDC (Thurso Street) GP3 Limited (07434001)**	Liberty Quay (Newcastle) Limited (05234174)**
LDC (Thurso Street) GP4 Limited (07434133)**	Liberty Quay 2 (Newcastle) Limited (07376627)**
LDC (Thurso Street) Limited Partnership**	Liberty Severn Point (Cardiff) Limited (04313995)**
LDC (Thurso Street) Management Limited Partnership**	Liberty Village (Edinburgh) Limited (10323566)**
LDC (Ventura) Limited (04444628)**	LL Midco 2 Limited (08998308)**
LDC (Vernon Square) Limited (06444132)**	LSAV (Angel Lane) GP1 Limited (08593689) (50.%)**
LDC (William Morris II) Limited (05999281)**	LSAV (Angel Lane) GP2 Limited (08593692) (50.%)**
LDC Capital Cities Two (GP) Limited (08790742) (50.%)**	LSAV (Angel Lane) GP3 Limited (08646359)**
Liberty Atlantic Point (Liverpool) Limited (03885187)**	LSAV (Angel Lane) GP4 Limited (08646929)**
Liberty Heights (Manchester) Limited (07399622)**	LSAV (Angel Lane) Limited Partnership (50.%)**
Liberty Living (HE) Holdings Ltd – Company Only (10977869)**	LSAV (Angel Lane) Management Limited Partnership (50.%)**
Liberty Living (LH Manchester) Limited (07120141)**	LSAV (Arch View) GP1 Limited (13210709) (50.%)
Liberty Living (Liberty AP) Limited (03633307)**	LSAV (Arch View) GP3 Limited (13210526)**
Liberty Living (Liberty PP) Limited (03991475)**	LSAV (Arch View) LP (50.%)**
Liberty Living (LP Bristol) Limited (07242607)**	LSAV (Arch View) Management LP (50.%)**
Liberty Living (LP Coventry) Limited (04330729)**	LSAV (Arch View) Nominee 1 Limited (13210518) (50.%)**
Liberty Living (LP Manchester) Limited (04314013)**	LSAV (Arch View) Nominee 3 Limited (13210553)**
Liberty Living (LQ Newcastle) Limited (04302869)**	LSAV (Aston Student Village) GP1 Limited (10498478) (50.%)
Liberty Living (LQ2 Newcastle) Limited (07298853)**	LSAV (Aston Student Village) GP2 Limited (10498481) (50.%)
Liberty Living Finance PLC (10979349)**	LSAV (Aston Student Village) GP3 Limited (10498217)**
Liberty Living Group Limited (Jersey)*/**	LSAV (Aston Student Village) GP4 Limited (10498484)**
Liberty Living Investments 1 Limited Partnership**	LSAV (Aston Student Village) Limited Partnership (50.%)
Liberty Living Investments 2 Limited Partnership**	LSAV (Aston Student Village) Management Limited Partnership (50.%)
Liberty Living Investments 3 Limited Partnership**	LSAV (Drapery Plaza) GP1 Limited (13209904) (50.%)
Liberty Living Investments GP1 Limited (09375866)**	LSAV (Drapery Plaza) GP3 Limited (13210206)**
Liberty Living Investments GP2 Limited (09375868)**	LSAV (Drapery Plaza) LP (50.%)**
Liberty Living Investments GP3 Limited (10518849)**	LSAV (Drapery Plaza) Management LP (50.%)**
Liberty Living Investments II Holdco 2 Limited (09574059)**	LSAV (Drapery Plaza) Nominee 1 Limited (13209909) (50.%)**
Liberty Living Investments II Holdco Limited (08929431)**	LSAV (Drapery Plaza) Nominee 3 Limited (13209979)**
Liberty Living Investments II Limited (09680931)**	LSAV (Drapery Plaza) Nominee 3 Limited (13209979)**
Liberty Living Investments Limited (09375870)**	LSAV (Holdings) Limited (50.%)
Liberty Living Investments Nominee 1 Limited (09375846)**	LSAV (Jersey Manager) Limited**
Liberty Living Investments Nominee 2 Limited (09375849)**	LSAV (No.1) GP1 Limited (13184531) (50.%)**

* Held directly by the Company.

** Company is exempt from the requirements of the Companies Act relating to the audit of individual financial statements by virtue

of s477 or s379A for the financial year ended 31 December 2024.

NOTES TO THE FINANCIAL STATEMENTS continued

THE UNITE GROUP PLC

Annual Report and Accounts 2024

210

FINANCIAL STATEMENTS

Registered office and principal place of business: South Quay House, Temple Back, Bristol, United Kingdom, BS1 6FL
LSAV (No.1) GP3 Limited (13184662)**	UNITE Capital Cities Two GP3 Limited (16148993)**
LSAV (No.1) LP (50.%)**	Unite Capital Cities Two Limited Partnership (50.%)
LSAV (No.1) Management LP (50.%)**	UNITE Construction (Angel Lane) Limited (08792704)**
LSAV (No.1) Nominee 1 Limited (13184589) (50.%)**	UNITE Construction (Stapleton) Limited (09023406)**
LSAV (No.1) Nominee 3 Limited (13184656)**	UNITE Construction (Wembley) Limited (09023474)**
LSAV (Property Holdings) LP (50.%)	Unite Finance Limited (04353305)*/**
LSAV (Stapleton) GP1 Limited (08593695) (50.%)**	Unite Finance One (Accommodation Services) Limited (04332937)**
LSAV (Stapleton) GP2 Limited (08593699) (50.%)**	Unite Finance One (Holdings) Limited (04316207)**
LSAV (Stapleton) GP3 Limited (08646819)**	Unite Finance One (Property) Limited (04303331)**
LSAV (Stapleton) GP4 Limited (08647019)**	Unite FM Limited (06807562)**
LSAV (Stapleton) Limited Partnership (50.%)**	UNITE For Success Limited (05157263)**
LSAV (Stapleton) Management Limited Partnership (50.%)**	Unite HEI Investments GP Limited (15584836)**
LSAV (Stratford) GP3 Limited (08751654)**	Unite HEI Investments LP (LP023677)**
LSAV (Stratford) GP4 Limited (08751629)**	Unite Holdings Limited (03148468)*/**
LSAV (Stratford) Management Limited Partnership (50.%)**	UNITE Homes Limited (05140262)** (07376627)**
LSAV (Trustee) Limited (50.%)	Unite Integrated Solutions plc (02402714)
LSAV (Wembley) GP1 Limited (08635735) (50.%)**	Unite Modular Solutions Limited (05140259)**
LSAV (Wembley) GP2 Limited (08636051) (50.%)**	Unite Newcastle GP Limited (15588783) (51.0%)**
LSAV (Wembley) GP3 Limited (08725127)**	Unite Rent Collection Limited (05982935)**
LSAV (Wembley) GP4 Limited (08725235)**	UNITE Student Living Limited (06204135)**
LSAV (Wembley) Limited Partnership (50.%)**	Unite Students Accommodation (Beijing) Business Service Company Ltd**
LSAV (Wembley) Management Limited Partnership (50.%)**	USAF Finance II Limited (08526474) (21.3%)
LSAV FACILITY 1 HOLDINGS LIMITED (13913388) (50.%)**	USAF GP No 1 Limited (05897875) (21.3%)(50.%)**
LSAV FACILITY 1 MANAGEMENT HOLDINGS LIMITED (13913371)**	USAF GP No 10 Limited (06714734) (21.3%)
LSAV Management Holdings Limited (13305327)**	USAF GP No 11 Limited (07075210) (21.3%)
LSAV Rent Collection Limited (08496230)**	USAF GP No 11 Management Limited (07351883) (21.3%)
Stardesert Limited (04437102)**	USAF GP No 12 Limited (07368735) (21.3%)
The UNITE Foundation	USAF GP No 14 Limited (09089977) (21.3%)
Unite (Capital Cities) Jersey Ltd**	USAF GP No 15 Limited (09585201) (21.3%)
Unite Accommodation Management 16 Limited (07061314)**	USAF GP No 18 Limited (10219336) (21.3%)
Unite Accommodation Management 18 Limited (08328484)**	USAF GP No 6 Limited (05897755) (21.3%)
Unite Accommodation Management 19 Limited (08790504) (50.%)**	USAF GP No 8 Limited (06381914) (21.3%)
Unite Accommodation Management 2 Limited (05193166)**	USAF GP No.15A Limited (12644211) (21.3%)
Unite Accommodation Management 20 Limited (08790642) (50.%)**	USAF GP No.16A Limited (12644210) (21.3%)
Unite Accommodation Management 6 Limited (05077346)**	USAF GP No.16B Limited (14707370) (21.3%)
Unite Accommodation Management 9 Limited (06190863)**	USAF GP No.17A Limited (12644208) (21.3%)
Unite Accommodation Management Limited (06190905)**	USAF GP No.17B Limited (14707101) (21.3%)
Unite Accommodation Management One Hundred Limited (07989080)**	USAF GP No. 17C Ltd (15455410) (21.3%)
Unite Capital Cities 3 GP1 Limited (13913884) (50.%)	USAF GP No. 18A Ltd (15455404) (21.3%)
UNITE CAPITAL CITIES 3 LIMITED PARTNERSHIP (50.%)**	USAF GP No.19 Limited (14707096) (21.3%)
Unite Capital Cities 3 Management Limited (13913891) (50.%)**	USAF Holdings K Limited (14700139) (21.3%)
Unite Capital Cities 3 Nominee 1 Limited (13913890) (50.%)**	USAF Holdings B Limited (06324325) (21.3%)
UNITE Capital Cities Holdings Limited (08801242) (50.%)**	USAF Holdings C Limited (06381882) (21.3%)
Unite Capital Cities Limited Partnership (50.%)**	USAF Holdings H Limited (09089805) (21.3%)

* Held directly by the Company.

** Company is exempt from the requirements of the Companies Act relating to the audit of individual financial statements by virtue

of s477 or s379A for the financial year ended 31 December 2024.

NOTES TO THE FINANCIAL STATEMENTS continued

THE UNITE GROUP PLC

Annual Report and Accounts 2024

211

Registered office and principal place of business: South Quay House, Temple Back, Bristol, United Kingdom, BS1 6FL
USAF Holdings I Limited (09581882) (21.3%)	USAF No.16B Nominee 2 Limited (14707390) (21.3%)**
USAF Holdings J Limited (10215997) (21.3%)	USAF No.17A Limited Partnership (29.1%)
USAF Holdings Limited (05870107) (21.3%)	USAF No.17B Limited Partnership (29.1%)
USAF Jersey Investments Ltd**	USAF No.17B Nominee 1 Limited (14707108) (21.3%)**
USAF Jersey	Manager Ltd USAF No.17B Nominee 2 Limited (14707114) (21.3%)**
USAF LP Limited (05860874)**	USAF No.17C Nominee 1 Limited (15455419) (21.3%)**
USAF Management 10 Limited (06714695) (29.1%)	USAF No.17C Nominee 2 Limited (15455417) (21.3%)**
USAF Management 11 Limited (07082782) (29.1%)	USAF No.18A Nominee 1 Limited (15455414) (21.3%)**
USAF Management 12 Limited (07365681) (29.1%)	USAF No.18A Nominee 2 Limited (15455424) (21.3%)**
USAF Management 14 Limited (09232206) (29.1%)	USAF No.17C LP (29.1%)
USAF Management 16 Ltd (07735741) (29.1%)**	USAF No.18 Limited Partnership (29.1%)
USAF Management 17 Ltd (05591986) (29.1%)**	USAF No.18A LP (29.1%)
USAF Management 18 Limited (10219775) (29.1%)**	USAF No.19 Limited Partnership (29.1%)
USAF Management 6 Limited (06225945)	(29.1%) USAF No.6 Limited Partnership (29.1%)
USAF Management 8 Limited (06387597) (29.1%)	USAF No.8 Limited Partnership (29.1%)
USAF Management 8 No.2 Limited (15935823) (29.1%)	USAF Nominee No.1 Limited (05855598) (21.3%)**
USAF Management GP No.14 Limited (09130985)**	USAF Nominee No.10 Limited (06714690) (21.3%)**
USAF Management GP No.15 Limited (09749946)**	USAF Nominee No.10A Limited (06714615) (21.3%)**
USAF Management GP No.16 Limited (09750068)**	USAF Nominee No.11 Limited (07075251) (21.3%)**
USAF Management GP No.17 Limited (09750061)**	USAF Nominee No.11A Limited (07075213) (21.3%)**
Usaf Management GP No.18 Limited (12410758)**	USAF Nominee No.12 Limited (07368733) (21.3%)**
USAF Management GP No. 18A Ltd (15522502)	USAF Nominee No.12A Limited (07368755) (21.3%)**
USAF Management Limited (05862721) (29.1%)	USAF Nominee No.14 Limited (09231609) (21.3%)**
USAF Management No. 14 Limited Partnership (29.1%)	USAF Nominee No.14A Limited (09231604) (21.3%)**
USAF Management No. 15 Limited Partnership (29.1%)	USAF Nominee No.15 Limited (12644205) (21.3%)**
USAF Management No. 16 Limited Partnership (29.1%)	USAF Nominee No.15A Limited (12644204) (21.3%)**
USAF Management No. 17 Limited Partnership (29.1%)	USAF Nominee No.16 Limited (12644201) (21.3%)**
USAF Management No. 18 Limited Partnership (29.1%)	USAF Nominee No.16A Limited (12644197) (21.3%)**
USAF Management No. 18A LP (LP023597) (29.1%)	USAF Nominee No.17 Limited (12644192) (21.3%)**
USAF MANAGEMENT NO. 19 LIMITED (14707093) (29.1%)	USAF Nominee No.17A Limited (12644187)(21.3%)**
USAF No.1 Limited Partnership (29.1%)	USAF Nominee No.18 Limited (10218595) (21.3%)**
USAF No.10 Limited Partnership (29.1%)	USAF Nominee No.18A Limited (10219339) (21.3%)**
USAF No.11 Limited Partnership (29.1%)	USAF Nominee No.19 Limited (14706129) (21.3%)**
USAF No.11 Management Limited Partnership (29.1%)	USAF Nominee No.19A Limited (14706126) (21.3%)**
USAF No.12 Limited Partnership (29.1%)	USAF Nominee No.1A Limited (05835512) (21.3%)**
USAF No.14 Limited Partnership (29.1%)	USAF Nominee No.6 Limited (05855599) (21.3%)**
USAF No.15 Limited Partnership (29.1%)	USAF Nominee No.6A Limited (05885802) (21.3%)**
USAF No.15A Limited Partnership (29.1%)	USAF Nominee No.8 Limited (06381861) (21.3%)**
USAF No.16A Limited Partnership (29.1%)	USAF Nominee No.8A Limited (06381869) (21.3%)**
USAF No.16B Limited Partnership (29.1%)	USAF RCC Limited (05983554) (21.3%)
USAF No.16B Nominee 1 Limited (14707400) (21.3%)**

* Held directly by the Company.

** Company is exempt from the requirements of the Companies Act relating to the audit of individual financial statements by virtue

of s477 or s379A for the financial year ended 31 December 2024.

THE UNITE GROUP PLC

Annual Report and Accounts 2024

212

FINANCIAL STATEMENTS

Registered office and principal place of business: 13 Castle Street, St Helier, Jersey, JE4 5UT
LDC (Gt Suffolk St) Unit Trust	LSAV (Aston Student Village) Unit Trust (50.0%)
LDC (St Pancras Way) Unit Trust	LSAV (Holdings) Limited (50.0%)
LDC (Thurso Street) Unit Trust	LSAV (Trustee) Limited (50.0%)
LSAV (Jersey Manager) Limited	LSAV Unit Trust (50.0%)
Unite (Capital Cities) Jersey Limited	Unite Capital Cities Unit Trust (50.0%)
USAF Jersey Investments Limited	USAF Portfolio 18 Unit Trust (29.1%)
USAF Jersey Manager Limited	LDC (Nairn Street) Unit Trust (29.1%)
LDC (Ferry Lane 2) Unit Trust (50.0%)	Unite HEI Investments Unit Trust (51.0%)
LDC (Stratford) Unit Trust (50.0%)	Unite UK Student Accommodation Fund (21.3%)
LSAV (Drapery Plaza) Unit Trust (50.0%)	LSAV (Arch View) Unit Trust (50.0%)

Registered office and principal place of business: Third Floor, La Plaiderie Chambers, St Peter Port, Guernsey, GY1 1WG
USAF Feeder Guernsey Limited	USAF Portfolio 16 Unit Trust (29.1%)
USAF Portfolio 15 Unit Trust (29.1%)	USAF Portfolio 17 Unit Trust (29.1%)

Registered office and principal place of business: Saltire Court, 20 Castle Terrace, Edinburgh, EH1 2EN
LSAV (GP) Limited (SC431844) (50.0%)	LSAV (Property Holdings) Limited Partnership (50.0%)

Registered office and principal place of business: Trident Chambers, Wickhams Cay, P.O. Box 146, Road Town, Tortola,
British Virgin Islands
Liberty Park (Bedford) Limited	Liberty Plaza (Newcastle) Limited

Registered office and principal place of business: Second Floor, St George’s Court, Upper Church Street, Douglas,

Isle of Man, IM1 1EE

Filbert Street Student Accommodation Unit Trust (29.1%)**

NOTES TO THE FINANCIAL STATEMENTS continued