41061 Unite AR22 HI-RES WEB-READY - Flipbook - Page 238
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THE UNITE GROUP PLC | Annual Report and Financial Statements 2022
NOTES TO THE FINANCIAL STATEMENTS continued
Section 8: Alternative performance measures continued
EPRA vacancy rate
2022
£m
Estimated rental value of vacant space
2021
£m
2.0
13.8
Estimated rental value of the whole portfolio
262.9
246.5
EPRA vacancy rate
0.8%
5.6%
EPRA net initial yield
Annualised net operating income (£m)
Property market value (£m)
Notional acquisition costs (£m)
2022
2021
256.9
205.1
5,325.6
4,864.8
285.7
254.3
5,611.3
5,119.1
EPRA net initial yield (%)*
4.6%
4.0%
Difference in projected versus historical GOI
0.1%
Unite net initial yield (%)
4.7%
*
No lease incentives are provided by the Group and accordingly the Topped Up Net Initial Yield measure is also 4.6% (2021: 4.0%).
EPRA cost ratio
2022
£m
2021
£m
Property operating expenses
72.0
67.7
Overheads
26.4
30.7
1.2
2.2
Development/pre contract costs
Unallocated expenses*
Share of JV property operating expenses
2.8
0.5
102.4
101.1
26.7
23.2
Share of JV overheads
1.3
0.8
Share of JV unallocated expenses*
0.3
0.4
130.7
125.5
Less: Joint venture management fees
Total costs (A)
Group vacant property costs**
Share of JV vacant property costs**
(17.4)
113.3
(2.5)
(0.9)
(15.9)
109.6
(4.1)
(1.4)
Total costs excluding vacant property costs (B)
109.9
104.1
Rental income
241.7
209.0
Share of JV rental income
Total gross rental income (C)
98.0
73.7
339.7
282.7
Total EPRA cost ratio (including vacant property costs) (A)/(C)
33.4%
39%
Total EPRA cost ratio (excluding vacant property costs) (B)/(C)
32.4%
37%
*
2022 excludes amounts in respect of abortive costs and 2021 excludes amounts in respect of the LSAV performance fee.
** Vacant property costs reflect the per bed share of operating expenses allocated to vacant beds.
Unite’s EBIT margin excludes non operational expenses which are included within the EPRA cost ratio above.
The Group capitalises costs in relation to staff costs and professional fees associated with property development activity.
