41061 Unite AR22 HI-RES WEB-READY - Flipbook - Page 16
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THE UNITE GROUP PLC | Annual Report and Financial Statements 2022
CHIEF EXECUTIVE’S REVIEW
EARNINGS AHEAD OF
PRE-PANDEMIC LEVELS
Supported by our best-in-class operating
platform, people and portfolio
“Despite the challenging economic environment,
the business remains well-positioned thanks
to increasing student numbers and growing
demand for high-quality, purpose-built student
accommodation across our markets.”
Richard Smith
Chief Executive Officer
Financial highlights1
Adjusted earnings
Adjusted EPS
IFRS profit before tax
2022
2021
£163.4m
£110.1m
40.9p
27.6p
£358.0m
£343.1m
IFRS basic EPS
88.9p
85.9p
Dividend per share
32.7p
22.1p
Adjusted EPS yield
4.6%
3.4%
Total accounting return
8.1%
10.2%
EPRA NTA per share
927p
882p
IFRS net assets per share
945p
880p
31%
29%
Loan to value
1. See glossary for definitions and note 7 for alternative performance measure
calculations and reconciliations. A reconciliation of profit before tax to EPRA
earnings and adjusted earnings is set out in note 7 of the financial statements.
The business has performed strongly in 2022, delivering
an increase in earnings and dividends to above their prepandemic peak. This reflects the strength of our best-inclass operating platform, the commitment of our teams
and the appeal of our affordable, well-located portfolio.
Earnings and dividend ahead of their
pre-pandemic peak
The business delivered a strong recovery in financial
performance in 2022, with adjusted earnings of
£163.4 million and adjusted EPS of 40.9p, both up 48%
year-on-year. This reflects an increase in occupancy to 99%
and rental growth of 3.5% for the 2022/23 academic year
(2020/21: 94% and 2.3%, respectively). IFRS profit before tax
of £358.0 million and EPS of 88.9p also reflects the valuation
growth of our property portfolio during the year. We have
proposed a final dividend of 21.7p which, if approved,
makes 32.7p for the full year, representing a payout ratio
of 80% of adjusted EPS, underlining our confidence in future
business performance.
Total accounting returns for the year were 8.1%, underpinned
by a 5% increase in EPRA NTA per share to 927p. Our LTV
ratio increased to 31% during the year, reflecting the positive
impact of rental growth in our property valuations and the
increase in net debt to fund our investment activity. This
provides the financial headroom to deliver our committed
development pipeline and pursue new growth opportunities.