41061 Unite AR22 HI-RES WEB-READY - Flipbook - Page 47
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
45
OTHER INFORMATION
Tax and REIT status
The Group holds REIT status and is exempt from tax on its property business. During the year, we recognised a corporation
tax charge of £0.9 million (2021: £2.8 million credit).
Funds and joint ventures
The table below summarises the key financials at 31 December 2022 for our co-investment vehicles.
Property
assets
£m
Net
debt
£m
Other
assets
£m
Net
assets
£m
Unite
share
of NTA
£m
Total
return
Maturity
Unite
share
USAF
2,888
(725)
(120)
2,043
575
4.7%
Infinite
28%
LSAV
1,921
(639)
(41)
1,241
620
8.9%
2032
50%
Property valuations increased by 4.6% and 5.6% for USAF and LSAV respectively over the year, on a like-for-like basis, driven
by rental growth with yields broadly stable.
During the year, Unite increased its investment in USAF through the acquisition of £141 million of units through participation
in an equity issue and acquisition of existing units in the secondary market. In aggregate, the purchases increased Unite’s
ownership of USAF to 28.2% (31 December 2021: 22.0%).
USAF is a high-quality, large-scale portfolio of 28,000 beds in leading university cities. The fund has positive future prospects
through rental growth and investment opportunities in asset management initiatives in its existing portfolio. Unite is
currently engaging with unit holders in its role as fund manager to determine the best way to fund both USAF’s ongoing
capital requirements and continued growth.
Fees
During the year, the Group recognised net fees of £17.4 million from its fund and asset management activities (2021: £57.8 million).
The reduction reflects the recognition of a £41.9 million non-recurring performance fee from LSAV in 2021. Growth in property
valuations and NOI over the past 12 months together contributed to growth in recurring fee income received from USAF and LSAV.
USAF asset management fee
LSAV asset and property management fee
LSAV performance fee
Total fees
Joe Lister
Chief Financial Officer
28 February 2023
2022
£m
2021
£m
12.6
12.0
4.8
3.9
–
41.9
17.4
57.8