Unite Group UTG.L
United KingdomReal Estate · REIT - DiversifiedLondon Stock Exchange · GBP
5.65 GBP (+27.7%)
15 analysts
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Unite Group is a British REIT specializing in the development, management, and leasing of student accommodation in the United Kingdom.
Listed on London Stock Exchange · Symbol UTG.L · LON: UTG · Currency GBP
Key points
from its scores- ✓Strong growth7.2
- ✕Poor share-price trend1.9
- ✕Little competitive advantage3.9
- ✕Fragile balance sheet4.1
AI analysis
bottom line, main risk, context and newsHigh leverage and an unsustainable payout are clear risks, but revenue growth and an attractive valuation offer some support. Monitor the evolution of interest rates and the company's ability to refinance its debt.
Unite Group presents a highly leveraged balance sheet (Net Debt/EBITDA of 9.42) and an attractive net dividend yield of 8.59%, but the payout ratio of 189.45% is unsustainable. Revenue growth of 12.40% is positive, although the valuation (P/B 0.50) reflects the risk of high leverage and sensitivity to interest rates.
The main risk is the high financial leverage (Net Debt/EBITDA of 9.42), which, in a rising interest rate environment, could make debt refinancing more expensive and force a dividend cut.
Context and risks
Unite Group is a UK REIT specializing in student accommodation. Its high leverage (Net Debt/EBITDA of 9.42) and long-duration business model make it sensitive to the rising interest rate environment, which increases its cost of debt and pressures the valuation of its real estate assets. Dependence on international student demand adds a demand risk, although no direct geopolitical risk has been identified.
Is Unite Group stock cheap or expensive?
at the analysis dateOn Price / book, it trades 65% below the Real Estate median.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| EV / EBITDA | 19.9 | 18.5 | +8% |
| Price / book | 0.5 | 1.4 | −65% |
| Price / sales | 5.5 | 6.3 | −13% |
Sector: median of the 100 Real Estate companies analysed. In bold, the multiples used for the comparison.
Valuation score: 4.6 out of 10 (median for Real Estate: 4.9).
Average analyst target: 5.65 GBP, +27.7% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 4.1 (sector 5.5), Growth 7.2 (sector 5.7).
Classic formulas with standard assumptions (5.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Real Estate medianValuation
- Forward P/E
- 10.5
- EV / EBITDA
- 19.9
- Price / book
- 0.5
- Price / sales
- 5.5
- PEG
- 3.23
- Market cap
- 2.3B GBP
- Enterprise value
- 4.3B GBP
Profitability
- ROE
- −10.8%
- ROA
- 2.0%
- ROIC (approx.)
- 3.5%
- Gross margin
- 69.8%
- Operating margin
- 56.1%
- Net margin
- −122.4%
- Free cash flow
- 63.8M GBP
- FCF yield
- 2.8%
- Cash conversion
- 29%
Solvency
- Total debt
- 2.1B GBP
- Net debt
- 2.0B GBP
- Cash
- 69.8M GBP
- EBITDA
- 216.4M GBP
- Net debt / EBITDA
- 9.42
- Debt / equity
- 46.65
- Current ratio
- 0.85
- Quick ratio
- 0.70
Growth
- Revenue growth
- +12.4%
- EPS (TTM)
- −0.98 GBP
- EPS (forward)
- 0.42 GBP
Dividend
- Dividend yield
- 8.6%
- Payout
- 189.5%
Risk and market
- Beta
- 0.93
- Analyst consensus
- Buy (15)
- Target price
- 5.65 GBP
Recent news
All UTG.L news →Compare it with its sector
All 100 in Real Estate →Frequently asked questions about Unite Group
Is Unite Group stock cheap or expensive?
On Price / book, it trades 65% below the Real Estate median. Valuation score: 4.6 out of 10 (median for Real Estate: 4.9). Average analyst target: 5.65 GBP, +27.7% versus the price. This is not investment advice.
What score does Unite Group get on MeridIAn Screener?
It scores 4.6 out of 10, rank 1,858 of 2,130 (better than 13% of the companies analysed). Its strongest category is Growth (7.2) and its weakest, Momentum (1.9). Analysis of 08/10/2026.
How much is Unite Group worth on the stock market?
Its market capitalisation is 2.3B GBP.
Does Unite Group pay a dividend?
Yes: its dividend yield is 8.59% and it pays out 189% of its earnings.
How has Unite Group stock performed over the last year?
It has fallen 27.9% over the last year, excluding dividends. Over the last 52 weeks it has traded between 0.00 and 7.00 GBP. Past performance does not guarantee future results.
What do analysts think of Unite Group?
15 analysts cover it; their average recommendation is “Buy” and their average target is 5.65 GBP (+27.7% versus the price). It is an estimate, not market data.