By Michael Susin
Unite Group, the student-accommodation developer, announced a significant drop in pretax profit for the first half of 2023. The decline was attributed to valuation losses and increased costs. However, despite the challenging financial performance, the company raised its dividend payout.
The pretax profit for the six-month period amounted to £116.9 million ($150.3 million), compared with £334.1 million in the same period the previous year. On the other hand, total revenue saw a slight increase, reaching £148.1 million, up from £136.8 million.
During this period, Unite Group reported a net valuation loss of £28.2 million, contrasting with valuation gains of £128.6 million during the first half of 2022.
Despite the challenges, Unite Group expressed optimism about its performance, stating, “We have had a strong first half, with growth in earnings driven by a return to full occupancy.”
To reflect the growth in earnings and the positive outlook for the academic year, the board declared an interim dividend of 11.8 pence, which is an increase from the 11.0 pence declared in the same period a year ago.
