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Unite Group

LSE:UTG
Snowflake Description

Adequate balance sheet and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
UTG
LSE
£3B
Market Cap
  1. Home
  2. GB
  3. Real Estate
Company description

Unite Students is the UK's largest manager and developer of purpose-built student accommodation serving the country's world-leading higher education sector. The last earnings update was 89 days ago. More info.


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UTG Share Price and Events
7 Day Returns
1.1%
LSE:UTG
0.2%
GB REITs
0.4%
GB Market
1 Year Returns
13.3%
LSE:UTG
-7.8%
GB REITs
-2.2%
GB Market
UTG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Unite Group (UTG) 1.1% -1.1% 3.7% 13.3% 49.2% 142.8%
GB REITs 0.2% -2% -2.7% -7.8% -8.4% 7.5%
GB Market 0.4% 1.3% 2% -2.2% 16.2% 5.1%
1 Year Return vs Industry and Market
  • UTG outperformed the REITs industry which returned -7.8% over the past year.
  • UTG outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -2.2% over the past year.
Price Volatility
UTG
Industry
5yr Volatility vs Market

Value

 Is Unite Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Unite Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Unite Group.

LSE:UTG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations
Levered Adjusted Funds From Operations Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.5%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:UTG
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
REITs Unlevered Beta Simply Wall St/ S&P Global 0.49
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.493 (1 + (1- 19%) (23.46%))
0.723
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.8 * 6.65%)
6.55%

Discounted Cash Flow Calculation for LSE:UTG using 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations Model

The calculations below outline how an intrinsic value for Unite Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Unite Group is a Real Estate Investment Trust (REIT), we use funds from operations (FFO) or adjusted funds from operations (AFFO) instead of levered free cash flow for REITs. This excludes depreciation and borrowing. Ideally analysts estimates of AFFO are used, where these aren't available we use FFO.

LSE:UTG DCF 1st Stage: Next 10 year cash flow forecast
Adjusted Funds From Operations (AFFO) (GBP, Millions) Source Present Value
Discounted (@ 6.55%)
2019 92.90 Analyst x1 87.19
2020 103.90 Analyst x1 91.52
2021 123.80 Analyst x1 102.35
2022 137.88 Est @ 11.37% 106.99
2023 149.36 Est @ 8.33% 108.77
2024 158.62 Est @ 6.2% 108.42
2025 166.08 Est @ 4.71% 106.55
2026 172.16 Est @ 3.66% 103.66
2027 177.21 Est @ 2.93% 100.14
2028 181.50 Est @ 2.42% 96.27
Present value of next 10 years cash flows £1,011.86
LSE:UTG DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £181.50 × (1 + 1.23%) ÷ (6.55% – 1.23%)
£3,453.55
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £3,453.55 ÷ (1 + 6.55%)10
£1,831.70
LSE:UTG Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £1,011.86 + £1,831.70
£2,843.56
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £2,843.56 / 263.96
£10.77
LSE:UTG Discount to Share Price
Calculation Result
Value per share (GBP) From above. £10.77
Current discount Discount to share price of £9.57
= -1 x (£9.57 - £10.77) / £10.77
11.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Unite Group is available for.
Intrinsic value
11%
Share price is £9.57 vs Future cash flow value of £10.77
Current Discount Checks
For Unite Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Unite Group's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Unite Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Unite Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Unite Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:UTG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £0.91
LSE:UTG Share Price ** LSE (2019-06-19) in GBP £9.57
United Kingdom of Great Britain and Northern Ireland REITs Industry PE Ratio Median Figure of 43 Publicly-Listed REITs Companies 12.76x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 789 Publicly-Listed Companies 16.2x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Unite Group.

LSE:UTG PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:UTG Share Price ÷ EPS (both in GBP)

= 9.57 ÷ 0.91

10.53x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unite Group is good value based on earnings compared to the GB REITs industry average.
  • Unite Group is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Unite Group's expected growth come at a high price?
Raw Data
LSE:UTG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.53x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
1.5%per year
United Kingdom of Great Britain and Northern Ireland REITs Industry PEG Ratio Median Figure of 23 Publicly-Listed REITs Companies 0.86x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 576 Publicly-Listed Companies 1.49x

*Line of best fit is calculated by linear regression .

LSE:UTG PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.53x ÷ 1.5%

6.89x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unite Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Unite Group's assets?
Raw Data
LSE:UTG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £7.87
LSE:UTG Share Price * LSE (2019-06-19) in GBP £9.57
United Kingdom of Great Britain and Northern Ireland REITs Industry PB Ratio Median Figure of 54 Publicly-Listed REITs Companies 0.9x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,371 Publicly-Listed Companies 1.51x
LSE:UTG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:UTG Share Price ÷ Book Value per Share (both in GBP)

= 9.57 ÷ 7.87

1.22x

* Primary Listing of Unite Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unite Group is overvalued based on assets compared to the GB REITs industry average.
X
Value checks
We assess Unite Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the REITs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the REITs industry average (and greater than 0)? (1 check)
  5. Unite Group has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Unite Group expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
1.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Unite Group expected to grow at an attractive rate?
  • Unite Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Unite Group's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Unite Group's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:UTG Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:UTG Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 1.5%
LSE:UTG Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 2.8%
United Kingdom of Great Britain and Northern Ireland REITs Industry Earnings Growth Rate Market Cap Weighted Average 16.3%
United Kingdom of Great Britain and Northern Ireland REITs Industry Revenue Growth Rate Market Cap Weighted Average 2.6%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.7%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:UTG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:UTG Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 187 139 247 2
2020-12-31 168 123 232 2
2019-12-31 154 110 231 2
LSE:UTG Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 170 60 236
2018-09-30 167 64 256
2018-06-30 164 68 277
2018-03-31 161 62 249
2017-12-31 157 56 222
2017-09-30 157 54 211
2017-06-30 158 51 200
2017-03-31 157 60 212
2016-12-31 157 68 224
2016-09-30 160 56 237
2016-06-30 164 45 250
2016-03-31 201 83 301

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unite Group's earnings are expected to grow by 1.5% yearly, however this is not considered high growth (20% yearly).
  • Unite Group's revenue is expected to grow by 2.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:UTG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Unite Group Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:UTG Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.98 1.10 0.86 2.00
2020-12-31 0.91 1.03 0.79 2.00
2019-12-31 0.89 1.04 0.75 2.00
LSE:UTG Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 0.91
2018-09-30 1.01
2018-06-30 1.12
2018-03-31 1.04
2017-12-31 0.95
2017-09-30 0.93
2017-06-30 0.90
2017-03-31 0.95
2016-12-31 1.01
2016-09-30 1.07
2016-06-30 1.13
2016-03-31 1.38

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unite Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Unite Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Unite Group has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Unite Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Unite Group's growth in the last year to its industry (REITs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Unite Group's year on year earnings growth rate has been positive over the past 5 years.
  • Unite Group's 1-year earnings growth is less than its 5-year average (6.4% vs 14.2%)
  • Unite Group's earnings growth has not exceeded the GB REITs industry average in the past year (6.4% vs 6.9%).
Earnings and Revenue History
Unite Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Unite Group Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:UTG Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 169.50 235.70 23.60
2018-09-30 166.80 256.40 24.35
2018-06-30 164.10 277.10 25.10
2018-03-31 160.50 249.35 26.00
2017-12-31 156.90 221.60 26.90
2017-09-30 157.30 210.65 26.00
2017-06-30 157.70 199.70 25.10
2017-03-31 157.20 211.85 25.05
2016-12-31 156.70 224.00 25.00
2016-09-30 160.35 237.15 25.85
2016-06-30 164.00 250.30 26.70
2016-03-31 200.80 301.10 27.60
2015-12-31 237.60 351.90 28.50
2015-09-30 228.35 309.60 28.40
2015-06-30 219.10 267.30 28.30
2015-03-31 174.50 184.95 27.10
2014-12-31 129.90 102.60 25.90
2014-09-30 122.45 93.40 26.20
2014-06-30 115.00 84.20 26.50
2014-03-31 106.15 81.10 24.95
2013-12-31 97.30 78.00 23.40
2013-09-30 155.10 104.25 24.10
2013-06-30 212.90 130.50 24.80
2013-03-31 228.90 128.05 26.40
2012-12-31 244.90 125.60 28.00
2012-09-30 194.75 72.45 32.45
2012-06-30 144.60 19.30 36.90

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Unite Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Unite Group used its assets more efficiently than the GB REITs industry average last year based on Return on Assets.
  • Unite Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Unite Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the REITs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Unite Group has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Unite Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Unite Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Unite Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Unite Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Unite Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Unite Group Company Filings, last reported 5 months ago.

LSE:UTG Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 2,098.80 592.70 123.60
2018-09-30 2,098.80 592.70 123.60
2018-06-30 2,021.10 461.30 49.30
2018-03-31 2,021.10 461.30 49.30
2017-12-31 1,754.20 513.60 51.20
2017-09-30 1,754.20 513.60 51.20
2017-06-30 1,622.70 470.60 35.30
2017-03-31 1,622.70 470.60 35.30
2016-12-31 1,475.50 486.40 42.70
2016-09-30 1,475.50 486.40 42.70
2016-06-30 1,367.80 562.10 31.00
2016-03-31 1,367.80 562.10 31.00
2015-12-31 1,297.70 477.40 27.00
2015-09-30 1,297.70 477.40 27.00
2015-06-30 1,165.30 478.40 105.60
2015-03-31 1,165.30 478.40 105.60
2014-12-31 862.30 492.10 41.40
2014-09-30 862.30 492.10 41.40
2014-06-30 807.90 491.60 18.50
2014-03-31 807.90 491.60 18.50
2013-12-31 672.00 518.80 43.20
2013-09-30 672.00 518.80 43.20
2013-06-30 619.10 495.10 55.30
2013-03-31 619.10 495.10 55.30
2012-12-31 533.70 551.60 75.40
2012-09-30 533.70 551.60 75.40
2012-06-30 436.80 552.80 21.10
  • Unite Group's level of debt (28.2%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (77% vs 28.2% today).
  • Debt is not well covered by operating cash flow (10.1%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.9x coverage).
X
Financial health checks
We assess Unite Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Unite Group has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Unite Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.03%
Current annual income from Unite Group dividends. Estimated to be 3.82% next year.
If you bought £2,000 of Unite Group shares you are expected to receive £61 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unite Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.99%).
  • Unite Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.43%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:UTG Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland REITs Industry Average Dividend Yield Market Cap Weighted Average of 49 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:UTG Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.41 8.00
2020-12-31 0.36 8.00
2019-12-31 0.33 8.00
LSE:UTG Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-03-22 0.290 3.080
2019-02-27 0.290 3.185
2018-04-19 0.227 2.646
2017-04-21 0.180 2.532
2016-04-12 0.150 2.458
2016-02-23 0.150 2.369
2015-02-23 0.112 1.806
2014-04-11 0.048 1.104
2014-03-06 0.048 1.114
2013-03-06 0.040 1.062
2012-04-17 0.018 0.736
2012-03-01 0.018 0.887
2011-08-24 0.010 0.576
2010-08-26 0.000 0.000
2010-03-03 0.000 0.000
2009-08-25 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Unite Group has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Unite Group only paid a dividend in the past 8 years.
Current Payout to shareholders
What portion of Unite Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.2x coverage).
X
Income/ dividend checks
We assess Unite Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Unite Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Unite Group has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Unite Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Richard Smith
COMPENSATION £1,995,708
AGE 44
TENURE AS CEO 3 years
CEO Bio

Mr. Richard S. Smith has been the Chief Executive Officer of The Unite Group plc since June 2016 and has been its Executive Director since January 1, 2012. Mr. Smith served as the Managing Director of Operations at The Unite Group plc since September 2011 and was responsible for providing to our customers and managing the maintenance and facilities management across the Group's portfolio. He served as Deputy Chief Financial Officer at The Unite Group plc since 2010. Prior to that, he spent 18 years in the transport industry, working in the UK, Europe, Australia and North America. He spent 13 years at National Express Group, where he held a range of senior finance, strategy and operations roles, including Group Development Director and Chief Financial Officer, North America.

CEO Compensation
  • Richard's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
  • Richard's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure of the Unite Group management team in years:

6.1
Average Tenure
  • The average tenure for the Unite Group management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Richard Smith

TITLE
CEO & Director
COMPENSATION
£2M
AGE
44
TENURE
3 yrs

Joe Lister

TITLE
CFO & Director
COMPENSATION
£2M
AGE
47
TENURE
11.4 yrs

Caroline Hall

TITLE
PA to CFO & Corporate Development Director

Chris Szpojnarowicz

TITLE
Company Secretary
TENURE
6.1 yrs

Candice Macdonald

TITLE
Head of Corporate Communications

Mark Creedy

TITLE
Managing Director of Fund Management

John Blanshard

TITLE
Chief Customer Officer
Board of Directors Tenure

Average tenure and age of the Unite Group board of directors in years:

4.6
Average Tenure
56
Average Age
  • The tenure for the Unite Group board of directors is about average.
Board of Directors

Phil White

TITLE
Chairman of the Board
COMPENSATION
£190K
AGE
69
TENURE
10.1 yrs

Richard Smith

TITLE
CEO & Director
COMPENSATION
£2M
AGE
44
TENURE
7.4 yrs

Joe Lister

TITLE
CFO & Director
COMPENSATION
£2M
AGE
47
TENURE
11.4 yrs

Liz McMeikan

TITLE
Senior Independent Director
COMPENSATION
£63K
AGE
56
TENURE
1.3 yrs

Ross Paterson

TITLE
Non-Executive Director
COMPENSATION
£56K
AGE
47
TENURE
1.8 yrs

Tim Wilson

TITLE
Director
COMPENSATION
£55K
AGE
69
TENURE
8.5 yrs

Ilaria Del Beato

TITLE
Non-Executive Director
COMPENSATION
£4K
TENURE
0.5 yrs

Richard Akers

TITLE
Non-Executive Director
COMPENSATION
£16K
AGE
57
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
14. Sep 18 Sell Richard Smith Individual 13. Sep 18 13. Sep 18 -35,000 £9.12 £-319,025
14. Sep 18 Sell Joseph Lister Individual 13. Sep 18 13. Sep 18 -70,000 £9.12 £-638,050
X
Management checks
We assess Unite Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Unite Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

We Think Unite Group (LON:UTG) Can Stay On Top Of Its Debt

We can see that The Unite Group plc (LON:UTG) does use debt in its business. … Because it carries more debt than cash, we think it's worth watching Unite Group's balance sheet over time. … Looking at all the aforementioned factors together, it strikes us that Unite Group can handle its debt fairly comfortably.

Simply Wall St -

The Unite Group plc (LON:UTG) Insiders Have Been Selling

So before you buy or sell The Unite Group plc (LON:UTG), you may well want to know whether insiders have been buying or selling. … We don't think shareholders should simply follow insider transactions. … While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign

Simply Wall St -

Is The Unite Group plc's (LON:UTG) CEO Overpaid Relative To Its Peers?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Richard Smith's Compensation Compare With Similar Sized Companies. … Our data indicates that The Unite Group plc is worth UK£2.4b, and total annual CEO compensation is UK£2.0m.

Simply Wall St -

What Can We Expect From The Unite Group plc's (LON:UTG) Earnings In The Year Ahead?

After The Unite Group plc's (LON:UTG) earnings announcement on 31 December 2018, … with profits predicted to drop by -2.2% next year

Simply Wall St -

The Unite Group plc (LON:UTG): Poised For Long-Term Success?

In December 2018, The Unite Group plc (LON:UTG) announced its most recent earnings update, whicha … showed

Simply Wall St -

If You Had Bought Unite Group Stock Five Years Ago, You Could Pocket A 107% Gain Today

One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … Over half a decade, Unite Group managed to grow its earnings per share at 15% a year. … So the EPS growth rate is rather close to the annualized share price gain of 16% per year.

Simply Wall St -

How To Look At The Unite Group plc (LON:UTG)

real estate investment trust (REIT) based in Bristol, United Kingdom. … REITs are basically a portfolio of income-producing real estate investments, which are owned and operated by management of that trust company. … They have to meet certain requirements in order to become a REIT, meaning they should be analyzed a different way.

Simply Wall St -

Is The Unite Group plc (LON:UTG) Excessively Paying Its CEO?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … According to our data, The Unite Group plc has a market capitalization of UK£2.1b, and pays its CEO total annual compensation worth UK£1.4m. … While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£437k.

Simply Wall St -

What Can We Expect From The Unite Group plc's (LON:UTG) Earnings Over The Next Year?

Based on The Unite Group plc's (LON:UTG) earnings update in June 2018, … with profits predicted to drop by -0.7% next year

Simply Wall St -

Need To Know: The Unite Group plc (LON:UTG) Insiders Have Been Selling Shares

So before you buy or sell The Unite Group plc (LON:UTG), you may well want to know whether insiders have been buying or selling. … So we know that an insider sold shares at around the present share price of UK£8.52. … But insiders sold 105.00k shares worth UK£957k

Simply Wall St -

Company Info

Description

Unite Students is the UK's largest manager and developer of purpose-built student accommodation serving the country's world-leading higher education sector. We currently provide homes for almost 50,000 students in circa 130 properties across 22 leading university towns and cities in England and Scotland. Unite also has a strong development pipeline, which will deliver more than 6,000 beds in the next three years. Our 1,400 people are driven by a common purpose: to provide the students who live with us a 'Home for Success' and to be the most trusted brand in the sector. We do this through quality service, quality people and quality properties, all designed on the basis of an unrivalled insight into students' needs and preferences. Unite's accommodation is high quality, safe and secure, and located close to university campuses, transport links and local amenities. Students live predominantly in en-suite study bedrooms with rents covering all bills, insurance, 24-hour security, fortnightly cleaning services and high-speed Wi-Fi.MyUnite, our mobile app, provides practical support such as instant messaging and maintenance requests. Our commitment to customer service is powered by an innovative, in-house operating platform. It provides a wide range of benefits to our students, such as an optimised online booking process, as well as providing us with a unique ability to drive value from our portfolio through scale efficiencies and revenue management. Alongside delivering quality service, our other strategic priority is delivering growing and sustainable earnings, underpinned by a strong capital structure. A key part of this strategy is growing the number of beds let though partnerships with mid and high tariff universities which are experiencing record levels of student demand. We currently partner with 60 higher education institutions, guaranteeing that approximately 60% of our rooms are let under multi-year, 'nomination agreements' providing high visibility of forward occupancy and rental growth. Unite is invested in and operates two specialist funds and joint ventures with institutional investment partners: the £2 billion Unite UK Student Accommodation Fund (USAF), and the £1 billion London Student Accommodation Vehicle (LSAV). Unite is the founder of and major donor to the Unite Foundation, a charitable trust established to support talented students facing challenging financial circumstances through the provision of free accommodation annual scholarships. The Foundation has so far provided scholarships for 250 young people working in close collaboration with 28 universities. Founded in 1991 in Bristol, Unite Group is an award-winning Real Estate Investment Trust (REIT), listed on the London Stock Exchange and a member of the FTSE 250 Index.

Details
Name: The Unite Group plc
UTG
Exchange: LSE
Founded: 1991
£2,526,098,702
263,960,157
Website: http://www.unite-group.co.uk
Address: The Unite Group plc
South Quay House,
Temple Back,
Bristol,
BS1 6FL,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE UTG Ordinary Shares London Stock Exchange GB GBP 01. Jun 1999
OTCPK UTGP.F Ordinary Shares Pink Sheets LLC US USD 01. Jun 1999
DB U1B Ordinary Shares Deutsche Boerse AG DE EUR 01. Jun 1999
BATS-CHIXE UTGL Ordinary Shares BATS 'Chi-X Europe' GB GBP 01. Jun 1999
Number of employees
Current staff
Staff numbers
1,471
Unite Group employees.
Industry
Residential REITs
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/19 20:39
End of day share price update: 2019/06/19 00:00
Last estimates confirmation: 2019/06/17
Last earnings filing: 2019/03/22
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.