Unite Group's results weaker than expected

Student accommodation provider Unite Group posted full year results today.

Analysts at JPMorgan have issued their opinions on the company's performance, saying the results were "weaker than expected".

"Unite reported FY09 results that were weaker than expected, with EPRA NAV of 265p, 8.6% below our forecast of 290p. Recurring profit turned positive at £0.6m (last year £5.4m loss), but was light of our £3.8m forecast. In addition, the company remains in a transition phase in which it will aim to acquire development sites and improve recurring income, and this will take some time. In this context, market expectations look too high (Bloomberg: 5 "buy" ratings, 1 "hold", no "sells"). We remain Neutral, given the 6.7% yield on the portfolio, 3-5% expected rental growth p.a. over three years, while the company has made a start in deploying its equity issue funds, securing 900 beds for delivery 2012/13," said analyst Harm Meijer.