Unite Group shares plunged over 7% after the student-housing provider slashed its 2026 earnings guidance and revealed slower bookings and occupancy, including significant weakness at its newly acquired Empiric Student Property unit. Adjusted earnings per share for 2026 are now forecast at 41.5p to 43p, down from 47.5p in 2025 and below analyst expectations, representing a 9% to 13% decline. The company cited underperformance in Empiric's occupancy as reducing adjusted EPS by 1 to 1.5p in 2026, net of initial synergies, and expects improvement in 2027. Bookings for the 2026-27 academic year were 'tracking behind', with only 68% of beds sold, 3pp below last year, driven by weaker nomination agreements.

The group reported an EPRA NTA of 955p per share, down 2% year-on-year and below consensus, reflecting a 0.5% like-for-like decline in portfolio valuation and a 1% drop in wholly owned assets. While rental growth (4%) and occupancy (95.2%) beat 2024, the outlook downgrade triggered the sharp share sell-off, with analysts like Morgan Stanley noting the company was 'guiding to the lower end of range' for growth and occupancy. Management reaffirmed 2026/27 targets of 2-3% rental growth and 93-96% occupancy, citing continued demand from high-tariff universities, but the Empiric drag and booking trends are seen as significant headwinds. The £126 million sale of a London property to its USAF fund was part of its disposal programme, and the company remains on track with its development pipeline and £300m-£400m annual disposal target.