In addition, for international students who are unable to return home at the end of their tenancies, Unite will provide accommodation over the summer months at no extra cost.
Unite has told investors it is well positioned to withstand the impact of the Coronavirus until trading conditions normalise.
In a statement to the London Stock Exchange is said its balance sheet and liquidity position “is robust with significant headroom against debt covenants”.
The company added it has £291m of cash and undrawn debt facilities available.
In order to mitigate the shortfall from students going back to their families, the group is implementing a number of actions, including deferring development and non-essential operational capital expenditure and cost savings, which would recoup an additional £95-105m of cash in the business in 2020.
In addition, the board has decided to cancel the final dividend for 2019 and suspend further distributions by the company until market conditions stabilise. This would retain an additional £124m in cash during 2020 if no dividend payments are made.
Given the risks to the group’s rental income as a result of the health crisis, Unite is suspending guidance for like-for-like rental growth and earnings per share for 2020.
The company said: “We aim to emerge from this uniquely challenging time with our reputation with students and universities, not only protected but enhanced.”
Source: Residential - propertyweek.com
