No. of Recommendations: 1
Also, a breakdown of 'why earnings will drop 7-10% in 2026', from the announcement:
"Lower occupancy and shorter tenancy lengths for the 2025/26 academic year have a greater impact in the 2026 financial year due to a reduction in income for terms 2 and 3"
"Development completions taking longer to achieve stabilised income results in an initial drag on earnings"
"Lower non-recurring fees in relation to university partnerships"
"Operating costs and overheads are expected to be held flat in 2026, reflecting central cost savings delivered in H2 2025, which offset the impact of inflationary increases"
"£142m of completed disposals in 2025 and planned sales of £300-400m in 2026 are expected to result in modest earnings dilution ahead of reinvestment"
"The cost of debt is expected to rise to 4.5% in 2026 from 4.1% in 2025, reflecting financing activity and higher marginal borrowing costs"
https://www.investegate.co.uk/announcement/rns/uni...TRS
