Britain's Unite Group (UTG.L), warned of lower earnings in 2026 on Thursday, as the student accommodation developer grapples with lower student occupancy and slower rental income growth, sending its shares to a more than a decade low.

Unite Group, in a separate statement ahead of its investor event, said it expects a 7-10% drop in its 2026 adjusted earnings per share, as it grapples with lower student occupancy, a fall in rental income, and delays in development completions, among other factors.

Earlier this month, Empiric reported a 6% decline in occupancy, citing a fall in reservations from Chinese student tenants. Unite said on Thursday that it expects to deliver rental growth of 2%-3% for the 2026/27 academic year, below the 4% reported for the 2025/26 academic year.

The Bristol, England-based company also expects to report muted growth in occupancy for the 2026/27 academic year at 93-96%, compared to the 95.2% in the 2025/26 academic year.

Shares in the company dropped 6% in early trade to their lowest levels since early 2015.

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