PRESS RELEASE

3 November 2025

THE UNITE GROUP PLC

("Unite Students", "Unite", the "Group", or the "Company")

EMPIRIC TRADING UPDATE

The Company notes the trading update released today by Empiric Student Property plc ("Empiric") regarding the booking cycle for the 2025/26 academic year. To date, Empiric has achieved occupancy of 89% (October 2024: 95%) and like-for-like rental growth of 4.5%.  Their statement notes an increase in demand from UK domestic students, which has partially offset a reduction in the number of bookings from Chinese students.

Our appraisal of the acquisition of Empiric had assumed lower occupancy and rental growth than the prior academic year, which was reflected in our offer terms. Empiric's occupancy for the 2025/26 academic year is slightly below these expectations, allowing for further typical letting activity for the Spring intake of postgraduate courses, whilst rental growth is in line with our expectations.

Our strategic rationale for the acquisition is underpinned by Empiric's proven platform for expansion among returning students. We are actively preparing for integration following completion of the acquisition and continue to see a meaningful opportunity to improve occupancy across the Empiric portfolio over the next three years through our operational platform, strong university relationships and enhanced customer retention.

We reaffirm our confidence in delivering earnings and dividend accretion from the acquisition, supported by anticipated annual run-rate synergies of at least £13.7 million. Our confidence in achieving our target cost savings is underpinned by our prior experience through the acquisition of Liberty Living in 2019, when we successfully delivered £18 million of annual synergies.

Following the approval of the transaction by Empiric shareholders at the Court and General Meetings held on 6 October, the Competition and Markets Authority has commenced its Phase 1 investigation, as anticipated. Unite expects the Scheme to become effective by the second quarter of 2026, subject to the satisfaction of the remaining terms and conditions set out in the Scheme Document.

Investor and analyst event

Unite will host an event for institutional investors and analysts on the afternoon of 27 November at Deutsche Numis' office, including updates on the Higher Education sector, a review of the 2025/26 sales cycle, the outlook for 2026/27 and future investment plans. Please contact Sodali & Co for further details.

ENDS

For further information, please contact:

Unite                                                                                                   +44 (0) 117 302 7005

Joe Lister (Chief Executive Officer)

Michael Burt (Chief Financial Officer)

Saxon Ridley (Head of IR and Investment Finance)

Sodali & Co                                                                                       +44 (0) 20 7250 1446

(Communications Adviser to Unite)                          

Justin Griffiths

Victoria Heslop

Louisa Henry

About Unite Students

Unite Students is the UK's largest owner, manager and developer of purpose-built student accommodation (PBSA) serving the country's world-leading higher education sector. We provide homes to 68,000 students across 152 properties in 23 leading university towns and cities. We currently partner with over 60 universities across the UK.

Our people are driven by a common purpose: to provide a 'Home for Success' for the students who live with us. Unite Students' accommodation is safe and secure, high quality and affordable. Students live predominantly in en-suite study bedrooms with rents covering all bills, insurance, 24-hour security and high-speed Wi-Fi.

We are committed to raising standards in the student accommodation sector for our customers, investors and employees. Our Sustainability Strategy includes a commitment to become net zero carbon across our operations and developments by 2030.

Founded in 1991 in Bristol, the Unite Group is an award-winning Real Estate Investment Trust (REIT), listed on the London Stock Exchange. For more information, visit Unite Group's corporate website www.unitegroup.com or the Unite Students' site www.unitestudents.com.

Quantified Financial Benefits Statement

The Unite Directors, having reviewed and analysed the potential cost synergies of the acquisition, and taking into account the factors they can influence, believe that the Enlarged Group can deliver approximately £13.7 million of pre-tax recurring cost synergies on an annual run-rate basis.

Approximately 55 per cent. of the annual run-rate benefit is expected to be realised in the first full year following completion of the acquisition. Approximately 100 per cent. of the run-rate benefit is expected to be realised from the start of the second full year following completion of the acquisition.

The quantified cost synergies, which are expected to originate from the cost bases of both Unite and Empiric, are expected to be realised primarily from:

·    Operating cost synergies: The increased size of the Enlarged Group's portfolio will provide benefits at a city and cluster level, enabling Unite to leverage its existing teams and achieve efficiencies in procuring and delivering outsourced services. Operating net cost synergies are expected to account for approximately £2.2 million of the identified annual synergies; and

·    Central overhead cost synergies: The Enlarged Group will benefit from a single corporate overhead structure. Cost synergies will be realised through the streamlining and removal of duplicated group functions and public company costs. Central overhead cost synergies are expected to account for approximately £11.5 million of the identified annual synergies.

The Unite Directors estimate that the realisation of the quantified cost synergies will result in one-off costs to achieve of approximately £13.9 million, with around 85 per cent. incurred in the first full year following completion of the acquisition and the remainder by the end of the second full year following completion of the acquisition.

Potential areas of dis-synergy expected to arise in connection with the acquisition have been considered and were determined by the Unite Directors to be immaterial for the analysis.

The identified cost synergies will accrue as a direct result of the acquisition and would not be achieved on a standalone basis. The identified cost synergies reflect both the beneficial elements and relevant costs.

For the purposes of Rule 28 of the Takeover Code, the Quantified Financial Benefits Statement contained in this document is the responsibility of Unite and the Unite Directors.

Bases of belief

The Unite management team has worked to identify, challenge and quantify potential synergies as well as the potential costs to achieving, and the timing of, such synergies. Where appropriate, assumptions were used to estimate the costs of implementing the new structures, systems and processes required to realise the synergies. Such assumptions and the assessment and quantification of potential synergies, costs of achieving and timing have been informed by the Unite management teams' industry expertise, knowledge and experience of integrating Liberty Living in 2019.

In preparing the Quantified Financial Benefits Statement, Empiric has shared certain operational and financial information to facilitate the analysis in support of evaluating the potential synergies expected to arise from the Acquisition. In circumstances where the scope of data exchanged or the individuals having access to it has been limited for commercial reasons, confidentiality considerations, legal or regulatory restrictions, or other reasons, Unite has made estimates and assumptions to aid its development of individual synergy initiatives.

In general, the synergy assessments have been risk adjusted.

The Acquisition is subject to CMA clearance. It is not possible to predict with certainty the outcome of the CMA clearance process and therefore any potential impact has not been quantified.

The cost bases used as the basis for the Quantified Financial Benefits Statement is the forecast cost bases of each of Unite and Empiric for the financial year ended 31 December 2025.

These statements of estimated synergies relate to future actions and circumstances which, by their nature, involve risks, uncertainties and contingencies. As a result, the estimated synergies referred to may not be achieved, or may be achieved later or sooner than estimated, or those achieved could be materially different from those estimated.

The Unite Directors have, in addition, made the following assumptions:

Assumptions within Unite's control or influence:

·    Unite will remain a company with its ordinary shares listed on the Closed-Ended Investment Funds category of the Official List maintained by the Financial Conduct Authority, and traded on the Main Market of the London Stock Exchange, and will retain its status as a UK REIT.

·    There will be no material impact on the underlying operations of either Unite or Empiric or their ability to continue to conduct their businesses, including as a result of, or in connection with, the integration of Empiric by Unite.

·    There will be no material divestments from either the Unite or Empiric existing businesses.

·   The cost synergies are substantively within Unite's control, albeit certain elements are dependent in part on negotiations with third parties.

Assumptions outside of Unite's control or influence:

·   There will be no changes to macroeconomic, political, regulatory or legal conditions in the markets or regions in which Unite and Empiric operate that will materially impact on the implementation or costs to achieve the proposed cost savings.

·    There will be no change in tax legislation or tax rates or other legislation in the UK that could materially impact the ability to achieve any benefits.

Reports

As required by Rule 28.1(a) of the Code, Grant Thornton, as reporting accountant to Unite, and Lazard, as lead financial adviser to Unite, provided the reports required under that rule at the time of the 2.7 Announcement.

The Unite Directors have confirmed that:

·    there have been no material changes to the Quantified Financial Benefits Statement since 14 August 2025, and the Quantified Financial Benefits Statement remains valid; and

·    each of Grant Thornton and Lazard have confirmed that the reports that they produced, which were included in Parts B and C of Appendix 4 to the 2.7 Announcement, continue to apply.

Notes

These statements are not intended as a profit forecast and should not be interpreted as such. Neither the Quantified Financial Benefits Statement nor any other statement in this document should be construed as a profit forecast or interpreted to mean that Unite's earnings in the first full year following completion of the acquisition, or in any subsequent period, will necessarily match or be greater than or be less than those of Unite and Empiric for the relevant preceding financial period or any other period.

Due to the scale of the Enlarged Group, there may be additional changes to Unite's operations or Empiric's operations following the proposed acquisition. As a result, and given the fact that the changes relate to the future, the achieved synergies may be materially greater or less than those estimated.