THE UNITE GROUP PLC Annual Report and Accounts 2024 206 FINANCIAL STATEMENTS EPRA cost ratio 2024 2023 £m £m Property operating expenses 87.2 79.8 Overheads* 21.6 21.2 Development / pre contract 3.8 2.7 Unallocated expenses 8.8 8.8 121.4 112.5 Share of JV property operating expenses 34.7 33.2 Share of JV operating expenses 0.9 0.9 Share of JV unallocated expenses 0.5 0.4 157.5 147.0 Less: Joint venture management fees (17.3) (16.9) Total costs (A) 140.2 130.1 Group vacant property costs** (0.9) (0.8) Share of JV vacant property costs** (0.3) (0.3) Total costs excluding vacant property costs (B) 138.9 129.0 Gross rental income Rental income 282.0 259.2 Share of JV rental income 116.0 110.3 Total gross rental income (C) 398.0 369.5 Total EPRA cost ratio (including vacant property costs) (A)/(C) 35.2% 35.2% Total EPRA cost ratio (excluding vacant property costs) (B)/(C) 34.9% 34.9% * Excludes software as a service cost net of deferred tax and abortive costs. ** Vacant property costs reflect the per bed share of operating expenses allocated to vacant beds. Unite Group’s EBIT margin excludes non-operational expenses which are included within the EPRA cost ratio above. Unite Group capitalises costs in relation to staff costs and professional fees associated with property development activity. NOTES TO THE FINANCIAL STATEMENTS continued