To aid our review, the Committee considers reports from the Group Finance team and reports from the external auditor on the outcomes of their half-year review and annual audit. We support Deloitte in displaying the professional scepticism its role requires. SIGNIFICANT ISSUES CONSIDERED After discussion with both management and the external auditor, the Committee determined that the key risk of misstatement of the Group’s 2025 financial statements related to property valuations. PROPERTY VALUATIONS The Group’s principal assets are investment properties and investment properties under development that are either owned on balance sheet or in USAF or LSAV. The investment properties are carried at fair value based on an appraisal by the Group’s external valuers, who carry out the valuations in accordance with the RICS Red Book valuation guide, taking into account transactional evidence during the year. The valuation of property assets involves significant estimation and changes in the core assumptions could have a material impact on the carrying value of these assets. Management discusses the underlying performance of each asset with the external valuers and provides detailed performance data including rents, university lease agreements, occupancy, property costs and costs to complete (for development properties). Management receives detailed reports from the valuers and performs a thorough review of the valuations to ensure that management considers the valuations to be appropriate. The valuation report is reviewed by the Chief Financial Officer prior to sign-off. The Committee considered the extent property valuations reflected anticipated future spend on properties, including to remediate cladding and fire safety. The Committee was satisfied that the Group’s valuers were appropriately qualified, had been rotated suitably and provided an independent assessment of the Group’s property valuations. We were also satisfied that an appropriate valuation process had taken place, the core assumptions used were reasonable and so the carrying value of investment and development properties in the financial statements was appropriate. The external auditor explained the audit procedures to test the valuation of investment and development properties and the associated disclosures. Based on the audit work, the external auditor reported no inconsistencies or misstatements that were material in the financial statements as a whole. Further analysis and details on asset valuations is set out on pages 36-38. The effectiveness of the external audit function was considered including the independence and objectivity of the external auditor; the appropriateness of any non-audit services provided by the external auditor to the Group; the make-up and quality of the audit team; the proposed audit approach and the scope of the audit; the execution of the audit and the quality of the audit report to the shareholders; and the fee structure. Reports from Group Risk & Assurance and its audit and assessment of the control environment were discussed. The Committee reviewed and proposed areas of focus for the internal audit programme to review, including how internal audit activity will continue to align to principal Group risks and business objectives. The upcoming changes to Provision 29 were monitored, including consideration of the impact from 1 January 2026. The Audit & Risk Committee has considered the frameworks that form our material controls and how we are assured they are operating effectively. The Audit & Risk Committee will continue to review the potential impact on the Group with management to ensure that suitable reporting is delivered. FINANCIAL REPORTING The primary focus of the Committee, to financial reporting for the year ended 31 December 2025, was to review with both management and the external auditor the appropriateness of the half-year and annual financial statements, concentrating on: • The quality and acceptability of accounting policies and practices – these policies are detailed from page 152. • The clarity of the disclosures and compliance with financial reporting standards and relevant financial and governance reporting requirements. • Material areas in which significant judgements have been applied or where there has been discussion with the external auditor. • Whether the Annual Report and Accounts, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Group’s position and performance, business model and strategy. The Committee’s assessment of the Annual Report was to ensure that it is fair, balanced and understandable and took into account the following considerations: • The high level of input from the Chief Executive Officer and Chief Financial Officer with early opportunities for the Board to review and comment on the Annual Report. • Ensuring consistency in the reporting of the Group’s performance and management information (as described on pages 14-15), risk reviews (as described from page 52), business model and strategy (as described on pages 8-9 and 4-7). • A cross-check between Board Minutes and the Annual Report is undertaken to ensure that reporting and messaging is balanced. • Whether information is presented in a clear and concise way, illustrated by appropriate KPIs and APMs to facilitate shareholders’ access to relevant information. THE UNITE GROUP PLC Annual Report and Accounts 2025 105