PERFORMANCE REVIEW Property review continued Future off-campus pipeline Our future pipeline includes an additional 2,900 beds for schemes where we have optionality on whether to proceed based on the risk-adjusted returns of projects relative to other investment opportunities. We will be disciplined when committing further capital to these projects, which will likely require a nomination underpin from a university for a significant portion of the beds. We own three consented development sites, of which 83% by value is in London. We are reviewing options for these projects to deliver best value for shareholders, including disposal or potential third-party funding. While we explore options, we have deferred delivery of our 500-bed Freestone Island project in Bristol. Our Meridian Square and King’s Place projects in London have also been delayed following an extended timeline to secure necessary approvals prior to construction. We have also decided not to proceed with our TP Paddington development in London. This follows the grant of planning permission on appeal, which fulfilled our contractual commitment to the landowner. The 605-bed project was not financially viable based on our increased return requirements and an extended delivery programme. We have recognised a c.£10 million write- off of planning costs, which has been excluded from adjusted earnings and have no further commitments to the landowner. Disposals We continue to enhance the quality of the portfolio and manage our balance sheet leverage by recycling capital through disposals. During the year, we completed the sale of 10 properties in Aberdeen, Leicester, Leeds, Nottingham and Sheffield for £214 million (Unite share: £140 million). This included the sale of a portfolio of nine properties for £212 million at a blended yield of 6.4% and priced c.1% below December 2024 book value, which completed in August 2025. The proceeds will be recycled into university joint ventures and asset management activity in our strongest markets. We will continue to recycle capital from disposals to maintain net debt: EBITDA in the 6-7x range and LTV around c.30- 35% on a built-out basis. We will target future disposals of around £300-400 million p.a. (Unite share), which will release £100-200 million p.a. of surplus capital for reinvestment. Disposals will be made up from a combination of lower growth assets, similar to those sold in 2025, stabilised assets in core markets, and lower-yielding or non-income producing assets. These disposals will enhance portfolio quality and be accretive to earnings as proceeds are reinvested. Following the year end, we agreed the sale of St Pancras Way, a 571-bed asset in central London, to USAF for £186 million (Unite share: £126 million), subject to technical due diligence. The building was developed by Unite in 2014 and is undergoing a light refurbishment to the common areas. The transaction will be USAF funded by existing cash headroom in USAF and the issue of new USAF Units (the 'New Units') to be fully underwritten by Unite. Unite will receive minimum net proceeds of £115m in cash and increase its ownership of USAF to 32% subject to USAF investors choosing to take-up their pre-emption rights. Asset management In the year, investment in asset management and refurbishment activity totalled £44 million (Unite share: £30 million), delivering a yield on cost of 8.1%. The 10 projects included full refurbishment of existing rooms, upgrades to common spaces and enhancements to the environmental performance of the properties. FIRE SAFETY Fire safety is a critical part of our health and safety strategy, and we have a track record of leading the sector on fire safety standards through our proactive approach. During the period, we completed fire safety improvements on eight properties across our estate and spent £66 million (Unite share: £36 million) on fire safety capex during the year. Our year-end balance sheet includes committed fire safety spend of £80 million (Unite share: £46 million), the costs for which will be incurred over the next two years. During the year, we reached agreement with contractors for recovery of £14 million of remediation costs (Unite share: £8 million) in relation to 10 properties. In total, we have now agreed settlements totalling £86 million (Unite share: £59 million). We expect to recover 50-75% of total cladding remediation costs through claims from contractors, although the settlement and recognition of these claims is likely to lag costs incurred to remediate properties. We anticipate the remediation programme to complete by 2031 with net spend reducing materially over time. THE UNITE GROUP PLC Annual Report and Accounts 2025 32 STRATEGIC REPORT