Interested in hearing people's thoughts on this stock whilst I investigate it further. I'm normally very much an index and chill investor but keep some money on the side to play with and the stock is really taking my fancy recently.
UNITE Group plc currently training at 0.53 of its book value, the stock price is decreased almost 40% in the last year largely due to concerns over acquisitions, lower forecasts for next year's occupancy (down to 93%) and increased cost of servicing it's debt.
The price to book value is what originally got me interested, but even following negative guidance for next year (11% drop in revenue). The stock trades at a forward PE of 11 with a forward dividend yield of 7.22% at current price. I believe the finances of the company suggest that the dividend is 'safe' moving forward.
I am also bullish over student accommodation in the UK as an industry and whilst they appreciate there is a number of current challenges (increased tax burden on a foreign students, decrease in applications in some areas) I believe this has largely been overblown and UNITE's focus on Russel Group universities with high demand reinforces this.
I would value anyone's thoughts on the stock and potential risks which I might want to be investigating as I move through my next steps.