Unite Group PLC on Thursday said Chief Executive Officer Richard Smith will step down at the end of the year, having led the student accommodation provider since 2016, with the company’s finance chief picked to replace him.
The Bristol-based company said CEO Smith will step down at the end of the year, having been in post since 2016 and with the company for 13 years in total. During this time, the company noted, Unite has grown significantly to 157 properties across 23 university towns and cities, housing more than 70,000 students.
‘Richard is stepping down to pursue his personal interest in supporting the education and development of young people, including understanding issues that affect mental health,’ Unite added.
He will remain as an advisor until September next year.
In his place, Chief Financial Officer Joe Lister will become CEO from January 1. Unite said his promotion follows ‘an extensive process’. Lister steps into the role after 22 years with the company, including 15 years as CFO.
Following Lister’s appointment, Michael Burt, currently group investment director, will be promoted to CFO from the start of next year. Burt joined Unite Group in January 2019.
Katherine Grafton, currently group finance director, will be promoted to deputy CFO.
‘We have an exciting future ahead and I am confident that under Joe’s leadership Unite is best placed to build on our successes to date and continue its leading role in increasing the delivery of much needed affordable student accommodation at a time when the supply demand imbalance has never been greater,’ Chair Richard Huntingford said.
Separately, Unite updated on recent trading, noting ‘record’ occupancy and strong rental growth for the 2023-24 academic year.
Rental growth was 7.3% for the year, compared to 3.5% in the prior year.
‘Rental growth from nominations agreements has exceeded direct-let tenancies as university partners increasingly recognise the value our accommodation provides and are willing to agree increased rental levels on single year deals and new multi-year agreements,’ the company explained.
Its portfolio of beds was 99.7% let in the final stages of the letting cycle for the year, compared to 97.9% a year ago. It said demand has been ‘strong’ across all markets.
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