Subject: Re: Unite Group (UTG), UK, falling knife.
thanks TRS

Good points on the BTL challenges and of course those taxes on UK BTL are pushing private landlords out of the market. Which is by government design to free up housing stock for families. But that does mean there is less supply of private rental properties, which in turn is good for Unite. Maybe the phrase – don’t fight the Fed – can become don’t fight the UK Gov, when it comes to property investment.

Why has it gotten so cheap is a great question. I might have thought a company backed up by property would be less volatile and prone to big price moves, at lease during a period of flat, to gently falling interest rates. I speculate that you are correct that it’s related to the Empiric acquisition. As you suggested, it could be some shareholders liking the combined firm less and getting out. It could even be the timeline for the completion is too long and short term investors just see it as dead money while the deal gets investigated and eventually completes way into 2026. Could also be something else is happening that we don’t know about.

As far as I can see, Unite was previously fairly valued and considered a strong operator with a great portfolio. Now it’s for sale at a discount, as happens from time to time in stock markets. In the wider stock market, fundamentals are out of fashion currently and the UK has little appeal to international investors.

FT reporting that Chancellor Rachel Reeves is looking to boost UK share ownership by overhauling ISAs, with potential measures including a minimum holding of British companies and stamp duty tax breaks. Good news for companies like Unite and Greggs…

EVBigMacMeal