US Edition Shares in the company have fallen by 73pc so far this year on fears that Unite, which has net debts of £531m, would be forced to launch a highly-dilutive capital raising to avoid breaching covenants.
However, Mark Allan, the chief executive, said the company will instead seek to strengthen its financial position by selling £150m of assets. A capital raising was "seriously considered", he added.
Unite, which is cutting capital expenditure by half, posted a full-year, pre-tax loss of £129m, compared to a £67m loss in 2007, driven down by a £25.3m fall in asset values and £28m writedowns on land previously earmarked for development.
The company's financial troubles come despite a bullish student accommodation market, with rental values up 9.5pc in 2008. Unite's figures reflect a shift in focus to new developments. The company now sells on its more mature assets.
Shares in Unite, which will not pay a final dividend, rose 7 to 46p on Monday.