The manager of Elite Commercial REIT has reported a distribution per unit (DPU) of 0.67 British pence (1.1 cents) for the 1QFY2024, 21.2% lower y-o-y due to an enlarged equity base from the preferential offering completed on Jan 18.
Distributable income fell by 3.5% y-o-y to GBP4.4 million.
Revenue for the 1QFY2024 inched up by 0.8% y-o-y to GBP9.2 million with the growth in rent escalations offset by non-income generating vacant assets and vacancy holding costs. The increase in vacancy holding costs was due to timing, says the REIT manager.
Net property income (NPI) fell by 3.7% y-o-y to GBP8.3 million.
As at March 31, portfolio occupancy stood at 92.3%. The REIT’s weighted average lease expiry (WALE) stood at 4.0 years.
Net gearing ratio stood at 41.5%, down from 47.5% as at Dec 31, 2023. Interest coverage ratio (ICR) stood unchanged at 3.1 times.
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The manager says it has identified several high-potential, high-yield assets within its current portfolio to conduct strategic asset repositioning. These assets include a data centre development site in Blackpool which has received a positive pre-application response from the local authority and a conversion opportunity to a purpose-built student accommodation (PBSA) asset for Lindsay House, Dundee.
The REIT manager says it will tapping on the expertise and network of one of its sponsors, Sunway RE Capital, as it goes into this new asset class. Sunway has been active in the PBSA sector in the UK.
“The manager will also be leveraging on the strategic locations of its properties. Subject to approval by the local authorities, these assets may be held on for redevelopment into other uses or disposed with the benefit of approvals,” says the REIT manager.
Units in Elite Commercial REIT closed at 24 British pence on May 2.
