SINGAPORE (May 11): The managers of Mainboard-listed Elite Commercial REIT has reported a distribution per unit of 0.74 pence (1.296 Singapore cents) for the financial period from February 6 to March 31.
This is the first period incorporating the results of the initial portfolio of Elite Commercial REIT since its initial public offering (IPO) on February 6.
The REIT reported earnings of £722,000, 15.2% higher than its forecast, and a distributable income of £2.5 million, 1.4% higher than expected.
See also: Elite Commercial REIT launches IPO at 7.1% yield
Revenue for the period was booked at £3.5 million, which was contributed by rental income from the official spaces in its initial portfolio. Over 99% of the rental income is derived from the current leases with the UK government, and the rest come from retail tenants in two of the 97 properties.
Property operating expenses were logged at £98,000 on lease management, and property management fees, as well as property insurance expenses.
Consequently, net property income (NPI) came in at £3.42 million.
Despite the lockdowns announced by the UK government to prevent the spread of Covid-19, the REIT has received three months of advance rent for April 1 to June 30, with 99.4% received within seven days of the due date
The Group expects to provide a stable income to its investors as over 99.0% of rental income is derived from full repairing and insuring (triple net) leases from the UK Government.
On January 28 this year, Elite Commercial REIT offered 108.98 million units to international investors outside of the US, and 5.74 million units to the Singapore public at an IPO price of £0.68 per unit, the equivalent of $1.21 per unit.
Units at Elite Commercial REIT closed flat at £0.675 on Friday, prior to the announcement.
