The manager of Elite UK REIT has announced a distribution per unit (DPU) of 1.40 pence for the 1HFY2024 ended June, down 19.5% y-o-y due to an enlarged equity base following its GBP28 million preferential offering that concluded on January 18.
Based on the closing unit price of 24 pence, the annualised dividend yield is 11.7%. Net asset value per unit came in at 41 pence as at June 30.
When adjusted based on 1HFY2024 number of units in issue of 587.1 million units as at June 30 for a like-for-like comparison, 1HFY2023 DPU would come in at 1.43 pence, 2.1% lower compared to 1HFY2024’s DPU.
The portfolio generated GBP18.6 million of revenue in 1HFY2024, about 0.6% lower y-o-y, mainly due to lower asset base as compared with 1HFY2023, offset by rent escalations in April 2023.
Net property income and the amount generated during the period for distribution to unitholders in 1HFY2024 was GBP18.7 million and GBP9.2 million respectively, about 4.7% and 1.7% lower y-o-y mainly due to the increase in vacancy holding costs.
As at June 30, Elite UK REIT’s net gearing ratio stood at 41.4% while debt headroom increased to GBP57.9 million. Approximately 63% of Elite UK REIT’s borrowings are hedged on fixed interest rates and interest coverage ratio stood at 3.0 times.
See also: Kimly reports higher FY2024 revenue but earnings down on higher depreciation and other costs
Elite UK REIT’s portfolio occupancy stood at 92.3% as at June 30, with a weighted average lease expiry (WALE) of 3.8 years.
The REIT's portfolio of 150 properties were independently valued at about GBP415 million as at June 30, about 0.6% higher than the portfolio valuation of GBP412.5 million as at Dec 31, 2023.
The valuation uplift is attributed to positive leasing activity, inclusive of a renewal at about 30% rental reversion as well as better ongoing letting prospects and land value at the Peel Park site in Blackpool.
See also: LHN reports higher FY2024 earnings on fair value gains and better operations (update)
Units in Elite UK REIT closed at an unchanged 24 pence on Aug 6.
