Elite UK REIT has reported a distribution per unit (DPU) of 2.13 pence (3.6 cents) for the 9MFY2024 ended Sept 30, 15.8% lower than the DPU of 2.53 cents reported in the 9MFY2023.
After adjusting for an enlarged base of 594.2 million units in issue after a GBP28 million preferential offering in January this year, the REIT’s 9MFY2024 DPU was actually 3.9% higher from 2.05 pence in the 9MFY2023 due to an increase in distributable income and tax savings.
In the 9MFY2024, Elite UK REIT’s revenue fell by 1.75% y-o-y to GBP28 million while distributable income for the period rose by 2.8% y-o-y to GBP14 million.
As at Sept 30, the REIT’s portfolio occupancy rate stood at 93.9% with a weighted average lease expiry (WALE) of 3.5 years.
As at the same period, the REIT’s net gearing ratio stood at 45.1% with an interest coverage ratio of 3 times, although gearing fell to 43.6% as at Oct 7.
“We are firing on all cylinders. On capital management, we made good progress in strengthening Elite UK REIT’s position through refinancing, hedging and the substantial completion of dilapidation settlements negotiations for vacant assets,” says Joshua Liaw, CEO of the manager.
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“On asset management, we completed lease renewal for Theatre Buildings in Billingham, which is used as a DWP Jobcentre Plus, and divested Sidlaw House, Dundee, which are strong indicators of investors’ demand for well-located UK properties,” he adds. DWP refers to the Department for Work and Pensions.
Liaw also revealed that the REIT has been “unlocking latent value” within its portfolio of assets including progress with the “recent submission of a planning application for a low emissions and low latency data centre to optimise the land available at Peel Park, Blackpool”.
In its outlook statement, the REIT manager says it expects to “continue providing a stable income” to its unitholders as it has hedged 87% of its interest rate exposure and it continues to collect close to 100% of its rent a quarter in advance.
As at 10.09am, units in Elite UK REIT are trading 0.5 pence higher or 1.67% up at 30.5 pence.
