Elite UK Reit posts 1.4% rise in H2 DPU to £0.0149

[SINGAPORE] The manager of Elite UK Real Estate Investment Trust (Reit) on Monday (Feb 9) posted a distribution per unit (DPU) of £0.0149 for the second half of the 2025 financial year ended Dec 31, representing a payout ratio of 95 per cent.

This was about 1.4 per cent higher than the DPU of £0.0147 in H2 2024. The year-ago distribution also reflected a payout ratio of 95 per cent, adjusted based on the FY2025 weighted average units in issue of 603.2 million.

The manager noted that the mitigation of risk factors enabled the Reit to maintain this higher distribution payout ratio.

Full-year DPU stood at £0.0303, up 5.6 per cent on the year, with the rise attributed to interest and tax savings. The distribution for H2 will be paid out on Mar 30, after the record date on Feb 20.

Revenue for the half-year grew 1.1 per cent year on year to £18.6 million (S$32.2 million) from £18.4 million. Excluding the effect of straight-line rent adjustments, revenue rose 0.1 per cent to £17.9 million.

Net property income (NPI) fell 8.2 per cent to £16.6 million from £18.1 million. Without the straight-line rent adjustments, NPI declined 9.4 per cent to £16 million.

Meanwhile, the amount available for distribution to unitholders after retention rose 3.5 per cent to £9.1 million from £8.8 million.

For the full year, revenue climbed 0.3 per cent to £36.6 million from £36.5 million previously, while NPI declined 4.7 per cent to £34.6 million from £36.3 million.

Excluding the effect of straight-line rent adjustments, revenue and NPI fell 0.7 per cent and 5.9 per cent, respectively.

Revenue increased due mainly to rental reversions and contributions from the acquisition of three government-leased properties, the manager said. It cited asset repositioning expenses and lower dilapidation settlements for the fall in net property income.

As at end-December, Elite UK Reit’s portfolio occupancy stood at 98.6 per cent.

“Solid foundation”

The manager also noted that the trust’s portfolio valuation increased following the repositioning initiatives and acquisition.

The portfolio valuation was £424.7 million as at Dec 31, an increase of 2 per cent from £416.2 million in the previous year. Its weighted average lease expiry (Wale) stood at 7.2 years.

Gearing as at end-December was 40.7 per cent, down 1.8 percentage points on the year. The manager noted that there are no refinancing requirements until 2027.

Joshua Liaw, chief executive of Elite UK Reit’s manager, said that significant strides in key priorities were made in FY2025.

“We strengthened our lease maturity profile to achieve one of the longest Wales among (Singapore-listed Reits), grew our portfolio through an accretive acquisition of three government-leased properties… (and) optimised our balance sheet to support growth.”

He added that the Reit’s “solid foundation… on mission-critical properties (offers) attractive recession-proof yields and future growth”.

Units of Elite UK Reit closed flat at £0.355 last Friday.