Elite Commercial Reit's H2 DPU rises 12.4% to 2.80 pence
ELITE Commercial Reit MXNU achieved a distribution per unit (DPU) of 2.80 pence for the half-year ended Dec 31, up 12.4 per cent from 2.49 pence the previous year on higher revenue and distributable income.
In its results filing on Monday (Feb 21), the real estate investment trust (Reit) manager attributed its strong performance to contributions from the Reit's maiden acquisition and a reduced headline tax rate following its successful admission to the UK's The International Stock Exchange (TISE).
Gross revenue for H2 FY2021 grew 61.7 per cent on-year to £18.8 million (S$34.4 million) from £11.6 million previously, boosted by contributions from the Reit's newly acquired portfolio in the UK.
Net property income rose by 62 per cent to £18.3 million compared to £11.3 million in H2 FY2020.
Distributable income for the half year stood at £13.4 million, up 60.2 per cent from the Reit's H2 FY2020 distributable income of £8.3 million.
The latest set of results brings Elite Commercial Reit's FY2021 DPU to 5.43 pence, representing a 22.3 per cent increase from its FY2020 DPU of 4.44 pence and beating its IPO (initial public offering) projection by 11.3 per cent.
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This marks the eighth consecutive quarter where the Reit outperformed its IPO projections, said the manager, with full-year revenue and distributable income projections for FY2021 exceeding IPO projections by 49.2 per cent and 49.4 per cent, respectively.
The distribution will be paid out on Mar 31 after the record date on Mar 1.
Elite Commercial Reit's manger said the portfolio remains 100 per cent occupied as at end-2021, with 99.9 per cent of rent for the 3 months to March 2022 collected in advance, and within 7 days of the due date.
It highlighted that the Reit portfolio's properties have built-in inflation-linked rental escalation clauses, in view of the rising inflation rate in the UK. This presents potential upside at the upcoming rent review in the fifth year of the leases where new rental rates will start in April 2023, said the manager.
Additionally, the manager has secured a new 5-year lease for East Street, Epsom, with about 11 per cent in rental uplift to start in April 2023 and a break option at the third year.
Meanwhile, the lease break option for the Reit's Sidlaw House, Dundee property has been exercised. The manager said multiple options - which include disposal, re-marketing or redevelopment of the site - are being evaluated for the asset.
Units of Elite Commercial Reit closed 0.01 pence or 1.5 per cent higher at 0.675 pence on Monday, after the results announcement.
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