Elite UK Reit’s 9-month DPU rises 3.9% on higher distributable income, tax savings

Elite UK REIT on Tuesday (Nov 5) announced earnings that showed its distribution per unit (DPU) climbed while its distributable income increased year on year.

Its DPU for the nine months ended September increased 3.9 per cent to 2.13 pence as the real estate investment trust (Reit) attributed the jump to higher distributable income and tax savings. Its distributable income was up 2.8 per cent year on year at £14 million (S$23.9 million).

Revenue was down slightly at £28 million, from £28.5 million a year earlier.

The Reit’s portfolio occupancy rate stands at 93.9 per cent – up 160 basis points (bps) compared with end-June 2024.

The Reit manager’s chief executive officer Joshua Liaw said: “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.”

The Reit’s borrowing costs declined by 20 bps to 5 per cent through refinancing and hedging 87 per cent of its exposure. The manager said there are no further refinancing requirements until 2027. The Reit’s net asset value per unit was £0.39 as at Oct 7.

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“We are also in the midst of unlocking latent value within Elite Reit’s portfolio of assets in various stages through proactive asset management,” said Liaw, adding that the Reit has recently submitted a planning application for a low emissions and low latency data centre to optimise the land available at Peel Park, Blackpool, in the UK.

Units of the Reit ended Monday unchanged at £0.30.