Elite Commercial Reit unit listed on TISE to qualify for tax exemptions

Tan Nai Lun

Published Fri, Aug 27, 2021 · 08:51 AM

ELITE UK Commercial Holdings (ECHL), a wholly-owned subsidiary of mainboard-listed Elite Commercial Reit MXNU : MXNU 0%, has been listed on The International Stock Exchange (TISE) from Aug 26, and has also also applied to become a group UK Reit, the manager of the real estate investment trust (Reit) said in a bourse filing on Friday.

The admission on TISE is a required step for ECHL and its subsidiaries to qualify for corporation tax exemption for its property rental business income and gains under the UK Reit regime.

On a pro forma basis, assuming completion of the listing on Jan 1, such an exemption would have increased Elite Commercial Reit's distribution per unit for H1 2021 to 2.71 pence from 2.63 pence, and its net asset value per unit would have increased to £0.64 from £0.62.

Pro forma profit after tax for the half year would have risen to £2.6 million, from its current loss after tax of £5.4 million.

The listing does not involve any divestment or dilution of Elite Commercial Reit's shareholding in ECHL, the Reit's manager said.

Units of Elite Commercial Reit last closed flat at £0.67 on Thursday.