Elite UK REIT has announced a distribution per unit of 2.33 pence for its 9MFY2025, up 9.4% y-o-y. Revenue in the same nine months to Sept was up 1% y-oy to GBP28.3 million, due to rental reversions for three properties and contributions from recently acquired properties, including Priory Court.
On the other hand, net property income in the same period was down 0.5% y-o-y to GBP27.4 million, due to costs incurred for asset repositioning initiatives. Distributable income, meanwhile, is up 6.2% to nearly GBP14.9 million.
With efforts to pay down debt, the REIT's borrowing costs have eased to 4.8% and interest coverage ratio has improved to 2.7 times as at Sept 30, and net gearing ratio stood at 42.5%.
The REIT says it has no refinancing requirements due until 2027, and two-year extension options are built into its loan facilities which provide additional headroom to manage future refinancing. As at Sept 30, occupancy has improved to 98.6% and its weighted average lease to expiry is 2.7 years.
“Through proactive treasury initiatives, we have achieved greater cash efficiency and reduced borrowing costs to strengthen our balance sheet," says Joshua Liaw, CEO of the manager.
"Coupled with our ongoing efforts to enhance income resilience through early lease regearing of our 2028 lease maturities and asset repositioning, the REIT is well-positioned to maintain distribution stability amid the current macroeconomic environment," he adds.
See also: CLCT's net property income for 3QFY2025 down 8.5% following divestment of mall to CLCR
The REIT is actively reshaping its portfolio, which is made up mainly of buildings rented to the UK government.
The REIT has received planning approval to convert one of its buildings, Lindsay House in Scotland to a 168-bed student dorm.
Mys Asset Management, which now runs more than 2,000 beds, has been appointed to manage this redevelopment project which the REIT says is on track to open in time for the academic year starting September 2027.
In addition, Elite UK REIT has completed a "positive" preplanning consultation for Cambria House, Cardiff, to be also converted to a student dorm.
Elite UK REIT units closed at 36 pence on Nov 3, unchanged for the day and up 24.14% year to date.
