Elite UK REIT has reported a distribution per unit of 1.54 pence for its 1HFY2025, up 10% y-o-y. Revenue was up just 0.5% to £18.7 million for the same half year ended June but distributable income increased by 5.8% to £9.7 million, thanks to lower interest costs and tax benefits.
Joshua Liaw, CEO of the manager, calls the first half of this year a reflection of the REIT's strategic efforts.
The REIT delivered higher distributable income with the yield-accretive acquisition of three government-leased properties.
There was also the divestment of two empty properties, where proceeds were used to reduce debt. Via a recent private placement that was over-subscribed, the REIT raised £4.0 million, says Liaw.
To increase the value of its portfolio, the REIT has been broadening into other property types.
It has received planning application approval to convert Lindsay House, one of its properties that is in Dundee, to a purpose-built student accommodation facility.
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"Meanwhile, we continue to actively engage our tenants ahead of the 2028 lease expiries and double down on executing our capital and asset strategies to deliver sustainable distributions for our investors from resilient, counter-cyclical portfolio," says Liaw.
As of June 30, Elite UK REIT’s net gearing ratio improved by 1.8 percentage points to 40.7%. Borrowing costs declined 10 basis points to 4.8%.
The proportion of interest rates on fixed rates or hedged rose to 91% during the period under review, locking in stability and safeguarding distributions. As at 30 June 2025, its portfolio occupancy improved to 95%.
As at 11.24 am, Elite UK REIT units changed hands at 35 pence, up 1.47%.
