Elite UK REIT (SGX:MXNU
) has reported a distribution per unit (DPU) of 3.03 pence for FY2025, up 5.6% y-o-y.
While revenue increased 1.3% y-o-y to £38.0 million, net property income declined 3.7% y-o-y to £36.0 million due to asset repositioning expenses and lower dilapidation settlements.
Excluding one-off revenue items, the adjusted net property income dipped 1.4% y-o-y to £34.1 million.
With the lower borrowing costs, distributable income was up by 4.6% y-o-y to £19.3 million in FY2025.
Portfolio valuation as at 31 December 2025 increased 2.0% y-o-y to £424.7 million following asset repositioning at Peel Park Blackpool and Lindsay House, Dundee and the acquisition of three government-leased properties in last June.
However, due to an enlarged unit base, net asset value per unit was down from £0.41 as at Dec 31,2024 to £0.40 as at Dec 31, 2025.
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The REIT highlighted that the higher portfolio valuation achieved as at Dec 31, 2025 also took consideration on the advanced stage new lease discussions for the DWP-occupied properties.
Full impact of the valuation arising from the longer lease tenures will only be reflected in the next valuation exercise as the new leases kicked in only on Feb 5.
On the capital management front, Elite UK REIT’s aggregate leverage was at 42.8% as at Dec 31,2025, an improvement of 6 basis points from 43.4% as at Dec 31, 2024.
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Borrowing cost decreased 20 basis points to 4.7% as at Dec 31, 2025 from 4.9% a year ago. 85% of total borrowing were on fixed interest rate and interest coverage ratio stood at 2.6 times.
Meanwhile, Elite UK REIT said its redevelopment works for Lindsay House has started following planning approval while Cambria House has completed a pre- application planning consultation for PBSA conversion.
For Peel Park in Blackpool, Elite UK REIT highlighted that the asset has been offered 120 megavolt-amperes (MVA) power and is in the final stages of a planning application for a proposed hyperscale, AI-enabled data centre development. Valuation has since increased 22% y-o-y to £40.0 million as at Dec 31, 2025.
Joshua Liaw, CEO of the manager said that Elite UK REIT has seen a rise in investor interests and trading liquidity has doubled in FY2025 due to “asset and lease features” coupled with a “unique capital structure”.
“Our near-term priorities will focus on continuing this momentum to deliver sustainable returns for our Unitholders,” said Liaw.
Units in Elite UK REIT closed flat at 35.5 pence on Feb 6.
