Elite UK REIT (SGX:MXNU
) has reported distributable income of £5.3 million, up 9.8% y-o-y, driven by interest savings, contributions from three properties acquired in last June, and reduced holding costs as a result of divestments of vacant assets and the repositioning of Lindsay House, Dundee into purpose-built student accommodation.
While revenue for 1QFY2026 was up 1.2% y-o-y to £9.4 million, net property income was down by 12.3% y-o-y to £9.1million due to the effects of one-off dilapidation settlements and lease termination premium received back in 1QFY2025.
Meanwhile, Elite UK REIT’s weighted average lease expiry (WALE) was 6.9 years as at March 31 due to new lease agreements announced on February 5 for properties occupied by the Department for Work and Pensions (DWP), which significantly reduced peak lease expiry concentration in FY2028 from 95.7% to 32.0%.
In terms of asset enhancement initiative (AEI), Elite UK REIT mentions that the conversion of Lindsay House, Dundee into a 170-bed purpose-built student accommodation (PBSA) development remains on track for the academic year commencing September 2027.
In addition, a pre-planning consultation has been completed for the proposed conversion of Cambria House, Cardiff into a 348-bed PBSA development.
On the capital management front, Elite UK REIT’s net gearing ratio improved by 3.3 percentage points to 37.4% with interest coverage ratio at 2.6 times.
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The REIT’s borrowing costs stood at 4.7% as at March 31, remained unchanged compared to the figure back on Dec 31, 2025.
92% of Elite UK REIT’s debt are on fixed rate and the next refinancing requirement will be in FY2027 and the REIT has a two-year extension option embedded in its loan facilities, providing added flexibility.
“Amid the backdrop of ongoing geopolitical and macroeconomic uncertainties, we remain well-positioned to deliver stable and sustainable distributions to our unitholders,” says Joshua Liaw, CEO of the manager.
As of 9.12am, Units in Elite UK REIT remained unchanged at 34.5 pence.
