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.
