Elite UK REIT has reported a distribution per unit (DPU) of 0.76 pence ($1.33) for 1QFY2025 ended March 31, up 9.6% y-o-y.
The REIT reported a distributable income of GBP4.8 million for 1QFY2025, up 10.2% y-o-y. This was supported by rental reversions, interest optimisation and tax savings.
Revenue for the reporting period came in 0.6% y-o-y higher at GBP9.31 million, while net property income grew 24.4% y-o-y to GBP10.4 million.
The REIT saw a full quarter of reversionary rent from Dallas Court, Salford, and from Theatre Buildings, Billingham. A 24% rental reversion for the medical centre tenant at Ladywell House, Edinburgh, was also achieved.
This includes a one-off dilapidation settlement and lease surrender premium of GBP1.6 million.
The REIT's 1QFY2025 portfolio occupancy came in at 93.5%, up from the 92.3% a year ago. The REIT says that this is set to further improve to 95.2% with completion of divestments announced in 2024.
As at end March, weighted average lease expiry is 3.1 years.
The proportion of debt on fixed rates or hedged increased to 88% in 1QFY2025, while borrowing costs reduced to 4.8%.
As at March 31, net gearing ratio came in at 42.2% compared to 42.5% a quarter ago. Interest coverage ratio stood at 2.6 times, and Elite UK REIT has no further refinancing needs until 2027.
The manager of the REIT completed the divestment of Crown Buildings, Caerphilly at GBP710,000, representing an 18% premium to valuation.
The REIT has submitted planning applications for Lindsay House, Dundee and Peel Park, Blackpool.
"Given their quality locations and favourable market dynamics, there is latent value to be unlocked for Lindsay House as a purpose-built student accommodation and a potential monetisation opportunity for Peel Park, Blackpool as a data centre development site," says Joshua Liaw, CEO of the manager.
Units in Elite UK REIT closed 1 pence higher or 3.509% up at 29.5 pence on Apr 30.
