In the 9MFY2024, Elite UK REIT’s revenue fell by 1.75% y-o-y to GBP28 million while distributable income for the period rose by 2.8% y-o-y to GBP14 million.
As at Sept 30, the REIT’s portfolio occupancy rate stood at 93.9% with a weighted average lease expiry (WALE) of 3.5 years.
As at the same period, the REIT’s net gearing ratio stood at 45.1% with an interest coverage ratio of 3 times, although gearing fell to 43.6% as at Oct 7.
“We are firing on all cylinders. On capital management, we made good progress in strengthening Elite UK REIT’s position through refinancing, hedging and the substantial completion of dilapidation settlements negotiations for vacant assets,” says Joshua Liaw, CEO of the manager.
See also: Keppel Pacific Oak US REIT’s 1QFY2025 distributable income falls by 19.3% y-o-y to US$9.6 mil
“On asset management, we completed lease renewal for Theatre Buildings in Billingham, which is used as a DWP Jobcentre Plus, and divested Sidlaw House, Dundee, which are strong indicators of investors’ demand for well-located UK properties,” he adds. DWP refers to the Department for Work and Pensions.
Liaw also revealed that the REIT has been “unlocking latent value” within its portfolio of assets including progress with the “recent submission of a planning application for a low emissions and low latency data centre to optimise the land available at Peel Park, Blackpool”.
In its outlook statement, the REIT manager says it expects to “continue providing a stable income” to its unitholders as it has hedged 87% of its interest rate exposure and it continues to collect close to 100% of its rent a quarter in advance.
As at 10.09am, units in Elite UK REIT are trading 0.5 pence higher or 1.67% up at 30.5 pence.
