Basic Profile & Key Statistics
Performance Review
Related Parties Shareholding
- REIT sponsor's shareholding is low at 9.01%
- REIT manager's shareholding is low at 0.57%
- Directors of REIT manager's shareholding is high at 12.17%
Lease Profile
- Occupancy is high at 100%
- WALE is long at 7.3 years
- Highest lease expiry within 5 years is low at 0%, but 100% of lease expiry falls in 2028
- Almost all properties are freehold or longer than 99 years remaining land tenure.
Debt Profile
- Gearing ratio is low at 31%
- Cost of debt is low at 1.9%
- Fixed rate debt % is low at 50%
- All debts are secured debts, but underlying properties are unencumbered
- WADM is long at 3.9 years
- Highest debt maturity within 5 years is high at 100% which falls in 2024
- Interest coverage ratio is high at 7.7 times
Diversification Profile
- Top geographical contribution is low at 13.3%
- Top property contribution is low at 9.3%
- Top 5 properties contribution is low at 26.2%
- Top tenant contribution is high at 99%
- Top 10 tenants contribution is high at 100% (estimated)
Key Financial Metrics
- Property yield is high at 7.5%
- Management fees over distribution is low at 10% in which unitholders receive £10 for every pound paid
- Distribution on capital is high at 5.4%
- Distribution margin is high at 70.8%
Trends
- Uptrend - NAV per Unit, Interest Coverage Ratio
- Flat - DPU, Distribution on Capital, Distribution Margin
- Slight Downtrend - Property Yield
The 1Q 2020 DPU of 0.74 pence (6 February 2020 to 31 March 2020) is annualized to 1.224 pence for an apple to apple comparison.
Relative Valuation
- Dividend Yield - Past 4 quarters DPU @ 4.924 pence (annuazlied) / average yield @ 7.4% = £ 0.665
- Price/NAV - NAV @ £ 0.65 x average P/NAV @ 1.08 = £ 0.70
Author's Opinion
| Favorable | Less Favorable |
|---|---|
| High Directors of REIT Manager's Shareholding | Low Sponsor's Shareholding |
| High Occupancy | Low Manager's Shareholding |
| Long WALE | Low Fixed Rate Debt % |
| No Lease Expiry within 5 Years | Concentrated Debt Maturity |
| Almost 100% Freehold Properties | High Top Tenant & Top 10 Tenants Contributions |
| Low Gearing Ratio | |
| Low Cost of Debt | |
| Long WADM | |
| High Interest Coverage Ratio | |
| Low Top Geographical Contribution | |
| Low Top Property & Top 5 Properties Contributions | |
| High Property Yield | |
| Competitive Management Fees | |
| High Distribution on Capital | |
| High Distribution Margin | |
| NAV per Unit Uptrend | |
| Interest Coverage Ratio Uptrend |
Though newly listed, Elite fundamental and performance are resilient without affected by COVID-19 pandemic. Its top tenant is the Department for Work & Pensions (DWP), a British government department that contributes 99% of income. The newly acquired properties are leased to another 5 U.K. government tenants which would improve the tenant diversification.
For more information, you could refer to:
SREITs Dashboard - Detailed information on individual Singapore REIT
SREITs Data - Overview and Detail of Singapore REIT
REIT Analysis - List of previous REIT analysis posts
REIT-TIREMENT Patreon - Support as a Patron and get SREITs Dashboard PDF or Data Excel
REIT-TIREMENT Facebook Page - Support by liking my Facebook Page
REIT Investing Community - Facebook Group where members share and discuss REIT topic
*Disclaimer: Materials in this blog are based on my research and opinion which I don't guarantee accuracy, completeness, and reliability. It should not be taken as financial advice or a statement of fact. I shall not be held liable for errors, omissions as well as loss or damage as a result of the use of the material in this blog. Under no circumstances does the information presented on this blog represent a buy, sell, or hold recommendation on any security, please always do your own due diligence before any decision is made.
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