Elite UK REIT Review 1H FY25 Result Review

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

Gross revenue and NPI remained stable year-on-year. Distributable income rose by 5.8%, supported by lower interest and tax expenses. DPU increased by 10.0%, helped by reduced distribution retention.

Acquisition

In June 2025, Elite completed the acquisition of three UK properties at a 7.6% discount to the average of independent valuations.

Divestment

2 properties were divested in 1H at an average premium of 7.9% above valuation.

Asset Enhancement Initiative

Elite received planning approval to convert Lindsay House in Dundee into a 168-bed Purpose-Built Student Accommodation (PBSA) asset.

Related Parties Shareholding

• REIT Sponsor's Shareholding: Less Favorable
• REIT Manager's Shareholding: Less Favorable
• Directors of REIT Manager's Shareholding: Favorable

Lease Profile

• Committed Occupancy: Moderate
• Highest Annual Lease Expiry in 4 Years: Less Favorable
• WALE: Less Favorable
• Weighted Average Land Lease Expiry: Favorable

Debt Profile

• Adjusted Interest Coverage Ratio: Less Favorable
• Cost of Debt: Less Favorable
• Gearing Ratio: Moderate
• Fixed Rate Debt Proportion: Favorable
• Unsecured Debt Proportion: Less Favorable
• Highest Annual Debt Maturity in 4 Years: Less Favorable
• WADM: Moderate

Diversification Profile

• Top Geographical Weightage: Favorable
• Top Property Weightage: Moderate
• Top 5 Properties' Weightage: Favorable
• Top Tenant Weightage: Moderate
• Top 10 Tenants' Weightage: Less Favorable

Key Financial Metrics

• Property Yield: Favorable
• Manager's Fees over Operating Distributable Income: Favorable
• Operating Distributable Income on Capital: Favorable
• Operating Distributable Income Margin: Favorable
• Operating Distribution Proportion: Favorable

DPU Breakdown

• TTM Distribution Breakdown:
• 94.6% from Operation
• 5.4% being Retained

Trends (Up to 10 Years)

• Uptrend: Property Yield, Operating Distributable Income over Manager's Fees, Operating Distribution Proportion
• Slight Uptrend: None
• Flat: Top 10 Tenants' Weightage
• Slight Downtrend: Operating Distributable Income on Capital
• Downtrend: DPU from Operations, NAV per Unit, Committed Occupancy, Adjusted Interest Coverage Ratio, Top 5 Properties' Weightage, Operating Distributable Income Margin

Price Range & Relative Valuation Metrics

• Dividend Yield: Below -1SD for 1y & 3y; Average for 5y & 10y
• P/NAV: Above +2SD for 1y; Above +1SD for 3y; Average for 5y & 10y

Author's Opinion

Compared to the previous half-year, despite stable revenue and NPI, both distributable income and DPU improved mainly due to interest savings, tax optimisation, and slightly lower retention. On the debt front, the REIT has no refinancing requirements until 2027.

For more information, check out:

S-REITs Dashboard - Detailed information on individual Singapore REIT

S-REITs Data - Overview and detail of Singapore REITs

S-REIT Comparison - Comparison among Singapore REITs

REIT Review - List of previous REIT review posts

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*Disclaimer: The information presented on this blog is for educational and informational purposes only. The materials, including research and opinions, are based solely on my findings and should not be considered professional financial advice or a definitive statement of fact. I cannot guarantee the accuracy, completeness, or reliability of the information provided. I shall not be held liable for any errors, omissions, or losses that may occur as a result of using the information presented on this blog. It should be noted that the information presented on this blog does not constitute a buy, sell, or hold recommendation for any security. It is crucial to conduct your own thorough research and due diligence before making any investment decisions.