She notes that the REIT manager is in discussion with the Department for Work and Pensions (DWP) to extend and diversify leases. “As Elite REIT is amongst the largest providers of critical social infrastructure to the DWP and other government departments, the risk of non-renewal for all leases is remote, in our view, though it is difficult to say for sure how many will be renewed,” adds Mak.
Investment advisory platform Beansprout has initiated “buy” on Elite UK REIT with a target price of 44 pence.
In her September 30 report, analyst Peggy Mak highlights that the REIT is enjoying a high portfolio occupancy rate of 92.3% as at end June. However, a substantial 96.9% of the leases will expire in 2028 — Mak believes is this weighing on the value of its assets and share price.
