According to Lock and Li, Elite UK REIT’s “unique” value proposition lies in its defensive cashflow from sovereign-rated tenants and ability to selectively and strategically reposition assets into newly identified growth sectors, such as purpose-built student accommodation (PBSA). “We believe this would allow it to enhance its value, future-proof its portfolio and narrow its share price gap to net asset value.”
CGS International (CGSI) analysts Lock Mun Yee and Li Jialin have raised their target price on Elite UK REIT to GBP0.38 from GBP0.35 after visiting four of the REIT’s properties in Scotland — Heron House, Parklands, Lindsay House and Northgate — along with two from its sponsor: Queensway House and 150 Broomielaw.
Elite UK REIT has 26 properties in Scotland, accounting for 16.7% of its portfolio assets under management (AUM) and 10.1% of total gross rental income as at end-March.
