Tax expense, meanwhile, was 14% lower y-o-y due to higher interest deduction and higher capital allowance claims from sustainability enhancement works, says Natarajan.
With "no major earnings changes", Natarajan expects 6% DPU CAGR between FY2024 and FY2027 from lower borrowing and vacancy costs.
RHB Bank Singapore analyst Vijay Natarajan is maintaining his "buy" call and 35 pence (60.87 cents) target price on Elite UK REIT after the REIT reported "healthy" distribution per unit (DPU) for 1QFY2025 ended March 31, 10% higher y-o-y.
This was aided by higher net property income on the back of positive rent reversions and lower vacancy costs, says Natarajan in a May 2 note. Elite UK REIT's financing costs declined 10 basis points (bps) q-o-q and 40 bps y-o-y, and is expected to further decline by between 10 and 30 bps in the current FY2025.
