The manager of Elite Commercial REIT has reported distribution per unit (DPU) of 2.63 British pence (4.95 cents) for the 1HFY2021 ended June, 34.9% higher than DPU of 1.95 pence reported in the 1HFY2020.
The figure also represents an 8.7% upside to its IPO projection of 2.42 pence.
Distributable income for the 1HFY2021 surged 71.3% y-o-y to £11.2 million, which stood 37.1% higher than its IPO projection of £8.1 million.
Revenue for the period stood 70.6% higher y-o-y to £15.9 million, which also stood some 37.7% higher than its IPO projection of £11.5 million. The higher figures were boosted by nearly four months’ worth of contribution from its newly acquired properties in the UK.
See also: DBS initiates 'buy' on Elite Commercial REIT with TP of 80 pence
The REIT completed its maiden acquisition of 58 commercial properties in the UK for £212.5 million on March 9.
Finance costs stood 62.2% higher than its IPO projection at £2.2 million due to a drawdown of additional loans to finance the newly-acquired properties.
As at June 30, the REIT reported a 100% portfolio occupancy rate over a weighted average lease expiry (WALE) of 6.6 years.
The REIT, despite the lockdown in the UK, received 99.7% of the rent from July to September in advance.
Its primary occupier is the Department for Work and Pensions (DWP), which is the UK government’s largest public service department for crucial welfare, pensions and child maintenance policy.
Cash and cash equivalents as at June 30 stood at £13.4 million.
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Shaldine Wang, CEO of the manager, attributes the “strong set of financial results” to the “stable income generated by our unique recession-proof portfolio, which is 99% leased to the AA-rated UK government and provides crucial social infrastructure to support the UK’s social fabric through economic cycles, as well as contribution from our recent portfolio acquisition which had also uplifted our results”.
“The manager is also in the midst of applying for a technical listing of our UK unit – Elite UK Commercial Holdings Limited – on The International Stock Exchange to enhance our tax structure and potentially reap tax savings to further improve the REIT’s distributable income to all unitholders. Our plan to introduce the distribution reinvestment plan is expected to strengthen our balance sheet and allow unitholders to continue participating in our growth,” she adds.
Units in Elite Commercial REIT closed flat at 67.5 British pence on July 30.
Photo: Elite Commercial REIT
