The manager of Elite Commercial REIT has reported a distribution per unit (DPU) of 2.56 pence (4.29 cents) for the 1HFY2022 ended June, 2.7% lower y-o-y due to a higher unit base.
Distributable income increased by 9.7% y-o-y to £12.2 million mainly due to the full half-year rental contribution from the REIT’s maiden acquisition and tax savings from a lower headline tax rate due to the qualification of the REIT’s UK entity as a UK REIT group.
1HFY2022 revenue increased by 17.7% y-o-y to £18.7 million, while net property income (NPI) also increased by 17.7% y-o-y to £18.1 million after property expenses.
The REIT’s portfolio occupancy remains high at 98.0% as at June 30 with a weighted average lease expiry (WALE) of 5.2 years.
As at June 30, Elite Commercial REIT’s net asset value (NAV) per unit t improved to 62 pence as at June 30, up 1 pence y-o-y. Gearing ratio stood at 41.9% as at June 30.
Following the positive lease re-gearing exercise in 1HFY2022, the portfolio of 155 properties in the REIT were valued at an aggregate of £517.7 million as at June 30, which represented an overall fair value gain of 3.5% over the previous valuation of £500.1 million as at Dec 31, 2021.
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Cash and cash equivalents as at June 30 stood at £8.2 million.
In its statement on Aug 5, the manager says it remains on the lookout for growth opportunities, which may be available to the REIT through its sponsors’ right of first refusal (ROFR) pipeline or from the open market. Elite Commercial REIT is expected to continue providing a stable income to its unitholders as it continues to collect almost 100% of its rent a quarter in advance.
Unitholders will receive their DPUs on Sept 22.
Units in Elite Commercial REIT closed 0.5 pence lower or 0.81% down at 61.5 pence on Aug 4.
