The REIT manager will seek portfolio growth via rigorous research-driven selection by focusing on long-term sector trends and fundamental real estate qualities to ensure attractive cash flows and yields. The REIT has a right of first refusal (ROFR) granted by its sponsors on its pipeline — most of which are on long-term leases by various UK Government ministries.
1. Describe Elite Commercial REIT’s recent financial performance for its first-year since listing.
Elite Commercial REIT is established with the investment strategy of principally investing, directly or indirectly, in commercial assets and real estate-related assets in the United Kingdom (UK). Elite Commercial REIT has a portfolio of 155 predominantly freehold quality commercial buildings across the UK, with a total net internal area of about 3.9 million sq ft. The REIT’s sponsors include Elite Partners Holdings, Ho Lee Group and Sunway RE Capital. Elite Commercial REIT reported a strong set of results for the period from Feb 6, 2020, to Dec 31, 2020, outperforming IPO forecasts with higher distributable income to unitholders and DPU.
Despite the challenging environment and economic uncertainty arising from the Covid-19 pandemic and Brexit, the REIT is well supported by stable cash flows backed by its AA-rated tenant, the UK Government with its uniquely counter-cyclical operations of the Department for Work and Pensions (DWP). As a result, the REIT achieved a distributable income to unitholders of GBP14.8 million and DPU of GBP0.0444, which is 2.1% and 2.3% higher than IPO forecasts, respectively. There was also an uplift in portfolio valuation with a fair value gain of investment properties of GBP15.9 million, reflecting the underlying intrinsic value of the properties.
2. Can you share more about your investment and divestment strategy, and elaborate on Elite’s recent maiden portfolio acquisition
