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.
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.
