Elite Commercial REIT has renewed leases for 134 of its properties that will see its total annual rental income from these properties increase 13% from £31.8 million to £36 million following the revisions.
The rent review, which took effect on April 1, is pegged to the UK consumer price index. The tenant for these properties is the UK government.
No thanks to the war in Ukraine, which drove up energy prices, UK suffered double-digit inflation this past year. Earlier today, on April 19, UK's CPI for March was reported as up 10.1% y-o-y. Analysts had been expecting 9.8%.
While the bulk of the properties enjoyed higher rates of 15.28%, 11 properties are subject to a rent reduction following a rent escalation of 15.28%.
As at Dec 31, 2022, the REIT has 155 properties in its portfolio, valued at £466.2 million.
Elite Commercial REIT closed April 18 at 41 pence, up 1.23%.
