The manager of Elite Commercial REIT reported a 65% y-o-y jump in distribution per unit (DPU) to 1.22 pence (2.25 cents) for the 1QFY2021 ended March.
According to the 1QFY2021 business update released on April 23, the surge in DPU follows the REIT’s maiden acquisition of commercial properties in the UK.
The acquisition of the new portfolio, comprising 58 properties, was completed on March 9.
The DP of 1.22 pence also exceeds the manager's forecast of 1.2 pence for the period.
Elite Commercial REIT’s distributable income for the 1QFY2021 totalled GBP4.5 million, up 83% y-o-y from GBP2.5 million previously.
This follows higher revenue, which grew 87.6% y-o-y to GBP6.6 million from GBP3.5 million previously, mainly driven by contribution from the new assets.
Pursuant to the acquisition, the REIT’s enlarged portfolio with a value of GBP515.3 million remains 100% occupied with 99.9% of the quarterly advance rent collected in full and on time.
SEE:Elite Commercial REIT a resilient bet amid the challenging environment
Shaldin Wang, CEO of the manager, says that the acquisition marks a good start to the year for the REIT.
“The acquisition increased the number of assets in our portfolio to 155 properties and our market capitalisation by 39%. Our enlarged portfolio is fully occupied, 97% freehold with long WALE and generating strong cashflows, which is consistent with our investment strategy,” she says.
In terms of its outlook, the manager highlights that the UK is expected to see a stronger recovery than the rest of the Euro-area, in light of its healthy vaccination rates and reopening of non-essential businesses.
However, unemployment remains at 5% as of three months ending January, and is expected to increase to 6.5% in 2021, which should sustain utilisation of the UK government’s Department for Work and Pensions, which is a key tenant of Elite Commercial REIT’s properties.
To that end, the manager states that the REIT is expected to continue to provide stable income to its unitholders, given Covid-19’s minimal impact on the REIT’s business and rent collection.
The manager also remains focused on realising opportunities for growth via acquisition of assets which have been leased long-term by various ministries of the UK government.
As at 9.07am, units in Elite Commercial REIT are up 0.5 pence or 0.75% higher at 67 British pence.
