| Latest Forum Topics / EliteUKREIT GBP Last:0.34 -- |
 Post Reply
|
|
1 cent divi+ Prime takeover/Privitsation candidate
|
|||
|
fatpig
Senior |
09-Feb-2026 09:40
|
||
|
x 0
x 0 Alert Admin |
Elite UK REIT' s distribution per unit surges 5.6% in FY2025 | ||
| Useful To Me Not Useful To Me | |||
|
prophetjul
Master |
06-Feb-2026 08:19
|
||
|
x 0
x 0 Alert Admin |
Looking better | ||
| Useful To Me Not Useful To Me | |||
|
|
|||
|
fatpig
Senior |
06-Feb-2026 07:53
|
||
|
x 0
x 0 Alert Admin |
ELITE UK REIT SIGNS £ 24.3 MILLION OF NEW LEASE AGREEMENTS WITH THE UK GOVERNMENT FOR DWP-OCCUPIED PROPERTIES | ||
| Useful To Me Not Useful To Me | |||
|
Alignment
Elite |
22-Jan-2026 11:37
|
||
|
x 0
x 0 Alert Admin |
I was looking at this REIT again. 99% of revenue is from the UK govt, most of which is Department of Work and Pensions. The remaining average contract term is 2.9 years. The assets are almost all in poor parts of the UK, where there is not much private sector activity, the government is often the largest employer and unemployment is relatively high. The assets themselves do not look that high quality. If the DWP does not renew their contracts, I suspect for many of this REIT' s buildings they will struggle to find replacement tenants. To top this off, the UK government finances are in a bad state. They will be under pressure to make big savings. Hence, my question is does anyone have any insight into the contract renewal risk for these assets specifically? |
||
| Useful To Me Not Useful To Me | |||
|
Joelton
Supreme |
05-Nov-2025 09:59
|
||
|
x 0
x 0 Alert Admin |
Elite UK Reit 9-month DPU rises 9.4% to £ 0.0233
The improvement is attributed to interest savings through capital management and interest rate optimisation
[SINGAPORE] The manager of Elite UK Reit : MXNU 0% on Tuesday (Nov 4) posted a distribution per unit (DPU) of £ 0.0233 for the nine months ended Sep 30, 2025, up 9.4 per cent from £ 0.0213 in the year-ago period.
This was based on a payout ratio of 95 per cent for the period, and of 90 per cent for the corresponding period in 2024.
At a 100 per cent payout ratio, the DPU for the nine-month periods in 2025 and in 2024 would have been £ 0.0246 and £ 0.0236, respectively.
For the period, distributable income stood at £ 14.8 million (S$25.4 million), up by 6.2 per cent on the year from £ 14 million.
The higher DPU and distributable income were due to interest savings through capital management, interest rate optimisation and an increase in payout ratio to 95 per cent in H2 2025, the manager said.
Net property income, however, dipped marginally by 0.5 per cent year on year to £ 27.4 million from £ 27.5 million, due to expenses incurred for asset repositioning.
Revenue inched up 1 per cent to £ 28.3 million from £ 28 million previously.
This was driven by rental reversions for three properties: Dallas Court in Salford, Theatre Buildings in Billingham and Ladywell House in Edinburgh. Contributions from the June acquisitions of Priory Court in Dover Custom House in Felixstowe, England and Ty Merlin in Carmarthen, Wales, also contributed to the revenue.
The real estate investment trust&rsquo s (Reit) occupancy improved to 98.6 per cent as at Sep 30, 2025, up 32 basis points since Q1 2025, with its weighted average lease expiry at 2.7 years.
Its net asset value per unit fell to £ 0.39 as at end-September 2025, from £ 0.41 as at end-December 2024, in tandem with a decrease in its net assets to £ 237.9 million from £ 241.2 million.
Total debt dropped to £ 189.9 million as at end-September, from £ 190.5 million as at end-December. All of its debt is denominated in pound sterling, which provides a natural hedge and eliminates currency mismatching in its balance sheet, the manager noted.
It added that the Reit had no refinancing requirements until 2027, with built-in two-year extension options offering a runway for it to navigate future refinancing.
Its net gearing ratio stood at 42.5 per cent as at Sep 30, 2025, unchanged from Dec 31, 2024, supported by interest savings from ongoing capital management efforts.
As at end-September, its interest coverage ratio rose to 2.7 times, from 2.5 times as at end-December 2024.
Borrowing costs came in at 4.8 per cent as at Sep 30, compared with 4.9 per cent as at Dec 31.
|
||
| Useful To Me Not Useful To Me | |||
|
|
|||
|
Joelton
Supreme |
05-Sep-2025 11:32
|
||
|
x 0
x 0 Alert Admin |
&lsquo It&rsquo s time to start growing&rsquo as Elite UK REIT acquires, repositions assets
Over the past two years, Elite UK REIT has strengthened its capital structure, cutting its net gearing ratio by 680 basis points to 40.7% as of June 30 &mdash its lowest since 2023.
In 2024, the only UK REIT listed in Singapore completed a preferential offering that raised gross proceeds of approximately GBP28 million ($48.6 million) while concurrently securing up to GBP215 million of debt from a diversified group of banking partners for refinancing.
Through fundraising and capital recycling from dilapidation settlements and divestments, the manager has reduced borrowings by GBP50 million since 2023.
This includes the divestment proceeds from Hilden House in Warrington and Crown Buildings in Caerphilly in 1HFY2025 for some GBP4 million at an average 7.9% premium above valuation.
&ldquo The past couple of years have focused on strengthening our capital structure and preparing for growth,&rdquo says Josh Liaw, CEO of the manager, who was appointed in June 2023. &ldquo But we can&rsquo t simply cut our way to prosperity. Our recent acquisition is our way of signalling that we&rsquo re not just about shrinking &mdash we&rsquo re ready to grow again, in a strategic, balanced and sustainable manner.&rdquo
In June, Elite UK REIT completed a GBP4 million equity fundraising round to partially fund a GBP9.2 million acquisition of three government-leased properties &mdash Priory Court, Custom House and Tŷ Merlin &mdash at a 7.6% discount to average valuation.
Priory Court and Custom House are tenanted to the Home Office, while Tŷ Merlin adds the Department for Environment, Food and Rural Affairs to Elite UK REIT&rsquo s tenant mix.
While the Department for Work and Pensions (DWP) remains Elite UK REIT&rsquo s biggest tenant, at 92.3% of gross rental income (GRI), the acquisition increased GRI contribution from non-DWP government occupiers by 1.5 times.
Elite UK REIT&rsquo s portfolio occupancy improved to 95% after the two divestments and three acquisitions. Excluding assets &ldquo undergoing repositioning&rdquo , occupancy is around 97%, says Liaw.
Site visit
While on a trip to London, Liaw personally visited Priory Court in Dover. &ldquo It didn&rsquo t look that big on Google Earth, but it is really huge.&rdquo
Priory Court consists of 12 separate buildings arranged on a site of approximately 6.3 acres. It functions as a customs and immigration facility of the UK&rsquo s Home Office for the neighbouring Port of Dover.
&ldquo Dover faces Calais in continental Europe. It is where the Eurostar tunnel digs into the ground and emerges in France,&rdquo says Liaw. &ldquo Dover is also traditionally the largest continental port that&rsquo s facing Europe, so they have a lot of rollon, roll-off cargo, including a very busy car-ferry service.&rdquo
With a net internal area of 72,052 sq ft, it is the largest of the three recent acquisitions, and it sits on 452,083 sq ft of freehold land. The current lease expires in April 2031, but it has the potential for a longer-term lease with the existing tenant, or to be re-let to other port users.
The Home Office shares the property with His Majesty&rsquo s Revenue and Customs (HMRC), the UK&rsquo s tax, payments and customs authority.
&ldquo As we learn more about these assets, we know that their ability to move, to be able to find a similar-sized property, is quite constrained,&rdquo says Liaw. &ldquo All these indicate that the tenant could extend even beyond their current expiry in 2031.&rdquo
The current annual rent at Priory Court is GBP325,000, and the tenant is due for an &ldquo upward-only open market rent review&rdquo in April 2026.
PBSA foray
Elite UK REIT is also making inroads into its expansion into living assets. About three months after submitting a planning application for Lindsay House in Dundee, Scotland, to be transformed into a 168-bed purpose-built student accommodation (PBSA), the manager received approvals from the local authority in July.
Dundee is experiencing a significant shortfall in PBSA supply, says Liaw. &ldquo Living is underbuilt as a sector this is probably a tailwind that will last for many years to come. There are not enough rooms for students, so they are then soaking up the usual available stock for residential use, taking that space away from families and local residents.&rdquo
Lindsay House is a former government workspace and is within walking distance of leading universities and transportation nodes, including Abertay University, the University of Dundee and Dundee Train Station.
With a combined full-time student population of approximately 16,165 at Abertay University and the University of Dundee in the 2023/2024 academic year, the market&rsquo s estimated 4,620 existing PBSA beds represent a student-to-bed ratio of around 3.5 times.
The proposed conversion of Lindsay House will reuse existing structures &mdash reducing project costs and also embodied carbon &mdash and is expected to welcome students from the academic year starting September 2027.
The estimated yield on cost is 7% and the estimated return on investment is around 18%.
Data centre site
In October 2024, Elite UK REIT submitted its planning application for an 80-megawatt data centre at Peel Park, Blackpool, but unlike Lindsay House&rsquo s, has not yet received planning approvals.
Still, this timeline &ldquo is not out of the ordinary&rdquo . Liaw adds: &ldquo The planning officer has come on site and made some comments we&rsquo ve addressed them and gone back to them. Now we are waiting eagerly for final approval, which we hope to get later this year.&rdquo
The site is located near a transatlantic subsea cable linking North America and Europe. With Peel Park, the manager aims for &ldquo long-term value maximisation&rdquo either through strategic divestment or partnerships with data centre operators.
Peel Park&rsquo s valuation rose 36% y-o-y to GBP32.8 million at end-2024. However, this was based on 60 megavolt-amperes (MVA) of power, before the site securing an additional 60 MVA of power in January. Altogether, the site now has 120 MVA of power.
DBS Group Research, one of seven houses covering Elite UK REIT, notes in an Aug 1 report that the new asset value could &ldquo conservatively rise&rdquo to an estimated GBP45 million to GBP50 million. &ldquo As such, the potential divestment of a stake in this property is likely to serve as a key catalyst.&rdquo
Mission-critical infrastructure
Although Elite UK REIT is expanding into the living sector and repositioning Peel Park, Blackpool, its portfolio still predominantly consists of government-leased properties.
The REIT is the largest provider of mission-critical infrastructure to several UK government departments, with the majority of its properties used as Jobcentres, which provide employment support.
This is set to stay, even with any potential changes in the UK government, says Liaw. &ldquo I think regardless of whichever political party comes into power in the future, social welfare and the Jobcentres seem to be a cornerstone of the UK political agenda. I don&rsquo t think it can be written off easily.&rdquo
The UK government is trialling the sharing of properties among different agencies. With demand for medical care outstripping supply, the UK&rsquo s National Health Service (NHS) is one potential beneficiary, says Liaw.
The UK&rsquo s publicly funded healthcare system may even become a tenant of Elite UK REIT in future. &ldquo They need space to expand, and I think some of these centres occupied by the DWP &mdash where they can afford to share space with another user, they can be shared with the NHS for a clinic or an assessment centre.&rdquo
The manager is in talks with the DWP to extend leases expiring in 2028, to lengthen the current weighted average lease expiry of 2.9 years. With the UK government as a key tenant, rental income is backed by AA-rated UK sovereign credit with zero arrears, and rent is even collected in advance.
Business as usual
In August, sponsor Elite Partners Holdings purchased fellow sponsor Sunway RE Capital&rsquo s 15% stake in the manager. The latter no longer holds any interest in the manager, whose sponsors are now Elite Partners Holdings and Ho Lee Group.
&ldquo We&rsquo re incredibly grateful for the support that Sunway has extended to Elite UK REIT as its sponsor,&rdquo says Liaw. &ldquo The REIT is in a better position than it was two years ago, and the manager&rsquo s shareholders have mutually agreed on Elite Partners&rsquo purchase of Sunway&rsquo s 15% stake.&rdquo
Liaw is confident in Elite UK REIT&rsquo s counter-cyclical portfolio of 100% freehold and virtual freehold assets with resilient income. &ldquo With Elite Partners and Ho Lee remaining as Sponsors since IPO in 2020, coupled with the strong banking relationships that we continue to have, we are well on track to strengthen Elite UK REIT&rsquo s portfolio and expand into the living sector.&rdquo
He adds: &ldquo Investors can rest assured that it&rsquo s business as usual at the manager and for the REIT.&rdquo
|
||
| Useful To Me Not Useful To Me | |||
|
Joelton
Supreme |
01-Aug-2025 11:09
|
||
|
x 0
x 0 Alert Admin |
Elite UK Reit posts 10% rise in H1 2025 DPU to £ 0.0154
Net property income for the half year is down 1.3% at £ 18 million from £ 18.2 million in H1 2024
[SINGAPORE] The manager of Elite UK real estate investment trust (Reit), announced a 5.8 per cent year-on-year increase in distributable income to £ 9.7 million (S$16.7 million) in H1 2025, from £ 9.2 million during the same period last year.
Revenue for the half year was down 0.5 per cent to £ 18 million, from £ 18.1 million in H1 2024, said the manager on Thursday (Jul 31). It also noted that recognising rental income on a straight-line basis over the lease term for H1 2025 had an effect of negative £ 0.7 million.
Net property income for the half year dipped 1.3 per cent to £ 18 million, from £ 18.2 million in the corresponding period of the previous year. The distribution per unit for the quarter grew 10 per cent to £ 0.0154, from £ 0.014 in H1 2024.
The improved financial performance was driven by positive rental reversion and new rental income from the acquisition of three government-leased properties in June 2025, said the Reit manager.
Interest savings arising from capital management and interest rate optimisation, tax planning and tax benefits from sustainability-related capital expenditure also led to a rise in distributable income.
As at the end of H1 2025, net gearing ratio fell to 40.7 per cent, from 42.5 per cent as at Dec 31, 2024. Borrowing costs fell 0.1 per cent to 4.8 per cent as at Jun 30, 2025, due to the manager&rsquo s &ldquo refinancing and debt optimisation initiatives&rdquo .
The weighted average lease expiry for the Reit&rsquo s portfolio as at Jun 30 came in at 2.9 years.
The manager has received a planning application for the Lindsay House property in Dundee, Scotland, to be converted into a 168-bed purpose-built student accommodation. The property is situated within walking distances of universities and transport nodes.
The manager&rsquo s chief executive officer, Joshua Liaw, said: &ldquo The first half of 2025 has begun to reflect the results of our strategic efforts.&rdquo
|
||
| Useful To Me Not Useful To Me | |||
|
chengwh1
Elite |
17-Nov-2023 11:26
|
||
|
x 0
x 0 Alert Admin |
" high-for-longer interest rates, client concentration risk, slow recovery in physical occupancy are downside risks,& rdquo she adds. " The above analyst missed a big risk appearing from this year-end Asset Valuation Exercise. If the valuation drops drastically, the Aggregate Leverage Ratio will JUMP above 50% !!! |
||
| Useful To Me Not Useful To Me | |||
|
|
|||
|
Joelton
Supreme |
21-Oct-2023 15:45
|
||
|
x 0
x 0 Alert Admin |
Maybank Securities takes a closer look at Elite Commercial REIT in unrated report
Maybank Securities analyst Li Jialin has issued an unrated report on Elite Commercial REIT on Oct 19 after her visit to the REIT&rsquo s office assets in the UK.
The REIT has 18 assets in London, the north western part of England and Scotland. Its assets are valued at GBP148.6 million or 32% of its total assets under management (AUM).
Elite Commercial REIT is the only Singapore-listed offshore REIT with pure UK exposure and adhering to the social infrastructure theme. Its total AUM stands at GBP466.2 million.
&ldquo Anchored by 155 office assets across the UK, Elite Commercial REIT offers exposure to mostly freehold, triple-net-leased, and government-occupied assets with a weighted average lease expiry (WALE) of 4.5 years,&rdquo says Li.
&ldquo The major tenant, Department for Work and Pensions (DWP), occupies 146 buildings, including its public serving Jobcentre Plus and back offices,&rdquo she adds. &ldquo Based on FactSet consensus data, Elite commercial REIT is trading at 0.48x FY2023 P/BV.&rdquo
In her report, Li notes that the REIT&rsquo s upward rental review will be effective from April onwards, referring to the REIT&rsquo s original lease that was inked in 2018 for its initial public offering (IPO) portfolio. The lease includes an inflation-linked rental adjustment in 2023 with an option for its tenant to break the lease, she writes.
In the 1QFY2023, the REIT completed a rental review and increased its the gross rental income by GBP4.2 million on a net annualized basis.
&ldquo In addition, break-lease options for 108 assets have lapsed since the review,&rdquo says Li. &ldquo The next round of lease renewals will be in 2028.&rdquo
&ldquo Overall, there is no renegotiation of leases before Elite&rsquo s re-financing exercise in FY2024. In June 2023, Elite&rsquo s gearing was lowered to 46%, after the proceeds from divesting John Street and Openshaw Jobcentre were partially deployed to repayment. Elite is in the process of divesting three other assets,&rdquo she adds.
The REIT is also taking steps to address the occupancy issues at its 12 vacated assets, with management indicating that they are exploring potential changes for the use of some of its assets.
&ldquo In the IPO prospectus, Elite Commercial REIT referred to case studies of residential developments of higher market value converted from office assets, near [its] assets,&rdquo notes Li.
&ldquo Elite Commercial REIT&rsquo s shares have dropped 66% since listing due to uncertainties created by the impact of Covid-19 and rising interest rates. Upside risk stems from the abatement of these factors while high-for-longer interest rates, client concentration risk, slow recovery in physical occupancy are downside risks,&rdquo she adds.
|
||
| Useful To Me Not Useful To Me | |||
|
Joelton
Supreme |
15-Sep-2023 10:33
|
||
|
x 0
x 0 Alert Admin |
Elite Commercial REIT renewed through fresh leadership, key priorities
The manager of Asia&rsquo s only UK REIT &mdash Elite Commercial REIT (Elite REIT) &mdash recently underwent leadership renewal with CEO Joshua Liaw, who was appointed earlier this year.
Liaw&rsquo s first 100 days as CEO of Elite REIT&rsquo s manager have been &ldquo very exciting&rdquo , he tells The Edge Singapore. &ldquo The opportunity to manage a UK REIT that invests in UK&rsquo s social infrastructure is compelling, notwithstanding the challenges facing the REIT, market and the overall economy. I see potential in the REIT&rsquo s prospects &mdash we are working on various strategic pathways to unlock value for unitholders.&rdquo
Liaw has nearly two decades of experience in real estate finance and fund management, bringing fresh perspectives and innovative ways of leading the REIT manager. He honed his skills in real estate and fundraising during his banking days at Standard Chartered and Citi.
After leaving the banking world in 2014, he spent nine years at Lendlease. He was part of the team that oversaw the IPO of Lendlease REIT in 2019 and the acquisition of Jem in 2022, which subsequently doubled Lendlease REIT&rsquo s portfolio valuation.
Key priorities
Liaw has, for now, set his sights on near-term priorities to bring Elite REIT forward. &ldquo At the top of the list is to manage our vacant assets, and we have made good progress in the first six months of the year. We have also used a portion of the recycled gross proceeds to reduce our gearing.&rdquo
The REIT&rsquo s gearing improved to 46.0% in the middle of the year, down 60 basis points compared to March 31, with 62% of interest rate exposures fixed and no near-term refinancing requirements until November 2024.
With weighted average lease expiry at 4.5 years, Liaw also aims to future-proof Elite REIT&rsquo s property portfolio by diversifying the lease expiry profile and collaborating with its tenants to enhance the value of its assets.
For one, Elite REIT is collaborating with its largest occupier by gross rental income &mdash the Department for Work and Pensions (DWP) &mdash on a public-private asset enhancement initiative to improve the sustainability performance of occupied assets.
The DWP is the UK&rsquo s largest public service department and is responsible for welfare, pensions and child maintenance services. In line with the UK&rsquo s 2050 net-zero goal, the collaboration began in February 2022 and plans include replacing variable refrigerant systems, gas- or oil-fuelled boilers and air-conditioning systems with more energy-efficient systems and even insulating roofs and windows.
The innovative initiative was later expanded to include the asset occupied by the Ministry of Defence. According to Liaw, the collaboration has been &ldquo very well-received&rdquo by the DWP and is expected to be implemented further, in conjunction with the lease extensions for 2028.
Besides improving the energy efficiency of the REIT&rsquo s portfolio assets, the innovative partnership with enhancement works identified by the occupier offers the REIT&rsquo s manager valuable insight, says Liaw. &ldquo The occupier&rsquo s capital expenditure planning provides an indication of those assets they remain committed to.&rdquo
Beyond lease expiries, the asset enhancement helps with the long-term resilience of the REIT&rsquo s assets, he adds.
Finally, Liaw aims to improve the trading liquidity of Elite REIT. &ldquo That might be the hardest thing to do. We are working on broadening our current research coverage by the end of the year. We have also done radio, online and media interviews to broaden our engagements with retail investors. In fact, we have just finished a week of roadshows in Singapore, Kuala Lumpur and Bangkok. It has been a hectic first three months and I am enjoying the challenge.&rdquo
Unique exposure
As the only S-REIT reporting in British pounds, Elite REIT offers a &ldquo unique selling point&rdquo , says Liaw. Aside from Asian currencies and the US dollar, investors in this region are most likely to hold assets and funds in pounds, Liaw adds, as they may own property in the UK or have children studying there.
Elite REIT&rsquo s most unique feature is its key tenant, as 99.3% of its gross rental income comes from the AA-rated UK government. In particular, 91.7% of Elite REIT&rsquo s gross rental income comes from the DWP.
According to the REIT, this provides credit stability and income certainty, and nearly 100% of the rentals are collected three months in advance.
The DWP provides very essential services to local communities throughout the UK, says Liaw. &ldquo It provides unemployment benefits, job matching and job training pension benefits, as well as child maintenance benefits. It is a very important element of the social fabric and a key enabler of the UK&rsquo s labour policy and welfare.
As such, we expect the DWP to continue to occupy our assets for the long term.&rdquo The REIT&rsquo s occupied assets are on triple-net leases, where the responsibility for the repair of the external and internal parts, as well as the structure of the property, lies with the tenant.
Elite REIT&rsquo s leases also contain clauses on dilapidation settlements, a common feature in UK commercial lease agreements, where tenants have the responsibility to reinstate the building to its original condition at the end of the lease.
During the first six months of 2023, Elite REIT received GBP3.0 million ($5.12 million) in recycled gross proceeds, which includes total dilapidation settlements received for four assets as at June 30 and the estimated gross disposal proceeds from Openshaw Jobcentre in Manchester and John Street in Sunderland.
The REIT has entered into a sale and purchase agreement for the two properties at a consideration of GBP1.1 million. The sale consideration represents an approximately 14.4% premium to the properties&rsquo valuation as at July 31.
In addition, the REIT is in advanced stages to divest three other vacant assets at above total book value. &ldquo The realisation of divestment proceeds at a premium to valuations clearly reflects the intrinsic value of the underlying portfolio of assets that we manage,&rdquo says Liaw. &ldquo In addition, the successful dilapidation settlement negotiations add on to the proven track record of our team&rsquo s investment and asset management efforts and capabilities in delivering a positive outcome for each asset via proactive tenant engagement strategies.&rdquo
1HFY2023 results
On Aug 7, Elite REIT posted distribution per unit (DPU) of 1.94 pence for 1HFY2023 ended June, up 6.4% q-o-q but down 24.2% y-o-y. Management has opted to retain 10% of distributable income, which will help strengthen Elite REIT&rsquo s financial position. At a 90% payout ratio, unitholders will receive 1.74 pence in DPU.
During 1HFY2023, the REIT&rsquo s revenue grew 3.4% y-o-y to GBP19.1 million, lifted by net annualised inflation-linked rent escalation of 13.1% for 136 assets and partially offset by the vacancy of eight assets, effective April 1.
As at June 30, Elite REIT&rsquo s portfolio occupancy rate was 92.1%, down from 97.9% at the previous quarter.
Net asset value per unit remained stable at 51 pence as at June 30. Borrowing costs grew to 5.2% as at June 30 from 4.9% at March 31. The manager expects interest rates to remain elevated as the Bank of England tackles persistent inflation, although the market is starting to see green shoots.
The UK&rsquo s annual inflation rate fell sharply to 6.8% in July from 7.9% in June. &ldquo The decrease in the inflation rate is meaningful and if the trend continues, the Bank of England will eventually cut interest rates within a year or so,&rdquo says Liaw.
That said, Elite REIT faces no foreign exchange concerns, adds Liaw. &ldquo We are listed in British pounds our assets, loans and distributions are all in British pounds. Therefore, we are naturally hedged.&rdquo
Any additional cost of inflation on the property operating expenses are borne by the tenant due to the triple-net leases.
The British pound is considered one of the world&rsquo s most important reserve currencies, and Liaw thinks market pessimism on the UK is &ldquo a bit disproportionate&rdquo . &ldquo People do forget that the UK is the sixth-largest economy in the world. [The UK does] have a strong talent pool and some of the world&rsquo s largest and best-run companies.&rdquo
|
||
| Useful To Me Not Useful To Me | |||
|
Joelton
Supreme |
12-Aug-2023 14:25
|
||
|
x 0
x 0 Alert Admin |
Analysts cut target for Elite Commercial Reit to reflect lower payout ratio
RESEARCH houses reduced their price targets for Elite Commercial Real Estate Investment Trust : MXNU -1.64% (Elite Commercial Reit) following the release of the Reit&rsquo s financial results for the first half ended Jun 30.
On Monday (Aug 7), the Reit reported a distribution per unit (DPU) of 1.74 pence after retaining 10 per cent of its distributable income.
This came in below CGS-CIMB&rsquo s estimates, prompting its analysts to trim their price target on the Reit to £ 0.49 from £ 0.57.
&ldquo We lowered our FY2023 DPU estimates by 17.4 per cent to factor in a lower 90 per cent payout ratio, updating for the vacated and divested properties,&rdquo said the analysts on Monday, who nonetheless said they expect an &ldquo attractive&rdquo dividend yield of 12.3 per cent for the full year.
They also reduced DPU estimates by 7.5 per cent for FY2024 and by 8.3 per cent for FY2025.
Despite the cut in price target, CGS-CIMB maintains its &ldquo add&rdquo call, highlighting the Reit&rsquo s high occupancy rate and its portfolio value maximising strategy.
&ldquo We believe these initiatives would enable the trust to reduce holding costs of the vacated properties or pare down debt to lower its gearing and strengthen its balance sheet in the near term,&rdquo added the analysts.
In comparison, DBS Group Research reduced its price target by a greater amount to £ 0.33 from £ 0.53 while maintaining its &ldquo hold&rdquo call.
In their report on Friday, analysts from DBS said that the Reit&rsquo s H1 DPU was below their expectation &ldquo as a result of higher-than-expected interest expenses&rdquo .
They hence cut their distributable income estimates by 6 per cent for FY2023 and by 1 per cent for FY2024, while lowering the payout ratio to 90 per cent to reflect the 10 per cent retention.
While CGS-CIMB said they liked the Reit for its &ldquo stable income portfolio&rdquo in view of its inflation-linked rental structure, analysts from DBS expressed reservation about the Reit&rsquo s potential for revenue growth, due to its non-renewal of leases despite recent rental escalations.
&ldquo Although there were positive rent reversions of around 13.1 per cent for 136 assets in the Reit&rsquo s portfolio in April 2023 on the back of record-high inflation in the UK, rental income growth is expected to be modest in FY2023-FY2024 as a result of the non-renewal of leases at 12 properties,&rdquo said DBS analysts.
On the other hand, the Reit&rsquo s weak credit metrics contributed further to DBS analysts&rsquo decision to cut their price target, as the &ldquo higher cost of debt in a rising interest rate environment&rdquo would weigh on the Reit&rsquo s dividends.
The Reit&rsquo s high gearing ratio of 46 per cent as at Jun 30 suggests a &ldquo limited buffer in terms of regulatory limits&rdquo , noted the analysts.
DBS expects a distribution yield of 11.1 per cent for FY2023.
|
||
| Useful To Me Not Useful To Me | |||
|
Alignment
Elite |
11-Aug-2023 11:55
|
||
|
x 0
x 0 Alert Admin |
Not a good sign. No replacement announced yet. | ||
| Useful To Me Not Useful To Me | |||
|
|
|||
|
Joelton
Supreme |
11-Aug-2023 11:50
|
||
|
x 0
x 0 Alert Admin |
Elite Commercial Reit CFO resigns
THE manager of Elite Commercial Reit : MXNU +1.67% on Thursday (Aug 10) announced that its chief financial officer Joel Cheah has resigned &ldquo to pursue other opportunities&rdquo .
Cheah&rsquo s last day of service will be on Nov 6, 2023, after more than three-and-a-half years at his post.
The real estate investment trust&rsquo s (Reit) manager said the 39-year-old has been responsible for the Reit&rsquo s overall financial, treasury, tax and risk management matters, and has worked with the management team to formulate strategic plans for it.
He was also a member of the Reit&rsquo s sustainability committee.
|
||
| Useful To Me Not Useful To Me | |||
|
finjungle
Veteran |
09-Aug-2023 10:41
|
||
|
x 0
x 0 Alert Admin |
UK is BROKEN in many ways. outdated infrastructure-roads, airports and rwilways. Politics? Sucks! Future would be bleak it is nw a third world country!
|
||
| Useful To Me Not Useful To Me | |||
|
Alignment
Elite |
09-Aug-2023 01:06
|
||
|
x 0
x 0 Alert Admin |
UK market environment very tough. Brexit makes it even harder. | ||
| Useful To Me Not Useful To Me | |||
|
Joelton
Supreme |
08-Aug-2023 13:24
|
||
|
x 0
x 0 Alert Admin |
|
||
| Useful To Me Not Useful To Me | |||
|
checkmate
Member |
07-Aug-2023 16:29
|
||
|
x 0
x 0 Alert Admin |
With gearing just a valuation downgrade away from 50%, and with assets mostly in UK, which will probably be one of the last places in the world to lower rates and recover growth, I would be wary of this REIT. | ||
| Useful To Me Not Useful To Me | |||
|
fatpig
Senior |
07-Aug-2023 13:03
|
||
|
x 0
x 0 Alert Admin |
Over 99.0% leased to the UK Government, providing attractive and recession-proof yieldsElite Commercial REIT is a Singapore real estate investment trust (&ldquo REIT&rdquo ) established with the investment strategy of principally investing, directly or indirectly, in commercial assets and real estate-related assets in the UK. 1Q 2023 DPU .95 2Q 2023 DPU .99 Gearing Ratio 1Q 2023 46.6% Gearing Ratio 2Q 2023 46% Impoves in DPU and Gearing Ration Q to Q. NAV remain stable at GBP 0.51 (P/B = 0.59) 90% payout ratio 1H 2023 DPU is 1.74 pence. Projected yield for 2023 around 11.6% @ GBP 0.3 a share. While inflation has been easing in recent months. The risk premuim of this share relative good. |
||
| Useful To Me Not Useful To Me | |||
|
prophetjul
Master |
18-May-2023 08:55
|
||
|
x 0
x 0 Alert Admin |
WOW! This Reit has gone into the gutters! And they probably blaming the outgoing CEO. | ||
| Useful To Me Not Useful To Me | |||
|
chengwh1
Elite |
29-Apr-2023 14:31
|
||
|
x 0
x 0 Alert Admin |
Assuming a scenarion whereby the dpu stays at 0.94p every qtr for the next three qtrs of this Financial Year, the total dpu payout would be 0.94p x 4 = 3.76p.... If one has a holding price of, say 52p, his yield-on-cost would be 3.76/52.0 = 7.23%, which is still a respectable yield to be earned. And,... it would make sense to average down now since the unit price is at a 52-week low of 38p.
|
||
| Useful To Me Not Useful To Me | |||