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EliteUKREIT GBP
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Elite REIT - the only GBP-denominated REIT today.
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Joelton
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03-Aug-2021 09:29
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Elite Commercial Reit posts H1 DPU of 2.63 pence, 8.7% above IPO projection
ELITE Commercial Reit EliteComREIT GBP: MXNU 0%' s distribution per unit (DPU) rose by 34.9 per cent to 2.63 pence for the six-month period ended June 30, from 1.95 pence a year ago.
The DPU was also 8.7 per cent higher than the 2.42 pence the real estate investment trust had forecast upon its initial public offering (IPO), which was completed on Feb 6, 2020.
Gross revenue was up 70.6 per cent to £ 15.9 million for the half-year period, from £ 9.3 million a year ago, and also up 37.7 per cent from its IPO projection of £ 11.5 million.
The Reit' s results were boosted by contributions from its newly acquired portfolio, which is 99 per cent leased to the AA-rated UK government, the manager said in a bourse filing on Monday.
The Reit had in March completed its maiden acquisition of 58 properties in the UK for £ 212.5 million.
Net property income grew by 69.9 per cent on year to £ 15.4 million from £ 9.1 million, and was also 37 per cent higher than its IPO forecast of £ 11.2 million.
Distributable income rose 71.3 per cent on year to £ 11.2 million from £ 6.5 million, up 37.1 per cent from its IPO projection of £ 8.1 million.
The distribution will be paid out on Sept 24, after the record date on Aug 11.
The manager also noted that finance costs were 62.2 per cent higher than IPO forecasts, largely due to a drawdown of additional loans to finance the newly acquired properties.
It added that it is in the midst of applying for a technical listing of its UK unit, Elite UK Commercial Holdings, on The International Stock Exchange to enhance its tax structure and reap tax savings to further improve the Reit' s distributable income, and the listing will likely be completed in the third quarter of 2021.
Chief executive of the manager Shaldine Wang said: " The acquisition increases our overall portfolio' s London exposure to about 14 per cent and this is beneficial to the Reit' s long-term rental and capital growth as London properties have higher value, growth and redevelopment potential, and liquidity.
" We remain focused on realising growth opportunities via acquisition of assets which are leased by various ministries of the UK government through our right of first refusal pipeline from the Reit' s sponsors and open market supply."
The Reit' s portfolio is primarily occupied by the Department for Work and Pensions, which is the UK' s public service department for crucial welfare, pensions and child maintenance policy.
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coco66
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02-Aug-2021 20:27
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Good advice bro... thanks. Good to plan ahead.
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invest4more
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02-Aug-2021 12:52
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Yea saw some bb dump a whole lot of shares late this morning. But good news in a way also la... then the price for the dividend reinvestment will be lower | ||||
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prophetjul
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02-Aug-2021 11:02
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No. They have to give notice one year ahead of the option exercise at Mar 23. Failing which, the option will lapse. BTW someone just dumped a whole load of shares???? |
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Rokawa
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02-Aug-2021 10:55
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Ah so does it mean between Mar22 to Mar23 is the period tenant can exercise option?
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PhillipTan
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02-Aug-2021 10:39
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Elite Commercial Reit posts H1 DPU of 2.63 pence, 8.7% above IPO projectionElite Commercial Reit' s distribution per unit (DPU) rose by 34.9 per cent to 2.63 pence for the six-month period ended June 30, from 1.95 pence a year ago.The DPU was also 8.7 per cent higher than the 2.42 pence the real estate investment trust had forecast upon its initial public offering (IPO), which was completed on Feb 6, 2020. Gross revenue was up 70.6 per cent to £ 15.9 million for the half-year period, from £ 9.3 million a year ago, and also up 37.7 per cent from its IPO projection of £ 11.5 million. The Reit' s results were boosted by contributions from its newly acquired portfolio, which is 99 per cent leased to the AA-rated UK government, the manager said in a bourse filing on Monday. The Reit had in March completed its maiden acquisition of 58 properties in the UK for £ 212.5 million. Net property income grew by 69.9 per cent on year to £ 15.4 million from £ 9.1 million, and was also 37 per cent higher than its IPO forecast of £ 11.2 million. Distributable income rose 71.3 per cent on year to £ 11.2 million from £ 6.5 million, up 37.1 per cent from its IPO projection of £ 8.1 million. The distribution will be paid out on Sept 24, after the record date on Aug 11. The manager also noted that finance costs were 62.2 per cent higher than IPO forecasts, largely due to a drawdown of additional loans to finance the newly acquired properties. It added that it is also in the midst of applying for a technical listing of its UK unit, Elite UK Commercial Holdings, on the International Stock Exchange to enhance its tax structure and reap tax savings to further improve the Reit' s distributable income. Units of Elite Commercial Reit last closed flat at 67.5 pence on Friday. |
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prophetjul
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02-Aug-2021 10:24
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Yes. Risk is in Mar 23. However, the tenant has to give a year' s notice to exercise the option. So the key date is Mar 22 next year. If they do not exercise the option, the NAV will likely rise rapidly
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Rokawa
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02-Aug-2021 10:15
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1H performed better than estimated. Epsom break lease initiated because of property sales. Income contribution should be < 1% of 95+58 properties (IPO+New) Can maintain above 2.58 pence dpu would be good for each payout, i think. Risk is in i think Mar23? when break lease expiry becomes an option again for 63.7% of the property. |
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invest4more
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02-Aug-2021 09:53
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@coco66, this " tantan888" is talking out of his ass and doesn' t know what he' s talking about. The reason why the gearing shot up was because the manager opted not to do a preferential offering to all shareholders at such an undervalued price (higher cost of equity). In this sense, the decision not to do so was to the benefit of minority shareholders. As a result of the higher gearing, DPU accretion for the deal went up from the 3.x% projected to 8.x%. tantan888 did not do his research properly. Importantly, when the manager offered equity to the seller, they did so at 0.68pounds, which was higher than the REIT' s price at the time (still higher than the REIT' s price as of this morning). Who tf would take up a rights issue at a higher price than the market price right? So this offer was actually negatively dilutive i.e. good for minority shareholders, who got a better price than the bb. Yes, high gearing means higher likelihood for EFR in the future. Personally, am looking forward to when it happens to apply plenty of excess rights at a good price. Nowhere else will you find a 7.8~% yield (as of most recent 1H results) where the tenants are basically all AA+-rated. Undervalued gem. |
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Rokawa
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02-Aug-2021 08:27
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Elite results is out. for 1H 2021 | ||||
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coco66
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30-Jul-2021 10:03
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Thought this may be insightful. Extract from user " tantan888" from another forum: " EliteComREIT GBP(MXNU.SI) I have sold my little stake in Elite Commercial REIT, on the back of what I feel like is a not a risk worth taking. I bought into the REIT because it had an attractive value proposition: - Trading at roughly nav: GBP 0.66 for a NAV of 0.65, on an uptrend since IPO (started at 0.6) - A solid 5p DPU, meaning it' s trading at 7.5% - An extremely attractive gearing ratio of 31% So not only this REIT had a very good yield, it also had an impressive room for growth. Then came the acquisition. The acquisition was presented to shareholders as this: - 3.2% DPU accretion from 1.95 to 2.02p (vs their IPO period of 6 Feb 2020 &ndash 30 June 2020) - Unchanged NAV of 0.61 - Gearing going to 37.7% Financing was a bit peculiar. They offered direct equity to the seller. That' s right, to buy these properties, Elite Commercial created new shares that they gave to the seller a.k.a. " consideration units" . That was about the 40% of the cost, the rest was borrowings. But the deal is slightly different from what was presented to shareholders because gearing has shot up to 42.1% In addition, the sponsor has been diluted from ~9% to 6.4% -- which was already low. As for the DPU it' s too early to say if the gain will materialize. The gearing is now so high that it has totally killed the potential for growth of the REIT. I therefore have decided to have the " wait and see" approach. I do not want to be a victim of not well established REIT and sponsors that will dilute their shareholders when the EFR eventually comes, because rest assured it will come. I am also not sure that paying the properties with equity was beneficial to the shareholders. I' d rather have participated in a rights issue. Elite Commercial is too risky in my opinion to chase a 7.5% dividend. There are other opportunities out there with more established track record for a similar yield. For these reasons, I am temporarily out and will observe from the sidelines. But as usual, this is only my personal opinion. DYODD" |
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prophetjul
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26-Jul-2021 12:15
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Here is to HOPing | ||||
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chartistkao1
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26-Jul-2021 11:08
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soon the market will rerate it and push elite commercial to $0.90 by oct 2021
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PhillipTan
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22-Jul-2021 14:09
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DBS initiates ' buy' on Elite Commercial Reit, citing resilient portfolioElite Commercial Real Estate Investment Trust (Elite Commercial Reit) occupies a unique position in the Reits space given its large exposure to the UK government, DBS Group Research said in a research note on Thursday.The research team initiated coverage on the UK-focused Reit with a " buy" call and target price of £ 0.80, noting the Reit has a resilient and counter-cyclical portfolio that provides stable cash flows through the economic cycles. Units of the Singapore-listed Reit ended the Thursday morning trading session at £ 0.67, up 0.5 pence or 0.8 per cent. The Reit' s portfolio will likely see minimal risks as over 99 per cent of its gross floor area is leased to the UK government' s Department for Work and Pensions (DWP), DBS said. The DWP is responsible for welfare, pensions, and child maintenance, and is seen as a counter-cyclical occupier that can provide stability throughout economic cycles. DBS also likes that the Reit' s leases incorporate rent reviews every five years based on the UK' s consumer price index. There is an annual minimum increase of 1 per cent and a maximum of 5 per cent, which gives the portfolio " built-in upside" . Selected leases will likely see an 8 per cent rental growth during the next rent review in April 2023, which should result in a 7.4 per cent rental growth for the portfolio that year, the research team said. DBS also noted the Reit' s 100 per cent occupancy rate and its long weighted average lease expiry (WALE) of 7.2 years, which should provide strong income visibility. It further noted that the Reit has consistently achieved 100 per cent of rent collection in advance since its listing. In March 2023, lease break options will kick in for 64.5 per cent of Elite Commercial Reit' s portfolio. These must be exercised with a one-year notice period. DBS has made a conservative assumption that half those options will be exercised, but believes this is " highly unlikely" . It therefore expects an uplift in valuations if the options are not exercised by March 2022. Units of Elite Commercial Reit have remained resilient relative to peers with portfolios focused on Singapore offices. The counter has rebounded quickest amid UK office Reits, and is now almost back to pre-Covid-19 levels. The Reit' s distribution per unit has outperformed forecasts made at the time of the initial public offering, despite the challenging environment. |
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PhillipTan
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12-Jul-2021 08:35
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Defying gravity: Retail and office S-Reits with higher occupancyIn a previous publication of Reit Watch, we noted that the average occupancy rate of the sector (excluding hospitality Reits) decreased from approximately 96 per cent as at March 31, 2020 to 95 per cent as at March 31, 2021.The pandemic had varying degrees of impact on individual retail and office S-Reits, which were sub-sectors that saw the biggest dips in average occupancy rates of 2.1 and 1.9 percentage points (ppt) respectively. However, there were three retail and office S-Reits that maintained or saw a boost in occupancy rates (based on reported data and barring methodology differences): IReit Global IREIT Global, Elite Commercial Reit EliteComREIT GBP and Frasers Centrepoint Trust Frasers Cpt Tr. Elite Commercial Reit (Elite), an office S-Reit with assets in the UK, maintained full occupancy over the year. It attributed its portfolio resilience and stable cashflows to the unique nature of its tenants. The Reit derives over 99 per cent of gross rental income from the UK government, of which 92.6 per cent is contributed by the Department for Work and Pensions. Following its maiden acquisition of 58 properties across the UK in March 2021, Elite further extended its exposure to UK sovereign credit and welcomed a new substantial unitholder - the European Institution Partner Reinsurance Company (PartnerRE). |
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prophetjul
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27-Jun-2021 09:57
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i like your enthusiasm! :)
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Calmroom
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27-Jun-2021 00:18
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16 trading days left until UK supposed to re-open on 19 Jul. Good news may be released earlier to prepare the UK public. Once pandemic restrictions get lifted, all the Jobcentre Plus branches should become extra busy with many people needing help to find jobs. Good for Elite of course. From * coronavirus.data.gov.uk * can see things are going well with 83.7% of adults jabbed once and 61.2% double jabbed. Latest daily death is 23 people out of a population of about 68,236,097 people ( worldometer 26 Jun ). If this re-opening is not postponed again, I' m expecting GBP to appreciate and hopefully touch SG $1.90 for a start. Then rise higher and higher as the UK economy improves. Meaning even if dividends remain unchanged, we can still look forward to getting more and more money in SGD. 
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Calmroom
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24-Jun-2021 12:01
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Not counting today, if half year results are released on 23 Jul a.m. like last year, then only 19 trading days left to wait. ( Subtract public holiday on 20 Jul. ) So quite fast no need wait long. 
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Rokawa
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23-Jun-2021 21:44
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well when it reach 60 pence, then see market depth gd or weak support then wait n see. but most of the time is always not ideal after purchase haha. when buy it drop. when wait it goes up. normal haha. anyway 60 pence with present currency equates to rough avg price of my purchases before. which is why target 60 pence. although after the acquisition of 58 new properties, i dun think it will increase distribution " very significantly" haha thats why prefer to roughly re-enter same price. |
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Calmroom
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23-Jun-2021 18:29
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Interesting CNA news today about one of Elite' s sponsors, Sunway. " Singapore sovereign wealth fund GIC will invest RM 750 million ( S$180 million ) in Sunway' s healthcare business." Means Sunway should be a good sponsor for Elite. 
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