ELITE Commercial Reit on Monday (Feb 19) posted a distribution per unit (DPU) of 1.33 pence for the second half ended Dec 31, 2023, representing a payout ratio of 90 per cent.
H2 DPU was down 40.9 per cent from the 2.25 pence paid in the same period the year before, which was based on a payout ratio of 100 per cent.
Assuming a payout ratio of 100 per cent, DPU for the half-year period would be 1.48 pence, down 34.2 per cent from 2.25 pence.
The drop in DPU was mainly due to a marginally enlarged unit base on a year-on-year basis. In December 2023, the real estate investment trust (Reit) launched a non-renounceable preferential offering at £0.27 per unit to raise about £28 million (S$47.2 million).
Revenue for the period inched up 0.9 per cent year on year to £18.5 million from £18.4 million, mainly from rent escalations for 136 assets following inflation-linked rental uplift from Apr 1, 2023, offset by eight assets vacated in that month.
Meanwhile, net property income (NPI) rose 21.1 per cent to £21.4 million from £17.6 million in the same period the previous year. The manager attributed the jump to a dilapidation settlement related to the vacated assets.
Distributable income fell 27.4 per cent on the year to £7.9 million from £10.9 million due to higher borrowing and asset holdings costs, the manager said.
The distribution will be paid out on Mar 28, after the record date on Feb 27.
For the full year, DPU stood at 3.07 pence, down 36.2 per cent. Revenue increased 1.5 per cent to £37.6 million, while NPI grew 15.7 per cent to £41.4 million. The amount available for distribution to unitholders after retention was 21.9 per cent lower at £18 million.
Units of Elite Commercial Reit closed flat at £0.26 on Friday.
