The improvement is attributed to interest savings through capital management and interest rate optimisation
[SINGAPORE] The manager of Elite UK Reit 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.
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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’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.
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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.
Units of Elite UK Reit closed on Monday unchanged at £0.36, before the news.
