Elite Commercial REIT posts 1H21 net property income beat IPO forecast

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Elite Commercial REIT reported Monday its first half net profit came in at 15.39 million British pounds on revenue of 15.90 million pounds, beating the projection from its initial public offering (IPO) prospectus by 37 percent.

For the 2020 period of listing date 6 February to 30 June, the REIT reported net property income of 9.06 million pounds and revenue of 9.32 million pounds.

The distribution per unit (DPU) was 2.63 pence, beating the IPO projection of 2.42 pence by 8.7 percent, and higher than the 1.95 pence for 2020’s 6 February to 30 June period, the REIT said in a filing to SGX. Payment of the DPU to shareholders is expected on 24 September.

Elite Commercial REIT’s acquisition of 58 commercial properties in the U.K. for 212.5 million pounds was completed on 9 March, but that boosted finance costs to 62.2 percent above the IPO’s projections on an addition loan to cover the deal, the filing said.

The portfolio was fully occupied as of end-June, with REIT receiving 99.7 percent of rent for the July-to-September period in advance, the filing said.

“We are pleased to deliver a strong set of financial results for the first half of this financial year with our DPU performance exceeding the IPO projection and demonstrating year-on-year growth,” Shaldine Wang, CEO of the REIT’s manager, said in the statement. “This is attributed to the stable income generated by our unique recession-proof portfolio, which is 99 percent leased to the AA-rated U.K. government and provides crucial social infrastructure to support the U.K.’s social fabric through economic cycles, as well as contribution from our recent portfolio acquisition.”

She added the REIT’s manager is also applying for a technical listing of its U.K. unit, Elite UK Commercial Holdings, on The International Stock Exchange (TISE) to improve the tax structure and boost distributable income. The admission to TISE is expected in the third quarter, the REIT said.

As of end-December, the REIT’s portfolio was valued at 515.3 million pounds.