Elite Commercial REIT reports 2H21 net property income rose 62 percent

Pound sterling coin. Photo by Brett Jordan on UnsplashPound sterling coin. Photo by Brett Jordan on Unsplash

Elite Commercial REIT reported Monday its second half net property income rose 62 percent on-year to GBP18.34 million, driven by the REIT’s first acquisitions and on a lower tax rate. 

Revenue for the six months ended 31 December increased 61.7 percent on-year to GBP18.84 million, the U.K.-focused REIT said in a filing to SGX. 

The distribution per unit (DPU) for the second half came in at 2.80 pence, up 12.4 percent from 2.49 pence in the year-ago period, the REIT said. 

Elite Commercial REIT’s acquisition of 58 commercial properties in the U.K. for 212.5 million pounds was completed on 9 March.

Earlier this year, the REIT was admitted to the International Stock Exchange, which qualifies the REIT’s U.K. entities as a U.K. REIT group, entitled to a lower tax rate, the filing said.

For the full year, Elite Commercial REIT posted revenue of GBP34.73 million, up 65.7 percent on-year. The DPU for 2021 came in at 5.43 pence, up 22.3 percent from 4.44 pence in 2020, the filing said. 

The REIT’s projections from its initial public offering (IPO) prospectus were for 2021 revenue of GBP23.27 million and DPU of 4.88 pence, the filing said.

The portfolio remained fully occupied as of end-2021, with 99.9 percent of rent for the three months ending 31 March collected in advance, Elite Commercial REIT said. 

Outlook

In its outlook, the REIT noted its properties have built-in inflation-linked rental escalation clauses, offering potential upside at the rent revenue in the fifth year of the leases, with the new rates to start in April 2023. The minimum increase annually is 1.0 percent and the maximum is 5 percent, the filing said.

The REIT added it has obtained a new five-year lease for the East Street, Epsom. property, with an around 11 percent rental increase to start in April 2023. 

Read more details of Elite Commercial REIT’s results.