Elite Commercial REIT posts 1Q22 revenue grew 39 percent

British pound notes. Photo by Christopher Bill on UnsplashBritish pound notes. Photo by Christopher Bill on Unsplash

Elite Commercial REIT reported Friday its revenue for the first quarter grew 39.4 percent on-year to GBP9.21 million on contributions from acquisitions and tax savings.

In March 2021, the REIT acquired 58 commercial properties in the U.K. for GBP212.5 million.

Distributable income for the January-to-March quarter increased 36.2 percent on-year to S$6.14 million, the U.K.-focused REIT said in a filing to SGX.

The distribution per unit (DPU) came in at 1.28 pence for the quarter, up 4.9 percent from 1.22 pence in the year-ago quarter, Elite Commercial REIT said. The size of the increase was partly offset by an enlarged equity base, the REIT said.

The REIT noted its portfolio remains 100 percent occupied, and that it has removed the lease break options from a total of 109 assets occupied by its main tenants, the U.K. government’s Department for Work and Pensions (DWP), and the U.K. government’s Ministry of Defence (MOD). In April 2023, the leases will see built-in rental escalation, which is mostly pegged to the U.K. consumer price index, the REIT said.

Elite Commercial REIT’s portfolio has 155 office assets in the U.K., with more than 99 percent leased to the U.K. government.

In its outlook, the REIT cited a “robust pipeline” of assets from its sponsors over which it has a right of first refusal, as well as potential opportunities from third parties.

Read more details of Elite Commercial REIT’s results.