- Elite UK REIT (SGX:MXNU) is a recession-resistant counter-cyclical yield play. The impending divestment of Peel Park site would further reduce gearing and could lead to a potential special dividend.
1Q25 DPU grew 9.6% y-o-y.
- - Read this at SGinvestors.io -
Good results supported by interest and tax savings.
- 100% of Elite UK REIT’s debt are sustainability-linked loans, which led to lower interest rates with improvement in its assets’ energy performance. Borrowing costs improved 0.1ppt q-o-q and 0.4ppt y-o-y to 4.8% in 1Q25. Tax expense decreased by 13.6% y-o-y due to higher capital allowances claims from sustainability enhancement works.
Occupancy uplift by divesting vacant properties.
- - Read this at SGinvestors.io -
- Portfolio occupancy should improve further to 95.2% after Elite UK REIT completes the divestments previously announced, namely Hilden House at Warrington and St Paul’s House at Chippenham.
Positive rental reversions.
- Read more at SGinvestors.io.
