- Elite UK REIT's 1Q25 DPU climbed by 9.6% y-o-y to 0.76 pence, in line with our expectation and forming 26% of our FY25e estimates. The improvements were underpinned by a 24.4% y-o-y surge in NPI and several one-off items, including dilapidation settlements.
- - Read this at SGinvestors.io -
- Elite UK REIT's share price currently trades at a 9.7% FY25e dividend yield and 0.73x P/NAV.
The Positives
Sound operating metrics.
- - Read this at SGinvestors.io -
- Elite UK REIT is also in negotiations for an early renewal of ~ 25% of space with its largest tenant, DWP (Mar25 GRI: 94.4%), ahead of the lease expiry in 2028. Given that the property is currently under-rented compared to market rates, we forecast a potential rental reversion of ~20–30% upon successful renewal.
Portfolio rejuvenation.
- Read more at SGinvestors.io.
