- Elite UK REIT's DPU for 1H25 surged by 10% y-o-y to 1.54 pence, in line with our expectation and forming 52% of our FY25e estimates. The improvements were mainly attributed to 5pptsYoY increase in payout ratio and 12.8% y-o-y savings in interest expense.
- - Read this at SGinvestors.io -
- Elite UK REIT has divested £4mil worth of assets year-to-date at prices 7.9% above valuation, with another £33.2mil in the pipeline potentially to be monetised in FY26e. Several asset rejuvenation plans are in place, including early renewals with DWP, Purpose-Built Student Accommodation (PBSA) portfolio expansion, and acquisitions to drive further DPU growth.
The Positives
Improved operating metrics.
- - Read this at SGinvestors.io -
- We expect some space to be returned to Elite UK REIT in 2028 while the remainder could see rental reversion of ~20–30%, as the property is currently under-rented relative to market rates.
Portfolio rejuvenation.
- Read more at SGinvestors.io.
