{"id":81294,"date":"2025-11-19T11:24:14","date_gmt":"2025-11-19T03:24:14","guid":{"rendered":"https:\/\/www.kgieworld.sg\/research\/?p=81294"},"modified":"2025-11-19T11:24:15","modified_gmt":"2025-11-19T03:24:15","slug":"company-report-elite-uk-reit-elite-sp-mxnu-si","status":"publish","type":"post","link":"https:\/\/www.kgieworld.sg\/research\/company-report-elite-uk-reit-elite-sp-mxnu-si\/","title":{"rendered":"Company Report: Elite UK REIT (ELITE SP\/MXNU.SI)"},"content":{"rendered":"\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<p class=\"wp-block-paragraph\">Company Update: <em>19 November 202<\/em>5<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\"><strong>Sustained DPU Growth Supported By Accretive Acquisitions<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Continued DPU growth and strong occupancy.<\/strong> 9M25 distributable income rose 6.2% YoY to \u00a314.8mn, supporting a 9.4% YoY increase in DPU to 2.33 pence. Portfolio occupancy improved to 98.6%, excluding PBSA redevelopment sites, driven by rental reversions at Salford, Billingham and Edinburgh, as well as contributions from the three accretive government-leased acquisitions totalling \u00a39.2mn completed in June 2025.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading has-white-color has-text-color has-background\" style=\"background-color:#012169\">3Q25 Results: Maintaining Momentum<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Revenue rose 1.0% YoY to \u00a328.3mn, supported by rental reversions and the \u00a39.2mn acquisition of Priory Court, Custom House and T\u0177 Merlin. Net property income declined 0.5% due to repositioning costs, but distributable income rose 6.2% YoY to \u00a314.8mn, driving a 9.4% DPU growth to 2.33 pence. Management highlighted continued discipline in treasury and cost management alongside lease regear discussions for 2028 expiries.<\/p>\n\n\n\n<div class=\"wp-block-spacer\" style=\"height: 20px;\" aria-hidden=\"true\">\u00a0<\/div>\n\n\n\n<h2 class=\"wp-block-heading has-white-color has-text-color has-background\" style=\"background-color:#012169\">Proactive Portfolio Management<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The total value of portfolio stood at \u00a3419.7mn across 148 assets as of 30 Sep 2025. Following the accretive \u00a39.2mn acquisitions and earlier divestments of vacant assets, occupancy reached 98.6%, while WALE was 2.7 years due to upcoming lease expiries. Elite is actively engaging the DWP to regear leases ahead of 2028 maturities alongside the planning application on the Peel Park data-centre development and PBSA pipeline to diversify earnings.<\/p>\n\n\n\n<div class=\"wp-block-spacer\" style=\"height: 20px;\" aria-hidden=\"true\">\u00a0<\/div>\n\n\n\n<h2 class=\"wp-block-heading has-white-color has-text-color has-background\" style=\"background-color:#012169\">Valuation & Action<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">We reiterate our <strong>OUTPERFORM<\/strong> rating of Elite UK REIT with a raised target price of <strong>\u00a30.407<\/strong>. Our DDM valuation uses 2.0% terminal growth rate and an 8.5% cost of equity. Elite UK REIT\u2019s government-anchored leases, prudent capital management and pipeline diversification underpin sustainable returns and NAV resilience. \u00a0<\/p>\n\n\n\n<div class=\"wp-block-spacer\" style=\"height: 20px;\" aria-hidden=\"true\">\u00a0<\/div>\n\n\n\n<h2 class=\"wp-block-heading has-white-color has-text-color has-background\" style=\"background-color:#012169\">Risks<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Lease renewal uncertainty, high-interest rate environment and construction and planning risks.\u00a0<\/p>\n\n\n\n<div class=\"wp-block-spacer\" style=\"height: 25px;\" aria-hidden=\"true\">\u00a0<\/div>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-luminous-vivid-orange-background-color has-background wp-element-button\" href=\"https:\/\/www.kgieworld.sg\/securities\/resources\/ck\/files\/docs\/research\/ELITE%20UK%20REIT_COMPANY%20UPDATE_3Q25.pdf\">Read Full Report<\/a><\/div>\n<\/div>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/t.me\/kgisg\"><img fetchpriority=\"high\" decoding=\"async\" width=\"760\" height=\"208\" src=\"https:\/\/www.kgieworld.sg\/research\/wp-content\/uploads\/2021\/04\/subscribegif.gif\" alt=\"Subscribe Now\" class=\"wp-image-3937\"\/><\/a><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n","protected":false},"excerpt":{"rendered":"<p>Continued DPU growth and strong occupancy. 9M25 distributable income rose 6.2% YoY to \u00a314.8mn, supporting a 9.4% YoY increase in DPU to 2.33 pence. Portfolio occupancy improved to 98.6%, excluding PBSA redevelopment sites, driven by rental reversions at Salford, Billingham and Edinburgh, as well as contributions from the three accretive government-leased acquisitions totalling \u00a39.2mn completed in June 2025.<\/p>\n","protected":false},"author":17,"featured_media":81297,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","_uag_custom_page_level_css":"","footnotes":""},"categories":[14],"tags":[],"class_list":["post-81294","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-company-reports"],"aioseo_notices":[],"uagb_featured_image_src":{"full":["https:\/\/www.kgieworld.sg\/research\/wp-content\/uploads\/2025\/11\/Elite-UK-REIT-Logo.png?wsr",1200,630,false],"thumbnail":["https:\/\/www.kgieworld.sg\/research\/wp-content\/uploads\/2025\/11\/Elite-UK-REIT-Logo-150x150.png?wsr",150,150,true],"medium":["https:\/\/www.kgieworld.sg\/research\/wp-content\/uploads\/2025\/11\/Elite-UK-REIT-Logo-300x158.png?wsr",300,158,true],"medium_large":["https:\/\/www.kgieworld.sg\/research\/wp-content\/uploads\/2025\/11\/Elite-UK-REIT-Logo-768x403.png?wsr",768,403,true],"large":["https:\/\/www.kgieworld.sg\/research\/wp-content\/uploads\/2025\/11\/Elite-UK-REIT-Logo-1024x538.png?wsr",800,420,true],"1536x1536":["https:\/\/www.kgieworld.sg\/research\/wp-content\/uploads\/2025\/11\/Elite-UK-REIT-Logo.png?wsr",1200,630,false],"2048x2048":["https:\/\/www.kgieworld.sg\/research\/wp-content\/uploads\/2025\/11\/Elite-UK-REIT-Logo.png?wsr",1200,630,false]},"uagb_author_info":{"display_name":"Enya Tan","author_link":"https:\/\/www.kgieworld.sg\/research\/author\/enya-tankgi-com\/"},"uagb_comment_info":0,"uagb_excerpt":"Continued DPU growth and strong occupancy. 9M25 distributable income rose 6.2% YoY to \u00a314.8mn, supporting a 9.4% YoY increase in DPU to 2.33 pence. Portfolio occupancy improved to 98.6%, excluding PBSA redevelopment sites, driven by rental reversions at Salford, Billingham and Edinburgh, as well as contributions from the three accretive government-leased acquisitions totalling \u00a39.2mn completed&hellip;","_links":{"self":[{"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/posts\/81294","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/comments?post=81294"}],"version-history":[{"count":1,"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/posts\/81294\/revisions"}],"predecessor-version":[{"id":81298,"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/posts\/81294\/revisions\/81298"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/media\/81297"}],"wp:attachment":[{"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/media?parent=81294"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/categories?post=81294"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/tags?post=81294"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}