Elite UK Reit posts 10% rise in H1 2025 DPU to £0.0154

The manager of Elite UK real estate investment trust (Reit), announced a 5.8 per cent year-on-year increase in distributable income to £9.7 million (S$16.7 million) in H1 2025, from £9.2 million during the same period last year.

Revenue for the half was down 0.5 per cent to £18 million, from £18.1 million in H1 2024, said the manager on Thursday (Jul 31). It also noted that recognising rental income on a straight-line basis over the lease term for H1 2025 had an effect of negative £0.7 million.

Net property income for the half dipped 1.3 per cent to £18 million, from £18.2 million in the corresponding period of the previous year. The distribution per unit for the quarter grew 10 per cent to £0.0154, from £0.0140 in H1 2024.

The improved financial performance was driven by positive rental reversion and new rental income from the acquisition of three government-leased properties in June 2025, said the Reit manager.

Interest savings arising from capital management and interest rate optimisation, tax planning and tax benefits from sustainability-related capital expenditure also led to a rise in distributable income.

As at the end of H1 2025, net gearing ratio fell to 40.7 per cent, from 42.5 per cent as at H1 2024. Borrowing costs fell 0.1 per cent to 4.8 per cent as at Jun 30, 2025, due to the manager’s “refinancing and debt optimisation initiatives”.

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The weighted average lease expiry for the Reit’s portfolio as at Jun 30 came in at 2.9 years.

The manager has received a planning application for the Lindsay House property in Dundee, Scotland, to be converted into a 168-bed purpose-built student accommodation. The property is situated within walking distances of universities and transport nodes.

The manager’s chief executive officer, Joshua Liaw, said: “The first half of 2025 has begun to reflect the results of our strategic efforts.”

Units of Elite UK Reit closed flat at £0.345 on Wednesday.