Elite UK REIT, the only UK-focused real estate investment trust listed in Singapore, has been highlighted by DBS in its latest analyst report as a promising investment. The report, dated 1 August 2025, maintains a ‘buy’ rating for the REIT with a target price of £0.40, reflecting a 14% upside from its last traded price of £0.35.
DBS analysts note that Elite UK REIT’s unique position in the market, with a significant portion of its rental income derived from leases with the AA-rated UK Government, provides a stable cash flow. The REIT’s distribution per unit (DPU) is projected to grow at a compound annual growth rate of approximately 3.5% from FY25 to FY27, driven by recent acquisitions, improved occupancy rates, and increased distribution payout ratios.
The REIT is also exploring strategic asset repositioning, including plans to convert several properties into purpose-built student accommodations (PBSA) to capitalise on favourable supply-demand dynamics in the UK. Additionally, a planning application for a data centre at Peel Park is underway, which could significantly enhance the net asset value and potentially boost share prices.
DBS highlights the REIT’s proactive management approach, including early lease regearing negotiations with the Department for Work and Pensions, which could mitigate lease expiry risks. The report underscores the REIT’s attractive forward yield of 9% and its strategic focus on value creation within its portfolio.
The REIT’s strategic initiatives and stable financial outlook position it well for continued growth, with DBS affirming its positive outlook and increased target price.
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