Elite UK REIT, the only UK-focused real estate investment trust listed in Singapore, has reported a 10% year-on-year increase in its distribution per unit (DPU) for the first half of 2025, reaching 1.54 pence. This performance slightly exceeded expectations, supported by a 95% payout ratio compared to 90% in the same period last year, according to DBS Group Research. The trust’s revenue grew marginally by 0.5% to £18.7 million, driven by positive rental reversions and contributions from newly acquired properties.
The REIT is actively engaging in lease regearing negotiations with the Department for Work and Pensions (DWP), which is a major tenant contributing 92% of its gross rental income. This strategic move aims to address lease expiries in 2028, with plans to regear approximately 30% of the portfolio by the end of the year.
In a bid to diversify and enhance its portfolio, Elite UK REIT has received planning approval to convert Lindsay House in Dundee into a 168-bed purpose-built student accommodation (PBSA). This project is part of a broader strategy to capitalise on the favourable supply-demand dynamics in the UK’s student housing market. The conversion is expected to be completed before the academic year starting in September 2027.
Additionally, the REIT is progressing with plans to develop a hyperscale data centre at Peel Park, Blackpool. The asset’s valuation has already increased by 36% year-on-year, and further growth is anticipated with the secured power capacity doubling.
Elite UK REIT maintains a “BUY” recommendation from DBS Group Research with a revised target price of £0.40, reflecting its strategic focus and proactive portfolio management. The trust’s forward yield of over 9% and trading at a 0.85x price-to-book value ratio offer compelling value to investors.
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